The European Champions Report 2018
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The European Champions Report 2018 footballbenchmark.com What is KPMG Football Benchmark? Consolidated and verified database of football clubs' financial and operational performance. Daily updated and historical tracking of football clubs’ social media performance. Business intelligence tool enabling relevant comparisons with competitors. An ever-growing platform that includes financial and operational data from over 200 European and South American football clubs and social media information for 500+ clubs and 2,000+ footballers. footballbenchmark.com © 2018 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The European 3 Champions Report 2018 Foreword The 2016/17 season witnessed some Rotterdam, Juventus FC, Real Madrid historical on-pitch achievements, with CF, SL Benfica, while disclosing less the usual suspects and few newbies information regarding other national sitting at the table of the European champions: Celtic FC, FC Basel champions. LaLiga winners Real 1893 and FC Viitorul Constanţa. For Madrid CF confirmed their pride as the second consecutive season, “most winning football club in the KPMG’s report does not feature the world”, winning back-to-back UEFA biggest club by operating revenues, Champions League for the first time Manchester United FC, that reported in modern times against Juventus FC. GBP 581 million (EUR 676 million1), as The Bianconeri did not abdicate their the club finished in fifth position in the domestic dominance, lifting their sixth 2016/17 football season. consecutive Serie A title, but fell short Football is a growing business, and of the biggest prize for the second time the trend is confirmed by the fact that in three years. Andrea Sartori all the clubs but two (FC Bayern Partner As new entries in our report, FC München and FC Basel 1893) increased Spartak Moscow, representing their operating revenues year-on- KPMG Global Head of Sports 2 [email protected] the biggest European country by year in local currency . The Spanish population, and Feyenoord Rotterdam, giants are the richest champions celebrated a long-awaited triumph flaunting a total revenue of EUR 671 in the Russian Premier League and million; however, taking into account Eredivisie, respectively. However, the year-on-year growth, AS Monaco the headline story of the past football FC make the headlines again with an season was undoubtedly the Ligue 1 impressive 86%, followed by Scottish triumph of AS Monaco FC, who were side Celtic FC (52%). Most prominently capable of emerging as champions for mid-size clubs, participation in the after 17 years against all the odds; the top flight UEFA competition massively Monegasques’ domestic campaign, impacts not only the broadcasting with the addition of an impressive segment, but also matchday (due to Champions League ride until the more fixtures played at home ground) semi-finals, was the umpteenth and commercial (from sponsorship demonstration of how a well-coached bonuses). Unsurprisingly, AS Monaco club can overachieve even in the least FC (45%) and Celtic FC (30%) are also foreseeable circumstances. the two clubs with the highest “UEFA- dependence” in our report. In the second edition of “The European Champions Report”, Digitalisation is gaining relevance year KPMG’s Football Benchmark after year, with football clubs trying team highlights and compares to reach out to fans from all over the the financial performance of world in a “think global – act local” the domestic champions of 12 strategy, engaging them with tailored European leagues, representing both content, behind-the-scenes news and the elite and lesser-known football rewarding programmes. The social markets. More specifically, we focus media follower base’s ranking3 is on AS Monaco FC, Beşiktaş JK, topped again by Los Blancos, being Chelsea FC, FC Bayern München, the most followed club on social FC Spartak Moscow, Feyenoord media with almost three times as 1 In order to conduct cross-league analysis and comparison, where the local currency is not EUR, for the purposes of this report all local currency figures have been converted using the average exchange rate for the 12 months prior to 30 June 2017. 2 After conversion in EUR, Chelsea FC also show a decrease. 3 Facebook, Twitter, Instagram and YouTube combined. © 2018 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The European 4 Champions Report 2018 many followers as second-placed Chelsea FC. On the other hand, some football players show staggering figures, as their social media reach is sometimes even bigger than that of the club for which they ply their trade: a phenomenon true for Cristiano Ronaldo (Real Madrid CF), James Rodríguez (FC Bayern München), David Luiz (Chelsea FC), Falcao (AS Monaco FC) and Pepe (Beşiktaş JK). One of the main challenges affecting football clubs in recent years has concerned the sustainability of their business. Despite eye-catching transfer deals and spiralling staff costs, the industry is headed towards a direction where being profitable is not a chimera anymore; indeed, all the European champions included in this report have scored an after-tax profit at the end of the 2016/17 season4. In this scenario, clubs excelling at player development and trading are likely to have a competitive edge. Juventus FC, Chelsea FC and SL Benfica represent the three best examples in this regard, as the profits on the disposals of Pogba, Oscar, Gonçalo Guedes and Lindelof, respectively, played a fundamental role in scoring a bottom-line profit at the end of the financial year. On the other hand, Real Madrid CF and FC Basel 1893 are the only clubs that decreased their bottom-line results, by 29% and 10% respectively. While for the Swiss champions the main reason can be attributable to lower proceeds from player trading activities, for the Merengues the quadruple of trophies caused a significant rise in staff costs (32%). We hope that you enjoy this year’s report and would like to invite you to visit footballbenchmark.com, KPMG’s football business intelligence tool in order to find more detailed information for these and many other football clubs. 4 For FC Spartak Moscow such information was not available at the date of publication. © 2018 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The European 5 Champions Report 2018 Highlights Total operating revenue ranking and y-o-y change EUR million Matchday Broadcasting Commercial UEFA 0 and Other Dependence 200 400 600 800 (%) (%) (%) (%) 8% 671 21 37 42 12 Real Madrid CF -1% 588 17 25 58 9 FC Bayern München 420 Did not 18 45 37 participate Chelsea FC -4% 21% 412 14 57 29 27 Juventus FC 145 43% 13 48 39 28 Beşiktaş JK 144 86% 6 76 18 45 AS Monaco FC 2% 128 19 55 26 22 SL Benfica 105 52% 42 40 18 30 Celtic FC 69 13% 28 14 58 8 Feyenoord Rotterdam 62 47 26 27 26 FC Basel 1893 -4% 60 22% 20 5 75 0.5 FC Spartak Moscow 3 7 75 18 N/A FC Viitorul Constanţa 0% 20% 40% 60% 80% 100% Source: KPMG Football Benchmark © 2018 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The European 6 Champions Report 2018 Key Performance Indicators AS Monaco FC Beşiktaş JK Celtic FC Average attendance 9,499 Average attendance 30,193 Average attendance 48,742 Utilisation ratio 58% Utilisation ratio 72% Utilisation ratio 81% Total staff costs 98.8 Total staff costs 70.3 Total staff costs 62.2 Profit/Loss after tax 0.1 Profit/Loss after tax 1.3 Profit/Loss after tax 8.0 EUR m EUR m EUR m Chelsea FC FC Basel 1893 FC Bayern München Average attendance 41,508 Average attendance 26,484 Average attendance 75,000 Utilisation ratio 100% Utilisation ratio 69% Utilisation ratio 100% Total staff costs 255.4 Total staff costs 31.7 Total staff costs 264.9 Profit/Loss after tax 1 7. 7 Profit/Loss after tax 4.7 Profit/Loss after tax 39.2 EUR m EUR m EUR m FC Spartak Moscow FC Viitorul Constanţa Feyenoord Rotterdam Average attendance 32,760 Average attendance 2,083 Average attendance 47,500 Utilisation ratio 73% Utilisation ratio 46% Utilisation ratio 93% Total staff costs N/A Total staff costs 3.0 Total staff costs 36.5 Profit/Loss after tax N/A Profit/Loss after tax 0.4 Profit/Loss after tax 6.2 EUR m EUR m EUR m Juventus FC Real Madrid CF SL Benfica Average attendance 39,489 Average attendance 68,896 Average attendance 55,994 Utilisation ratio 95% Utilisation ratio 85% Utilisation ratio 86% Total staff costs 261.8 Total staff costs 406.1 Total staff costs 74.7 Profit/Loss after tax 42.6 Profit/Loss after tax 21.4 Profit/Loss after tax 44.5 EUR m EUR m EUR m Source: KPMG Football Benchmark © 2018 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The European 7 Champions Report 2018 Social media follower base – Big 5 leagues (million, 1st December 2017) Country’s UEFA coefficient 208.0 1 72.9 2 61.4 4 46.5 3 7.9 5 0306090 120 150180 210 Facebook Twitter Instagram YouTube Social media follower base – Other leagues (million, 1st December 2017) Country’s UEFA coefficient 11.4 10 5.7 7 27 2.5 2.3 14 6 1.9 1.3 12 N/A 21 0 2468101214 Facebook Twitter Instagram YouTube Source: KPMG Football Benchmark © 2018 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.