Meeting with Lietuvos Futbolo Federacija Utena, 10 Nov 2017 European Club Football
• The European club footballing landscape and position of Lithuanian football;
• Youth academies and determinants of success (UEFA research);
• Example of Football Association of Slovenia. The European Club Footballing Landscape and Position of Lithuanian Football UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 Top division € revenue growth of 9.5% Growth of 10.7% in local currency terms
Revenues
Revenue grew in 41 of 54 leagues UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 Total top division revenue reaches €18.5billion
Domestic broadcasting UEFA Sponsorship Commercial Gate Other Value Revenue €6.3bn €1.9bn €4.4bn €1.5bn €2.6bn €1.4bn stream Revenue types Euro 3% currency 8% 29% 8% 12% 7% trend
Share total 34% 10% 24% 9% 15% 8% revenue % For 2nd year in a row UEFA & Commercial fastest growing UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 Strong revenue growth and anticipated TV growth led to high wage growth of 8.6%
Wages
Double digit wage inflation was commonplace - recorded in 11 of top 20 leagues. UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 Aggregate revenues: Relative league sizes by country FY2016 Top 7 leagues generate 81% revenue
€146m NOR
€148m 150m €707m SCO SWE RUS
€203m DEN €4.9bn 105m ENG KAZ €481m NED 125m €2.7bn POL €359m GER BEL 94m UKR €163m €225m AUT 71m €1.5bn 59m SUI CZE HUN FRA 58m ROU
€366m €2.5bn POR ESP €2.0bn ITA €734m €142m TUR GRE Lithuania had a total revenue of
91m ISR 5.4 million in FY 2016 UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 Still difficult conditions in East-Central Europe
Stable average club revenue trend for Baltic countries UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 Many clubs still with high relative wages
Number of clubs with wage ratio of more than 70%: UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 European attendance levels Aggregate match attendance trends, 2015/16 to 2016/17
The main reason for the stadium attendance decrease in Lithuania is the reduction of the first division from 10 to 8 teams between the 2015/16 and 2016/17 season. To put this in perspective, the average attendance in Lithuania decreased by only 1.2%.
Increase 20%+ 4x
Increase 10% to 20% 7x
Increase 5% to 10% 2x
Increase 0% to 5% 6x
Decrease 0% to 5% 12x
Decrease 5% to 10% 5x
Decrease 10% to 20% 6x
Decrease 20%+ 8x 1,012,967
Unknown 5x UEFA Intelligence Centre
Comparing Lithuania Club Licensing Benchmarking Report: Financial Year 2016 Average and aggregate revenues by country Average club revenue per top division (€m)*
The ability of clubs to generate revenues varies enormously across Europe’s top-tier leagues, from England, where clubs generate €244.4m on average and €4.9bn in aggregate, to San Marino, where the 15 clubs generate an average of €150 thousand and an aggregate of €2.3m.
Average revenue
€50m+
€5m to €50m
€1m to €5m
€0.1m to €1m Club Licensing Benchmarking Report: Financial Year 2016 Selected comparison Lithuania
In the following slides eight countries will be compared to the current situation in Lithuania. These Northern/ Western countries are comparable in revenue terms, generally have accurate numbers to compare against and can be said to have a professional approach (even if clubs tend to be amateur or semi professional) to benchmark. UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 League formats and changes in format across Europe Split TWO Number of clubs & rounds & TWO matches: (8) Lithuania is one of twelve countries (in general TWO rounds (17) FOUR rounds (10) Northern countries) to arrange a summer format for LUX 14 its domestic league. Out of the selected countries only Wales, Luxembourg and Slovenia play winter ISL, NIR, WAL ISL EST LUX WAL LVA championships. 12 SVN
10 EST, FRO, SVN 8 LTU, LVA NIR LTU
Lithuania is one of four countries to Split THREE Split FOUR rounds & rounds & ONE have eight clubs in the first division ONE (2) (1) (changed in 2016/17 season). FRO AND Currently only Armenia has less THREE rounds (10) teams in its first division (6 teams).
Lithuania is the only European first tier competition to combine a competition format
of four confrontations before entering into a Summer championship 12x
season split format (championship round). Winter championship 43x UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 The rise and fall of UEFA coefficients over the decade
UEFA club and country rankings reflect the average results of clubs over the last five seasons and so can provide a good trend measure of the relative success of clubs in UEFA club competitions over time.
SVN Only Island and SVN LVA Luxemburg, out of the selected countries, LTU managed to improve their ISL coefficient ranking over the ISL last decade. Luxemburg went up 3 places from 49th to 46th and Island went up EST LVA two spots from 37th to 35th.
EST Lithuania is the country NIR LUX WAL NIR (out of all 55 members FRO LTU associations) that had the LUX WAL biggest decrease over the FRO last decade dropping 15 places from 33rd in 2007 to 48th in 2017. UEFA Intelligence Centre Club Licensing Benchmarking Report: Financial Year 2016 Aggregate revenue in selected leagues
*In thousands
ISL 2'010 3'833 636 8'832 € 16'152
SVN 2'273 6'336 1'182 4'630 € 14'783
LUX 1'909 5'318 1'019 1'247 € 9'493
NIR 1'679 1'879 1'854 3'179 € 8'594
EST 3'041 2'597 1'567 € 7'251
FRO 1'401 1'463 852 1'775 € 5'493 The Baltic countries reported a relative
LTU 2'087 3'018 € 5'373 low revenue from gate receipts and a relative high revenue from UEFA prize WAL 2'099 821 1'788 € 4'994 money in the financial year 2016 compared to other selected countries LVA 2'308 1'278 1'016 € 4'622 Club Licensing Benchmarking Report: Financial Year 2016 Club ownership in the selected leagues
The majority of clubs in Lithuania are Public Institutions, which stands out to most of the clubs within the pear group being pure associations*
LUX 13 1 Club ownership within the selected leagues: ISL 12 3% FRO 10 5%
SVN 10 15%
LVA 4 2 2
NIR 3 9 55%
LTU 1 2 5 22%
EST 10
WAL 10 2
*The club ownership analysis is performed based on FY2015 data. Club Licensing Benchmarking Report: Financial Year 2016 Profile of European club stadium ownership
Stadium ownership remains the exception rather than the rule for most European Top-division club stadium ownership clubs. Northern Ireland (7 of 12 clubs) and Wales (3 of 12) are the only two countries within the peer group in which stadium ownership is eminent
LVA 8
LUX 13 1
FRO 10
LTU 1 2 5
ISL 8 4
WAL 3 3 6
EST 1 6 2
SVN 9 1
NIR 7 2 1 2
121 Summary
1. Generally positive picture and positive financial trends; 2. Fifth year of reduced club losses in Europe; 3. Significant number of leagues now profitable; 4. The Lithuanian A Lyga has a unique competition format in Europe; 5. Worrying decrease of Lithuania’s coefficient on ranking; 6. Lithuania reported a positive financial trend. RESEARCH REPORT – UEFA CLUB LICENSING – ARTICLE 17 CLFFPR Youth Academies in Europe Determinants of success European football is faced with severe challenges – BACKGROUND e.g. deficient clubs as well as a financial and sporting divide
Deficient clubs Financial Divide Sporting Divide
46% 54% 39% 61%
in deficit in Non-Top12 Top12 surplus Clubs • 132 clubs from wealthiest 7 leagues • Clubs with bottom-line losses: 46% generate 81% of top division • 61% of Top-250 players are grouped revenues at the top 12 clubs
For details: Please see the UEFA Benchmarking Report Youth Development is deemed as one key component of a sustainable BACKGROUND business model and corrective measures
Sustainable Business Modell
Efficient Youth Academy is a key component
- to secure football operations;
- strengthen club financialsy ; - reduce benefactor dependency; and - increase social impact. UEFA Research Project on Youth academies addresses the importance of PROJECT strengthened Youth Development operations Research Question Research Setup
Clubs
y y
110 First Division clubs of 21 European NA Scope [NAs selected on the basis of CIES Top Youth Academy Ranking]
Method Optional survey + selected club visits
? • Successful YEA: number of club trained players per club Opera- (taking club, league, age, playing time into account) DETERMINANTS OF SUCCESSFUL tiona- lisation • YEA characteristics: 170 potential factors influencing YEA YOUTH ELITE ACADEMIES (YEA) success were reduced to 45 factors (i.e. eight categories) Research results indicate key points in order to professionalise RESULTS Youth academies/development
DETERMINANTS OF SUCCESSFUL YOUTH ACADEMIES
CriteriaCRITERIA FINDINGS
• Top Academies are regularly assessed Sporting • Cognitive skills enhance successful Youth academies and development of talents development operations Administrative / • Close link btw. club management and have to be strengthened / Organisation professional team with the youth sector is key to enhance successful development professionalised to facilitate success • Pro-/A-licensed coaches drive successful talent development Personnel • Doctor (medical care) enhance successful talent development
Infrastructure • Minimum standards
Results: based on the obtained (balanced) sample (n=110) CONCLUSIONS OUTLOOK
All stakeholders – UEFA, NAs/leagues and clubs – have to take measures in order to professionalise youth development and secure club returns/benefits
Youth Development is proven not only to have an important social impact, but also to be a - significant pillar of a sustainable business model; - part of measures to reduce short-term focus / financial dependency; - plus to counterbalance financial disadvantages.
Results: based on the obtained (balanced) sample (n=110) Iceland, inter alia, underlines the importance of Youth Development for NAs CASE STUDY
Youth Development Programme Personnel
“Increased investment in facilities
Registration Medical care y Youth Teams would have been fruitless if the of players of youth Icelandic FA had not also invested Refereeing / Racial equality heavily in the education of Law of the game “Key to the Training coaches”… Stadia national team’s facilities y success
Head of Youth Stadium Development Youth Coaches is simple: Dev Programme massive “Quality stadiums are pull factors investment in that add to the y prestige of the facilities and The approved youth development league, boost attendances and coaches“… programmes have enabled clubs to motivate the players to do well …” establish a basis for objective- oriented development. Football Association of Slovenia Strategy for Slovenian Football 2015 - 2020
League
Regional Associations (9),
Coaching Ass., Refereeing Ass. 3 clubs
Clubs (287) Regional Ass. of Coaches (9) and Referees (9)
Players, Coaches and Referees
Men‘s Senior Competitions
1st Division PRVA LIGA TELEKOM SLOVENIJE 10 clubs
2nd Division 16 clubs
3rd Division- 3rd Division-West 3rd Division-North 3rd Division-East Center 8 clubs 14 clubs 14 clubs 14 clubs
Regional level - 9 regional associations 4th, 5th and 6th level 134 clubs Slovenian Top Division 2017/18
› Professional level; › 10 clubs; › 36 league matches per season; › Average match attendance: 1.300; › NK Maribor – UCL/Group E; › NK Olimpija Ljubljana, NK Domžale, ND Gorica; Slovenian Top Division FY 2016
› Club revenues (incl. transfers): €500K - €10 mio.; › Average club revenue: €3.1 mio.; › Average wages and squad costs: €1.5 mio.;
Broadcasting UEFA Prize Other 1% Money 9% 7% Commercial& Sponsorship 26% Transfers 53%
Gate Receipts 4% Club Licensing as Development Tool Regulations - Criteria › UEFA level, 1st Division, 2nd Division, 3rd Division (76 clubs); › Youth development programme; › No. of youth teams; › Head of youth development; › No. coaches / Coaching qualifications; › Infrastructure (stadiums/training facilities); › Financial transparency / stability.
Youth Competitions
U19 - 1st Division (14 clubs) U17- 1st Division (14 clubs)
U19 - 2nd Division-West (10 clubs) U19 - 2nd Division-East (10 clubs) U17 – 2nd Division-West (10 clubs) U17 – 2nd Division-East (10 clubs) U15 – 1st Division-West (14 clubs) U15 – 1st Division-East (14 clubs)
Regional Competitions (9 Regions)
U8 – U13 U15 - U19 Youth Programme - Budgets FY 2016 U19/U17 – 1st Division (14 clubs)
› Total: €4 mio.; › Average: €315K; › Youth development in club’s total budgets (average): 32%; FA Slovenia Other 10% 6% UEFA Public funds solidarity 31% 8%
Sponsorhip & Donations Parents 22% subscriptions 23%
Coaching Qualifications and Youth Teams U19/U17 – 1st Division (14 clubs)
Youth Coaches (56): › UEFA PRO (11); › PRO (27); UEFA B › UEFA A (13); UEFA PRO 9% › UEFA B (5); UEFA A 20% 23%
PRO 48%
Infrastructure Investments HatTrick Programme 2004-2012 Investments in regional football infrastructure (99) › Full-size pitches – artificial turf (21); › Mini-pithces – artificial turf - 40mx20m (71); › Floodlighting (5); UEFA › Other projects (2). HatTrick 24% Municipalities 64%
National Government 16 mio. EUR 12% Slovenian Football 2020
› Strategic plan for national, regional and local level; › Investments in football infrastructure; › Elite football / Grassroots; › Importance of youth development as comparative advantage; › Educational programmes (coaching, refereeing, medical, management); Thank you