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Liga BBVA -Winter Market Liga BBVA -Winter market- Barcelona/Madrid February 17th 2010 Football Transfer Review 2010- Winter Market 1. Abou t Foo tba ll Trans fer Rev iew 2. Football finance update 3. 2010 winter market transfers 4. European Football Table 2009/10 5. La Liga on going season review 6. Conclusions 7. Other reports 8. About Prime Time Sport 9. Tables 2 About Football Transfer Review Football Transfer Review by Prime Time Sport provides relevant data and insightful and independent analysis on the variables that Mission influence squad designs and player transfers at main European Clubs, with special focus on Spanish La Liga 9 2 versions published every year, related to Summer and Winter transfer markets 9 Combines content produced by Prime Time Sport and content from other relevant football industry studies Contents 9 The objective is to combine the available data in a way that helps to come-up with insightful analysis, rather than the publication of the information itself 9 Addressed to both football industry professionals and those that follow it with special interest 3 Technical sheet • In depth la Liga review • DilddfData included refer to ma idiiiflLidhin division of la Liga and the other top 4 European leagues (Premier League, Lega Calcio, Bundesliga and Ligue 1) • Cross country league tables comparison utilize averages and percentages since the number of played games is Specifications not the same • Statistics calculated consideringggg league games only (unless otherwise indicated) • Other reports included: those that have been published since the immediately previous Football Transfer Review release. Reproduced as such without Prime Time Sport opinion • Direc tor: Bruno Ba tlle Team • Analyst: Valeria López • Press & communications agency: Román & Asociados 4 Football Transfer Review 2010- Winter Market 1. Abou t Foo tba ll Trans fer Rev iew 2. Football finance update 3. 2010 winter market transfers 4. European Football Table 2009/10 5. La Liga on going season review 6. Conclusions 7. Other reports 8. About Prime Time Sport 9. Tables 5 Football Finance Update (season 2008/2009 data) 1. Revenues reported by main European Clubs 2. Case s tu dy: Situa tion o f top UK foo tba ll c lu bs 3. Main sponsorship agreements recently announced 6 European clubs revenue ranking Real Madrid maintains revenue leadership position and FC Barcelona reaches for the first time the second place. Arsenal progresses from 6th to 3rd position when including reported 88MioFuente: Football GBP Money from League; Delloiteapartments 2008 sale. Manchester United falls to 4th position and is not in top 2 for the first time Source: 2008-09 data as published by clubs (exchange rate: 1GBP=1,14€) 2007-08 data from Deloitte Annual Review of Football Finance. Mio€ 7 European clubs revenue ranking (excluding extraordinary revenues) €Millones Real Madrid is a strong revenue leader when comparing clubs excluding Fuente: Football Money League; Delloite 2008 extraordinary revenues Source: 2008-09 data as published by clubs (exchange rate: 1GBP=1,14€) 2007-08 data from Deloitte Annual Review of Football Finance. Mio€ 8 Situation of top UK football clubs 2008/09 LOSSES (excluding extraordinary deals) PROFITS/LOSSES (including extraordinary Arsenal: 88Mio (apartments sale) activities) ManU: 80Mio (sale C.Ronaldo) Tottenham: 56,5Mio (sale fixed assets) REVENUES English Football is no longer the engine fuelling European industry. All top clubs wouldFuente: have Football incurred Money League; inDelloite losses 2008 if not including extraordinary income activities Source: Clubs that have reported financial results. Season 2008/09 Data in Mio GBP 9 Main sponsorship agreements (1 of 2) Club Sponsor Details • Au di has acqu ire d 9, 09% s ta ke o f Bayern Mun ic h. • Amount announced: 90 mio€. • Strategic partnership that goes beyond sponsorship. • FCB amount announced: 9mio€. (3 mio yearly until June 2012). • Part of international expansion ambitions of Turkish Airlines. Partially paid in value in kind. • Contract renewal until 2013. • Shirt sponsorship of Chelsea FC. • Long term partnership that start in 2005. • BetClic has simultaneously agreed sponsorship deals with 11 clubs from Portuguese league. • Tactical deal for 2009/10 seeking advertising return only. • Telecommunications leading company in Saudi Arabia • 4 year sponsorship deal through 2013. • Deal amount: 4Mio€ per year (press reports) 10 Main sponsorship agreements (2 of 2) Club Sponsor Details • 3 year sponsorship deal. • 188BET has also agreed sponsorship deals with Chelsea, Aston Villa, Bolton & Wigan. • 188BET seekinggp spill over too. • The company will replace Carlsberg as shirt sponsor for the next for seasons through 2013. • Best commercial agreement ever for the reds, which ends relationshippg with Carlsberg that started in 1992. • Shirt sponsorship for French league only. • Betclic shirt sponsor for away Champions League only due to betting legislation constraints in France. • 3 year shirt sponsorship with both Glasgow top teams. • Tennent’ s replaces Carling and has also decided to sponsor both teams simultaneously to eliminate risk of fan alienation 11 Preliminary conclusions* 9 Spanish football achieves first 2 positions in European revenue ranking for the first time ever : Manchester United falls into 4 th position 9 Real Madrid is a strong revenue leader when comparing clubs excldiluding ex traor dinary revenues 9 More and more clubs have to use extraordinary deals to make-up their financial accounts 9 English Premiership has gradually lost strength in European football due to ownership instability, financial climate and sterling pound devaluation 9 Despite its strong financial backing, Manchester City is still far from the clubs leading revenues ranking 9 Most sponsorship deals announced recently are contract renewals or from betting industry. Top clubs have started to seek deals in the Middle East * Based on results published so far 12 Football Transfer Review 2010- Winter Market 1. Abou t Foo tba ll Trans fer Rev iew 2. Football finance update 3. 2010 winter market transfers 4. European Football Table 2009/10 5. La Liga on going season review 6. Conclusions 7. Other reports 8. About Prime Time Sport 9. Tables 13 2010 winter market transfers 1. Market background 2. Activity at top European clubs 3. La Liga BBVA player transfers 4. FCB vs Real Madrid 5. Conclusions 14 2010 winter market background • Climate of financial downturn • World Cuppp and African Cup 2010 • Professionalization at football clubs management General • Clubs need to release players that are not playing regularly • Inscription dates difference among key transfer markets • Main investment in players acquisition took place last summer Europe • Extraordinary deals have helped several clubs to avoid showing losses in their corresponding P&L’s • Good sporting results for both FC Barcelona and Real Madrid • End of fiscal benefits for foreigner players (Beckham law). Spain Spain has no longer competitive advantage to sign players vs rest of European countries • Priority to release players ahead of considering new player hirings 15 Transfer markets opening dates January 1st to 31st * January 8th to April 2nd (24h) January 2nd to March 25th (24h) Selected countries Spain, France & Germany close at 24h Uk at 17h; Italy at 19h 16 2010 winter market transfers 1. Market background 2. Activity at top European clubs 3. La Liga BBVA player transfers 4. FCB vs Real Madrid 5. Conclusions 17 Total investment winter market- Top 5 European leagues Mio€ 328 112 2008/09 2009/10 Fuente:In a Football context Money League; of financial Delloite 2008 difficulties at football industry, total winter market investment in new ppylayers has decreased 66% to 112Mio€ 18 Winter vs summer market- Total top 5 European leagues 1840 Mio€ 1713 Summer Winter 328 112 2008-09 2009-10 Winter investment is traditionally much smaller than summer one. This season the difference is even bigger, and winter market Fuente: Football Money League; Delloite 2008 investment in new players represented only 6% of summer market (vs 19% of last season) 19 Winter market investment- Top 5 European leagues Mio€ 187,00 2008/09 2009/10 54, 00 44,20 45,00 29,30 25,00 17,70 16,90 12,50 8,25 Spanish la Liga is the league with highest investment reduction, as a result of financial situation and elimination of fiscal benefits for foreign players. Italy has been the highest investment market and Premier League has decreased exppyenditure vs last season by 85% 20 New player signings top 5 European leagues €Millones # players 81 Loans Signings 36 43 37 14 33 15 20 45 13 29 22 14 13 6 Italian has brouggpyyht more players than any other market. Amount of players on loan significantly high in all leagues, as a result of financial difficulties and club needs to release players which were not must have 21 Players released top 5 European leagues #players#€ playersMillones 130 96 67 Loans 59 Transfers 45 30 37 34 18 15 34 22 29 19 19 Italian league leads on number of players released too. Spanish la Liga clubs have released the lowest number of players 22 Net player signings vs released top 5 European leagues #€ Millonesplayers -11 -14 -16 -30 -49 In all leagues the number of released players is higher than the number of signings, as most teams have tried to reduce the squad and wage costs. Most of released players when to lower category teams or leagues 23 New players investment top European clubs Mio€. 8,0 5,0 151,5 8 out of 11 top European clubs have not signed any players at this winter transfer windows. Manchester City has brought Adam Johnson from Middlesbrough and Inter Milan Mc Donald Mariga from Parma 24 Top 10 most expensive transfers Mio€ 8,0 8,0 8,0 6,9 656,5 5,1 5,1 4,6 4,2 4,1 Adam Salvio Dejan Lovren Ljalic Sinama Mc Donald Rever Aruna Andrea Brown Ideye Johnson Pongolle Mariga Dindane Dossena (M.
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