2009/10 UEFA Financial Report
Total Page:16
File Type:pdf, Size:1020Kb
WE CARE ABOUT FOOTBALL FINANCIAL REPORT 2009/10 XXXV Ordinary UEFA Congress Paris, 22 March 2011 : Artgraphic Cavin SA, Grandson, Switzerland Grandson, SA, Cavin Artgraphic : printing and Setting Financial Report 2009/10 2 I. Financial Report 2009/10 Facts and figures 3 Foreword by the UEFA President 4 A financial strategy to reflect UEFA’s core values 5 Highlights of the 2009/10 financial year 6 Income statement 8 Source of income 10 Use of income 12 Governing expenses 13 Solidarity 14 The flow of UEFA solidarity payments 16 Balance sheet 18 Equity evolution 19 The four-year cycle 20 UEFA Champions League 24 UEFA Europa League 28 Result by activities II. Financial Report 2009/10 Annex • Notes and explanations to the annual financial statements • Auditor’s reports Foreword by Generalthe UEFA information President 3 Foreword by the It is with a great degree of satisfaction that UEFA presents the Financial Report UEFA President for 2009/10. As a publication, the format is new. The objective, however, remains unchanged – to present detailed, in-depth financial data with total transparency. The aim is to make the maximum amount of information accessible to the widest possible audience. This is why, in the first part of the publication, the key figures are presented in as readable a form as possible. Then, in the second part, more detailed data is provided that will allow financial experts to analyse UEFA’s financial situation. I am pleased to confirm that UEFA’s financial results for 2009/10 are better than estimated in the budget which was approved at the 2009 UEFA Congress in Copenhagen. The following pages will make it clear why this has been pos- sible during a troubled period. However, UEFA’s mission is to put football first. The aim is to run our com- petitions as efficiently as possible and to provide the best possible stage on which the top performers can offer the fans emotions, intensity and entertainment of the highest quality. Personally, I think that we have man- aged to do this during an exciting 2009/10 season, a season which has produced some magnificent matches. This Financial Report tells us that we have also managed to achieve this with sufficient expertise to generate income, funds which we can then re-invest in the game of football and its future. As a not-for-profit organisation, UEFA’s duty is to re-distribute income in a way that allows and encourages its 53 member associations to take care of the players, coaches, match officials and supporters, who bring the game to life and promote the important social values showcased by the world’s most popular team sport. UEFA’s financial performance generates important bene- fits which have been highlighted by the recent decision to extend and enhance the support offered to national associations, leagues and clubs via our system of solidarity payments, including the HatTrick programme. This publication will give all of us who love the game a clear impression of what the people responsible for finances within UEFA are striving for; to make sure that ‘financial assets’ are successfully converted into support for our member associations and the other bodies who share our desire to further develop European football; to promote its social benefits at grassroots levels, and to offer the maximum opportunity for future generations to play and enjoy the wonderful game of football. Michel Platini UEFA President © UEFA Financial Report 2009/10 4 A financial strategy to reflect UEFA’s core values It was way back in 1667 that the English diarist Samuel UEFA is committed to good governance and to the pro- Pepys noted, “It is pretty to see what money will do.” motion of good governance throughout its member asso- Almost three and a half centuries later, that short sen- ciations. Leadership in this sphere implies responsibilities tence could still be interpreted as something of a mission and duties. UEFA’s finances must therefore aim to dem- statement or even a source of inspiration within the con- onstrate that good governance begins at home. text of UEFA’s financial strategy. As a not-for-profit organi- UEFA is committed to maintaining and enhancing the bal- sation, UEFA is not about accumulating money ance between national team and club foot- “UEFA but rather putting it to good use and gain- ball as complementary elements within sees its annual finan- ing satisfaction from things which are the game. The distribution of financial cial report as much more than a ‘pretty to see’ – such as giving pleas- resources therefore needs to take this series of figures presented in credit ure and entertainment to millions, into account. offering opportunities at grassroots and debit columns. It is a publication level for people of all ages to enjoy the which has to reflect UEFA’s UEFA is committed to Football First game, or seeing the immense social ben- core values.” by preserving the true spirit of the game efits of a sport which unites people while pro- while running its competitions in an efficient moting values based on integrity and respect. way and to optimise revenues from commercial contracts to benefit and develop European football. The UEFA therefore sees its annual financial report as much financial results offer an indication as to whether sporting more than a series of figures presented in credit and debit and business criteria have been successfully married and columns. It is a publication which has to reflect UEFA’s whether these objectives have been achieved. core values. UEFA is committed to promoting fair play both on and off UEFA is committed to the strengthening of solidarity, to the pitch. Financial fair play is high on the agenda and, protect the future of the game and to maximise the bene- if UEFA is to lead European football in the right direction fits that football can offer to society as a whole. UEFA’s and provide top-class administrative support, UEFA’s own finances therefore need to reflect and highlight the con- finances must be an illustration of fair play in terms of cept of solidarity. responsibility, fairness and transparency. This adds up to an obligation for UEFA, in the pages of this financial report for the 2009/10 exercise, to set out the financial results with transparency, to provide clear indications of where income comes from and where it goes to, and to illustrate that it can “be pretty to see what money will do”. © UEFA Highlights of the 2009/10 financial year 5 Highlights of the 2009/10 financial year Every four years, the FIFA World Cup takes centre stage, During the same period, the 2010–12 UEFA European and the final tournament played in South Africa repre- Football Championship officially kicked off when, at the sented a major focal point during the 2009/10 period. The draw staged in Warsaw on 5 February 2010, 51 associa- hosts and the whole of the African continent had reason tions were drawn into 9 groups as the first step towards to take pride in staging the event successfully – and so determining the 14 teams to join Poland and Ukraine did Europe, as three of the four top teams represented at the UEFA EURO 2012 final tournament. Qualifying UEFA associations. matches started in September 2010. “The However, UEFA’s club competitions Off the football pitch, but closely related euro currency was were also very much in the limelight in to finances, the euro currency was subjected to great pressure 2009/10, for the following reasons : subjected to great pressure and was and was significantly devalued significantly devalued against other • The UEFA Champions League was against other currencies, in currencies, in particular against the reshaped, with a new access route particular against the Swiss franc. This was due to uncertain- permitting the presence of more Swiss franc.” national champions in the group stage. ties on financial markets in response to Among other significant changes was the inclu- major deficits and heavy indebtedness affecting sion of the play-off round in the centrally marketed pack- certain European countries. age and a first knockout round played over a period of UEFA’s accounts for 2009/10 consequently reflected high four weeks. This laid the foundations for an impressive currency exchange losses which, although they were figure of a1.1 billion in total revenue, of which a757 unrealised losses, still had a negative effect – a reduction million was paid to the 32 participating teams and a of UEFA’s overall financial result. However, this was com- further a42 million to the 20 teams involved in the play- pensated by positive translation difference effects within off matches. UEFA’s equity, given that equity constituted in Swiss • This was also the first season for the UEFA Europa francs produced a higher equivalent when expressed in League, which replaced the UEFA Cup. A new struc- euros, UEFA’s reporting currency. ture featured 48 teams, in 12 groups of 4, with all par- ticipants playing three home and three away matches during the group stage and 32 teams competing in the knockout rounds. UEFA’s centrally marketed package covered broadcasting rights to all matches as well as the main sponsor of the new competition. The total income generated by UEFA from the new competi- tion amounted to a196 million, of which a147 million was paid out to the teams participating in the inaugural UEFA Europa League. © UEFA Financial Report 2009/10 6 Income statement UEFA’s total 2009/10 revenue of a1,394.7 million was with the former UEFA Cup, this represented additional considerably higher than the previous year, mainly income of approximately a150 million.