The European Champions Report 2017
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The European Champions Report 2017 footballbenchmark.com Table of Contents Foreword .....................................................................................3 Highlights .....................................................................................4 The actual costs of football industry wages .................................6 The eight champions ...................................................................7 Summary table ..........................................................................24 Basis of preparation and limiting conditions ...............................26 Cover picture: Christian Gahl The European 3 Champions Report 2017 Foreword The 2015/16 season will live long in the memory The international playing field is far from level of football fans. As well as a reminder of the owing to the most significant cost component of strength of some of the household names, notably all clubs: players’ wages. As tax rates and social in the French, German, Italian and Portuguese security costs are not harmonised, in a market leagues, and a few surprises across some where salaries are negotiated on a net basis, the European leagues, Leicester City FC became cost of providing the same salary to a player can unlikely heroes and completed a dream that many greatly differ among leading international clubs. thought impossible in today’s football industry. For example, in comparison to Turkey, offering a net salary of EUR 5 million to a player, such Off the field, other issues received an unusual level costs are 141% higher in France, 54% higher of media coverage, including lucrative broadcasting in China and 61% to 112% higher for the Andrea Sartori agreements, clubs’ numerous ownership changes, other countries considered in our analysis. Partner spiralling transfer fees, and unprecedented We therefore aim also to shed some light on this KPMG Global salary levels tabled by Chinese clubs. These all topic, reviewing the personal income tax regimes Head of Sports underlined the increasing financial power of a fast- in the countries in question, as well as in China, a growing sector and the insatiable appetite for the new major player in the transfer market. game among fans around the world. Some interesting highlights of this study are In this report, KPMG’s Football Benchmark team presented in the section that follows. Not all the pays tribute to the champions of Europe’s most clubs in question had an easy job to achieve in prominent leagues, reviewing some of their being crowned as champions of their leagues; most relevant business performance indicators indeed, the points’ difference between that to provide perspective on these clubs’ future. of the winner and of the second-place team We exclusively focus on the domestic league could vary from a massive 31 for Paris Saint- champions from eight of the key leagues: Germain FC, to a minimum one point for FC Beşiktaş JK, FC Barcelona, FC Bayern München, Barcelona. The year-on-year growth of operating Juventus FC, Leicester City FC, Paris Saint-Germain revenues displays how PSV Eindhoven were the FC, PSV Eindhoven and SL Benfica. While not best performers. In this context, bottom-line covering the biggest club by operating revenues in results and profitability growth provide some cause the 2015/16 football season—namely Manchester for reflection: FC Bayern confirm their healthy United FC—whose revenues approach the EUR status, registering the highest financial year- 700 million1 mark (more than four times than end result after tax payment, while Beşiktaş eventual champions Leicester City FC and now JK are the only club to register a loss, despite approximately 10% ahead of the two Spanish a significant 63% improvement from the previous football giants), KPMG’s analysis aims to provide season. Finally, our European landscape map readers with some broad insights into the European shows some insightful data: for instance, it took football landscape. Leicester City FC the least average points As a result of booming broadcasting deals, (2.13) and goals scored per game (1.79) to win the increased revenues distribution from their domestic league, while, on the other hand, UEFA competitions, and clubs’ growing global SL Benfica and FC Bayern München recorded the connectivity with sponsors and fans, the steep most average points per game (2.59). rise of broadcasting and commercial revenues From every angle, football is in the midst of an is a trend which is shared across the markets era of intense change. The increasing number of considered in this analysis. At the same time, the alternatives in the entertainment industry and the report also highlights the competitive advantage gradual segmentation of viewers across multiple afforded by a club’s ability to reach large and media platforms are just some of the factors that international audiences. 1 In order to conduct will define the business environment in which cross-league analysis and comparison, Increasing professionalization and sustainable football clubs will operate in the future. where the local management practices at football clubs, assisted currency is not the We hope that you enjoy this report and would euro, KPMG has by UEFA “Financial Fair Play” regulations, comprise invite you to explore the financial and operational converted all local another current trend outlined in the report. Indeed, currency figures using data of these and many other clubs on the average exchange all the champions covered in this analysis registered www.footballbenchmark.com, KPMG’s football rate for the twelve a sub-65% staff costs-to-operating-revenues ratio. months prior to 30 business intelligence tool and the primary source June 2016. of financial data in the football industry. © 2017 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. Highlights Besiktas JK Average points per game: 2.32 Goals scored per game: 2.21 Goals conceded per game: 1.03 Staff costs per league point: 0.8 Points difference to second placed (EUR m) FC Barcelona Average points per game: 2.39 vs.v1 s. Goals scored per game: 2.95 Goals conceded per game: 0.76 31 Staff costs per league point: 4.1 (EUR m) FC Bayern München Source: KPMG Football Benchmark research Average points per game: 2.59 Goals scored per game: 2.35 Year-on-year growth in operating revenues 48% Goals conceded per game: 0.50 Staff costs per league point: 3.1 (EUR m) Juventus FC 31% % % % 26 Average points per game: 2.39 24 25 Goals scored per game: 1.97 Average: 22.2% Goals conceded per game: 0.53 Staff costs per league point: 2.4 (EUR m) 11% 8% 5% Leicester City FC Average points per game: 2.13 Goals scored per game: 1.79 Goals conceded per game: 0.95 Staff costs per league point: N/A Source: KPMG Football Benchmark research Paris Saint-Germain FC Average points per game: 2.53 Profit/Loss after tax and year-on-year change, EUR m Goals scored per game: 2.68 Goals conceded per game: 0.50 200% Benfica Staff costs per league point: 3.0 (EUR m) % 160 PSV Eindhoven % 120 Barcelona Average points per game: 2.47 Juventus Goals scored per game: 2.59 Besiktas Goals conceded per game: 0.94 ar change in profit % 80 PSV Staff costs per league point: 0.5 Ye Bayern (EUR m) n- -o PSG % ar 40 Ye SL Benica 0% -30-20 -100 10 20 30 40 Average points per game: 2.59 Profit (loss) after tax Goals scored per game: 2.59 Goals conceded per game: 0.65 Note: Profit figures for Leicester City FC were unavailable at the date of the publication. Staff costs per league point: 0.7 Source: KPMG Football Benchmark research Source: KPMG Football Benchmark research (EUR m) © 2017 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. Highlights Besiktas JK Average points per game: 2.32 Goals scored per game: 2.21 Goals conceded per game: 1.03 Staff costs per league point: 0.8 Points difference to second placed (EUR m) FC Barcelona Average points per game: 2.39 vs.v1 s. Goals scored per game: 2.95 Goals conceded per game: 0.76 31 Staff costs per league point: 4.1 (EUR m) FC Bayern München Source: KPMG Football Benchmark research Average points per game: 2.59 Goals scored per game: 2.35 Year-on-year growth in operating revenues 48% Goals conceded per game: 0.50 Staff costs per league point: 3.1 (EUR m) Juventus FC 31% % % % 26 Average points per game: 2.39 24 25 Goals scored per game: 1.97 Average: 22.2% Goals conceded per game: 0.53 Staff costs per league point: 2.4 (EUR m) 11% 8% 5% Leicester City FC Average points per game: 2.13 Goals scored per game: 1.79 Goals conceded per game: 0.95 Staff costs per league point: N/A Source: KPMG Football Benchmark research Paris Saint-Germain FC Average points per game: 2.53 Profit/Loss after tax and year-on-year change, EUR m Goals scored per game: 2.68 Goals conceded per game: 0.50 200% Benfica Staff costs per league point: 3.0 (EUR m) % 160 PSV Eindhoven % 120 Barcelona Average points per game: 2.47 Juventus Goals scored per game: 2.59 Besiktas Goals conceded per game: 0.94 ar change in profit % 80 PSV Staff costs per league point: 0.5 Ye Bayern (EUR m) n- -o PSG % ar 40 Ye SL Benica 0% -30-20 -100 10 20 30 40 Average points per game: 2.59 Profit (loss) after tax Goals scored per game: 2.59 Goals conceded per game: 0.65 Note: Profit figures for Leicester City FC were unavailable at the date of the publication.