Balance Sheet Paris Saint-Germain
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2015/2016 SEASON • A DNCG DOCUMENT 2015/2016 SEASON CONTENTS THE CHAIRMAN’S MESSAGE 3 LIGUE 1 AND LIGUE 2 COMBINED 4 01 LIGUE 1 / REPORT 13 1.1 KEY FIGURES 14 1.1.1 EXECUTIVE SUMMARY 14 1.1.2 INCOME 16 1.1.3 EXPENSES EXCLUDING TRANSFERS 25 1.1.4 PLAYER TRADING 30 1.1.5 RESULTS 32 1.1.6 CLUB FUNDING 34 1.1.7 INITIAL BUDGET VS FINAL FIGURES ANALYSIS 36 1.2 RELATIONS BETWEEN SPORTS PERFORMANCE AND FINANCIAL ASPECTS 38 1.2.1 SPORTS RESULTS 38 1.2.2 SPORTS RISKS/OPPORTUNITIES AND PAYROLL 40 1.2.3 STRONG IMPACT OF SPORTS RESULTS ON REVENUE 42 1.2.4 ANNUAL AVERAGE GROSS PAYROLL AND SPORTS PERFORMANCE 43 1.2.5 ANALYSIS BY CLUB GROUP FOR THE 2015/2016 SEASON 44 02 LIGUE 2 / REPORT 47 2.1 KEY FIGURES 48 2.1.1 EXECUTIVE SUMMARY 48 2.1.2 INCOME 50 2.1.3 EXPENSES EXCLUDING TRANSFERS 56 2.1.4 PLAYER TRADING 62 2.1.5 RESULTS 64 2.1.6 CLUB FUNDING 66 2.1.7 INITIAL BUDGET VS FINAL FIGURES ANALYSIS 67 2.2 RELATIONS BETWEEN SPORTS PERFORMANCE AND FINANCIAL ASPECTS 68 2.2.1 SPORTS RESULTS 68 2.2.2 SPORTS RISKS/OPPORTUNITIES AND PAYROLL 70 2.2.3 STRONG IMPACT OF SPORTS RESULTS ON REVENUE 72 2.2.4 ANNUAL AVERAGE GROSS PAYROLL AND SPORTS PERFORMANCE 73 2.2.5 ANALYSIS BY CLUB GROUP FOR THE 2015/2016 SEASON 74 03 LIGUE 1 / INDIVIDUAL CLUB ACCOUNTS 77 04 LIGUE 2 / INDIVIDUAL CLUB ACCOUNTS 121 2 2015/2016 SEASON THE CHAIRMAN’S MESSAGE fter seven consecutive seasons of activity, the operating Anet losses, the 2015/2016 season deficit continued to increase, has marked the return to a balanced reaching -€387m, while on budget for French professional football. the whole, payroll costs remained under control. At the end of this season, the combined net income of the Ligue 1 and Ligue 2 clubs thus amounts to +€3m. Several factors could result in the elimination of this operating deficit. First, one aspect that should It has also been encouraging to see an increase in help clubs to meet this target is the next cycle of professional football’s revenue this season (+4.4%). broadcasting rights in France, with domestic rights increasing significantly by around 20% in relation Broadcasting rights, sponsoring, gate receipts to the last contract and with international rights and merchandising: all of the income components following an upward trend. In addition, the have recorded growth during the season, increasingly professional operation of thoroughly representing an aggregate of more than €70m. modernized stadiums will also be key to the development of the clubs’ own resources in terms of match-day In an international context marked by a strong increase in receipts, sponsoring and even merchandising. broadcasting rights among our European competitors, French clubs have succeeded in making the most of the These expected new resources combined with possibilities offered by the transfers market. The record the clubs’ know-how should enable them to profits made in this area (+€429m) have been possible invest in new areas so as to ensure their thanks to the clubs’ work in detection and training. The sustainable operation and to be ambitious in relation to latter have been able to negotiate their transfers while their European competitors. Lastly, the arrival, within the continuing their efforts to maintain competitive teams past few months, of new investors with high objectives at European level. Many clubs’ development models is proof of the growing attractiveness of Ligue 1, both now fully integrate player transfers. The summer in terms of sport and of economic benefits. transfer window has shown that this model provides opportunities for our clubs, but is not without risks, as it These prospects will be set within a new regulatory and largely depends on the European market trend. legislative framework, thanks to Parliament’s definitive adoption on 15 Feburary 2017 of the law aiming to The clubs’ improved results in the 2015/2016 preserve the ethics of sport, strengthen the regulation season have meant that they have been able to limit and transparency of professional sport, and improve club requests for financial aid from their shareholders and, competitiveness. Within this framework, the DNCG*, in some cases, made profits that they could then whose records of decisions will be published from reinvest, mainly in strengthening their teams. now on, will henceforth have the power to ensure the financial control of sports agents’ activities and to In the future, clubs are going to have to try to work validatel proposed club takeovers. towards operating equilibrium, especially by better control over their payroll costs. Indeed, in Henri TCHENG the 2015/2016 season, in spite of the increase in Chairman of the DNCG* * French national body responsible for monitoring and overseeing the accounts of professional football clubs 3 2015/2016 SEASON • A DNCG DOCUMENT LIGUE 1 AND LIGUE 2 COMBINED • 2015/2016 SEASON LIGUE 1 2015/2016 KEY FIGURES: LIGUE 1 AND LIGUE 2 COMBINED ACCOUNTS AND LIGUE 2 COMBINED FIGURES IN MILLIONS OF EUROS INCOME EXCLUDING TRANSFERS (REVENUE) OPERATING PROFIT (LOSS) EXCLUDING TRANSFERS PROFIT (LOSS) FROM TRANFERS OPERATING PROFIT (LOSS) BEFORE EXCEPTIONAL ITEMS NET PROFIT (LOSS) NET EQUITY SHAREHOLDER CURRENT ACCOUNTS NET CASH 2015/2016 KEY FIGURES: COMBINED ACCOUNTS FOR LIGUE 1 ONLY AVERAGE TURNOVER PER LIGUE 1 CLUB PAYROLL / OPERATING INCOME RATIO 4 LIGUE 1 AND LIGUE 2 COMBINED • 2015/2016 SEASON KEY FIGURES 2014/2015 2015/2016 VARIATION 1 619 1 689 + 4,4% - 295 - 387 LIGUE 1 REPORT 221 429 + 94,1% - 73 43 - 67 3 LIGUE 2 REPORT 316 369 + 16,8% 425 482 + 13,4% - 30 - 216 INDIVIDUAL CLUB ACCOUNTS CLUB INDIVIDUAL LIGUE 1 71 74 + 4,2% 67% 69% LIGUE 2 ACCOUNTS CLUB INDIVIDUAL 5 2015/2016 SEASON • A DNCG DOCUMENT LIGUE 1 AND LIGUE 2 COMBINED • 2015/2016 SEASON LIGUE 1 AND LIGUE 2 COMBINED LIGUE 1 AND LIGUE 2 TREND IN TOTAL INCOME (INCLUDING INCOME FROM TRANSFERS) COMBINED IN MILLIONS OF EUROS AND AS A PERCENTAGE OF THE TOTAL 2120 2 000 + 15% 1886 429 20% 1841 1 800 179 9% 1723 222 12% 1 600 221 13% 410 22% 357 19% 374 18% 1 400 366 21% 183 9% 1 200 166 9% 181 10% 1 000 160 9% 418 22% 348 19% 372 17% 241 14% 800 735 43% 762 36% 600 713 38% 733 40% 400 200 0 2012/2013 2013/2014 2014/2015 2015/2016 Broadcasting Sponsors Gate rights Advertising receipts Other Income from income transfers Total income has increased by 15% in the 2015/2016 season and for the first time has crossed the symbolic two billion euro threshold. 6 LIGUE 1 AND LIGUE 2 COMBINED • 2015/2016 SEASON BREAKDOWN OF OPERATING INCOME OF THE CLUBS AS A PERCENTAGE OF THE TOTAL (LIGUE 1 + LIGUE 2) The breakdown of operating 100 income remains stable, with KEY FIGURES 19 24 24 23 22 90 broadcasting rights representing almost half of this income. 80 11 11 70 11 10 11 17 60 16 24 21 22 50 53 49 40 45 45 42 REPORT 30 LIGUE 1 20 10 0 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 Broadcasting Sponsors rights Advertising Gate Other LIGUE 2 REPORT receipts income BREAKDOWN OF OPERATING EXPENSES OF THE CLUBS AS A PERCENTAGE OF THE TOTAL (LIGUE 1 + LIGUE 2) The breakdown of operating 100 income and expenses is virtually 6 7 13 8 9 the same as for the 2014/2015 90 19 21 22 21 season. 80 20 LIGUE 1 ACCOUNTS CLUB INDIVIDUAL 3 70 3 10 22 10 3 11 60 11 15 10 14 50 13 14 12 47 45 40 44 43 42 30 20 10 LIGUE 2 ACCOUNTS CLUB INDIVIDUAL 0 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 Personnel Transfer Overheads remuneration fee amortization Social security Agents' Amortization and charges fees other expenses 7 2015/2016 SEASON • A DNCG DOCUMENT LIGUE 1 AND LIGUE 2 COMBINED • 2015/2016 SEASON LIGUE 1 BREAKDOWN OF NET PROFIT (LOSS) IN MILLIONS OF EUROS AND LIGUE 2 COMBINED 400 429 220 221 199 200 179 42 - 39 0 - 67 3 - 108 - 93 - 75 - 74 - 200 - 132 - 231 - 295 - 295 - 331 - 400 - 387 - 410 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 Operating profit (loss) Profit (loss) excluding transfers from transfers Operating profit (loss) Net before exceptional items profit (loss) Net profit (loss): operating profit (loss) before exceptional items +/- financial profit (loss) +/- exceptional profit (loss) +/- income tax The professional clubs’ operating result excluding transfers is still a substantial loss and represents almost a quarter of their revenue excluding transfers. However, due to the record surplus made from transfers (more than double the amount for an average year), the French professional football accounts show current operating profit of +€42m and net profit of +€3m. 8 LIGUE 1 AND LIGUE 2 COMBINED • 2015/2016 SEASON NET PROFIT (LOSS) IN MILLIONS OF EUROS Ligue 1 has recorded a net profit KEY FIGURES 30 of +€21m, while Ligue 2’s result is 10 0 21 a net loss of -€18m. The combined - 18 - 18 net result is therefore a profit for -30 - 21 the first time in seven years. - 56 - 61 - 60 - 11 - 90 - 102 - 48 - 120 REPORT 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 LIGUE 1 Net profit (loss) Ligue 1 Net profit (loss) Ligue 2 LIGUE 2 REPORT LIGUE 1 ACCOUNTS CLUB INDIVIDUAL LIGUE 2 ACCOUNTS CLUB INDIVIDUAL 9 2015/2016 SEASON • A DNCG DOCUMENT LIGUE 1 AND LIGUE 2 COMBINED • 2015/2016 SEASON LIGUE 1 AND LIGUE 2 COMBINED INCOME STATEMENT COMBINED LIGUE 1/LIGUE 2 €000 2014/2015 2015/2016 VARIATION (%) Broadcasting rights 733 269 760 760 + 3,7% Sponsors – Advertising 347 349 371 556 + 7% Gate receipts 180 802 182 597 + 1% Other income (incl.