Testing times Football Money League Deloitte Sports Business Group January 2021 A Deloitte Football Money League 2021 | Top 20 clubs We estimate that those clubs in this year’s Money League will have missed out on over €2 billion of revenue across the 2019/20 and 2020/21 seasons. This is primarily driven by matchday revenue, due to the absence of fans, but also rebates to broadcasters and some commercial impacts as well as the lost potential to continue their previous growth trajectory over the period. B Deloitte Football Money League 2021 | Contents Contents Introduction 02 Ups and downs 11 Money League clubs positions 1-10 12 Testing times 32 Money League clubs positions 11-20 34 Out of their seats 54 The leading view on the business of football 56 Deloitte Football Intelligence Tool 58 Edited by Sports Business Group Dan Jones The Hanover Building Corporation Street Sub-editor Manchester Calum Ross M4 4AH Authors Telephone: +44 (0)161 455 8787 Theo Ajadi, Tim Bridge, Chris Hanson, E-mail: [email protected] Tom Hammond and Zal Udwadia www.deloitte.co.uk/sportsbusinessgroup January 2021 01 Deloitte Football Money League 2021 | Introduction Introduction Welcome to the 24th edition of the Deloitte Football Money League, our most challenging to produce to date. Whilst it continues to profile the highest revenue generating clubs in world football and remains the most contemporary and reliable independent analysis of the clubs’ relative financial performance, it also reflects the implications of the unprecedented disrupted 2019/20 season and we have remained cognisant of the impact of COVID-19 throughout this publication. As the potential effects of COVID-19 ending in 2020 reflecting the majority of This year, as in previous years, the became clearer in the first quarter of the 2019/20 season. As a result, assessing financial information in this publication is 2020, causing global economic and social the comparability and relative performance from the annual financial statements of disruption, professional football was no between clubs in this year’s Money League clubs or sourced directly from clubs. The exception. Governments around the world is uniquely challenging this time around. unprecedented impact of the COVID-19 responded to the pandemic in different pandemic has led to some different ways at different speeds and to varying In this edition, whilst we have published accounting treatments between clubs degrees, including enforcing national the Money League rankings as usual, we for the financial year ending in 2020. lockdowns, closing sports venues and have also sought to highlight where clubs’ Throughout this introduction, and within stadia, and on the whole, at least initially, revenues were specifically impacted and individual club pages, we will provide prohibiting sporting events. As professional where this may well have, in a more normal guidance on how one can interpret the sport made a return, extended restrictions year, meant revenues (and hence rankings) financial information, highlighting potential on mass gatherings and non-essential were different. We also consider the effects areas of inconsistency as well as helping to travel also meant that fans could not attend of COVID-19 on clubs’ operations and understand the comparability of revenue matches even when they were permitted to business models, provide insight into the across the Money League. take place and many of these restrictions changing strategic priorities of clubs and remain in place or have been reintroduced explore the collective and individual actions in the early stages of 2021 having taken by stakeholders to adapt during the We Didn’t Know previously been eased later in 2020. global pandemic. When analysing the financial information in this publication it is important to Leagues across the world had different understand that clubs typically have ways of adapting to the challenges faced. For Once in My Life a financial year covering the entirety Many opted to postpone matches until they There are a number of metrics, both of domestic and international club could take place under safer conditions, financial and non-financial, that can competition seasons (as scheduled prior some were terminated (with final standings be used to compare clubs, including to COVID-19). For most European clubs, determined using different methodologies) attendances, worldwide fan base, social this is typically a financial year to May or and others annulled entirely. Each outcome media following and on-pitch performance. June, meaning that one season’s worth had ramifications with broadcast and In the Money League we record clubs’ of matchday, broadcast and commercial commercial partners alike, many of which ability to generate revenue from matchday revenue would be captured in each sought rebates on rights fees for the (including ticket and corporate hospitality financial year, allowing comparability changes to the delivery of the on-pitch sales), broadcast rights (including between clubs across multiple seasons. product. The outcome pursued by the distributions from participation in domestic Clearly, this is challenging for the 2019/20 respective leagues and the reaction of leagues, cups and UEFA club competitions) season as a result of the varying decisions their broadcast and commercial partners, and commercial sources (e.g. sponsorship, made by leagues in respect of the season therefore, had a significant impact on merchandising, stadium tours and other and the differing accounting treatments clubs, not least on revenue generated (and commercial operations). adopted by clubs referred to above. hence recognised) in the financial year 02 Deloitte Football Money League 2021 | Introduction The challenges in making comparisons • the lowest position theoretically Regular readers of the Money League between clubs in this edition of the Money achievable (i.e. if the club lost all of its will know that performance in UEFA club League are most prominent in respect of remaining fixtures). competitions is a critical factor for the club broadcast revenue. Clubs that completed rankings. This year, it continues to the full league campaign within their Each scenario can have a have a significant impact, but respective financial years – such as those significant effect on the with the added complexity in the Bundesliga (which concluded in revenue recognised in the in respect of on-pitch June 2020) – recognised the majority of financial year. performance and the domestic broadcast distributions in their timing of matches relative financial statements for the year ending The disruption caused by €8.2 billion to clubs’ financial year- Generated by this year’s in 2020 in line with previous years. Other COVID-19 also meant that top 20 Money League clubs ends. It will take at least clubs that completed a longer campaign for the majority of leagues, another financial year for 2018/19: €9.3 billion that ran into July (such as the Premier the number of matches the impact of the timing of Down 12% League, Serie A and La Liga), will recognise agreed to be delivered over UEFA distributions to wash the 2019/20 season’s broadcast revenue a specified period was varied. through, before allowing for over two financial years (ending in 2020 As a result, broadcasters in some easier comparison between clubs and 2021), net of any rebates, meaning countries have sought to negotiate a across a combined two-year period. that only a proportion is recognised in this rebate on rights fees, and the amounts year’s Money League, with the remainder leagues can distribute to clubs has, As live football returned, matches falling into the next edition. Whilst some therefore, been reduced. were largely broadcast without fans in clubs (such as those in Ligue 1) suffered attendance, with the strange sight of empty reduced broadcast revenue because the Matches in UEFA club competitions seats and lack of crowd atmosphere. The league campaign was terminated resulting – the UEFA Champions League and UEFA financial impact of fans absence will be fully in rebates to broadcasters. Europa League - were also postponed, reflected in next year’s Money League and during the Round of 16 fixtures. The depends, in no small part, on the timing There are further complexities regarding Finals – typically the last fixtures in the and scale of fans return; with the hope the composition of broadcast revenue. The competitive European club competition being a return to full stadia in 2021 as soon revenue distribution model in most leagues calendar – took place in August as opposed as public health and safety considerations includes an element of reward that is to May or early June. Those clubs who allow. Those clubs traditionally at the based on a club’s final league position. With managed to complete their Round of 16 top of the Money League will be most many clubs’ year-ends falling before the matches before the postponement and impacted in absolute revenue terms, even 2019/20 season was completed, there are in front of a live audience, were able to though smaller, particularly lower league, a number of ways in which the recognition recognise both the associated matchday clubs have potentially suffered more in of these amounts has been interpreted and majority of broadcast revenue in the relative terms. Matchday operations are a with reference to respective accounting financial year ending in 2020. Those clubs cornerstone of a club’s business model and standards. For example, a club might that were still in the competition after the also help drive other revenue generating recognise a proportion of the full league restart, will recognise revenue generated activity. Whilst we expect that many fans campaign’s broadcast revenue based on: from performance in the competition over will want to return to their old habits, it two financial years (ending in 2020 and remains uncertain how quickly and easily • the club’s actual league position at its 2021). This means that the next edition of the revenue generating ability of clubs will financial year-end; the Money League is likely to be a “bumper return to pre-pandemic levels.