Rio de Janeiro, November 2010 1 Table of contents 1. About Football Transfer Review 2. European football finance outlook 3. Highlights Football Transfer Review Europe 2010/11 4. Football Transfer Review Brasil 5. The way forward for Brazilian football 6. About Prime Time Sport 2 About Football Transfer Review Football Transfer Review by Prime Time Sport provides relevant data and insightful and independent analysis of the Mission variables that influence squad designs and player transfers in international football industry • 2 versions published every year, related to Summer and Winter transfer markets • The objective is to combine the available data in a way that helps to come-up with insightful analysis, rather than the Contents publication of the information itself • Addressed to both football industry professionals and those that follow it with special interest • Editions: Europe, Brazil and Mexico 3 Technical sheet Europe edition • Data included refer to main division of la Liga and the other top 4 European leagues (Premier League, Lega Calcio, Bundesliga and Ligue 1) • Transfer data only include fix amounts, except when bonuses have been made public (50% achievement considered) • Year to year comparisons refer to summer market only, unless otherwise indicated • Includes transfers that took place until August 31st 2010 Specifications • Ibrahimovic transfer form FC Barcelona to AC Milan has been considered in the 2010/11 • Transfer data are gross of agent commissions or revenue share with other stake holders (ie 6Mio€ paid by FC Barcelona to the agent of Yaya Toure • Squads review includes only players registered as 1st team players • Sign-up means new player arrivals (not total number of registered players) and Exits players leaving the team (even if on loan) • Director: Bruno Batlle Team • Analysts: Valeria López 4 Technical sheet Brazil edition • Data included refers to the teams competing in Brasileirao championship during 2010 season • It also includes data from Brasileirao 2010 teams participation in State Championships • Transfer data include fix amounts agreed between clubs (bonuses excluded) Specifications • Season 2009 includes data from January to December; season 2010 from January to November • Squads review includes only players registered as 1st team players • Sign-up means new player arrivals (not total number of registered players) and Exits refers to players leaving the team (even if on loan) • Exchange rate used: 1 USD=1,71 BRL • Director: Bruno Batlle Team • Analysts: Teo Cruz, Fernando Pacheco, Valeria López 5 Table of contents 1. About Football Transfer Review 2. European football finance outlook 3. Highlights Football Transfer Review Europe 2010/11 4. Football Transfer Review Brasil 5. The way forward for Brazilian football 6. About Prime Time Sport 6 Revenue trend top European Leagues Mio€ 2.441 2.273 2.326 1.575 1.438 1.438 1.501 1.421 1.494 1.379 1.326 1.064 972 989 1.048 2006/07 2007/08 2008/09 English Premier League maintains revenue leadership, followed by German Bundesliga. Financial downturn does not show-up in revenues Source Deloitte Annual Review of Football Finance, June 2010, Mio€ 7 Profit (loss) trend at top European leagues Mio€ -92 -109 -186 -216 -241 -233 -236 -335 2007/08 2008/09 All top leagues have experimented losses for 2 consecutive years. English Premiership losses have grown dramatically Source: Report from Professor JM Gay, from Barcelona University 8 Revenue ranking European clubs Mio€ 401 366 366 327 325 309 295 290 264 263 269 242 217 211 210 203 197 197 168 173 175 156 147 146 145 133 148 140 133 128 127 125 126 104 102 101 2007/08 2008/09 Real Madrid and FC Barcelona are for the first time in the 2 top positions of the ranking (and will continue to be at 2009/10 season). English football has 4 teams between the top 10. Source: Deloitte Football Money League 9 Table of contents 1. About Football Transfer Review 2. European football finance outlook 3. Highlights Football Transfer Review Europe 2010/11 4. Football Transfer Review Brasil 5. The way forward for Brazilian football 6. About Prime Time Sport 10 Player acquisition spending-Top 5 European leagues Mio€ -29% 1.855 1.713 1.322 2008/09 2009/10 2010/11 Top 5 European leagues spent 1,3Bio€ in player acquisition (-29% vs year ago). Real Madrid and FC Barcelona spending decline represents 42% of total reduction 11 Player acquisition spending-Top 5 European leagues Mio€ 570 -15% 2008/09 510 508 -45% 470 2009/10 435 -18% 400 2010/11 327 -32% 270 262 -43% 245 230 215 157 150 140 Spanish La Liga shows the most significant spending drop due to lower activity at Real Madrid and FC Barcelona. Despite 2nd consecutive drop, English Premier League still leads spending in Europe 12 Player sales- Top 5 European leagues €Mio 287 269 187 176 141 La Liga has been the most active league in terms of player sales, followed by Italian Lega Calcio. Valencia CF has been the top selling club at summer transfer window 13 Net spending- Top 5 European leagues €Mio 248 58 16 -24 -36 La Liga and French Ligue 1 have sold more that spent. Manchester City concentrates 43% of total net spending in England 14 Net # signings vs exits- Top 5 European leagues Nº.of players -38 -54 -75 -94 -285 All leagues have seen more players leavings than players coming, with total wage cost reduction as a result 15 Top 10 spending teams Mio€ 145 78 73 56 53 43 41 39 38 37 Man.City R.Madrid FC Juventus AC Milan Rubin Genoa Wolfsburgo Chelsea Marsella Barcelona Kazan Manchester City is the highest spending club, outspending Real (#2) by 86%. Despite spending drop, both Real and Barça still at top positions 16 Top European teams spending ranking Mio€ 265 2009/1 0 201 0/1 1 1 401 45 112 78 73 83 48 56 53 51 38 43 44 29 30 27 23 15 13 9 Manchester City has spent almost 300mio€ in 2 years. Just 3 top clubs increase spending (Man City, AC Milan & Juventus) . Bayern Munich needs no spending as last season investment resulted in good sporting performance 17 Top 10 selling teams Mio€ 84 69 53 52 40 38 36 34 33 32 Valencia FC Inter Milan Benfica Liverpool Oporto Man City Juventus Genoa Udinese Barcelona Valencia leads income ranking thanks to David Villa and Silva sales (82% of total sales). FC Barcelona is in a leading sales position for the first time ever 18 Top European teams sales ranking Mio€ 103 2009/10 89 2010/11 84 78 69 53 46 38 38 36 35 27 22 22 19 15 17 17 11 9 8 3 FC Barcelona is the highest selling among top teams, thanks to Yaya Touré, Ibrahimovic & Chygrinsky sales (despite accounting for losses in the last 2). 6 out of 11 teams have had smaller player sales income than last season 19 Top 10 most expensive players 2010/11 €Mio 40 30 29 29 25 24 22 23 22 22 Villa Touré Balotelli Silva Di Maria Ibrahimovic Mascherano Kolarov Ramires Milner Gourcuff 20 Ranking most expensive transfers ever €Mio 94 72 66 65 60 51 47 46 46 45 C.Ronaldo Zidane Ibrahimovic Kaka Figo H.Crespo Buffon Ferdinand Vieri Shevchenko No transfers from this summer have joined historical top 10 in value 21 Usage Top 10 European signings of 2009-10* Minutes 7out of 10 of most expensive signings of last season did not have expected performance (as were brought to play most minutes as line-up players) * According to minutes played at domestic league 22 Results trend of clubs with highest spending in 2009/10 League League Results Spending* Results Team position position Champions Valoración 2009-10 2009-10 2008-09 2009-10 2008-09 265 2nd 2nd 1/8 finals 1/8 finals 140 10th 5th - - 112 Champions Champions Champions Semifinals 83 Champions Champions 1/8 finals Champions 51 2nd Champions ¼ finals Runners-up 48 2nd 7th 1/8 finals 1/16 finals 3 out of 6 top spending teams did not achieve expected results on the pitch, which confirms that investment does not immediately turn into sporting performance *Mio € 23 Table of contents 1. About Football Transfer Review 2. European football finance outlook 3. Highlights Football Transfer Review Europe 2010/11 4. Football Transfer Review Brasil 5. The way forward for Brazilian football 6. About Prime Time Sport 24 Football Transfer Review Brasil 4. Football Transfer Review Brasil 4.1. Revenue outlook 4.2. Player movement 4.3. Exports review 4.4. Squad data 4.5. Managers stability 4.5. Conclusions 25 Revenue trend Brasileirao Mio U$D +12% +9% 917 749 815 2007 2008 2009 Growth trend at Brasileirao championship (12%) is much higher than the average of Top 5 European Leagues (4%) Source: Crowe Horwath RCS, 2010 26 Club revenues ranking 2009 Mio U$D 106 103 102 73 71 70 65 50 41 39 37 36 27 24 18 14 13 11 10 9 2009 Corinthians, Internacional and Sao Paulo form the elite class of Brazilian football Source: Crowe Horwath RCS, 2010 27 Revenue trend top 10 clubs Mio U$D 111 106 103 102 91 93 83 79 81 73 69 71 69 70 64 65 55 58 50 52 50 45 38 41 39 34 34 30 30 31 Corinthians Internacional São Paulo Palmeiras Cruzeiro Flamengo Grêmio Vasco da Santos Atlético MG Gama 2007 2008 2009 Revenue growth story across the board. Palmeiras is the only relevant club showing revenue decline Source: Crowe Horwath RCS, 2010 28 TV rights revenue trend top 10 teams Mio U$D 25,9 22,4 21,7 17,8 18,1 17,6 17,0 16,3 16,0 16,4 16,1 16,1 16,1 15,0 15,1 12,7 12,7 11,8 12,2 10,8 Flamengo Palmeiras Sao Paulo Internacional Cruzeiro Cortinthians Santos Atlético Grêmio Fluminense 2008 2009 TV rights revenues have grown significantly among Brasileirao teams, with an average increase of 27%.