Finance Governance LaLiga revenue sportsbiz

LaLiga Registers Record Revenue Of $6.01bn For 2019/20 Season

By Taruka Srivastav | June 21, 2021

LaLiga in its Financial Report for the 2019-2020 season,claims that the total income of the competition achieved a new historical record – despite the negative effects of the COVID-19 pandemic – and where the robustness and economic solvency of the clubs in LaLiga Santander and LaLiga SmartBank as a whole are demonstrated in facing up to the strongest impact that will manifest in 2020/21.

The main conclusion arising from these results is that LaLiga’s Clubs have very good indebtedness and equity ratios, with confidence from investors that allows them to obtain financing under favourable terms and with liquidity buffers thanks to their efforts in containing costs.

Total income was €5,045 million ($6.01 billion), +3.6% compared to 18/19, although this figure could have been €5,321m (+ 9.3%) without the impact of COVID-19 according to estimates by PwC. Additionally, the average cumulative long-term growth in each of the last five seasons was +12%, a figure that is worth even more when compared to other sectors and companies: IBEX35 companies, for example, decreased by – 1.4% on average in the last five years.

Of note is the greater contribution from LaLiga SmartBank to the whole, at 9.3% of total income, a historical maximum and a sign of an ever more balanced competition; broadcasting rights income stood at 35% of the total.
Compared to the other major European competitions, LaLiga is the only one that made a profit (€77m Net Result) and continues to be the leader in income on a demographic and price level equality comparison basis (€107 per capita).

In terms of total expenses, the cost and amortisation of sports staff continues to be clubs’ largest outlay, having risen to 60% in 19/20, two points more than in the previous season, compared to the cost of non-sports staff, which remained stable at 5%.

Spanish professional football can boast resilient high-level profitability, with a positive operating profitability despite the impact of COVID-19. EBITDA after transfers of players exceeded €1,000 million (€1,196 million without COVID according to PwC), thanks to the significant effort of the clubs in containing costs.

LaLiga maintains a great capacity for investment and a sustainable level of
indebtedness (NFD/EBITDA of 1.63x), thanks to strong profitability levels. In this sense, net financial debt increased to €745 million, mainly resulting from net investments of €509 million. Of the total invested, 84% was for players and 16% for infrastructures.

Finance Governance LaLiga revenue sportsbiz