The titles do not give the profitability

They say that money does not bring happiness and it seems that, at least in these times of pandemic, happiness does not give money. The joys of last season on the pitch did not translate into a cash bonanza. Seven of the eight most powerful Leagues champions in Europe closed the campaign in the red, according to the report The European Champions Report 2022, published this Wednesday by the consulting firm KPMG. The only champion who, in addition to singing the alirón in his country, managed to balance his accounts was Bayern Munich, which for the 29th consecutive year ended the year positively, with a profit of 1.8 million euros. Thanks, in part, to your wage restraint. Of the eight teams analyzed, it is the one that dedicates the least part of its operating income to the cost of its staff: 58%. Manchester City (England), Atlético de Madrid (Spain), Inter Milan (Italy), Ajax (Netherlands), Lille (France), Sporting de Portugal and Besiktas (Turkey) presented red numbers despite winning the title in their respective countries.

In the case of Atlético, the pandemic left the rojiblanca entity KO, which, according to the KPMG analysis, closed 2020-21 with losses of 111.7 million euros. And this despite the good performance of some of its sources of income. Both television rights (partly because of the 2019-20 games that were postponed to the summer of 2020) as commercial income, which reached 106.5 million euros, grew by 14%. But they have not been enough to alleviate a general drop in income of 2%, in which the concept of ‘match day’ (sale of tickets and season tickets and other commercial activities related to the dispute of the matches) was reduced to a few 4.4 million euros. Atlético’s total income amounted to 349.6 million euros. The rojiblanco club announced extensions of its shirt sponsorship contracts with Hyundai, Plus500 and Ria Money Transfer, in addition to signing an agreement with Sportfive for international marketing development.

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“Atlético de Madrid has gone from a net loss of 1.8 million euros to 111.7 million. The main reason for such a sharp drop in the final result was a notable decrease in profits from player transfers compared to the previous season, when they charged for the sales of Griezmann and Rodri “, explains Andrea Sartori, KPMG Global Head of Sports. “Inter [245,6 M€] and Atlético had the highest annual losses in the sample. However, they are far from the historic record of € 481.3 million that Barcelona suffered in the same season “Sartori adds. To strengthen its finances, Atlético de Madrid received in June a capital injection of 182 million euros from Ares Management, which now held 34% of the entity’s shareholding.

According to the data in the report, the cost of Atlético’s staff was 267 million euros, which represents 76% of revenues. The market value of the rojiblancos players is 715 million euros and the club’s social networks have grown by 15% and attract the attention of 37 million followers.

Compared to the other league champions analyzed by KPMG, the Besiktas recorded losses of € 44.4 million, the Sporting lost 33 million, Lille left 23.2; and the Ajax, 8.1. The economic result of City I was not available.

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