Big names prefer La Liga over Premier League

author: Mike Collett
source: Reuters
date: 1 September 2009
editing: fcbtransfers.blogspot.com





Premier League clubs spent 119 million pounds less on transfers this close season compared to last year, according to a report into their transfer dealings.

Geoff Mesher, head of the Forensic Sports Industry Team at accountants KPMG, told that Premier League clubs' net spending fell significantly from 210 million pounds in 2008 to 81 million pounds this year before the deadline closed on Tuesday.

"There are a number of reasons, but it is not just because of the world financial situation," he said. "Football clubs are very powerful, independent businesses but, apart from Manchester City in England and Real Madrid in Europe, most clubs have spent significantly less.

As far as English clubs are concerned there are a number of reasons, including the exchange rate between the pound and the euro and the tax situation in England. The lack of big name players arriving in the England might appear strange given the recent success of English clubs in Europe, but the reasons are purely financial."

Mesher said the struggle by Premier League clubs to attract or retain big name players reflected the attraction of Spain's La Liga to many players. "Our analysis of the recent transfer window has revealed a reduction in Premier League transfer funds paid to non-English clubs supporting the argument that teams have struggled to entice big names from overseas.

It is no coincidence that the majority of Manchester City's big summer signings were purchased from within the English top flight. For the time being in the international transfer market La Liga and, more specifically Real Madrid, appear to have the upper hand on the Premiership."

read the full and original article here


Read more:
Premier League Clubs Deep in Debt
Rome final will boost European economy
Financial impact of Champions League qualification

Barcelona-Real Madrid sold out in a few hours

Barcelona's officially website has announced that the tickets for Barcelona-Real Madrid that were put for sale at 10 am yesterday morning are sold out.

Socios without a season ticket could start buying tickets for league games yesterday, and the tickets for Barcelona-Real Madrid on 28 or 29 November were sold out after a couple of hours. Non-socios will be able to buy tickets from 14 September on.

Read more:
The economic impact of the US tour

A record budget expected for 2009-2010

Barcelona gave last month an overview of the club's financial situation.

FC Barcelona ended the year 08/09 with a net profit of 8,8 million euros. The net result is obtained from the subtraction between operating revenue (384.8 million) and operating expenses (362.4 million) and financial expenses (13.6 million).

In one year, revenue is up 51 million (from 333.8 to 384.8), resulting mainly from the increase in box office and new marketing and media contracts. The costs also have increased, especially in terms of sports salaries, which have risen from 162.6 million to 198.6.

The debt situation is positive (35.2 million), for the first time since 2003. Net debt remained stable despite increased activity by 15%. In this sense, Barcelona chief executive Joan Oliver has noted: "We have not even made one euro debt to buy a player."

The budget that is expected for this season is a record budget of 405 million euros and operating expenditure of 375 million, so an operating profit of 30 million. With these projections, operating profits have increased 144 million in the last seven years. This budget would make FC Barcelona the richest club in the world.

Read more:
Barcelona to close deal with betting company
The economic impact of the US tour

Five friendlies in Asia postponed

Barcelona site Pelikano claims that Barcelona has agreements to play five more friendly games in Asia, but that those matched won't be played this season.

Because of Barcelona's busy match schedule, it won't be possible to play any friendly game during or after the season in the coming year, which could lead to the club having to pay penalty fees.

Barcelona had already agreed back in 2006 to play a friandly game against Saudi Arabia club Al-Ittihad, while a game against Uzbek club Bunyodkor should already have been played before 30 June of this year (read more here). The club would also have an obligation to play a friendly match in Kuwait, and as a consequence of the agreement with Arab telecom company Etisalat (read more here), this company would have the right to organize two more games in the Middle East.

Read more:
Barcelona will return to Asia
Possible future friendly game in Kuwait
Barcelona will probably return to US next year

At which hour will Barcelona play this season?

Due to the changes in the ownership of Spanish television rights,

this is the schedule of the hours Barcelona will play their league game:

- 8 league games will be played on Saturday at 10 pm

- 8 league games will be played on Sunday at 9 pm

- 22 league games will be divided between Saturday at 8 pm and Sunday at 7 pm

note:

Barcelona - Real Madrid (match day 12) will be played on Saturday at 8 pm or Sunday at 7 pm

Real Madrid - Barcelona (match day 31) will be played on Saturday at 10 pm

Barcelona will probably return to US next year

Spanish news agency EFE claims that Barcelona will most probably return to the United States for a new summer tour next year.

Some of the sponshorship deals Barcelona has been negotiating during the past tour were related to the sponsoring of new summer tours in the United States, and everything would indicate that Barcelona will already return to the US next summer.

Read more:
Looking back at a successful tour
Barcelona will return to Asia

Barcelona to close deal with betting company

Madrid financial newspaper Expansión claims that Barcelona will sign later this month a sponsorship agreement with British online betting company Betfair.

Sources close to Barcelona told the paper that Betfair will obtain the rights to use Barcelona's image in their advertising campaigns for the next two to three years.

Barcelona would receive a fee of 1,5 to 2 million euro a year for the deal. Until last year, Barcelona had a similar agreement with Austrian online gaming company Bwin.

Read more:
Sponsorship deal with Arab telecom company
Barça negotiating Microsoft sponsorship deal

The economic impact of the US tour

Barcelona economic vice-president Joan Boix talked about the economic side of the tour in the United States in an interview with the club's official media:

"We're opening a very important market, we've signed new contracts with our local sponsors for the next three years. We have an engagement to return because Barça is striking a cord in the United States.

The benefits for the club of this tour are between 5 and 6 million euro, which is more than we had planned. It has been excellent, the tour was perfect. It was all very-well organized and it was good for the team too. Of course, this is only the immediate impact.

There's also a the medium- and the long-term, the fact that the Barça brand is getting known better and better in such an important country as the United States. One of the satisfactions of this tour has been the ticket sales, to see how many football fans in this country have been filling the stadiums and have supported FC Barcelona. And since part of the revenues of the tour depended on the tickets sold, that was very positive."

Read more:
Barcelona closing sponsorship deals in the US
Barça negotiating Microsoft sponsorship deal

Barcelona visits Microsoft headquarters

Barcelona visited yesterday the headquarters of computer technology corporation Microsoft in Redmond, Washington, including a visit to the house of the future.

watch a video of the visit here

There's money for more transfers

Asked if there's still money left to spend this summer, Barcelona economic vice-president Joan Boix has said in an interview with Catalan sports paper Sport that new transfers are possible:

"The club's finances are doing excellent. If Guardiola, or the technical department, asks for more transfers then we'll deal with that. The ultimate proof that Barça has a solid economic base is that we didn't have to make any new debts when signing players this summer."

Read more:
60 to 80 million transfer budget confirmed
Barcelona closing sponsorship deals in the US
FCB Finance Report

Barcelona has second most socios in the world

Portuguese football finances website Futebol Finance has drawn up a list of football clubs that have the most members:

1. Benfica 171.000
2. FC Barcelona 163.000
3. Manchester United 151.000
4. Bayern Munich 146.000
5. Porto 115.000
6. Internacional Porto Alegre 100.000
7. Sporting Lisbon 96.000
8. Real Madrid 92.000
9. River Plate 82.000
10. Schalke 72.000

Barça negotiating Microsoft sponsorship deal

Catalan radio station Catalunya Ràdio reports that F.C. Barcelona is negotiating a sponsorship agreement with U.S. based corporation Microsoft. If agreed upon, the deal would be worth 2 million euros.

Barcelona president Joan Laporta, along with Barcelona board members, players, and coaches will later today visit the Microsoft headquarters in Redmond, Washington. Redmond is a city in the vicinity of Seattle, where Barcelona will play the second game of its American tour on Thursday against the Seattle Sounders.

Read more:
Barcelona closing sponsorship deals in the US
Henry leaving door open for future MLS move

Barcelona closing sponsorship deals in the US

Barcelona marketing vice-president Jaume Ferrer has said in an interview with the club's official media that sporting success has a big influence on the interest companies show in Barça.

Therefore, FC Barcelona is able to take advantage of the current situation to create links with some of the biggest companies located in the United States: "On this tour we have held several meetings with some very important company directors. Some of them are looking to settle forms of sponsoring FC Barcelona this very year."

The United States have become a major target area for FC Barcelona, to the extent that the club even has a marketing team based in New York: "We know that a large part of the club's growth in recent years has been because of the international market, so we are working hard to position the brand in the global market."

read more here

Read more:
Laporta supports salary cap
Sponsorship deal with Arab telecom company
FCB Finance Report

Laporta supports salary cap

Talking to journalists in the United Stated, Barcelona president Joan Laporta has said on Friday that the Major League Soccer salary cap can serve as a model for other teams and leagues to control costs:

"There are interesting things that we have to study in Europe, such as a salary cap. Maybe we have to establish some parameters for revenues and players' salaries but maybe not as strict as in MLS."

Read more:
FCB Finance Report

FCB Finance Report

FC Barcelona’s Finances

I would like to start off my first contribution to the blog, by thanking our dearest PeP for all his hard work and contributions to this blog we all read almost on a daily basis. I can only hope to bring his professionalism and dedication to my first contribution to the blog.

This report is centralized around two key figures, they both have very key roles in the finances of the team. The first of which is the jackass himself, Joan Laporta. He is the Presidente of this current regime. I know he catches a lot of flack for his antics during the summer; however it is only because he is a nerd in the books and numbers. You have to realize that the Treble was not the result of a fluke season, but instead meticulous planning that began at the very onset of this regime. For any business to be successful it takes effective management to properly dictate the course of the business. It turns out our president behind closed doors has been building an effective business model based on sustained growth and paying down debt. What this effectively means is that throughout Laporta’s tenure, he has been focused on increasing revenue for the team while paying down debt so that the team can self-finance its own ventures.

The Second figure Joan Boix. He is the financial Vice President of FCB. These are a few quotes he had to say in regards to the finance of FCB when giving the financial presentation to board members and socios for the 2007/2008 fiscal year. This information has been taken directly from fcbarcelona.com.

Solid economic ground

According to Boix, “FC Barcelona’s economic situation is very solid. Revenue has increased for the fifth year in a row and we have made a profit again”. The financial vice-president has described the financial year’s final accounts as “excellent”. Revenue grew for the fifth year in a row and currently sits at 308.8 million euro, while expenses account for 297.6 million euro. In other words, the financial year 2007/08 closed 16.1 million euro in the black with a profit of 10.1 million euro.

Boix pointed out two areas in which revenue had grown most significantly: the media (increase of 9.5 million euro) and the stadium (increase of 7.3 million euro). He also said revenue from club members had increased by one million euro, with 6,365 new members. “Ours is a sustained growth”, he said.

Control over expenses

With regard to expenses, which came to 292.6 million euro, Joan Boix said that “once again expenses were controlled and followed parameters as set out in last year’s budget”. The most significant increases came in two areas: amortization of players, with an increase of 5 million euro, and players’ salaries, which increased by 14.3 million euro. The club sets aside 52% of income for players’ salaries. “We are still below recommended parameters within the footballing industry”, pointed out Boix.

End to bank debt and more club funds

In relation to the accounts, the financial vice-president wanted to point out two things: the reduction of debts, both bank and in general, and an increase in the club’s own funds. On the first point, Boix revealed that during last season FC Barcelona paid back 26 million euro, reducing the debt from 39.8 million to 13.6 million and that “the bank debt will be wiped clear on 30 October”.

The other aspect which has affected the books is an increase in the club’s own funds. “We now have 12.7 million euro of our own funds. In the five years of this administration’s management, we have generated a total of 88 million euro, going from 75.3 million euro in the red to 12.7 million euro in the black”. And he added: “They are figures which endorse the effort of all those involved during the last five years”.

http://www.fcbarcelona.com/web/english/noticies/club/temporada08-09/08/n080824102955.html

This is a summary of the financial Statement:

SETTLEMENT OF ACCOUNTS 2007/08 SEASON

Trading income: 308.8 million euros

Operating costs: 292.6 million euros

Ebitda (Earnings before tax and depreciations): +68.8 million euros

Operating profit or loss: +16.1 million euros

Income / financial expenses: -8.0 million euros

Operational profit or loss: +8.2 million euros

Extraordinary income / expenses: +0.4 million euros

Before tax profit or loss: +8.6 million euros

Tax payments: +1.5 million euros

Net profit or loss: +10.1 million euros

BUDGET 2008/09 SEASON

Trading income: 380 million euros

Operating costs: 355 million euros

Operating profit or loss: +25 million euros

Financial and extraordinary profit or loss: -10 million euros

Before tax net profit or loss: +15 million euros

All these figures were passed at the Ordinary General Assembly held on September 24, 2008.

http://www.fcbarcelona.com/web/english/club/club_avui/informacio_corporativa/situacio_economica/situacio_economica.html

Effectively what the report is indicating is that Barcelona is currently a self-sufficient team free of debt. Turns out Laporta has been doing an amazing job.

2004 FCB Revenues= 169 million Euros

2005 FCB Revenues= 208 million Euros

2006 FCB Revenues= 259 million Euros

2007 FCB Revenues= 290 million Euros

2008 FCB Revenues= 309 million Euros

2009 FCB Projected Revenues= 380 million Euros

In conclusion, certainly there is two ways of doing business, the way Real Madrid does business and the way Barcelona does business. Barcelona has worked so hard throughout the years to get in the position they are currently in, and I can now greater appreciate the journey to the treble. Remember the Treble was not the result of a fluke season, but instead years and years in the making.

Keep in mind these reports are based on last year's earnings. Deloitte, one of the leading accounting firms in the world, publishes a report called the Deloitte Football Money League. In the 2009 report these are the top 5 teams:

Numbers are (In)Millions-Euros

1.) Real Madrid Revenues = 365.8

2.) Manchester United Revenues= 324.8

3.) Barcelona Revenues= 308.8

4.) Bayern Munich Revenues= 295.3

5.) Chelsea Revenues= 268.9

http://www.deloitte.com/dtt/article/0,1002,cid=246693,00.html

-Je me'appelle Samuel

Read more:
Premier League Clubs Deep in Debt
A profit of 16 million euro halfway the season
Barcelona third richest club in the world

Liga games could be played in the afternoon

Catalan sports paper Sport claims that Real Madrid president Florentino Pérez will propose the other Liga clubs that every match day one game would be played at 3 pm in the afternoon Spanish time.

This would be a way to open up the Asian market for the Spanish league by reaching fans in Asia in prime-time. Barcelona would be in favour of the proposal.

Read more:
60 to 80 million transfer budget confirmed
Premier League Clubs Deep in Debt
Nike pays Barcelona treble bonus of 10 million

60 to 80 million transfer budget confirmed

Asked about the summer transfer window, Barcelona marketing vice-president Jaume Ferrer has confirmed in an interview with Catalan radio station RAC 1 that the club could spend between 60 and 80 million euro° without getting into economic problems and commented on some rumoured names:

"If Ribéry is the main target of the technical staff, than we will fight to sign him. I don't know much about it, but if that's what the coaches ask, we'll listen to them.

Villa is a great player too. As far as I know, we don't really know who's in charge at Valencia at the moment. I would refer to Txiki Begiristain, who is dealing with the negotiations, and I have total belief in the events turning out in a good way for the club. In the next few days, or at least in the coming two weeks, the club plans to close some transfer deals."

Read more:
Barcelona could spend between 60 and 80 million
Barcelona can spend 30-35 million this summer

Barcelona could spend between 60 and 80 million

Asked about the club's transfer budget, Barcelona economic vice-president Joan Boix has said in an interview with Catalan radio station Ona FM that the club could spend more than intially announced:

"The reasonable thing to do, looking at our revenues, is spend the 30 or 35 million euro we've mentioned before. But we could reach a higher figure.

Each year we have benefits, plus the depreciations, the money we could use in the future, in the end we can spend between 60 and 80 million. A part of that could be used to pay off the debt or to invest in real estate, but if the technical department thinks this is needed, we can spend everything on transfers. Exceeding that figure is not recommendable. There are teams that invest more than they gain but we're not going to do that because of our prudent policy and the fact that we keep our feet on the ground."

Read more:
Barcelona has 30 to 35 million to spend

Maximum transfer budget of 80 million euro

Catalan sports paper El Mundo Deportivo claims that Barcelona will at the most have 80 million euro° to spend during the current summer transfer window.

As club officials announced earlier this summer, Barcelona has an initial transfer budget of 30 to 35 million euro (read more here).

Transfer fees the club will receive will be added to this. Barcelona hopes to get around 30 million euro for Eto'o, while players like Hleb, Gudjohnsen and Cáceres could also be sold. Finally, the benefits of this season, estimated around 10 million euro, could also be used for transfers, although that's not certain.

Read more:
Barcelona has 30 to 35 million to spend
No transfers before end of the month

No transfers before end of the month

Barcelona site Pelikano claims that Barcelona won't be able to sign any new players before the end of this month because of the financial situation of the club.

When a new financial year starts next month, the club will have new resources, although those will still be limited due to the overspending on the transfers over the past two years and an increase of the expenses.

Read more:
Barcelona has 30 to 35 million to spend
Premier League Clubs Deep in Debt
Nike pays Barcelona treble bonus of 10 million