LaLiga tops €5bn in revenue for 2019-20; confident it can ride out covid cash crisis

June 22 – LaLiga has reported total income of €5.045 billion for the 2019-20 season, a 3.6% increase on the 2018-19 despite the impact of the start of the covid pandemic. It is the only one of Europe’s Big 5 leagues of Spain, Italy, England, France and Germany to report income growth.

The Spanish league said that without covid, its estimated revenue would have hit €5.321m, a 9.3% year-on-year increase. For the past five seasons LaLiga has averaged 12% growth.

LaLiga also led Europe’s other major leagues in profitability, being the only one to report a profit at €77 million (net).

LaLiga acknowledged 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.” Breaking income down, broadcasting rights accounted for 35% of the total.

Looking at costs, the crucial player-to-income ratio has risen 2% to 60% of total income in the 2019-20 year. In comparison the cost of non-sports staff, remained the same at 5%.

In terms of debt, LaLiga said “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 infrastructure.” The league pointed out that the bulk of these investments had been made before the pandemic broke but that for 2020-21 the same level will not be seen.

In the 20/21 season, LaLiga said it will contribute more than €125 million to other entities to develop non-professional football and other sports.

The impact of Covid will be greater in the 20-21 season, but LaLiga is confident that the economic control exercised clubs will enable the league to ride out the storm safely.

“LaLiga’s clubs enjoy a good equity position (equity of €1,767 million and an equity ratio of 23.6%) and liquidity buffers at all-time highs (€789 million compared to €564 million in18/19), which is adequate to absorb the net impact of 20/21 – estimated at €852 million by PwC,” said LaLiga.

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