By Paul Nicholson
July 19 – FC Barcelona have announced record income of €708 million for the 2016/17 season. This is an increase of €29 million on the €679 million posted the previous year which was also a club record.
The new figures were released in a short statement by the Board of Directors on the Barca website who have approved the accounts for the 2016/17 season. The revenue figure is €13 million up on budgeted figure.
The club is reporting a net after tax profit of €18 million.
The Board described the results as “positive” as they are in line with the club’s strategic plan to reach €1 billion in revenue by 2021. They also praised the operating result which saw a €24.5 million reduction in the club’s debt taking it down to €247 million.
The club statutes set a EBITDA ratio of no more than 2.25. At 1.99, the Board set they are “well within the limit”.
Players’ salaries made up 66% of the club’s total expenditure.
Barcelona’s growth is being driven by an international marketing strategy. In its previous years accounts it reported it had grown from five international sponsors during the 2010/2011 season to 37 during the 2015/16 season. The bulk of this growth came through the commercial success of its newly opened Hong Kong office.
In the year just reported Barcelona opened an office in New York to drive North American sales.
Key to Barca’s future financial growth is the development of the Camp Nou stadium and the surrounding areas into the Espai Barca. This €600 million redevelopment will be financed by €200 million from internal resources, €200 million by bank debt, and €200 million from the naming rights for the remodelled Camp Nou. The regeneration project will take place in phases and not complete until the 2020/21 season.
The latest financial results place Barca as the fourth most valuable sports club in the world at €3.64 billion, according to the Forbes magazine ranking. They are behind the Dallas Cowboys, the New York Yankees and Manchester United.
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