Barcelona FC Announce Record Breaking Profit
Barcelona FC Announce Record Breaking Profit
FC Barcelona have announced "better figures than expected" on Thursday, with an after-tax net profit of €304 million ($320 million) made in 2022/23. A record-Breaking Financial Year! 
FC Barcelona announces after-tax net profit of 304 million euros in 2022/23
Improvements made in all lines of business, with better figures than expected, while also reducing the net debt for the second year in a row
28 Sep 23
The FC Barcelona Board of Directors can report that the 2022/23 financial year has closed with a net profit of 304 million euros after taxes, a result higher than that approved in last season's budget. During the 2022/23 season, FC Barcelona achieved, on a consolidated level, operating income of 1.259 billion euros with operating expenses of 1.165 billion euros.
These results have been achieved in a season that will go down in history for the record operational figures in the commercial and venue operation sections. The club has made improvements in all lines of business, recording figures higher than expected in each of them.
On a commercial level, with revenue of 351 million euros (+43% compared to the previous year), the club has obtained all-time record figures. The Sponsorship area practically reached 200 million euros and sales at Barça Stores amounted to 100 million euros, also an absolute record.
Venue operations closed the 2022/23 academic year to June 30 with total revenue of €229 million, a figure 14% higher than budgeted and 8% more than what was recorded in the 2018/19 season, the last full season prior to Covid. The significant increase in turnover at Spotify Camp Nou is especially remarkable, with €121 million in income generated by the first season ever to see a million tickets sold to see the men's first team, while there were also record gate takings for women's football, bringing in 2.7 million euros and for basketball with 4.5 million euros (126% higher than the 2018/19 pre-pandemic season). The Barça Museum closed its last year in its traditional location with turnover of €39.9 million.
In the 2022/23 season, FC Barcelona generated a record number of new sponsorships, 20, which generated €97.6 million, including Spotify, Bimbo and Whitebit, as well as new deals with ScotiaBank and Stanley, among others. Especially relevant have been the €7.8 million generated by women's football, an increase of 95% on the 2021/22 season. In the 2022/23 season, six other new sponsorships were signed for a value of €36 million that will count towards the 2023/24 season.
Barça Licensing & Merchandising (BLM) recorded a 54% increase in sales in physical stores compared to the previous year. As for e-commerce, the growth was 47% with spectacular gains in women's clothing, where sales have risen by 275%. In the 2022/23 season, eight new points of sale were opened: four in Barcelona, one in Tarragona, one in Madrid and two new corners at El Corte Inglés department stores (María Cristina and Plaça Catalunya, both in Barcelona). As well as these directly managed stores, four new franchises have also opened their doors for the first time.
The Board of Directors would like to emphasise that Spotify Camp Nou was the stadium with the highest average attendance in Europe last season, according to the UEFA report titled The European Club Talent and Competition Landscape. This once again demonstrates the strength of the FC Barcelona brand, which continues to be a global benchmark for creating synergies and offering unique fan experiences.
Also, as was already announced and approved at the last General Assembly of Delegate Members, the club has registered the sale of 15% of LaLiga broadcasting rights for an amount of 400 million euros .
The Board's overall assessment of the balance is positive, despite the intensification of measures to cut spending implemented since the beginning of the current mandate.
The Board stresses that the club's net debt has been reduced for the second consecutive season, dropping from 680 million euros as of 30 June 2021 to the current 552 million euros as of 30 June 2023. This debt criterion is calculated following the methods established by the LFP, and mainly includes net banking and sports debts, reduced by the treasury. The Board also draws attention to the point that this debt calculation method does not include all the loans related to the financing of Espai Barça, which are part of a separate structure that is financed with the resources generated by the project. This reduction in net debt has consequently helped to reduce the club's overall debt.
Turning to the budget for the 2023/24 season, the club projects revenue of 859 million euros and a profit of €11 million before taxes, framed within the Feasibility Plan approved by the Board of Directors. The club is convinced that it is doing things right, for it has ended the year with an overall profit despite the reduction in ordinary income from season and ordinary tickets as a result of the move to the Estadi Olímpic Lluís Companys. This season is going to require an additional effort from the club's commercial areas, major containment of ordinary spending and should also entail a significant reduction in the payroll for professional athletes, while ensuring that they remain as competitive or more than they were before. The Board emphasises the excellent outcome from the summer transfer window, which has produced a very solid-looking men's first team that, together with the support and commitments assumed by the Board of Directors itself through the presentation of personal guarantees, could all be registered as hoped to produce a squad that is already showing that it can compete strongly at the highest possible level.
https://www.fcbarcelona.com/en/club/new ... -in-202223
FC Barcelona announces after-tax net profit of 304 million euros in 2022/23
Improvements made in all lines of business, with better figures than expected, while also reducing the net debt for the second year in a row
28 Sep 23
The FC Barcelona Board of Directors can report that the 2022/23 financial year has closed with a net profit of 304 million euros after taxes, a result higher than that approved in last season's budget. During the 2022/23 season, FC Barcelona achieved, on a consolidated level, operating income of 1.259 billion euros with operating expenses of 1.165 billion euros.
These results have been achieved in a season that will go down in history for the record operational figures in the commercial and venue operation sections. The club has made improvements in all lines of business, recording figures higher than expected in each of them.
On a commercial level, with revenue of 351 million euros (+43% compared to the previous year), the club has obtained all-time record figures. The Sponsorship area practically reached 200 million euros and sales at Barça Stores amounted to 100 million euros, also an absolute record.
Venue operations closed the 2022/23 academic year to June 30 with total revenue of €229 million, a figure 14% higher than budgeted and 8% more than what was recorded in the 2018/19 season, the last full season prior to Covid. The significant increase in turnover at Spotify Camp Nou is especially remarkable, with €121 million in income generated by the first season ever to see a million tickets sold to see the men's first team, while there were also record gate takings for women's football, bringing in 2.7 million euros and for basketball with 4.5 million euros (126% higher than the 2018/19 pre-pandemic season). The Barça Museum closed its last year in its traditional location with turnover of €39.9 million.
In the 2022/23 season, FC Barcelona generated a record number of new sponsorships, 20, which generated €97.6 million, including Spotify, Bimbo and Whitebit, as well as new deals with ScotiaBank and Stanley, among others. Especially relevant have been the €7.8 million generated by women's football, an increase of 95% on the 2021/22 season. In the 2022/23 season, six other new sponsorships were signed for a value of €36 million that will count towards the 2023/24 season.
Barça Licensing & Merchandising (BLM) recorded a 54% increase in sales in physical stores compared to the previous year. As for e-commerce, the growth was 47% with spectacular gains in women's clothing, where sales have risen by 275%. In the 2022/23 season, eight new points of sale were opened: four in Barcelona, one in Tarragona, one in Madrid and two new corners at El Corte Inglés department stores (María Cristina and Plaça Catalunya, both in Barcelona). As well as these directly managed stores, four new franchises have also opened their doors for the first time.
The Board of Directors would like to emphasise that Spotify Camp Nou was the stadium with the highest average attendance in Europe last season, according to the UEFA report titled The European Club Talent and Competition Landscape. This once again demonstrates the strength of the FC Barcelona brand, which continues to be a global benchmark for creating synergies and offering unique fan experiences.
Also, as was already announced and approved at the last General Assembly of Delegate Members, the club has registered the sale of 15% of LaLiga broadcasting rights for an amount of 400 million euros .
The Board's overall assessment of the balance is positive, despite the intensification of measures to cut spending implemented since the beginning of the current mandate.
The Board stresses that the club's net debt has been reduced for the second consecutive season, dropping from 680 million euros as of 30 June 2021 to the current 552 million euros as of 30 June 2023. This debt criterion is calculated following the methods established by the LFP, and mainly includes net banking and sports debts, reduced by the treasury. The Board also draws attention to the point that this debt calculation method does not include all the loans related to the financing of Espai Barça, which are part of a separate structure that is financed with the resources generated by the project. This reduction in net debt has consequently helped to reduce the club's overall debt.
Turning to the budget for the 2023/24 season, the club projects revenue of 859 million euros and a profit of €11 million before taxes, framed within the Feasibility Plan approved by the Board of Directors. The club is convinced that it is doing things right, for it has ended the year with an overall profit despite the reduction in ordinary income from season and ordinary tickets as a result of the move to the Estadi Olímpic Lluís Companys. This season is going to require an additional effort from the club's commercial areas, major containment of ordinary spending and should also entail a significant reduction in the payroll for professional athletes, while ensuring that they remain as competitive or more than they were before. The Board emphasises the excellent outcome from the summer transfer window, which has produced a very solid-looking men's first team that, together with the support and commitments assumed by the Board of Directors itself through the presentation of personal guarantees, could all be registered as hoped to produce a squad that is already showing that it can compete strongly at the highest possible level.
https://www.fcbarcelona.com/en/club/new ... -in-202223
“If your opponent is of choleric temper, seek to irritate him. Pretend to be weak, that he may grow arrogant.”- Sun Tzu
Re: Barcelona FC Announce Record Breaking Profit
FC Barcelona, the Spanish soccer giant that couldn’t afford to re-sign Lionel Messi, just hit Wall Street with a bold $1 billion SPAC plan
Spanish football club FC Barcelona has won many championships with star players like Lionel Messi—but that hasn’t been enough to avoid financial troubles.
The club hopes to fix its money problems with four magic words: special purpose acquisition company, or a SPAC.
On Friday, the 2023 LaLiga winner announced plans to list its content creation unit Barca Media on Nasdaq via a SPAC merger that would value that business at $1 billion.
The club’s goal is to get funding to create more sources of income, and Barca Media could become an “important source of revenue in the coming years,” FC Barcelona said in a statement.
“The business incorporates substantially all of the digital content the club has produced over the past 20 years, targeting fans of all ages around the globe,” it said in a press release Friday.
The SPAC that will take Barca Media public is Swiss private equity fund Mountain Partners. Existing Barca Media shareholders will hold an 80% stake in the company, according to the club.
A spokesperson from the club declined to comment.
Barca’s financial tightrope
FC Barcelona’s planned SPAC comes at a time when the club continues to face the consequences of a financial meltdown owing to mounting debt and poor management. In 2021, it recorded a loss of €481 million ($527 million), and its debt continued to grow, ultimately trickling down to the players, some of whom accepted pay cuts to help the club afford to hire new team members.
The pandemic exacerbated the club’s troubles by depressing revenue as a result of fewer games. The club decided not to renew the contract of star player Messi in August 2021 after 17 seasons owing to “financial and structural obstacles,” FC Barcelona said at the time. It could no longer afford to pay Messi, who was among the sport’s highest earners and considered one of its greatest players.
The club underwent a management change in March 2021 when former president Joan Laporta returned as its leader. Among his major duties in his second stint was to get the club’s finances back on track. To do so, he engineered a series of unprecedented deals that involved mortgaging future income in exchange for immediate influxes of cash. He sold a 25% stake in future media rights deals to Sixth Street for at least $317 million in June 2022 and then, a month later, sold two 24.5% stakes in the club’s content division, Barca Studios, to blockchain company Socios.com and Orpheus Media, a company run by Catalan media impresario Jaume Roures, for $103 million (100 million euros) each.
FC Barcelona wasn’t always walking a financial tightrope—in the 2018–19 season, it saw over $1 billion in revenue, making history as the first sports team to reach that milestone. But over the years, its costs grew as its income began to stagnate and then plummeted to virtually zero during the pandemic.
The club is hoping that a $1.6 billion stadium renovation, complete with an American-style panoply of adjacent shopping and entertainment options, will yield enough new revenue to restore the club to its former status as a financial juggernaut. The new stadium is expected to generate $219 million in additional revenue for the club through events, tickets, and more, Reuters reported.
A change in minority owners to go along with the SPAC
Several years ago, SPACs shifted from being outliers on Wall Street—often for companies of dubious quality—to a buzzy alternative to traditional initial public offerings. Many tech and finance businesses like online betting firm DraftKings, office landlord WeWork, and electric-truck maker Nikola took this route because it was a quicker way to go public. But when stocks took a beating amid a market downturn in 2022, several SPACs started to collapse.
FC Barcelona’s intended media-unit SPAC isn’t the first such announcement in the football world. In January, owners of French team Olympique Lyonnais announced that they were considering a U.S. SPAC listing, but haven’t yet pulled the trigger.
Alongside the SPAC deal with Mountain & Co., Barca also announced a change in ownership for certain portions of Barca Vision, one of the club’s divisions that will make up the newly formed Barca Media.
German investment firm Libero Football Finance and a group of unnamed private investors will purchase a 29.5% share of Barca Media from Orpheus and Socios.com for $132 million, according to a press release announcing the deal. A separate press release on Libero’s website detailed that the German firm would purchase 9.8% of Barca Vision, presumably the remainder would go to the private investors mentioned. It’s not known whether Orpheus and Socios.com sold equal amounts of their stakes, and Barca’s representatives declined to comment. The sale comes in the wake of Spanish press reports noting that an unnamed German fund was interested in acquiring a portion of Socios.com’s and Orpheus’s shares in Barca’s media arm. Again, the club declined to comment whether Libero was the unnamed fund referenced in previous reports.
This new infusion of capital allows Barcelona to close a €60 million ($66 million) shortfall in its budget. Ever since Barcelona’s financial crisis, the Spanish league has forced Barcelona to adhere to strict financial guidelines requiring the club to have a minimum amount of income, only a limited portion of which can be spent on salaries for new players. Without these funds, Barcelona would not have been able to register players who signed new contracts with the league office. Those players are in a sort of limbo in which they have a contract with Barcelona but are ineligible to compete in the Spanish league. As of now, Barcelona only has 12 players registered, The Athletic reports. The new funds come just two days before its season opener on Sunday.
https://fortune.com/2023/08/11/fc-barce ... 1-billion/
Spanish football club FC Barcelona has won many championships with star players like Lionel Messi—but that hasn’t been enough to avoid financial troubles.
The club hopes to fix its money problems with four magic words: special purpose acquisition company, or a SPAC.
On Friday, the 2023 LaLiga winner announced plans to list its content creation unit Barca Media on Nasdaq via a SPAC merger that would value that business at $1 billion.
The club’s goal is to get funding to create more sources of income, and Barca Media could become an “important source of revenue in the coming years,” FC Barcelona said in a statement.
“The business incorporates substantially all of the digital content the club has produced over the past 20 years, targeting fans of all ages around the globe,” it said in a press release Friday.
The SPAC that will take Barca Media public is Swiss private equity fund Mountain Partners. Existing Barca Media shareholders will hold an 80% stake in the company, according to the club.
A spokesperson from the club declined to comment.
Barca’s financial tightrope
FC Barcelona’s planned SPAC comes at a time when the club continues to face the consequences of a financial meltdown owing to mounting debt and poor management. In 2021, it recorded a loss of €481 million ($527 million), and its debt continued to grow, ultimately trickling down to the players, some of whom accepted pay cuts to help the club afford to hire new team members.
The pandemic exacerbated the club’s troubles by depressing revenue as a result of fewer games. The club decided not to renew the contract of star player Messi in August 2021 after 17 seasons owing to “financial and structural obstacles,” FC Barcelona said at the time. It could no longer afford to pay Messi, who was among the sport’s highest earners and considered one of its greatest players.
The club underwent a management change in March 2021 when former president Joan Laporta returned as its leader. Among his major duties in his second stint was to get the club’s finances back on track. To do so, he engineered a series of unprecedented deals that involved mortgaging future income in exchange for immediate influxes of cash. He sold a 25% stake in future media rights deals to Sixth Street for at least $317 million in June 2022 and then, a month later, sold two 24.5% stakes in the club’s content division, Barca Studios, to blockchain company Socios.com and Orpheus Media, a company run by Catalan media impresario Jaume Roures, for $103 million (100 million euros) each.
FC Barcelona wasn’t always walking a financial tightrope—in the 2018–19 season, it saw over $1 billion in revenue, making history as the first sports team to reach that milestone.
But over the years, its costs grew as its income began to stagnate and then plummeted to virtually zero during the pandemic. The club is hoping that a $1.6 billion stadium renovation, complete with an American-style panoply of adjacent shopping and entertainment options, will yield enough new revenue to restore the club to its former status as a financial juggernaut. The new stadium is expected to generate $219 million in additional revenue for the club through events, tickets, and more, Reuters reported.
A change in minority owners to go along with the SPAC
Several years ago, SPACs shifted from being outliers on Wall Street—often for companies of dubious quality—to a buzzy alternative to traditional initial public offerings. Many tech and finance businesses like online betting firm DraftKings, office landlord WeWork, and electric-truck maker Nikola took this route because it was a quicker way to go public. But when stocks took a beating amid a market downturn in 2022, several SPACs started to collapse.
FC Barcelona’s intended media-unit SPAC isn’t the first such announcement in the football world. In January, owners of French team Olympique Lyonnais announced that they were considering a U.S. SPAC listing, but haven’t yet pulled the trigger.
Alongside the SPAC deal with Mountain & Co., Barca also announced a change in ownership for certain portions of Barca Vision, one of the club’s divisions that will make up the newly formed Barca Media.
German investment firm Libero Football Finance and a group of unnamed private investors will purchase a 29.5% share of Barca Media from Orpheus and Socios.com for $132 million, according to a press release announcing the deal. A separate press release on Libero’s website detailed that the German firm would purchase 9.8% of Barca Vision, presumably the remainder would go to the private investors mentioned. It’s not known whether Orpheus and Socios.com sold equal amounts of their stakes, and Barca’s representatives declined to comment. The sale comes in the wake of Spanish press reports noting that an unnamed German fund was interested in acquiring a portion of Socios.com’s and Orpheus’s shares in Barca’s media arm. Again, the club declined to comment whether Libero was the unnamed fund referenced in previous reports.
This new infusion of capital allows Barcelona to close a €60 million ($66 million) shortfall in its budget. Ever since Barcelona’s financial crisis, the Spanish league has forced Barcelona to adhere to strict financial guidelines requiring the club to have a minimum amount of income, only a limited portion of which can be spent on salaries for new players. Without these funds, Barcelona would not have been able to register players who signed new contracts with the league office. Those players are in a sort of limbo in which they have a contract with Barcelona but are ineligible to compete in the Spanish league. As of now, Barcelona only has 12 players registered, The Athletic reports. The new funds come just two days before its season opener on Sunday.
https://fortune.com/2023/08/11/fc-barce ... 1-billion/
“If your opponent is of choleric temper, seek to irritate him. Pretend to be weak, that he may grow arrogant.”- Sun Tzu
Re: Barcelona FC Announce Record Breaking Profit
If they don’t sell up to the Saudis they’ll soon find themselves Juventused.
Re: Barcelona FC Announce Record Breaking Profit
Why? They’ve just made a profit!
Hopefully, their future strategies, which they were forced to make, eventually pan out.
“If your opponent is of choleric temper, seek to irritate him. Pretend to be weak, that he may grow arrogant.”- Sun Tzu
Re: Barcelona FC Announce Record Breaking Profit
Spotify taking it to the next level with Barça sponsorship.
“If your opponent is of choleric temper, seek to irritate him. Pretend to be weak, that he may grow arrogant.”- Sun Tzu