Italian journalist Marco Bellinazzo takes a look into the financial aspect surrounding Inter’s recent theory of sales regarding the clubs shares, in a piece for Goal.com.
In the latest news, LionRock Capital of Hong Kong, intends to buy out Erick Thohir’s remaining 31.05% of the shares held at Inter. The article discusses how UEFA’s Financial Fair Play and clubs have managed over the past 10 years or so: “No wonder the fact that investment funds enter the football world more and more frequently, especially in the European one.”
Belinazzo continues in Il Sole 24 Ore: “The financial report just published by UEFA highlights the ability of the football of the Old Continent to increase its turnover almost regardless of the economic cycle, crisis and recessions, and to be able to generate, thanks to a general re-balancing of income and expenses due to Financial Fair play, also profits.”
The top division teams have seen an increase in both revenue from €11.4 billion in 2008 to €20.1 billion in 2017 (+ 77%) in profits. Over the last five years, European clubs have generated over four billion operating profits. Among the leagues, the undisputed queen remains the Premier League, which invoiced €5.3 billion, compared to the total €2.9 billion generated by La Liga, to €2,8 billion of the Bundesliga and the €2.2 billion of the Serie A.”
“The counterbalance of this development derives, if anything, from the gap that has opened between the big teams and the other teams. The 12 “global” clubs – 6 English clubs (Manchester United, Manchester City, Arsenal, Liverpool, Chelsea and Tottenham), 2 Spanish (Real Madrid and FC Barcelona), 2 German (Bayern Munich and Borussia Dortmund), one French (PSG) and one Italian (Juventus) – for example, get €1.6 billion euros from the commercial area and sponsorship’s against the €scarce billion achieved by all the other 700 European first division teams.”
“This also explains why funds tend to be directed towards those clubs that, belonging to the continental football elite, are and will be able even more in the coming years to generate revenues and profits.”
