BARCELONA: FC Barcelona is the first sports club in the world to surpass the $1 billion mark in revenues.
This was announced here by club CEO Oscar Grau, while presented the budget for the 2018/19 season.
For the 2017/18 season, which ended on June 30, FC Barcelona declared revenues of $1.05 billion (€914m).
Grau presented the budget for the 2018/19 season, which foresees revenue of $1.105 billion (€960m), a figure which strengthens Barça’s position as the highest earning sports club in the world.
The income is in line with the club's strategic plan to reach revenues of €1 billion by 2021, the final year of the current board's mandate.
The budget of $1.105 billion (€960m) exceeds the $1.05 billion (€914m) in revenue at the end of 2017/18 and published on July 16, following approval by the board of directors.
This is the first time that revenue has surpassed $1 billion, a huge step up from 2016/17.
The budget presents an after-tax profit of $12.67 million (€11m), and since 2010, the accumulated profits amount to $229 million (€199m), thereby closing the eighth consecutive year with a profit.
The budget reports a record EBITDA of $220 million (€191m), an historical record which confirms the economic strength of the club and its long term sustainability.
Regarding the investments budgeted for the 2018/19 season, there are $83 million (€72m) for the Espai Barça project.
Another aspect to highlight from this budget is the reduction in club's wage bill for its players, which is down 4 points compared to last season and represents 66% of total revenue. In addition, without the cost of the wages paid to athletes in other professional sports, the figure would be around 61%, below the threshold recommended by UEFA.
Compensation of Neymar Jr income
The extraordinary income from payment of Neymar Jr's buyout clause has been compensated in next year’s budget through improved commercial and sponsorship revenue, media rights, stadium revenues and transfers of players.
An increase in the merchandising business is expected following consolidation of Barça Licensing & Merchandising (BLM), the company that the club created to regain management of Barça stores and licensed products. The other significant item that helps to explain the increase in revenue is media, thanks to the new cycle for the distribution of UEFA payments for the Champions League.
EBITDA ratio has remained within the limits of financial balance set out by the club statutes.
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