LaLiga posts strong financial growth in FY18
MUMBAI: Spanish professional football championship LaLiga has seen an all-round growth during the financial year 2017-18. LaLiga’s gross operating profit (EBITDA) was €945m (+20.7%), operating profit (EBIT) was €325m (+11.4%), and the net profit for the year was €189m (+6.7%).
LaLiga’s revenue grew 20.6% to €4.479 billion over the previous season.
According to LaLiga, this is the largest positive annual change in recent years and particularly notable given that it has occurred following several financial years in which LaLiga has been consistently posting double-digit growth rates.
It further stated that the results fall at the midway point of the three-year audiovisual cycle for the national market, so are not affected by a sudden increase in revenues that is inconsistent with previous years.
The 2017/18 season saw two new factors driving LaLiga’s growth: commercial revenue and revenue from transfers. These two streams have become growth drivers along with broadcasting revenue.
In the case of commercial revenue (without including turnover from advertising), the annual increase was 34.1%, amounting to a turnover of €838m, which is indicative of the fact that Spanish clubs are becoming an increasingly attractive medium for sponsors.
Meanwhile, in the case of revenue from player transfers (i.e. sale price), the annual increase of 104.3% allowed turnover in this section to double in a single year. The entry of €1.018bn is symptomatic of the significant capacity held by Spanish clubs and SADs for creating sporting value.
That said, audiovisual turnover received by the clubs managed to surpass the €1.5bn mark for the first time and will recover its central role from the 2019/20 season as a result of the new audiovisual cycle negotiated for the national market and the international agreements that have been signed.