European soccer's Messi finances

European soccer's Messi finances

6/8/2021 8:49:00 PM

European soccer's Messi finances

LONDON : The departure of six-time Ballon d'Or winner Lionel Messi from Barcelona has confirmed what many fans have feared for years - star player wages are now so stratospheric that they risk bankrupting even the grandest clubs. The charts below show some of the mind-boggling numbers involved in the worl

WAGESGraphic: Wage-to-revenue ratios in Europe's top soccer leagues - https://fingfx.thomsonreuters.com/gfx/mkt/akpezgllkvr/Pastedper cent20imageper cent201628255753945.pngCOVID-19 and empty stadiums though meant the leagues' revenues fell by an average of 11per cent. It meant wage-to-revenue ratios rose to 73per cent from 2018-19's 61per cent in Britain's Premier League, to 67per cent from 62per cent in Spain's La Liga, to 78per cent from 70per cent in Italy, 56per cent from 54per cent in Germany and to 89per cent from 73per cent in France.

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Football: Messi to leave Barcelona due to financial constraintMADRID: Argentina striker Lionel Messi will leave Barcelona despite both parties having reached an agreement over a new contract, the La Liga club said on Thursday (Aug 5), citing economic and structural obstacles to the renewal of deal. \u0022Despite FC Barcelona and Lionel Messi having reached an agreement an

Soccer-Disbelief in Argentina as Messi to leave BarcelonaFor the second time in a month football dominated both the front and back pages of newspapers in Argentina as a shocked nation dissected the news that Lionel Messi was leaving Barcelona.A month after the Rosario-born superstar led the national team to their first major title in 28 years, Messi was again t

Football: Messi to leave Barcelona due to 'financial obstacles', club saysMADRID — Six-time Ballon d'Or winner Lionel Messi will leave Barcelona despite both parties having reached an agreement over a new contract, the La Liga club said on Thursday (Aug 6), citing economic and structural obstacles to the renewal of the deal.

Messi to leave Barcelona due to 'financial obstacles': Club statementSix-time Ballon d’Or winner Lionel Messi will leave Barcelona despite both parties having reached an agreement over a new contract, the La Liga club said on Thursday (Aug 5), citing economic and structural obstacles to the renewal of the deal. Messi, who joined Barca’s...

We let Messi go to save the club - Barca presidentBARCELONA :Barcelona was forced to let Argentina superstar Lionel Messi leave the club because his wage demands would have jeopardised the club's future, President Joan Laporta said on Friday.The club and Messi had both wanted to sign a new contract but the Argentine's deal would have taken salaries to 110per

Football: Messi to leave Barcelona due to financial constraintMADRID: Argentina striker Lionel Messi will leave Barcelona despite both parties having reached an agreement over a new contract, the La Liga club said on Thursday (Aug 5), citing economic and structural obstacles to the renewal of deal. \u0022Despite FC Barcelona and Lionel Messi having reached an agreement an

LinkedIn LONDON : The departure of six-time Ballon d'Or winner Lionel Messi from Barcelona has confirmed what many fans have feared for years - star player wages are now so stratospheric that they risk bankrupting even the grandest clubs. The charts below show some of the mind-boggling numbers involved in the world's richest leagues, where the financial strains are most acute, and how COVID-19 has compounded the problems. WAGES Barcelona President Joan Laporta said the club was forced to let Messi leave because his wage demands would have jeopardised its future. He estimated the Argentine's new contract would have meant the club was paying out more on wages than it earns - 110per cent of its revenues to be exact. Without Messi it will be around 95per cent."The club is above everything - even above the best player in the world," Laporta said. Graphic: Wage-to-revenue ratios in Europe's top soccer leagues - https://fingfx.thomsonreuters.com/gfx/mkt/akpezgllkvr/Pastedper cent20imageper cent201628255753945.png A decade ago, wages in the Big Five leagues added up to around 5.6 billion euros (US$6.6 billion), Deloitte estimates. Wage-to-revenue ratios - the money clubs pay players and other staff - amounted to 51per cent in Germany, 70per cent in the Premier League and 75per cent in Italy's Serie A and France's Ligue 1. By last season, that combined European wage bill had ballooned to 17 billion euros. COVID-19 and empty stadiums though meant the leagues' revenues fell by an average of 11per cent. It meant wage-to-revenue ratios rose to 73per cent from 2018-19's 61per cent in Britain's Premier League, to 67per cent from 62per cent in Spain's La Liga, to 78per cent from 70per cent in Italy, 56per cent from 54per cent in Germany and to 89per cent from 73per cent in France. Graphic:Wage-to-revenue ratios at Europe's top soccer clubs - https://fingfx.thomsonreuters.com/gfx/mkt/movanmredpa/Pastedper cent20imageper cent201628263391131.png "UEFA has historically said that a 70per cent wage-to-revenue ratio should be the upper limit for clubs to target, but we may see a number of large clubs go past that figure and possibly even breach 100per cent in the short term." Sam Boor, a senior manager in Deloitte's sports business group, told Reuters in April. Even before COVID-19, the wage-to-revenue ratio in England's second tier Championship was already 107per cent, he said. WORTH IT The combined value of the top 32 European teams has grown over 50per cent since 2016, according to accountancy firm KPMG's Football Benchmark team, which looks at clubs' overall 'enterprise value' - their owners’ equity, plus total debt, minus cash. Graphic:Revenue growth of Europe's 'Big 5' soccer leagues - https://fingfx.thomsonreuters.com/gfx/mkt/rlgvdzqznvo/Pastedper cent20imageper cent201619093328235.png The rise had been driven - up until last year at least - by an aggregate annual 11per cent increase in total operating revenues. That has been led by the 65per cent leap in broadcasting revenues the clubs netted between 2016 and 2020 and respective 22per cent and 39per cent rises in average matchday and commercial revenues. Olympique Lyon have seen the biggest individual rise over that period at 193per cent. Tottenham Hotspur have jumped 158per cent from being worth 800 million euros to just over 2 billion, while Manchester United and Barcelona have seen 15per cent and 16per cent gains to around 3.3 billion and 3.2 billion euros. COVID CRUNCH Europe's top 20 clubs generated 8.2 billion euros in revenue in the 2019/20 season, according to Deloitte's annual football money league report file:///C:/Users/u8017043/Downloads/deloitte-uk-deloitte-football-money-league-2021.pdf. Graphic:European soccer club share prices - https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwmbdmvo/Pastedper cent20imageper cent201628262233793.png That was down from 9.3 billion euros in 2018/19, and although it is partly distorted by the fact COVID-19 led to some broadcast revenues being pushed back into the next accounting year, the pandemic is estimated to have cost those 20 clubs over 2 billion euros in missed revenue so far. The figures also show that the dozen clubs in the failed breakaway 'Super League' plan this year earned just over 5.5 billion euros - 67per cent - of last year's 8.2 billion total. In a sub-plot to the Messi saga, both Barcelona and Madrid have been incensed by a proposed 2.7-billion-euro commercial rights deal between La Liga and private equity firm CVC. A consortium including the firm failed with a similar bid in Italy earlier in the year. DEBT Plenty of clubs now have significant debts due to the cost of buying players and building or improving stadiums. KPMG calculates that England's Tottenham Hotspur, which has just built a new stadium, had the highest overall debt at 685 million euros as of 2019/20, once things like transfer fees still owed to other clubs are stripped out. Graphic: Net financial debt of Europe's top soccer clubs - https://graphics.reuters.com/SOCCER-FINANCES/qzjpqzdklvx/chart.png Manchester United and Juventus were next with 524 and 390 million euros of debt respectively. Barcelona and Real Madrid had 318 million euros and 170 million euros. German champions and Champions League winners Bayern Munich had no debt and clubs like Paris Saint-Germain and Chelsea, on the surface at least, have more cash on their books than interest-bearing loans. Others argue that those figures do not show the full picture, as some super-wealthy club owners provide interest-free"soft loans" that are not always counted. Deloitte estimates that Chelsea's debt would be 1.3 billion pounds (US$1.8 billion) and the largest in the Premier League if 'soft loans' from owner Roman Abramovich were included. The firms also estimate cumulative net debt held by Premier League clubs reached a record of almost 4 billion pounds in 2019/20, up from 3.5 billion in 2018/19 and 2.9 billion in 2017/18. That debt represented 88per cent of the Premier League's combined revenues, up from 67per cent the previous season, although the then record 3.3 billion pound amount in 2008/09 represented 167per cent of that season’s revenues. (US$1=0.8503 euros) (Reporting by Marc Jones; Editing by Giles Elgood and Emelia Sithole-Matarise) Source: Reuters