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European Champions: In a League of Their Own

January 30, 2024

European Champions: In a League of Their Own - SBI Barcelona

Europe has been the forefront of football business and no better to study & get a better insight than looking at the financial performance of the champions of eight most prominent leagues – aside from the big 5 leagues, Dutch Eredivisie, Turkish Super Lig and Portugese Super Liga

 

That’s what Football Benchmark has been doing for the past seven years or so. They recently presented the 8th edition of the European Champions Report. It is as comprehensive as it gets.

 

So, at SBI Barcelona, we decided to explore a bit more on the financial performance data and try to gather some insights

 

Growth Over the Years

 

Leaving aside the COVID years, seasons 2019/20 and 2020/21, we looked at the performance of 2018/19, 2021/22 and 2022/23.

 

• Cumulative revenue of eight leagues degrows by 7% in 21/22 over 18/19

• Grows over 11% in 22/23 over the previous year, 21/22

 

The chart given shows the total revenue generated by the eight leagues cumulatively

 

European Champions: In a League of Their Own - SBI Barcelona

 

It’s interesting to note that despite the fall and subsequent rise in total revenues in the three seasons, only the commercial revenue stream witnessed consistent growth in all seasons. Matchday revenue in 21/22 season was partially affected by COVID when matches were played with empty stadiums, so that can be ignored. The chart below gives a glimpse

 

European Champions: In a League of Their Own - SBI Barcelona

 

2022/23 Performance Over 2021/22

 

Manchester City, Bayern Munich and PSG have been consistent champions in Premier League, Bundesliga and Ligue 1 respectively in 2021/22 and 2022/23 seasons. The other five leagues saw change of champions

 

The other interesting point is except for the Dutch Eredivisie champions, all the other leagues saw an increase in revenue. In 21/22, total revenue of the champion AFC Ajax was €189mn while in 22/23, Feyenoord became champion and gave a total revenue of €99mn

 

The below tables give a y-o-y comparison

 

European Champions: In a League of Their Own - SBI Barcelona

 

European Champions: In a League of Their Own - SBI Barcelona

 

The maximum increase was witnesses in the case of Portuguese Super Liga, where FC Porto was the champion in 2021/22 with a total revenue of €144mn where in 22/23, SL Benfica was the champion giving a. total revenue of €196mn, a 36% increase

 

Manchester City, Bayern Munich and PSG have been consistent respective league champions. What’s interesting to see is that revenue for each has grown in double digit percentages. The chart below maps the growth

 

European Champions: In a League of Their Own - SBI Barcelona

 

Share of revenue stream by club

 

A breakdown of the income distribution by revenue streams of Europeans Champions in 22/23

 

  • Commercial income of Manchester City, Barcelona, Bayern Munich & PSG are consistently strong which can be attributed to their global appeal
  • Higher broadcast rights value of Premier League leads to a higher share of broadcast income for Manchester City. Although Napoli & Benfica too score high on the same parameter which can be attributed to the income from UEFA
  • Stronger reliance on matchday income at Feyenoord and Galatasaray

 

European Champions: In a League of Their Own - SBI Barcelona

 

Champions at the Helm

 

Looking at the revenues of the champions, one thing is for certain, commercial income will keep growing. Broadcast income, while depending on the market situation, might be at the receiving end for some clubs. Nevertheless, it’s the champions who chart the growth path.

 

Image source: Reuters

 

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