BrandArena: Barcelona declare profit of €304 million for 2022-23 season but costs far exceed budget

Wednesday 25 October 2023

Barcelona declare profit of €304 million for 2022-23 season but costs far exceed budget

...estimate €859m in revenue for 2023/24 season

Spanish football giants Barcelona have reported a profit of €304 million during the 2022-23 season, but few are celebrating. Their financial woes were expected to persist for some time, while Vice-President of the Economic Department Eduard Romeu stated that members could expect a 'normalised year' as early as next year.

Barcelona's overall revenue for the 2022-23 season is €1.259 billion, while costs are €1.165 billion, according to Romeu. According to him, they brought in €4 million more than planned, but their costs were €100 million higher. After taxes and re-valuations, their net profit was €30 million higher than expected.

In the earnings, €400 million was credited to the sale of television rights, while another €200 million was attributed to the sale of 49% of Bridgeburg Investment, the subsidiary firm that handles their income, but Romeu included that in 'regular income'. Taking away the sale of their television rights, their income was calculated at €860 million, however, he did remark that they moved forward €100 million in costs later on.

Barcelona's budget for the 2023/24 season has been approved, with the club expecting €859 million (US$911.1 million) in revenue and after-tax earnings of roughly €11 million (US$11.66 million).
The LaLiga team owes €1.2 billion (US$1.27 billion), deducting the €1.5 billion (US$1.59 billion) expenditures of the Espai Barca project to restore Camp Nou.

It recently revealed that it generated €800 million (US$848.5 million) from the sale of its TV rights earnings to Sixth Street, as well as from the anticipated sale of its club media company. The club also released their first sustainability report for the 2020/21 and 2021/22 seasons at their annual general meeting (AGM).

Barcelona could have declared bankruptcy if it had been a private firm, according to the Club's president, Joan Laporta.

With so many accounting practices in use, discerning the underlying meaning of these data can be tricky. 

No comments:

Post a Comment