The European Champions Report 2019 - footballbenchmark.com

1 The European Champions Report 2019 1. The European Champions Report 2019. January, 2019. KPMG Sports Advisory Practice 2019 KPMG Advisory Ltd., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. What is KPMG Football Benchmark? A business intelligence tool enabling relevant comparisons with competitors, including: Club finance & operations A consolidated and verified database of the financial and operational performance of over 200 football clubs, both in Europe and South America. Social Media Analytics An updated and historical tracking of the social media activity of 500+ football clubs and 2,000+ footballers. Player Valuation A proprietary algorithm, which calculates the market value of 4,700 football players from nine European and two South American leagues.

2 The European Champions Report 2019 3. Foreword T. he 2017/18 season has In particular, Galatasaray SK showed been characterised by fierce the highest year-on-year operating competition of teams to retain revenue increase, of 19% (50% in local their spots at the top of rankings in currency1). FC Barcelona, with total Europe. Only FC Bayern M nchen and operating revenues of EUR 689 million, Juventus FC managed to confirm their are the richest club among the eight leadership in Bundesliga and Serie A, Champions reviewed in our study, winning their sixth and seventh titles and the second one overall behind Real in a row, respectively, while the other Madrid CF, whose operating revenues six leagues surveyed have seen a new reached EUR 743 million at the end of champion emerge. the 2017/18 season. FC Barcelona, Paris Saint-Germain FC The positive revenue trend can and PSV Eindhoven are back in our be mainly attributed to the rise of Report after just one year of absence.

3 Commercial revenues. This income The Blaugrana won La Liga for the 25th item grew for all eight clubs, with time in their history, a fair consolation FC Bayern M nchen confirming their Andrea Sartori prize after seeing historical rivals Real primacy in this area, reaching EUR. Partner Madrid CF winning their third UEFA 316 million2. Commercial represents KPMG Global Head of Sports Champions League in a row, while Paris the source of revenue with the highest Saint-Germain FC dominated the Ligue impact on total turnover for six of the 1, after the unexpected triumph of AS eight European Champions , with Monaco FC in the previous season. FC Porto and Juventus FC being the only The Dutch Eredivisie proclaimed the two exceptions. Interestingly though, city of Eindhoven as the Netherlands' these two clubs are the best performers football capital for the 24th time in its in terms of year-on-year Commercial history.

4 Finally, three clubs regained income's growth, with an increase of championship after several years, and 43% and 21%, respectively. thus made their first-ever appearance in our Report : FC Porto, Galatasaray SK and The analysis undertaken in this Manchester City FC. The Cityzens broke study, despite some differences records in the English Premier League, among the various clubs, highlights finishing 19 points ahead of city rivals the prominence that commercial Manchester United FC, and building a expansion is gaining: while Matchday team that now has a hunger to succeed income is capped by stadium capacity also on the European stage. and Broadcasting is limited by multi-year deals, effective In the third edition of The European management decisions and strategies, Champions Report , KPMG's Football supported by adequate sporting Benchmark team pays tribute to performance, can exploit yearly the Champions of Europe's most commercial opportunities.

5 Prominent leagues in the 2017/18. season, reviewing and comparing As revenues increased, so did personnel some of their most relevant business costs. The historic transfer of Brazilian performance indicators to provide striker Neymar from FC Barcelona to perspective on these clubs' future. Paris Saint-Germain FC for EUR 222. We exclusively focus on the domestic million, and the domino effect that league Champions from eight of the it caused with the Blaugrana acquiring main leagues: FC Barcelona, FC Bayern Demb l and Coutinho as substitutes, M nchen, FC Porto, Galatasaray SK, were some of the main contributors to Juventus FC, Manchester City FC, Paris Staff cost increases for these two clubs. Saint-Germain FC and PSV Eindhoven. Indeed, FC Barcelona registered the most remarkable year-on-year increase For the third year in a row, football (+42%), recording more than half a continues to demonstrate its brawn billion euros for the first time in the as a growing industry, with operating history of football (EUR 562 million), revenues (net of transfer proceeds) while PSG reached EUR 332 million increasing for six of the eight clubs (an increase of +20%).

6 Cost control examined herein, Juventus FC and PSV remains a key issue for football clubs, as Eindhoven are the exceptions. the increase in the staff costs/operating 1. In order to conduct cross-league analysis and comparison, where the local currency is not EUR, for the purposes of this Report all local currency figures have been converted using the average exchange rate for the 12 months prior to 30 June 2018. 2. All data refer to the individual financial statements of FC Bayern M nchen AG. Consolidated data were not available at the date of publication. 2019 KPMG Advisory Ltd., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The European 4 Champions Report 2019. revenue ratio for all the European In this year's Report , we provide transforming football organisations into Champions , with only the exception of information on the eight European real global brands, capable of attracting Manchester City FC, demonstrates.

7 Champions ' squads' market value, not only fans, but actual customers, and In this scenario, three clubs have based on KPMG's proprietary Player thus capturing audiences from all over exceeded the 70% threshold, a Valuation Tool, which estimates the the world. parameter monitored by UEFA (FC market value of players as at 1 January Barcelona 81%, FC Porto 80% and 2019. Manchester City FC possess We hope that you enjoy this year's Report Galatasaray SK 71%). Despite this the most valuable team (EUR 1,182 and encourage you to explore general costs increase, five clubs out of million), while at the players' level, , KPMG's the eight obtained a positive after-tax Neymar is the most valuable footballer football business intelligence tool and result in the 2017/18 season, with the (EUR 229 million), followed by Kylian the primary source of financial data in the three clubs registering a loss being FC Mbapp (EUR 215 million) and Lionel football industry.

8 Porto, Galatasaray SK and Juventus FC. Messi (EUR 203 million). Football players represent the core asset Football is undergoing an important for football clubs and their transfers phase of change from a business point continuously grab the headlines, as clubs of view, with top clubs moving towards fight to secure the top talent available. an entertainment company model, 2019 KPMG Advisory Ltd., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The European Champions Report 2019 5. Highlights Key performance indicators Operating revenues Total Staff costs Profit/Loss after tax Stadium utilisation rate Squad market value Social media followers*. 2017/18 season 2017/18 season 2017/18 season 2017/18 season as at 1st January 2019 as at 1st January 2019.

9 In EUR million in EUR million in EUR million in EUR million in million FC Barcelona FC Bayern M nchen**. 689 562 596 303. +13 66% +22 100%. 1,101 225 764 72. FC Porto Galatasaray SK. 106 85 114 81. -29 85% -49 79%. 232 6 83 27. Juventus FC Manchester City FC. 402 259 568 293. -19 94% +12 98%. 792 67 1,182 59. Paris Saint- PSV Eindhoven Germain FC. 542 332 62 35. +32 98% + 95%. 896 64 160 2. *Note: Facebook, Instagram , Twitter and YouTube combined. **Note: All data refer to the individual financial statements of FC Bayern M nchen AG. Consolidated data were not available at the date of publication. Source: KPMG Football Benchmark 2019 KPMG Advisory Ltd., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved.

10 The European 6 Champions Report 2019. Revenues overview (2017/18 season). Total (in EUR million) and breakdown (in %). Matchday Broadcasting Commercial & Other 17% 11% 18%. 24%. 44%. 689 53%. 596* 30%. 47%. 568 42%. 58%. 542 24%. 32%. 14% 12% 19%. 25%. 36%. 402 43%. 114 36%. 106 64 %. 62 17%. 50% 32% 52%. *Note: All data refer to the individual financial statements of FC Bayern M nchen AG. Consolidated data were not available at the date of publication. Source: KPMG Football Benchmark Revenues trend year-on-year in %. +19 20. 15. +12. 10. +7 +7 +8. 5. +3. 0. -2. -5. -10. -15. -20. -25. -28. -30. Source: KPMG Football Benchmark 2019 KPMG Advisory Ltd., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved.