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La Liga posts revenue of €4.479 billion

LaLiga’s clubs posted revenue of €4.479bn, representing growth of 20.6% over the previous season, according to to the latest Financial Report of Spanish professional football, corresponding to the most recent completed season (2017/18).

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.

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%). In short, LaLiga produced a solid, positive and growing set of results across the board, achieving the best figures in the competition’s history.

The 2017/18 season saw two new factors driving LaLiga’s growth: commercial revenue and revenue from transfers. These have seized the central role held by broadcasting revenues as drivers of annual growth.

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 a viable 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.

The 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.

These results have been achieved at the same time as an increase in operating expenses (OPEX) and at a time of high investment intensity (CAPEX).

OPEX (€3.169bn) increased by 18.7% in 2017-18, propelled especially by increases in sports staff expenses, which represent an investment in talent and a potential source of income for LaLiga in the medium term. This will be achieved through both rotation – transfer – as such, as well as the increase in sporting potential and the general appeal of the competition.

Meanwhile, gross CAPEX on infrastructure and players (€1.341bn) followed the same trend with annual growth of 11.8%.

LaLiga achieved all of these figures while simultaneously maintaining a downward trend in the degree of leverage. The ratio of financial debt to EBITDA of the competition was 0.9x, the lowest level on record.

It is equally important to underscore that LaLiga 1|2|3 is contributing not only to the revenue of LaLiga as a whole but also to the earnings and to the creation of cash flow and value for the business.

LaLiga has also reviewed two special groupings for internal financial analysis, Netted LaLiga and Netted LaLiga Santander, which excludes the two largest clubs, Real Madrid and Barcelona. Both of these groupings are showing a rapid level of convergence in terms of revenue.

The above has led LaLiga to obtain an overall operating profitability index (ROIC) of 12.3% (15.1% adjusted) in the 2017/18 season, six decimal points higher than the previous season and, in any case, substantially better than those of other leading competitions.

Finally, LaLiga earmarks around 2.0% of its turnover for corporate social responsibility projects.

Overall, LaLiga’s clubs create a football industry which produces an impact on national GDP equivalent to 1.37% and which directly or indirectly employs around 185,000 people (0.98% of the average employed population in Spain over the past year).