BUDGETS SOCCER TEAMS - The Covid-19 pandemic has also made its impact felt in the sports sector, especially in the world of football. Empty stadiums meant zero receipts from ticket offices, but merchandising sales have also been reduced. While income halves expenses remain unchanged and this has led to budget gaps for virtually all Italian clubs, but there have been exceptions.
The situation of Inter can be easily guessed from some excerpts taken from the official communication released by the club.
"The year 2020/2021 has been significantly impacted, for its entire duration, by the consequences on the socio-economic context, in our country and globally, of the pandemic from Covid-19 and the measures necessary to ensure the safety of public health and productive activities.
In this context, consolidated revenues amounted to 364.7 million euro. The year recorded a loss of € 245.6 million, to which mainly contributed the zeroing out of tender revenues from the closure of the stadiums (as compared with 2020 when the closures began in the first days of March), the contractual reductions of the sponsors due to the impossibility of granting benefits by the Company and the liquidation of sports-related relationships.
The Club promptly undertook a policy of rebalancing, with two primary objectives to be pursued: the achievement of financial stability and the maintenance of the competitiveness of the team.
The Company’s strategy is focused on monitoring costs, with the aim of adapting the business to the changing reference context in a timely manner, continuing to invest adequate resources in the evolution and growth of the Club.
An important result has already been achieved with the significant increase in the value of sponsorships. The entry of Socios.com and Digitalbits and Lenovo’s positioning upgrade attest to the Club’s continued global appeal."
The same applies to the Nerazzurri for Juventus, whose official note reads as follows:
"For a correct interpretation of the data it must first be noted that the year 2020/2021 has been significantly penalized - as for all companies in the sector - by the continuation of the health emergency related to the pandemic from Covid-19 and from and income from management rights players, with a consequent negative impact both of an economic-patrimonial nature on operating income and equity, and of a financial nature on cash flow and debt. These negative effects were partly offset by higher revenues from broadcasting rights as a result of the postponement of certain national and international competitions from the previous year due to the pandemic. resulting restrictive measures imposed by the Authorities. The pandemic has influenced to a significant extent - directly and indirectly - revenues from tenders, revenues from sales of products and licenses
The year 2020/2021 therefore closes with a consolidated loss of €209.9 million, compared to the loss of €89.7 million in the previous year. In detail, the increase in loss for the year was mainly due to lower revenues of EUR 92.7 million, both related to the effects directly attributable to the pandemic on revenues from tenders and sales of products, licences and others (EUR 47.9 million in total)both lower income from management rights from footballers (€ 128.8 million); These negative effects were partly offset by higher revenues from broadcasting rights (€68.9 million, of which €63 million related to the above-mentioned largest number of matches played during the period). We also note the positive performance - despite the difficult environment - of revenues from sponsorships and advertising, an increase compared to the previous year, as well as the increase in revenues of e-commerce, which partly compensates for the inevitable drop in revenues from the physical retail channel. Operating costs increased by €35.2 million, mainly due to higher charges on staff members who were fully and regularly paid in the period under review; the change is due to the fact that this item benefited in the previous year from lower costs related to individual renegotiations with members of staff related to the pandemic environment. Depreciation, write-downs and net provisions were overall stable".
As for Milan, however, we still do not have the official budget situation that will be approved in October 2021 to be compared with the two previous teams. The first rumors, however, speak of a bill in red for about 100 million euros. The figure is very high, but downsized compared to the 194.6 million negative recorded in the 2019/2020 season. The Europa League revenues, the return to the Champions League and certainly also the reduction of salaries contributed to the improvement. The search for new partners and sponsors was also important, reaching the conclusion of 20 new agreements.
Of all these red accounts, however, there is a great exception. It’s about the Atalanta. The Bergamo’s have, with 2020, lined up four years of budget closure in a positive. The success of the company’s policy is due in particular to capital gains estimated at a total of more than 178 million between 2017 and 2020. To these must be added, for 2020 the revenue derived from television rights for about 117 million euros.
To grow even at Atalanta house were not only the balance sheet figures but also sponsorships, first of all the close one with Plus500 trading online, companies experienced in the field of investments on the web.
The Atalanta project can be summed up as follows: selling talent to have enough money to invest wisely in the future. All without losing the objective of maintaining a balanced team that focuses on young people with good growth potential.
Football suffers, exports grow, https://www.finanzeinvestimenticriptovalute.it/en/the-market-value-of-esports/
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