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Sports
Football: Lyon lost €36.5 million in the 2019/20 financial year
Due to the impact of COVID-19 and other factors, Lyon could not count a profit, but rather, a loss.
French football club, Olympique Lyonnais, said its finances have been ‘hard hit’ by the COVID-19 public health crisis, as it announced a loss of €36.5 million (US$42.6 million) for the 2019/20 financial year, compared to a profit of €6.2 million (US$7.2 million) the previous season.
The revenue of the French club in the 2018/19 season was up 19% at the end of March 2019, rising 15% to a first-half record of €61.8 million in the six months to 31 December 2019. This year, there was a setback in their revenue due to the pandemic, which saw their accounts stand at €271.6 million (US$317 million) as of 30th June 2020.
Ticketing revenue fell from €41.8 million (US$48.7 million) to €35.5 million (US$41.4 million) – a 15.1% decline, as Lyon was unable to play six home games following the premature end of the 2019/20 Ligue 1 season on 13 March. This meant the team finished in seventh place, outside of the qualification places for Uefa’s European club competitions.
READ: R.T. Briscoe declares N618.9 million loss in H1 2020, as sales of vehicles fall
Media rights totaled €97.6 million in the 2019/20 (compared to €122.0 million in 2018/19); a result of the premature end to the 2019/20 Ligue 1 season, after the 28th matchdays impacted domestic media rights in two ways
- Canal+ and BeIN paid only part of their broadcasting rights for the season to the LFP
- OL’s 7th place position in Ligue 1 became its final standing (vs 3rd place at the end of the previous season)
- Lyon’s main revenue stream for the 2019/20 campaign was media rights.
READ: EPL clubs to be fined £37 million each over suspension of matches
Sponsoring/advertising revenue suffered from the mid-March business shutdown and totaled €27.2 million with a decline of €4.2million and a fall of -13% when compared to €31.3 million in the 2018/19 season. Brand-related revenue was down with a decline of €2.4million, to €13.6 million (US$15.8 million).
Revenue from the Events business totaled €6.7 million over the full year, down 30% from €9.7 million in 2018/19. In accordance with the government’s measures prohibiting large gatherings, the Group was forced to cancel all of the summer events scheduled for Groupama Stadium, in particular, the first “Felyn” music festival, now postponed to 18 & 19 June 2021.
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OL Groupe incurred an operating loss of €18.4 million in 2019/20 (vs a profit of €22.2 million in 2018/19). The change reflected an increase in Net depreciation, amortization, and provisions (€76.2 million in 2019/20 vs €52.3 million in 2018/19), as a result of trading at the start and in the middle of the season (amortization of player registrations).
Operating profit/loss in 2019/20 included exceptional assistance of €12.9 million, recognized as “Other ordinary income and expenses” and deriving from the government-guaranteed loan received by the LFP. This is equivalent to the balance of LFP media rights the Club did not receive.
READ: FG working out plans to stabilize revenue – Zainab Ahmed
Net financial expense totaled €17.9 million (vs €14.0 million in 2018/19), tied principally to the non-recourse financing of player registration receivables implemented during the financial year. The pre-tax loss is €36.3 million in 2019/20. The net loss (Group share) was €36.5 million, against a net profit (Group share) of €6.2 million in 2018/19.
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However, despite the ongoing financial impact of COVID 19, Lyon said,
“OL remains confident in its ability to achieve the objectives set for the period from now until 2023/24, as presented last February; i.e. total revenue of €420-440 million (including player trading, according to the API as indicated above), and EBITDA in excess of €100 million, assuming the current public health crisis is resolved in the short term. This is based on our “full entertainment” growth strategy oriented around our core business – football – and also on the development, diversification, and recurrent nature of our “Events” programming, related in particular to the new arena project.”
Cryptocurrency
Ex-Real Madrid Striker, David Barral becomes first-ever footballer to be bought with Bitcoin
Former Real Madrid Striker, David Barral has become the first-ever footballer to be bought with Bitcoin.
Former Real Madrid striker, David Barral, makes transfer history as he became the first-ever professional player to be bought solely with virtual currency, Bitcoin.
Spanish third division side, DUX Internacional de Madrid, simply known as Inter Madrid, has officially signed the 37-year-old after teaming up with their new sponsors, Criptan that deals in cryptocurrency, The SUN reports.
Inter Madrid who are part of DUX gaming, eSports club owned by footballers Borja Iglesias and Real Madrid star, Thibaut Courtois, is yet to disclose the total value of the deal.
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The Segunda Division B club went to Twitter to welcome their new signing and thank their sponsor.
“David Barral new player of DUX Internacional de Madrid, welcome to the infinite club! He becomes the first signing in history in cryptocurrencies. Thanks to Criptan, our new sponsor, for making it possible,” the club tweeted.
The 37-year-old, who made over 50 appearances playing in the Real Madrid reserve side, expressed his delight at his latest move. Barral has also played for Spanish La Liga clubs Sporting Gijon, Levante, and Racing Santander.
“Glad to join the project of @interdemadrid with eager ambition and responsibility to continue competing and achieve important challenges in my sports career,” he wrote on his official Twitter handle.
READ: Real Madrid leapfrogs others to emerge the world’s most valuable football club
What you should know
- A similar deal was when a Harunustaspor, Turkish amateur side, paid 0.0524 Bitcoin (£385) plus 2,500 Turkish Lira in cash (£841) for Omer Faruk Kıroğlu in 2018.
- Back in December, Carolina Panthers offensive tackle Russell Okung became the first high-profile athlete in the United States to be paid in bitcoin.
- Similarly, the Mark Cuban-owned Dallas Mavericks became the second NBA franchise to accept Bitcoin as a means of payment for both game tickets and merchandise.
Sports
Football: Southampton announces £76.1m loss for 2019/20 financial results
Premiere League side, Southampton FC has revealed a UK£76.1m loss in Covid-hit 2019/20 financial results.
English Premier League club, Southampton Football Club, has reported a net loss of £76.1million for the fiscal year of 2019/20 ending in June 2020, due to the significant impact of the devastating Covid-19 pandemic.
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Key highlights of its FY 2019/20
- Southampton FC incorporated by St Mary’s Football Group Ltd, posted a decrease in the overall revenue down to £126.6m which represents a nosedive of £23m compared to £149.6 reported in the fiscal year of 2018/19, with the net loss before tax up from £41m.
- As a consequence of the English Premier League ending before 30 June 2020, broadcasting revenue fell to £93.5m compared to £112.8m in 2019 – a drop of £19.3m, despite the Saints finishing 11th in the 2019/20 Premier League season (five places higher than the previous season).
- With the suspension of the league in March 2020, until Project Restart, which led to matches played behind closed doors, matchday revenue fell to £14.5m with a £2.5m drop compared to £17.0m in 2019.
- Project restart also coated them an additional £1.5m of net additional costs of sales and administrative expenses in order to enable the men’s first-team squad to train and conclude the 2019/20 season in a COVID-19 secure environment.
- The Saints reported that the total 2019/20 revenue foregone as a highlight of the significant impact of the devastating Covid-19 pandemic over the financial year was £10.3m, with a further £20.9m revenue deferred into the year ended 30 June 2021.
- However, the club said revenue would have shown up a £8.2m (5.5%) increase up to £157.8m for the 2019/20 fiscal year, had it not been lost or deferred due to the ongoing Covid-19 crisis.
- The transfer business was significantly impacted as the Summer 2020 transfer window did not open until July 2020, after the financial year ended. The sales of Charlie Austin and Gallagher in the Summer 2019 window helped see a profit of £13.9m compared to £20.9m made in 2019.
READ: Manchester United: A football club or a business
What the Southampton FC MD is saying
Southampton Managing Director, Toby Steele, said:
- “As with many companies and industries, the group is in the midst of a challenging financial environment due to the impact of the Covid-19 pandemic. This is reflected in the financial results for 2019/20 and necessitated the group to restructure its debt facility during June 2020. Despite these challenges, our group-wide staff have shown great resilience, facilitating a smooth return to training and matches for men’s and women’s teams across all age groups, as well as the return of fans, albeit briefly, during season 2020/21.
- “We also have great pride in the work of the Saints Foundation, in particular the collaboration with group staff in the ‘Saints as One’ initiative during the early stages of the pandemic. The ongoing support of our fans, many of whom purchased a 2020/21 season ticket at a time when the return of football was unknown, is greatly appreciated and it is our hope to get fans back where they belong, supporting all our teams in person, in greater numbers as soon as possible.”
READ: Manchester City owner, Sheikh Mansour spends £760k on old FA Cup Trophy
Sports
Manchester City owner, Sheikh Mansour spends £760k on old FA Cup Trophy
Manchester City owner, Sheikh Mansour has paid almost £760,000 to buy the oldest surviving FA Cup.
Manchester City owner, Sheikh Mansour bin Zayed, purchased the 1896–1910 Football Association Challenge Cup (FA Cup) at an auction.
The FA Cup was the first trophy won by Manchester City 116 years ago when they defeated Bolton Wanderers 1-0 in 1904 final, making the Manchester club the first professional football club from Manchester to capture a major honour. They are now the proud custodian of their first trophy.
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The club tweeted, “We are delighted to announce we are now the proud custodian of the 1896–1910 #FACup following the recent purchase of the trophy at auction by Club owner, His Highness Sheikh Mansour bin Zayed.”
READ: Manchester United: A football club or a business
We are delighted to announce we are now the proud custodian of the 1896–1910 #FACup following the recent purchase of the trophy at auction by Club owner, His Highness Sheikh Mansour bin Zayed.
🔷 #ManCity | https://t.co/axa0klD5rehttps://t.co/eRBRdbTFm0
— Manchester City (@ManCity) January 8, 2021
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Etihad chairman, Sheikh Khaldoon al-Mubarak, on commenting on the purchase said: “This Cup is a visible reminder of the rich and long history of English football to which Manchester City is inextricably entwined.
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“Winning this actual trophy in 1904 was a turning point for the Club and for the city of Manchester in that it firmly cemented football in the heart of its community.”
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What you should know
- The cup was previously the property of West Ham co-owner, David Gold, before he put it up for sale last year September by an anonymous buyer which is now revealed to be Manchester City’s owner.
- Auctioneers Bonhams had announced that a particular item of silverware was sold for £760,000 ($1.03m).
- The cup is the forerunner of the current FA Cup and also the oldest surviving piece of FA Cup silverware in England and the one first used in 1871 stolen from a shop while on display following Aston Villa’s triumph in 1895 and that was the last time it was seen.
- Originally, there were fears that the trophy would be bought privately and taken overseas, before Mansour stepped in to ensure the trophy will remain in England for the benefit of English football.
- The trophy has been offered to the National Football Museum in Manchester, England on loan, where it has been housed for the past 16 years, 2005.
