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DNCG REPORT
FREN
CH P
ROFE
SSIO
NAL
FOOT
BALL
FI
NANC
IAL
REPO
RT20
18/2
019
SEAS
ON
32018/2019 SEASON - DNCG REPORTCONT
ENTS
12018/2019 SEASON - DNCG REPORT
A WORD FROM THE PRESIDENT 02 2018/2019 KEY FIGURES 14
01 LIGUE 1 18
1.1. Key figures 2O1.1.1. Summary 201.1.2. Earnings 221.1.3. Operating expenses 341.1.4. Operations involving players 401.1.5. Results 421.1.6. Financing of the clubs 441.1.7. Analysis of club achievements 46
1.2. Link between sports results and financial characteristics 471.2.1. Sports results 471.2.2. Sports risks/opportunities and payroll 501.2.3. Strong impact of sports results on revenues 531.2.4. Correlation between gross payroll and sports success 541.2.5. Analysis by groups of clubs for the 2018/2019 season 56
02 LIGUE 2 58
2.1. Key figures 602.1.1. Summary 602.1.2. Earnings 622.1.3. Operating expenses 712.1.4. Operations involving players 782.1.5. Results 802.1.6. Financing of the clubs 842.1.7. Analysis of club achievements 86
2.2. Link between sports results and financial characteristics 872.2.1. Sports results 872.2.2. Sports risks/opportunities and payroll 902.2.3. Strong impact of sports results on revenues 932.2.4. Correlation between payroll and sports success 942.2.5. Analysis by groups of clubs for the 2018/2019 season 96
03 EUROPEAN BENCHMARK 98
3.1. European benchmark for earnings excluding transfer operations 1003.2. Correlation between sports results and turnover 1013.3. Comparison of the amounts of transfers over turnover 104
2018/2019 SEASON - DNCG REPORT 52018/2019 SEASON - DNCG REPORT4
The 2018/2019 season saw French professional football consolidate its revenues, with a total turnover of 2.854 billion euros compared with 2.836 billion euros during the previous season.
This revenue growth was accompanied by a significant increase of operating expenses, which were equal to 2.949 billion euros, up 10% due to some major investments on players made by the clubs in the run-up to the new cycle of domestic broadcasting rights.
As a result, the operating income dropped sharply over the season, with a loss of 96 million euros compared to a profit of 161 million euros during the previous season.
After consideration of the cost of debt and taxes, Ligue 1 and Ligue 2 clubs are showing a net loss of €160 million at the end of the 2018/2019 season.
These results for the 2018/2019 season include:
• Growing commercial activity, with operating revenues up 11% to 2,114 million euros;• A continuing high level of capital gains from player transfers (€740 million, after the previous
season’s record figure of €929 million);• A significant reduction of financial expenses to 53 million euros compared to 122 million euros
at the end of the previous season.
The equity of the clubs increased over the season and still remains concentrated on a limited number of clubs. This justifies the attention that needs to be paid to strengthening it in the future.
More generally, the financial results for the 2018/2019 season confirm:
• The sensitivity of the earnings and economic model of professional football to the ability of clubs to generate recurring capital gains on the sale of players;
• The very considerable differences between clubs, both in terms of commercial performance and financial structure;• The difficulties of the Ligue 2 economic model.
In this context, the adoption of regulatory ratios by the General Meeting of the French Football Federation and by the General Meeting of the Professional Football League in December 2019 is, according to the DNCG, a good decision in view of the risks facing the industry: uncertainty about the impact of Brexit on the transfer market in the coming years, evolution of the broadcasting rights’ amount over time, ability to significantly increase other earnings…
By agreeing to strengthen the self-regulatory mechanisms of professional football, the shareholders and club managers have shouldered their responsibilities. The DNCG will continue its support and control mission in the same constructive spirit, in the interest of French football.
2018/2019 SEASON
A WORD FROM THE PRESIDENT
JEAN-MARC MICKELERDNCG President
72018/2019 SEASON - DNCG REPORT6 2018/2019 SEASON - DNCG REPORT
The commercial momentum of French professional football is accelerating with an 11% earnings increase (excluding transfers) in 2018/2019
The earnings excluding transfers of Ligue 1 and Ligue 2 clubs in the 2018/2019 season exceeded €2 billion for the first time, reaching €2,114 million on 30 June 2019 compared with €1,907 million on 30 June 2018.
This 11% growth (+€207 million) originated with Ligue 1 clubs (Ligue 2 posted slightly lower earnings excluding transfers) and was mainly due to:
• A €105 million increase of the broadcasting rights of Ligue 1 clubs, linked firstly to the higher broadcasting rights of UEFA competitions for the 2018/2021 cycle (+€80 million this season) and secondly to the contract for international rights (+€22 million compared with the previous season).
• An increase of €102 million of commercial earnings excluding broadcasting rights,
making clubs less dependent on broadcasting rights by diversifying their revenue sources. This increase includes:
• Higher sponsorship and merchandising revenues by €71 million, mainly driven by the performance of PSG and those of OL, OM, Stade Rennais and RC Strasbourg ;
• A €12 million increase of ticket receiptsdriven by a positive price effect
in the domestic leagues (+4% on the average ticket in Ligue 1 and +7% in Ligue 2) and in European competitions (+35%) ;
• An increase of €19 million of Other earnings, generated primarily by OL,
the Stade de Reims and the Stade Rennais at the time of the Women’s World Cup.
8 2018/2019 SEASON - DNCG REPORT 92018/2019 SEASON - DNCG REPORT
Operating results from transfer operations, an integral part of the club model, amounted to €740 million in 2018/2019
After a record season in 2017/2018, with €929 million of operating results, particularly due to the transfer of Kylian Mbappé from AS Monaco to PSG, the transfer market continues to perform on a very good level, reaching €740 million in 2018/2019.
• Ligue 1 contributed €635 million to this result, equivalent to 33% of its earnings excluding transfers.
Half of the Ligue 1 clubs generated transfer earnings of more than €20 million and more than a third (7 clubs) generated transfer earnings of more than €34 million. These two figures, never previously seen, illustrate the high proportion of player transfers in the activities of the clubs.
• Ligue 2 is confirming this trend and contributed €105 million to this result (compared with €88 million in 2017/2018), equivalent to 50% of its earnings excluding transfers, including €31 million of capital gains on player transfers from Ligue 1.
• For 11 clubs in Ligue 1 and 12 clubs in Ligue 2, the operating results
from transfers represent more than 25% of their earnings excluding transfers. • 243 transfers against payment were recorded in 2019, for a gross amount
of €1,251 million (compared to €1,522 million in 2018).
The player transfer business has become not only a decisive component of the financial equilibrium of the clubs. It is also an integral part of their economic model, notably thanks to the efficiency of the French training system and the ability of clubs to attract young talent and take advantage of the dynamic buying power of foreign leagues such as England and Spain, which this season became the leading importing country of our players.
2018/2019 SEASONExpenses increased by 10%, half of which was due to the payroll increase, leading to a deterioration of operating income, which showed a loss of €835 million in 2018/2019
Equal to €2,949 million, expenses increased by 10% in 2018/2019 (compared to €2,675 million during the previous season). This increase is mainly due to continuing players’ investments and the payroll increase that started during the previous season in order to strengthen the personnel numbers. It also proportionately originates more with clubs that do not play in European competit ions (+12% increase posted by the latter, compared to +9% by clubs playing in European competitions between 2017/2018 and 2018/2019). These expenses linked with players’ investments include:
• A 10% payroll increase (+€141 million) to €1,588 million. • An 8% (or €32 million) increase of the depreciation charge for transfer compensation,
amounting to €410 million. • An increase to €112 million of the fees paid to sports agents1 (vs. €91 million
the previous season), meaning a further increase of 23% (or €21 million).
As a result, even if the increase of expenses was less significant than in the 2017/2018 season (when the increase was +22%,and +16% without the effect of the players Neymar and Mbappé acquired by PSG during the 2017 summer trading period), the operating income deteriorated, with an operating loss of €835 million for the 2018/2019 season (compared with a loss of €768 million at the end of the 2017/2018 season).
• The Ligue 1 operating income was -€703 million in 2018/2019 (compared to -€666 million in 2017/2018).
• The Ligue 2 operating income was -€132 million in 2018/2019 (compared
to -€102 million in 2017/2018). Ligue 2 posted a proportionally sharper deterioration than Ligue 1, due both to higher expenses (half of the deterioration of the deficit stems from the payroll, which rose by €15 million) and to lower commercial revenues.
1 Due to commissions being based both on transfer compensation and the payroll.
10 2018/2019 SEASON - DNCG REPORT 112018/2019 SEASON - DNCG REPORT
E q u i t y i s i n c r e a s i n g : i t s r e i n f o r c e m e n t a s w e l l a s i n f r a s t r u c t u r e i n v e s t m e n t s m u s t b e c o n t i n u e d a n d ex t e n d e d t o a l l c l u b s
The equity (shareholders’ equity and shareholders’ current accounts) of the professional clubs is €1,597 million on 30 June 2019.
• The equity of Ligue 1 clubs amounted to €1,457 million on 30 June 2019, with €889 million of shareholders’ equity (compared with €732 million of shareholders’ equity in 2017/2018, an increase of 21%).
• The equity of Ligue 2 clubs amounted to €140 million on 30 June 2019,
with €67 million of shareholders’ equity (compared with €89 million of shareholders’ equity in 2017/2018)
Without the capital increases and current account contributions made by shareholders, the equity of the clubs would have deteriorated sharply as a result of the season’s results.
The strengthening of equity and the decrease of debt recorded this season served to improve the rate at which the liabilities of the clubs are covered by their equity.
The operating debt, defined as the total financial liabilities less the portion dedicated to investments in infrastructures, concentrated on a few clubs (mainly LOSC, Girondins de Bordeaux and AS St Etienne), dropped by around €70 million due to the €121 million reduction of the LOSC debt; it nevertheless remains at €269 million.
The gross financial debt stood at €558 million on 30 June 2019, slightly lower than last season, with 52% (€289 million) corresponding to debt for infrastructure financing.
In reality, two clubs have a policy to strengthen their equity and infrastructure, namely PSG and OL, followed this season by AS Monaco.
The value of the “Tangible” assets (infrastructures, etc.) of French professional football is equal to €771 million in 2018/2019 (compared to €756 million last season).
Lastly, the cash position remained positive on 30 June 2019.
2018/2019 SEASONAccordingly,
At the end of the 2018/2019 season,
• The clubs posted an operating loss of €96 million, plus financial expenses of €53 million that were sharply lower than during the previous season (€122 million), mainly due to the use of more reasonable borrowing rates.
• The net loss of Ligue 1 and Ligue 2 clubs amounted to €160 million. It should be
noted that this net loss of €160 million includes a €28 million write-off of a shareholder’s current account, thereby improving the net income in 2018/2019. On the other hand, the net loss recorded in 2017/2018, i.e. €176 million, included a €178 million write-back of a shareholder’s current account that was weighing on the net income in this same amount.
• However, the losses in Ligue 1 are very highly concentrated: 95% of the cumulative net loss is concentrated on 3 clubs with some of the biggest budgets (OM, LOSC and Girondins de Bordeaux).
As in the previous season, 15 Ligue 1 clubs have profitable net income.. • 11 Ligue 2 clubs have profitable net income, with a further 2 just breaking
even. The Ligue 2 net loss of €33 million in 2018/2019 was almost double compared to 2017/2018 (-€17.5 million).
Payroll and Equity Ratio System
The implementation of preventive financial ratios is intended to ensure that a club cannot, in the future, spend more than it earns through credit financing of a structural deficit.
The idea is twofold: an expense ratio towards which to strive and ensuring that clubs only exceed this ratio if their equity level relative to debt allows it.
This mechanism, intended to be implemented as part of the DNCG’s financial supervision of professional clubs, will thus preserve the attractiveness and competitiveness of French football by introducing a virtuous system for controlling its expenses and debt.
It includes adding two ratios to the current control procedures:
• As a risk indicator in terms of the payroll, the remuneration of the personnel and the player transfer compensation must not exceed 70% of eligible earnings (including operating revenues and the average capital gains on player transfers over three seasons).
• A sufficient equity level, which must not be less than the eligible liabilities
(including financial debt and other non-current debt, excluding debts attributable to infrastructure financing and debts on player transfer compensation).
As from the 2022/2023 Budget, simultaneous non-compliance with these two indicators during an analysis of the club’s provisional budget may require the DNCG to take some of the usual measures (oversight of the payroll within the budget, etc…).
As such, the clubs will have a transitional period of two seasons (2020/2021 and 2021/2022) to prepare for their implementation as of the 2022/2023 season.
Starting with the 2020/2021 Budget, the clubs will provide the DNCG with a 3-year operating forecast that converges on the levels expected for 2022/2023. Over the next two seasons, the DNCG will monitor this 3-year plan and analyse, with the club, any deviations from its forecast.
In all cases the DNCG retains the ability to apply its measures (oversight of the payroll within the budget, etc…) subsequent to a general examination of the club’s situation (1 Ligue 1 club and 7 Ligue 2 clubs were subject to supervision measures for the 2018/2019 season).
2018/2019 SEASON - DNCG REPORT 132018/2019 SEASON - DNCG REPORT12
The 2018/2019 season is confirming the importance for the clubs incomes of the revenues provided by the broadcasting rights sales on one hand and the ability to transfer players on a regular basis on the second hand.
To offset the decline of transfer earnings seen this season compared with last season, the clubs also continued and improved the increase of non-transfer earnings, notably under the impetus of PSG, which benefited fully from the sporting and image effect of its personnel.
The fact remains, however, that commercial revenues excluding broadcasting rights grew less rapidly than the payroll.
As of next season, clubs will benefit from the higher domestic broadcasting rights of the Ligue 1 championship for the 2020/2024 cycle (a gross increase of €400 million per year ).
In the context recalled above, it is important to monitor how the clubs will reinvest these additional resources: The DNCG encourages the clubs to use these additional resources to reduce the operating deficit as a priority.
The DNCG will strive to support these efforts, notably through the new system of financial ratios adopted last December.
IN CONCLUSION
152018/2019 SEASON - DNCG REPORT2018/2019 SEASON - DNCG REPORT14
Report on the financial oversight of the activity of Sports Agents
The law of 1 March 2017 gave the management control bodies a new mission of financial control relative to the activity of sports agents and the flows generated by this activity. This appears to be all the more justified since the fees paid to agents by football clubs have increased very sharply in the current upward trend of the transfer market.
Of the 3,558 international2 transfers (all countries taken together) that involved at least one football3 club intermediary, €590 million of commission were paid in 20194, a 19% increase compared to 2018.
In France:
- Commissions paid to sports agents by professional football clubs amounted to €112 million in 2018/2019 (compared with €91 million in 2017/2018, a 23% increase).
The oversight of agents by the DNCG is carried out by sampling carried out on the basis of “appropriate samples”. The selection criteria are the following:
- The biggest transfer operations carried out during a season (i.e. 3 oversight procedures launched in 2018 and 2 in 2019).
- The largest business volumes, in terms of the number of transactions and/or amount of commissions (i.e. 2 oversight procedures launched in 2018 and 3 in 2019).
- Sports agents selected at random or in case of revelations (i.e. 1 oversight procedure launched in 2018 and 2 in 2019).
The first wave of checks completed during the 2018/2019 season covered 6 FFF licensed agents and represented:
- €6.5 million of commissions paid by the clubs to the agents in question over the verified periode;
- 101 operations carried out over the period.
The results of this first wave of checks are the following:
- 3 procedures closed without any particular observation by the Professional Clubs Oversight Commission;
- 3 files forwarded to the Federal Sports Agents Commission, including: - 2 files that resulted in penalties (fine, deferred suspension of the agent’s licence).
The 2nd wave of checks, which started in the spring of 2019, involves 9 agents and represents: - €12.7 million of commissions paid by the clubs to the agents in question
over the verified period; - 152 operations carried out over the period.
2 Source: FIFA report “Intermediaries in international transfers 2019».3 FIFA does not collect data on commissions paid to player intermediaries.4 Figures as of 1 December 2019.
THE LAW OF 1 MARCH 2017 GAVE THE MANAGEMENT CONTROL BODIES A NEW MISSION OF FINANCIAL CONTROL RELATIVE TO THE ACTIVITY OF SPORTS AGENTS AND THE FLOWS GENERATED BY THIS ACTIVITY.
2018/2019 SEASON - DNCG REPORT 172018/2019 SEASON - DNCG REPORT16
LIGUE 1 AND LIGUE 2 COMBINED KEY FIGURES 2018/2019
LIGUE 1/LIGUE 2 CUMULATIVE ACCOUNTS 2017/2018 2018/2019 VARIATIONIn € millions
Total operating income 1 907 2 114 + 11%Operating income -768 -835 -9%Result of transfer operations 929 740 -20%Current operating profit 161 -96 -160%Net profit (loss) -176 -160 + 9%Shareholders equity 821 956 + 16%Shareholder current accounts 658 642 -2%Cash net of indebtedness -180 -239 -32%
FIGU RES
192018/2019 SEASON - DNCG REPORT18 2018/2019 SEASON - DNCG REPORT
TOTAL BALANCE SHEET 2017/2018 2018/2019 VARIATIONIn euro thousands
Intangible assets: transfer fees 1 052 998 1 071 883 +2%Other fixed assets 804 509 881 998 +10%Receivables relative to player transfers 802 186 771 840 -4%Other current assets 554 973 562 376 +1%Cash and short-term investments 400 499 319 328 -20%
TOTAL ASSETS 3 615 165 3 607 425 0%
Shareholders equity 820 721 955 968 +16%Shareholder current accounts 657 979 641 602 -2%Provisions for liabilities and charges 61 074 65 491 +7%Financial liabilities 580 756 557 922 -4%Liabilities relative to player transfers 492 996 484 835 -2%Other liabilities 1 001 639 901 606 -10%
TOTAL LIABILITIES 3 615 165 3 607 425 0%
PROFIT / LOSS FOR THE YEAR -176 317 -159 894 +9%
LIGUE 1/LIGUE 2 COMBINED INCOME STATEMENT 2017/2018 2018/2019 VARIATIONIn euro thousands
Broadcasting rights 910 949 1 016 161 +12%Sponsors - Advertising 386 886 456 126 +18%Gate receipts 209 298 221 985 +6%Other income (including merchandising) 400 194 419 367 +5%
TOTAL OPERATING INCOME 1 907 327 2 113 640 +11%
Total payroll 1 114 835 1 225 871 +10%Social charges 331 533 361 948 +9%Transfer fees 377 916 409 682 +8%Agents’ fees 91 323 112 386 +23%Other expenses 759 352 839 209 +11%
TOTAL OPERATING EXPENSES 2 674 959 2 949 095 +10%
OPERATING RESULT (LOSS) -767 632 -835 455 -9%
RESULT OF TRANSFER OPERATIONS 928 667 739 567 -20%
CURRENT OPERATING PROFIT 161 035 -95 888 -160%
Financial profit (loss) -122 126 - 53 462 +56%Exceptional profit (loss): Other -4 576 - 16 829 -268%Income tax -32 174 - 19 268 +40%Except. profit (loss): Current account write-offs/write-backs -178 476 25 553 +114%
NET PROFIT (LOSS) -176 317 -159 894 +9%
212018/2019 SEASON - DNCG REPORT2018/2019 SEASON - DNCG REPORT20
LIGUE 101
232018/2019 SEASON - DNCG REPORT2018/2019 SEASON - DNCG REPORT22
01
TOTAL BALANCE SHEET 2017/2018 2018/2019 VARIATIONIn euro thousands
Intangible assets: transfer fees 1 034 949 1 048 769 +1%Other fixed assets 666 867 745 461 +12%Receivables relative to player transfers 763 083 729 663 -4%Other current assets 493 839 498 702 +1%Cash and short-term investments 352 465 282 504 -20%
TOTAL ASSETS 3 311 203 3 305 099 0%
Shareholders equity 732 110 889 211 +21%Shareholder current accounts 600 156 568 066 -5%Provisions for liabilities and charges 50 036 58 005 +16%Financial liabilities 543 572 522 280 -4%Liabilities relative to player transfers 482 652 469 647 -3%Other liabilities 902 677 797 889 -12%
TOTAL LIABILITIES 3 311 203 3 305 099 0%
PROFIT / LOSS FOR THE YEAR -158 736 -126 403 +20%
1.1. KEY FIGURES 1.1.1. SUMMARY
COMBINED INCOME STATEMENT 2017/2018 2018/2019 VARIATIONIn euro thousands
Broadcasting rights 791 271 900 786 +14%Sponsors - Advertising 342 114 414 882 +21%Gate receipts 190 621 201 123 +6%Other income (including merchandising) 368 232 385 639 +5%
TOTAL OPERATING INCOME 1 692 238 1 902 430 +12%
Total payroll 984 849 1 085 370 +10%Social charges 277 471 303 726 +9%Transfer fees 367 834 397 035 +8%Agents’ fees 83 229 104 223 +25%Other expenses 644 457 715 222 +11%
TOTAL OPERATING EXPENSES 2 357 840 2 605 576 +11%
OPERATING RESULT (LOSS) -665 602 -703 146 -6%
RESULT OF TRANSFER OPERATIONS 840 356 634 998 -24%
CURRENT OPERATING PROFIT 174 754 -68 111 -139%
Financial profit (loss) -121 239 -51 464 +58%Exceptional profit (loss): Other -4 608 - 15 384 -234%Income tax -29 166 -17 740 +39%Except. profit (loss): Current account write-offs/write-backs - 178 477 26 295 +115%
NET PROFIT (LOSS) -158 736 -126 403 +20%
2018/2019 SEASON - DNCG REPORT 252018/2019 SEASON - DNCG REPORT24
+ 12%
500
1000
1500
2000
2018/20192017/20182016/20172015/2016
656
325
164
341
1486
44%
22%
11%
23%
819
345
182
298
1644
50%
21%
11%
18%
791
342
191
368
1692
47%
20%
11%
22%
901
415
201
386
1902
47%
22%
11%
20%
BROADCASTINGRIGHTS
SPONSORSADVERTISING
GATERECEIPTS
OTHEREARNINGS
500
1000
1500
2000
2500
3000
2018/20192017/20182016/20172015/2016
656
325164
341
381
1867
35%
18%9%
18%
20%
819
345
182
298
251
1895
35%
18%
10%
16%
13%
791
342
191
368
840
2533
31%
13%
8%
15%
33%
901
415
201
386
635
2537
36%
16%
8%
15%
25%
ROADCASTINGRIGHTS
SPONSORSADVERTISING
GATERECEIPTS
OTHEREARNINGS
TRANSFERRESULT
01
Change of operating revenues
• Non-transfer earnings amounted to €1.902 billion in Ligue 1 for 2018/2019 (+€210 million compared to 2017/2018).
• The various types of earnings are up compared to 2017/2018, in particular broadcasting rights (+€110 million) and advertising sponsorship earnings (+€73 million).
IN M
ILLIO
NS O
F EUR
OS AN
D PE
RCEN
TAGE
OF T
OTAL
1.1.2. EARNINGS
Development of total earnings (including result of transfers)
• Total earnings including the result of transfer operations amounted to 2.537 billion euros in Ligue 1 in 2018/2019.
• Overall, the earnings are virtually unchanged from last season (+€4 million compared to 2017/2018).
• This stagnation conceals a new breakdown, since non-transfer earnings increased (+€210 million) at the expense of results from transfer operations (-€205 million).
IN M
ILLIO
NS O
F EUR
OS AN
D PE
RCEN
TAGE
OF T
OTAL
2018/2019 SEASON - DNCG REPORT 272018/2019 SEASON - DNCG REPORT26
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PARI
S
CLUB
S
MON
ACO
MAR
SEIL
LE
LYON
NICE
ST-É
TIEN
NE
BORD
EAUX
RENN
ES
LILL
E
MON
TPEL
LIER
NANT
ES
GUIN
GUAM
P
TOUL
OUSE
DIJO
N
CAEN
ANGE
RS
AMIE
NS
STRA
SBOU
RG
REIM
S
NÎM
ES
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
34.634.6
11.611.6
6.86.8 5.95.94.24.2 3.93.9 3.73.7 3.43.4 2.92.9 2.72.7 2.72.7 2.62.6 2.22.2 2.12.1 1.91.9 1.91.9 1.81.8 1.81.8 1.71.7 1.71.7
46.246.2
53.053.0
58.958.963.163.1
67.067.070.870.8
74.174.177.077.0
79.779.782.482.4
84.984.987.187.1
89.289.291.191.1
93.093.0 94.894.8 96.696.6 98.398.3 100100
Non-transfer earnings allocation
As in 2017/2018, the curve indicates a strong concentration of earnings on a small number of clubs:
• The three clubs with the highest non-transfer earnings (Paris, Lyon and Marseille) account for half of the Ligue 1 non-transfer earnings. This proportion would be 15% if all Ligue 1 teams had the same non-transfer earnings.
• On its own, PSG generates more than one third of the Ligue 1’s revenues, equal to all of the revenues of the lowest-earning 15 clubs.
On the x-axis are the teams ranked from those with the highest non-transfer earnings to those with the lowest non-transfer earnings.
On the y-axis is the cumulative percentage of Ligue 1 non-transfer earnings.
2018/2019 SEASON - DNCG REPORT 292018/2019 SEASON - DNCG REPORT28
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PARI
S
CLUB
S
BORD
EAUX
MON
ACO
LYON
ST-É
TIEN
NE
MAR
SEIL
LE
NICE
MON
TPEL
LIER
RENN
ES
LILL
E
REIM
S
DIJO
N
STRA
SBOU
RG
TOUL
OUSE
AMIE
NS
ANGE
RS
CAEN
NÎM
ES
NANT
ES
GUIN
GAM
P
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
17.417.413.513.5
8.48.4 6.66.6 5.75.7 4.84.8 4.74.7 4.44.4 3.83.8 3.53.5 3.13.1 2.92.9 2.92.9 2.92.9 2.72.7 2.62.6 2.62.6 2.62.6 2.42.4 2.42.4
30.930.9
39.339.3
45.945.9
51.651.656.456.4
61.161.1
65.665.669.469.4
72.972.975.975.9
78.978.981.881.8
84.784.787.487.4
90.090.092.692.6
95.295.297.697.6 100100
01
BROADCASTING RIGHTS FOR CLUBS THAT TOOK PART IN EUROPEAN CUPS
CLUB EUROPEAN ITINERARY
EUROPEAN BROADCASTING
RIGHTS
LIGUE 1 BROADCASTING
RIGHTS
OTHER BROADCASTING
RIGHTS
TOTAL BROADCASTING
RIGHTSEUROPEAN CUP
SHARE
LYON Champions League last 16 €71.2 M €48.2 M €2.5 M €122 M 58%
PARIS Champions League last 16 €91.6 M €59.9 M €5.1 M €156.6 M 59%
MONACO Champions
League group phases
€41 M €32.4 M €2.3 M €75.7 M 54%
RENNES Europa League last 16 €19.6 M €28 M €3.5 M €51.2 M 38%
BORDEAUX Europa League group phases €13.1 M €28.6 M €2 M €43.7 M 30%
MARSEILLE Europa League group phases €12.1 M €46.6 M €1.1 M €59.8 M 20%
TOTAL €248.6 M €243.7 M €16.5 M €509 M 49%
• Overall, half of the broadcasting rights collected by clubs qualified for European Cups come from European competitions.
• European broadcasting rights are up sharply compared to the previous season (+€81 million, due to the start of a new UEFA broadcasting rights cycle), which largely explains the €110 million increase of overall broadcasting rights.
• The European share of broadcasting rights is higher for clubs in the Champions League than for clubs in the Europa League: more than 50% for PSG, Monaco and Lyon versus 20% for Marseille.
1.1.2.1. BROADCASTING RIGHTS
BROADCASTING RIGHTS FOR THE LIGUE 1 CHAMPIONSHIP
The concentration of the non-transfer earnings of Ligue 1 clubs is limited by the distribution of the championship’s broadcasting rights, which is based on a relatively egalitarian distribution system insofar as all Ligue 1 teams are guaranteed to receive a solidarity bonus of the championship rights of approximately €8.1 million, and club licensing rights of approximately €5.4 million. However, three factors cause the broadcasting revenues of the championship clubs to vary: firstly the bonuses linked to sports results that can be up to €23 million (PSG) and secondly the notoriety bonus that can be equal to €23 million (PSG), €20 million (Marseille) or €17 million (Lyon).
Distribution of broadcasting rights between Ligue 1 clubs
The blue line indicates a relatively uneven distribution of the championship broadcasting rights:
• The top 3 clubs account for 39.3% of the broadcasting rights of the Ligue 1 championship.
• The top 5 clubs account for just over half of the rights.
312018/2019 SEASON - DNCG REPORT2018/2019 SEASON - DNCG REPORT30
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PARI
S
CLUB
S
MON
ACO
MAR
SEIL
LE
LYON
NICE
ST-É
TIEN
NE
BORD
EAUX
RENN
ES
LILL
E
MON
TPEL
LIER
NANT
ES
GUIN
GUAM
P
TOUL
OUSE
DIJO
N
CAEN
ANGE
RS
AMIE
NS
STRA
SBOU
RG
REIM
S
NÎM
ES
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
25.125.1
20.820.8
9.89.8
5.05.0 4.84.8 4.04.0 3.93.9 3.93.9 3.13.1 2.52.5 2.22.2 2.22.2 2.12.1 1.91.9 1.81.8 1.71.7 1.41.4 1.41.4 1.21.2 1.21.2
45.845.8
55.655.6
60.660.665.465.4
69.469.473.373.3
77.277.280.380.3
82.882.885.085.0
87.287.289.489.4
91.391.393.193.1
94.794.7 96,196,197.597.5 98.798.7 100100
3%
28%
4%
66%
NATIONAL CUPSRIGHTS
OTHERRIGHTS
INTERNATIONAL CUPSRIGHTS
LFP RIGHTS -CHAMPIONSHIP
011.1.2.2. TICKETING RECEIPTS
LIGUE 1 CHAMPIONSHIP GATE RECEIPTS
Distribution of Ligue 1 championship gate receipts
• As in previous seasons, Ligue 1 gate receipts are much more concentrated than the championship broadcasting rights. On their own, Lyon and Paris account for 45.8% of the Ligue 1 gate receipts thanks to their very high fill rates and ticket prices.
Distribution of broadcasting rights by competition
• Overall, broadcasting rights linked to international cups represent 28% of total broadcasting rights in 2018/2019, compared to 21% in 2017/2018. As such, this confirms the fact that the increase of Ligue 1 broadcasting rights is largely linked to the increase of European broadcasting rights.
332018/2019 SEASON - DNCG REPORT2018/2019 SEASON - DNCG REPORT32
01
GATE RECEIPTS: ANALYSIS OF CLUBS HAVING PARTICIPATED IN A EUROPEAN COMPETITION
CLUB EUROPEAN ITINERARY
EUROPEAN CUP GATE RECEIPTS
TOTAL GROSS GATE RECEIPTS
TICKETING SHARE OF EUROPEAN CUPS
LYON Champions League last 16 €10.2 M €41.8 M 24.4 %
PARIS Champions League last 16 €10.5 M €50.5 M 20.8 %
MONACO Champions League group phases €0.6 M €2.7 M 20.5 %
RENNES Europa League last 16 €3.3 M €9.6 M 34.2 %
BORDEAUX Europa League group phases €0.6 M €7.9 M 7.4 %
MARSEILLE Europa League group phases €0.6 M €19.7 M 3 %
TOTAL €25.8 M €132.2 M 19.5 %
• Overall, clubs playing in European Cups generated a fifth of their ticketing revenues from European matches.
• The share of European matches in ticketing revenues is higher for clubs playing in the Champions League than for clubs playing in the Europa League.
GATE RECEIPTS: ANALYSIS BY SPECTATOR CATEGORY
2017/2018 2018/2019 VARIATION
Spectator category (number) Average per match
Subscribers 12 783 13 239 4%Per match payment 7 728 7 253 -6%Non-paying 2 509 2 532 1%
TOTAL SPECTATORS 23 019 23 024 0%
TOTAL RECEIPTS €190.6 M €201.1 M 5%
Average subscription price €23.57 €24.04 2%Spectators average price paid per match €25.77 €27.65 7%Paying spectators average price €23.57 €25.32 7%
ALL SPECTATORS AVERAGE PRICE €21.74 €22.53 4%
Total gate receipts are up 5%. This increase is due to higher ticket prices:
• The average number of spectators remained stable compared to 2017/2018.
• Overall, the average ticket price increased by €0.79 compared to 2017/2018.
352018/2019 SEASON - DNCG REPORT2018/2019 SEASON - DNCG REPORT34
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PARI
S
CLUB
S
MON
ACO
MAR
SEIL
LE
LYON
NICE
ST-É
TIEN
NE
BORD
EAUX
RENN
ES
LILL
E
MON
TPEL
LIER
NANT
ES
GUIN
GUAM
P
TOUL
OUSE
DIJO
N
CAEN
ANGE
RS
AMIE
NS
STRA
SBOU
RG
REIM
S
NÎM
ES
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
56.456.4
7.17.1 6.26.24.24.2 3.23.2 2.52.5 2.42.4 2.12.1 2.12.1 2.02.0 1.81.8 1.81.8 1.31.3 1.31.3 1.31.3 1.11.1 1.01.0 1.01.0 0.80.8 0.40.4
63.563.5
69.769.773.973.9
77.177.179.679.6
82.082.084.184.1
86.186.188.188.1
89.989.991.791.7 93.093.0 94.394.3
95.695.6 96.796.7 97.797.7 98.798.7 99.599.5 100100
44%
13% 1%
38%
5%
CHAMPIONSHIP(GAME NIGHT)
NATIONALCUPS
EUROPEANCUPS
CHAMPIONSHIPSUBSCRIPTIONS
OTHERMATCHES
011.1.2.3. SPONSORING / ADVERTISING, MERCHANDISING, COMMUNITY SUBSIDIES AND OTHER EARNINGSS
Distribution of receipts for sponsoring / advertising, merchandising, community subsidies and other earnings
• The blue line indicates a very high concentration of these revenues. This concentration is explained by PSG, which alone accounts for 56.4% of total merchandising, subsidy and other earnings
• Community subsidies only total €14 million income for Ligue 1 clubs, representing 0.7% of their operating income.
Distribution of gate receipts by competition
• Gate receipts from league matches account for the bulk of clubs’ gate receipts (82%).
• As during the 2017/2018 season, the gate receipts generated by subscribers is higher than the gate receipts generated by paying spectators per match.
• European Cup gate receipts account for 13% of the gate receipts of all Ligue 1 clubs. This overall figure masks the significant weight of European Cup gate receipts within the gate receipts of clubs qualifying for European Cups (see previous table).
2018/2019 SEASON - DNCG REPORT 372018/2019 SEASON - DNCG REPORT36
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PARI
S
CLUB
S
MON
ACO
MAR
SEIL
LE
LYON
NICE
ST-É
TIEN
NE
BORD
EAUX
RENN
ES
LILL
E
MON
TPEL
LIER
NANT
ES
GUIN
GUAM
P
TOUL
OUSE
DIJO
N
CAEN
ANGE
RS
AMIE
NS
STRA
SBOU
RG
REIM
S
NÎM
ES
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
2727
10.610.6 10.610.69.29.2
6.06.0 4.94.9 3.93.9 3.43.4 3.33.3 2.92.9 2.62.6 2.32.3 2.02.0 1.91.9 1.91.9 1.81.8 1.81.8 1.41.4 1.41.4 1.11.1
37.637.6
48.248.2
57.457.4
63.463.4
68.368.372.272.2
75.675.678.978.9
81.981.984.484.4
86.786.788.788.7
90.690.6 92.492.494.294.2
96.096.0 97.497.498.998.9 100100
+ 11%
500
1000
1500
2000
2500
3000
2018/20192017/20182016/20172015/2016
782
23744
220
1803
43%
13%2%12%
838
24248
232
1919
44%
13%3%
12%
985
27783
644
2358
42%
12%4%
27%
1085
304104
715
2606
42%
12%4%
27%
520 29%558 29%
368 16%397 15%
TOTALPAYROLL
SOCIALCHARGES
AGENTS’FEES
TRANSFERALLOWANCES
OTHEREXPENSES
01
Distribution of operating expense
• Just like the earnings, expenses are highly concentrated in Ligue 1: on their own, 6 clubs account for more than two thirds of the total Ligue 1 operating expenses.
• The share of PSG in the total operating expenses is lower than its share in the total non-transfer earnings (27% versus approximately 34.6%).
• Monaco is the Ligue 1 second club in terms of operating expenses (10.6%), but fourth in terms of earnings (5.9%).
Evolution the operating expenses
• Operating expenses amounted to €2.606 billion in Ligue i.e. €704 million euros more than the non-transfer earnings.
• After a 23% increase between 2016/2017 and 2017/2018, operating expenses increased again in 2018/2019 (+11%). This increase is due to the increase of all expenditure items:
- Total payroll: +10 %, - Social charges: +9 %, - Agents’ fees: +25 %, - Transfer allowances: +8 %, - and Other expenses: +11 %.
1.1.3. OPERATING EXPENSES
IN M
ILLIO
NS O
F EUR
OS AN
D PE
RCEN
TAGE
OF T
OTAL
2018/2019 SEASON - DNCG REPORT 392018/2019 SEASON - DNCG REPORT38
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PARI
S
CLUB
S
MON
ACO
MAR
SEIL
LE
LYON
NICE
ST-É
TIEN
NE
BORD
EAUX
RENN
ES
LILL
E
MON
TPEL
LIER
NANT
ES
GUIN
GUAM
P
TOUL
OUSE
DIJO
N
CAEN
ANGE
RS
AMIE
NS
STRA
SBOU
RG
REIM
S
NÎM
ES
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
26.726.7
10.610.69.49.4 9.29.2
5.25.2 4.64.6 4.44.4 3.93.9 3.33.3 3.03.0 2.82.8 2.62.6 2.12.1 2.02.0 2.02.0 2.02.0 2.02.0 1.61.6 1.51.5 1.31.3
37.237.2
46.746.7
55.855.8
61.061.0
65.665.669.969.9
73.873.877.177.1
80.180.183.083.0
85.585.587.687.6
89.689.691.791.7
93.693.695.695.6 97.297.2
98.798.7 100100
01
WAGE DETAILS BY PERSONNEL CATEGORY
In euro thousands 2017/2018 2018/2019 VARIATION
Professional players 715 016 778 963 + 9%Base salary 660 402 723 643 + 10%Variable bonuses 54 614 55 320 + 1%
Professional coaches and staff 94 526 124 419 + 32%Base salary 84 171 113 006 + 34%Variable bonuses 10 355 11 413 + 10%
Other players 27 363 31 019 + 13%Base salary 23 232 25 509 + 10%Bonuses 4 131 5 510 + 33%
Other personnel 138 750 145 409 + 5%Base salary 133 537 142 065 + 5%Bonuses 5 213 3 344 + 4%
• Variable bonuses represent a small proportion of the wages, for all employee categories.
• The category of coaches and professional staff saw its payroll increase the most (+32%), notably due to the termination payments paid over the course of the season.
1.1.3.2. PAYROLL ANALYSIS1.1.3.1. TOTAL PAYROLL
Distribution of the total payroll
• The payroll is the main expense item for Ligue 1 clubs (54% of total operating expenses).
• The wages vary greatly from one club to another. As such, PSG accounts for more than a quarter of the Ligue 1 wage bill, i.e. as much as the 13 clubs with the lowest payrolls.
• Lyon is now third amongst Ligue 1 clubs in terms of wages, moving ahead of Marseille this season.
2018/2019 SEASON - DNCG REPORT 412018/2019 SEASON - DNCG REPORT40
0%
10%
20%
30%
40%
50%
60%
90-100%80-90%70-80%60-70%50-60%40-50%30-40%20-30%10-20%0-10%
54%
15%
9%7%
5% 4% 3%1% 1% 0%
68%2%2%
5%
10%
1%
PRO PLAYERSFIXED
PRO PLAYERSVARIABLE
FIXEDOTHER PLAYERS
OTHER PLAYERSVARIABLE
FIXEDSTAFF
STAFFVARIABLE
FIXEDOTHER PERSONS
VARIABLEOTHER PERSONS
13%13%
1%1%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FIXED BONUSES FIXED BONUSES FIXED BONUSES FIXED BONUSES
9292 93938989 9191
85858282
9696 9898
88 771111 99
15151818
44 22
PRO PLAYERS TRAINERS & STAFF OTHER PLAYERS OTHER PERSONNEL
2017/2018SEASON
2018/2019SEASON
01
Cumulative percentage of player wages per decile
• As in 2017/2018, very significant disparities are noted between the contractual wages of Ligue 1 players. The 10% best paid players are paid more than the 90% of the lowest paid players. Indeed, the 10% best paid players weigh for 54% of the total payroll of Ligue 1 players.
Analysis of the player portfolio
30/062019
30/062020
30/062021
30/062022
30/062023
Number of players’ contracts by maturity 22% 24% 33% 15% 6%
Aggregate players’ wages by maturity 17% 20% 29% 25% 9%
Fixed and variable remuneration
• The variable part of the wages is stable for professional players, staff
and all other players and other personnel.
Distribution of the total payroll
• Professional players account for 73% of the wages of Ligue 1 clubs, i.e. €779 million compared with €715 million in 2017/2018.
2018/2019 SEASON - DNCG REPORT 432018/2019 SEASON - DNCG REPORT42
FOREIGN
PURCHASES
€370.2 M83 TRANSFERS
PURCHASES
€30.8 M17 TRANSFERS
DIRECTION OF PLAYER MOVEMENT
SALES SALES
€677.7 M61 TRANSFERS
€1.5 M3 TRANSFERS
INTRA-LIGUETRANSFERS
€106.6 M25 TRANSFERS
BALANCELIGUE 1 / FOREIGN
€307.5 M
BALANCELIGUE 1 / LIGUE 2
-€29.3 M
01
Evolution of the balance of transfers in €M 2016/2017 2017/2018 2018/2019
France sales 49.2 314.2 108.1Foreign sales 260.4 581.4 677.7France purchases -61.7 -354.2 -137.4Foreign purchases -260 -560.5 -370.2
TRADE BALANCE -12.1 -19.1 278.2
• Whereas in 2016/2017 and 2017/2018, the balance of transfers showed a deficit,
it became positive in 2018/2019, with a sharp increase (+€297.3 M).
Cross transfers by league in €M Arrival league
Departure league Foreign Ligue 1 Ligue 2 TotalForeignNumber of transfers 83 20 103Amount 370.2 8.9 379.1Ligue 1Number of transfers 61 25 3 89Amount 677.7 106.6 1.5 785.8Ligue 2Number of transfers 23 17 11 51Amount 48.7 30.8 6.1 85.6
TOTAL NUMBER 84 125 34 243
TOTAL AMOUNT OF TRANSFERS 726.4 507.6 16.5 1 250.5
Transfer operations in €MSale price 785.8Net book value of players sold 140.8Transfers capital gains 645Reversal of provisions for transfer fees 9.0Provision allowances depreciation of transfer fees 19Operating result (loss) 635
PLAYER TRANSFERS FROM FRENCH PROFESSIONAL CLUBS FOR THE 2018-2019 SEASON
1.1.4. OPERATIONS INVOLVING
2018/2019 SEASON - DNCG REPORT 452018/2019 SEASON - DNCG REPORT44
0
500
1000
1500
2000
2500
REVENUES
EXPENSES
BALANCE
TRANSFEROPERATIONS
€635 M
TV RIGHTS€901 M
SPONSORS€415 M
OTHEREARNINGS
€412 M
RECEIPTSMATCHES
€201 M
AMORT.TRANSFER
FEES€397 M
TEAMCOST
€1 493 M
OVERHEAD€563 M
OTHEREXPENSES ANDEXCEPTIONNAL
€237 M
RESULTNET
- €126 M
0
800
600
400
200
-800
-600
-400
-200
IN M
ILLI
ON O
F EU
ROS
2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
193193
-250-250-317-317 -276-276
-666-666 -703-703
381381
251251
840840
635635
2121-56-56
-57-57
-25-256464
176176
-68-68
-126-126-159-159
-93-93
OPERATING INCOMEEXCLUDING TRANSFERS
TRANSFERRESULT
NET PROFIT(LOSS)
CURRENT OPERATINGPROFIT
NETPROFIT(LOSS)
-€126 M
GATE RECEIPTS
€201 M
NETRECEIPTS€2 564 M
SPONSORS
€415 M
TV RIGHTS
€901 M
TRANSFER OPERATIONS
€635 MOTHER EARNINGS
€412 M
OTHER EXPENSES
€237 M
AMORT. TRANSFER
€397 M
TEAM COST
€1 493 M
OVERHEAD COSTS
€563 M
NETEXPENSES€2 690 M
01
Analysis of the composition of the net income
1.1.5. RESULTS
Breakdown of net profit
• The net income of Ligue 1 clubs is negative for the third consecutive season.
Formation of the net income
2018/2019 SEASON - DNCG REPORT 472018/2019 SEASON - DNCG REPORT46
0
500
1000
1500
2000
2018/2019 2017/2018 2016/2017 2015/2016 2014/2015
IN E
URO
MIL
LION
S
698
297
741
450
919
387 1332
544
1457
522
591
457
646
468
671
587
667
1035
745
1049995
1048
12011114
13061258
1876
1702
1979
1794
SHAREHOLDERS’ EQUITYAND CURRENT ACCOUNTS
FINANCIALDEBT
PLAYERS INTANGIBLEASSETS
OTHER FIXEDASSETS
0
300
600
900
1200
1500
2018/20192017/20182016/20172015/20162014/2015
IN E
URO
MIL
LION
S
286
412
291
450
346
573
732
600
889
568
EQUITY
CURRENTACCOUNTS
01
Coverage of fixed assets by shareholders’ equity and current accounts
• The coverage of player intangible assets by shareholders’ equity and current accounts
continues to be very high in 2018/2019 (139%).
• However, the overall coverage of fixed assets dropped back below 100% to 91%, which is nevertheless a satisfactory level.
Cash flow table (in €M) 2017/2018 2018/2019
Net cash inflows / outflows from operational activities -2.1 -327
Net cash inflows / outflows from investment activities -31.9 49
Net cash inflows / outflows from financing activities 167.7 201
Other cash inflows / outflows -0.8 -1.1Net inflows / outflows during the reporting period 139.6 -78
Changes of equity and current accounts
• Shareholder contributions (shareholders’ equity and shareholder current accounts) continued to increase relative to the last season, but to a lesser extent (+9% in 2018/2019 vs. +44% in 2017/2018) and amounted to €1,457 million.
1.1.6. FINANCING OF THE CLUBS
2018/2019 SEASON - DNCG REPORT 492018/2019 SEASON - DNCG REPORT48
01
Style de paragraphe (texte_courant)
TEAMS CLASSIFICATION POINTS
Paris 1 91Lille 2 75Lyon 3 72St-Étienne 4 66Marseille 5 61Montpellier 6 59Nice 7 56Reims 8 55Nîmes 9 53Rennes 10 52Strasbourg 11 49Nantes 12 48Angers 13 46Bordeaux 14 41Amiens 15 38Toulouse 16 38Monaco 17 36Dijon 18 34Caen 19 33Guingamp 20 27
TEAMS ELIMINATION NUMBER OF EUROPEAN MATCHES PLAYED
CHAMPIONS LEAGUEParis Saint-Germain Last 16 8Olympique Lyonnais Last 16 8AS Monaco Group phase 6
EUROPA LEAGUEStade Rennais FC Last 16 10Olympique de Marseille Group phase 6Girondins de Bordeaux Group phase 12
WINNER OF THE LEAGUE CUPRC Strasbourg
WINNER OF THE FRENCH CUPStade Rennais FC
1.2. LINK BETWEEN SPORTS RESULTS AND FINANCIAL CHARACTERISTICS1.2.1. SPORTS RESULTS
1.1.7. ANALYSIS OF ACHIEVEMENTS COMPARED TO INITIAL BUDGETS 2018/2019 SEASON
In euro thousandsINITIAL
BUDGETACTUAL GAP
Broadcasting rights 836 174 900 786 64 612Sponsors - Advertising 390 556 414 882 24 326Gate receipts 200 254 201 123 869Other income (including merchandising) 321 068 385 639 64 571
TOTAL OPERATING INCOME 1 748 051 1 902 430 154 379
Total payroll 1 240 133 1 389 096 148 963Transfer costs 466 730 501 258 34 528Other expenses 605 698 715 222 109 524
TOTAL OPERATING EXPENSES 2 312 561 2 605 576 293 015
OPERATING RESULT (LOSS) -564 511 - 703 146 -138 635
RESULT OF TRANSFER OPERATIONS 602 031 634 998 32 967
CURRENT OPERATING PROFIT 37 520 -68 111 -105 631
Financial profit (loss) -77 975 - 51 464 26 511Exceptional profit (loss): Other -2 390 - 15 384 - 12 994Income tax -11 301 - 17 740 - 6 439Except. profit (loss): Current account write-offs/write-backs 27 925 26 295 - 1 630
NET PROFIT (LOSS) -26 221 -126 403 - 100 182
• Non-transfer earnings and non-transfer expenses are higher than in the original budget.
• However, the increase of expenses is greater than the earnings increase, which explains the ultimately sharp deterioration of the net income.
2018/2019 SEASON - DNCG REPORT 512018/2019 SEASON - DNCG REPORT50 2018/2019 SEASON - DNCG REPORT
0
2
4
6
8
10
PROFITS > 1MPROFITS < 1MLOSSES > 1M
5
6
9
1234567891011121314151617181920
20
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
BUDGET RANKING
SPOR
TS R
ANKI
NG
01
Number of profitable and loss-making clubs
• 15 Ligue 1 clubs will be profitable in 2018/2019, as in the previous season.
All loss-making clubs have losses in excess of €1 million.
Budget and sports ranking
• In Ligue 1, the correlation between the budget and sports rankings is very strong, especially for the biggest budgets: three of the four “richest” clubs finish in the top five of the championship.
• Nîmes, lowest Ligue 1 budget, finishes 9th in the championship.
532018/2019 SEASON - DNCG REPORT2018/2019 SEASON - DNCG REPORT52
42 points
€30 M €70 M
PERSONNEL WAGES (IN MILLIONS OF EUROS)
CHAM
PION
SHIP
POI
NTS
0 50 100 150 200 250 300 350 400
20
40
60
80
100
RELEGATION
MAINTAINING WITHOUTEUROPEAN CUPS
UELQUALIFICATION
UCLQUALIFICATION
01
There are two major risks for Ligue 1 clubs:
• Relegation for those that have a budget to bet on maintenance.
• The lack of qualification for European Cups for those that have a budget to play in a European Cup.
The above graph analyses the relationship between the number of sport ranking points and the payroll over the past seven seasons. The findings of previous DNCG reports are still valid for the 2018/2019 season:
• No team with a total payroll in excess of 30 million euros has been relegated.
• With the exception of OGC Nice at the end of the 2012/2013 season, no team with a payroll of less than €30 million has qualified for the Europa League via its classification in the championship.
• With the exception of Montpellier at the end of the 2011/2012 season, Lille at the end of the 2013/2014 season and Nice in 2016/2017, no team with a payroll of less than €70 million has qualified for the Champions League.
• The relationship between the wage bill and the number of championship points is relatively strong, but it does not explain everything: for the same payroll, the points differential can be nearly 30 points.
• Symmetrically, there is great variability in the wage bill for teams that score the same number of points (nearly €40 million).
• Thus, a higher wage bill is not an absolute guarantee of better sports results.
1.2.2. SPORTS RISKS/OPPORTUNITIES AND PAYROLL
2018/2019 SEASON - DNCG REPORT 552018/2019 SEASON - DNCG REPORT54
01
At the end of a season, there are four possible scenarios for a Ligue 1 team: relegation to Ligue 2, remaining in Ligue 1 without qualifying for the European Cup, qualifying for the Europa League or qualifying for the Champions League.
All four scenarios have very important consequences for club revenues:
• Relegation: on average, non-transfer earnings for the two Ligue 1 teams relegated at the end of the 2017/2018 season (Metz and Troyes) fell by €10 million between 2017/2018 and 2018/2019. Each club lost 33% and 43% of its revenues, respectively.
• Maintenance without European Cup: - Between 10th and 6th places, the ranking bonuses range from €5.5 to 9.6 million.
The risk of revenue variation for a team in the top half of the table is therefore approximately €4.1 million.
- Between 17th and 11th places, the ranking bonuses range from €3.4 to 4.8 million. The risk of revenue variation for team in the second half of the table is therefore approximately €1.4 million.
• Qualification for the Europa League: this competition generates revenues of up to €20 million for clubs, based on UEFA’s broadcasting rights and ticket sales. In addition, teams that qualify for the Europa League via the championship receive Ligue 1 classification bonuses of €9.1 million for 6th place, €11.1 million for 5th and €12.8 million for 4th.
• Qualif ication for the f inal phase of the Champions L eague: this competition generates revenues of around €40-100 million for clubs, based on UEFA’s broadcasting rights and ticket sales. In addition, teams that qualify for the Champions League via the championship receive Ligue 1 classification bonuses ranging from €14.7 million for 3rd place, to €19.4 million for the Ligue 1 champion.
1.2.3. STRONG IMPACT OF SPORTS RESULTS ON REVENUES
As such, we can identify three groups of teams:
• Group 1: clubs with a payroll in excess of €70 million. 88% of them have qualified for European Cups in the last eight seasons. The main risk for these clubs is the lack of qualification in the Champions League group phases.
• Group 2: clubs with a payroll of between €30 and 70 million. None of these clubs have been relegated in the last eight seasons. Of all these clubs, one club in four has qualified for European Cups over the same period (Europa League: 17%, Champions League last 16: 6%).
• Group 3: clubs with a payroll of under €30 million. More than a quarter of these clubs have been relegated in the last eight seasons (28%).
SPORTS RESULTS BASED ON PAYROLL (2011/2012 TO 2018/2019 SEASONS)
PAYROLLSHARE OF
RELEGATED TEAMS
SHARE OF TEAMS
MAINTAINED WITHOUT
EUROPEAN CUPS
SHARE OF TEAMS
QUALIFIED FOR THE EUROPA
LEAGUE
SHARE OF TEAMS
QUALIFIED FOR THE
CHAMPIONS LEAGUE
Above €70 M 0% 13% 22% 66%
between €30 and 70 million 2% 74% 17% 6%
below €30 million 28% 70% 1% 0%
2018/2019 SEASON - DNCG REPORT 572018/2019 SEASON - DNCG REPORT56
0
30
60
90
120
150
UCL QUALIFUEL QUALIFMAINTENANCERELEGATION
20.2
34.4
69.0
144,9
IN EURO MILLIONS
011.2.4. CORRELATION BETWEEN AVERAGE ANNUAL GROSS PAYROLL AND SPORTS SUCCESS
AVERAGE GROSS PAYROLL BASED ON THE SPORTS PERFORMANCE OF CLUBS (2011/2012 TO 2018/2019 SEASON)
The observation made in the DNCG 2017/2018 report is still valid if the 2018/2019 season is included:
Over the past eight seasons:
• The teams that were relegated had an average payroll of just over €20 million.
• Teams that were maintained without qualifying for the European Cup had an average payroll of around €35 million.
• Teams that qualified for the Champions League had an average payroll of around €145 million.
2018/2019 SEASON - DNCG REPORT 592018/2019 SEASON - DNCG REPORT58
IN EURO MILLIONS
-150
-120
-90
-60
-30
0
30
GROUP 3GROUP 2GROUP 1
-124
-5.2
2.8
IN EURO MILLIONS
-500
-400
-300
-200
-100
0
GROUP 3GROUP 2GROUP 1
-469.2
-186.6
-47.4
01
Cumulative net profit by group (2018/2019 season)
• The results by club groups differ significantly from last season due to the move of LOSC from Group 2 to Group 1.
• On average, the operating results of the clubs are the following: -€469 million for group 1 clubs, -€187 million for group 2 clubs, -€47 million for group 3 clubs.
• In terms of net profit, only Group 3 manages to make a profit. The net profit of Group 1 deteriorated sharply compared with the 2017/2018 season (-€39 million), while the results of Group 2 improved.
Following the above analyses, 3 groups of clubs can be distinguished according to their overall payroll:
Group Clubs
Group 1: payroll above €70 million Paris, Marseille, Monaco, Lyon, Lille
Group 2: payroll between €30 and 70 million
Bordeaux, Saint-Étienne, Rennes, Montpellier, Nice, Toulouse, Nantes
Group 3: payroll below €30 million Caen, Guingamp, Dijon, Strasbourg, Amiens, Angers, Reims, Nîmes
Cumulative operating income by group (2018/2019 season)
1.2.5. ANALYSIS BY GROUPS OF CLUBS FOR THE 2018/2019 SEASON
612018/2019 SEASON - DNCG REPORT2018/2019 SEASON - DNCG REPORT60
LIGUE 202
632018/2019 SEASON - DNCG REPORT62 2018/2019 SEASON - DNCG REPORT
02
TOTAL BALANCE SHEET 2017/2018 2018/2019 VARIATIONIn euro thousands
Intangible assets: transfer fees 18 049 23 114 +28%Other fixed assets 137 642 136 537 -1%Receivables relative to player transfers 39 103 42 177 +8%Other current assets 61 134 63 674 +5%Cash and short-term investments 48 034 36 824 -23%
TOTAL ASSETS 303 962 302 326 0%
Shareholders equity 88 611 66 757 -25%Shareholder current accounts 57 823 73 536 +28%Provisions for liabilities and charges 11 038 7 486 -32%Financial liabilities 37 184 35 642 -4%Liabilities relative to player transfers 10 344 15 188 +47%Other liabilities 98 962 103 717 +5%
TOTAL LIABILITIES 303 962 302 326 0%
PROFIT / LOSS FOR THE YEAR -17 583 -33 454 -89%
2.1. KEY FIGURES 2.1.1. SUMMARY
COMBINED INCOME STATEMENT 2017/2018 2018/2019 VARIATIONIn euro thousands
Broadcasting rights 119 678 115 375 -4%Sponsors - Advertising 44 772 41 244 -8%Gate receipts 18 677 20 862 +12%Other income (including merchandising) 31 962 33 728 +6%
TOTAL OPERATING INCOME 215 089 211 210 -2%
Total payroll 129 986 140 501 +8%Social charges 54 062 58 222 +8%Transfer fees 10 083 12 647 +25%Agents’ fees 8 094 8 163 1%Other expenses 114 894 123 987 +8%
TOTAL OPERATING EXPENSES 317 119 343 519 +8%
OPERATING RESULT (LOSS) -102 030 -132 309 -30%
RESULT OF TRANSFER OPERATIONS 88 311 104 569 +18%
CURRENT OPERATING PROFIT - 13 719 -27 740 -102%
Financial profit (loss) - 887 -1 998 -125%Exceptional profit (loss): Other 31 - 1 445 -4 616%Income tax - 3 008 - 1 528 +49%Except. profit (loss): Current account write-offs/write-backs 0 - 742 NA
NET PROFIT (LOSS) - 17 583 -33 454 -90%
652018/2019 SEASON - DNCG REPORT64 2018/2019 SEASON - DNCG REPORT
- 2%
50
100
150
200
250
2018/20192017/20182016/20172015/2016
105
47
19
33
204
105%
23%
9%
16%
116
45
24
35
220
53%
20%
11%
16%
120
45
19
32
215
55%
21%
9%
15%
115
41
21
34
211
55%
19%
10%
16%
BROADCASTINGRIGHTS
SPONSORSADVERTISING
GATERECEIPTS
OTHEREARNINGS
+ 4%
50
100
150
200
250
300
350
2018/20192017/20182016/20172015/2016
105
47
19
33
48
252
42%
19%
7%
13%
19%
116
45
24
35
50
270
43%
17%
9%
13%
18%
120
4519
32
88
303
39%
15%6%
11%
29%
115
41
21
34
105
316
36%
13%
7%
11%
33%
BROADCASTING RIGHTS
PONSORSADVERTISING
GATERECEIPTS
OTHEREARNINGS
TRANSFERRESULT
02
Change of operating revenues
• Ligue 2 non-transfer earnings amounted to €211 million in 2018/2019, which represents 11.1% of the Ligue 1 non-transfer earnings.
• Overall, the Ligue 2 non-transfer earnings were stable compared with last season (-2%).
IN M
ILLIO
NS O
F EUR
OS AN
D PE
RCEN
TAGE
OF T
OTAL
2.1.2. EARNINGS
Development of total earnings (including result of transfers)
• Total earnings amounted to €316 million for Ligue 2 as a whole in 2018/2019, up 4% on the previous season.
• This growth was driven by a sharp rise of earnings on transfers (€17 million).
IN M
ILLIO
NS O
F EUR
OS AN
D PE
RCEN
TAGE
OF T
OTAL
672018/2019 SEASON - DNCG REPORT66 2018-2019 SEASON – DNCG REPORT
Cumulative percentage of operating revenues
• Non-transfer earnings are much less concentrated in Ligue 2 than in Ligue 1. Together, the top 5 highest Ligue 2 revenues account for 38.2% of total Ligue 2 revenues (compared with 63.1% in Ligue 1).
• The revenues of Ligue 2 clubs are between €6.2 and 19.5 million.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
MET
Z
CLUB
S
TROY
ES
BRES
T
LENS
SOCH
AUX
LORI
ENT
LE H
AVRE
NANC
Y
AUXE
RRE
CHÂT
EAUR
OUX
ORLÉ
ANS
GREN
OBLE
CLER
MON
T
RED
STAR
AC A
JACC
IO
PARI
S FC
BÉZI
ERS
NIOR
T
VALE
NCIE
NNES
GAZÉ
LEC
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
9.29.2 8.58.5 8.08.0 6.66.6 5.95.9 5.95.9 5.85.8 4.64.6 4.44.4 4.44.4 4.14.1 4.14.1 4.04.0 4.04.0 3.83.8 3.73.7 3.73.7 3.33.3 3.13.1 2.92.9
17.817.8
25.725.7
32.332.3
38.238.2
44.144.1
49.949.9
54.554.559.059.0
63.363.367.467.4
71.571.575.575.5
79.479.483.383.3
86.986.990.690.6
949497.197.1
100100
692018/2019 SEASON - DNCG REPORT68 2018/2019 SEASON - DNCG REPORT
02
Breakdown of broadcasting rights of Ligue 2 clubs by competition
• Most of the broadcasting rights collected by Ligue 2 clubs are championship rights.
• As during the last season, the share of National cups in the broadcasting rights was very low (only 7%). The reason for this is that Ligue 2 clubs are lagging behind in these competitions.
• The category of “Other rights” consists mainly of relegation aid and UEFA subsidies for training centres.
7%
16%
77%
NATIONAL CUPSRIGHTS
OTHERRIGHTS
INTERNATIONAL CUPSRIGHTS
LFP RIGHTS -CHAMPIONSHIP
2.1.2.1. BROADCASTING RIGHTS
Distribution of broadcasting rights of Ligue 2 clubs
• The broadcasting rights of Ligue 2 are divided equally between the teams. This very balanced distribution can be explained by the manner in which the broadcasting rights are redistributed amongst Ligue 2 clubs, where the fixed share is predominant..
• The first in the ranking (Metz) accounts for 8.5% of broadcasting rights, versus 10.6% for Lorient in 2017/2018.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
MET
Z
CLUB
S
NANC
Y
LORI
ENT
TROY
ES
BRES
T
LE H
AVRE
CHÂT
EAUR
OUX
CLER
MON
T
LENS
PARI
S FC
SOCH
AUX
BÉZI
ERS
NIOR
T
RED
STA
R
GAZÉ
LEC
AC A
JACC
IO
GREN
OBLE
VALE
NCIE
NNES
AUXE
RRE
ORLÉ
ANS
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
8.58.57.57.5 6.06.0 5.55.5 5.45.4 5.45.4 5.15.1 4.74.7 4.74.7 4.74.7 4.74.7 4.64.6 4.54.5 4.44.4 4.44.4 4.44.4 4.24.2 4.04.0 3.93.9 3.53.5
16.016.0
22.022.0
27.527.5
32.932.9
38.338.3
43.543.5
48.248.2
52.952.9
57.557.5
62.262.2
66.866.871.371.3
75.775.780.180.1
84.584.588.688.6
92.692.696.596.5
100100
712018/2019 SEASON - DNCG REPORT70 2018/2019 SEASON - DNCG REPORT
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
LENS
CLUB
S
CLER
MON
T
BRES
T
MET
Z
CHÂT
EAUR
OUX
VALE
NCIE
NNES
TROY
ES
SOCH
AUX
NANC
Y
BÉZI
ERS
GREN
OBLE
AUXE
RRE
GAZÉ
LEC
RED
STAR
ORLÉ
ANS
PARI
S FC
NIOR
T
LORI
ENT
LE H
AVRE
AC A
JACC
IO
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
28.528.5
14.314.3
6.76.7 6.36.3 5.35.3 4.94.9 4.44.4 4.34.3 3.63.6 3.53.5 3.23.2 2.72.7 2.62.6 2.32.3 2.12.1 1.71.7 1.71.7 1.11.1 0.40.4 0.30.3
42.742.7
49.449.4
55.755.7
61.161.1
65.965.970.470.4
74.774.778.378.3
81.881.885.085.0
87.787.790.390.3
92.692.694.694.6
96.496.4 98.198.1 99.299.2 99.699.6 100100
02
GATE RECEIPTS: ANALYSIS BY SPECTATOR CATEGORY
2017/2018 2018/2019 VARIATION
Spectator category (number) Average per match
Subscribers 3 494 3 650 +4.5%Per match payment 2 020 1 914 -5.3%Non-paying 1 296 1 269 -2.0%
TOTAL SPECTATORS 6 810 6 833 +0.3%
TOTAL RECEIPTS €19.1 M €20.9 M +9.4%
Average subscription price €7.65 €7.61 -0.5%Spectators average price paid per match €11.65 €13.63 +17.0%Paying spectators average price €9.11 €9.68 +6.2%
ALL SPECTATORS AVERAGE PRICE €7.38 €7.88 +6.8%
LIGUE 2 CHAMPIONSHIP GATE RECEIPTS
Distribution of Ligue 2 championship gate receipts
• The amount of gate receipts for the championship is more variable from one Ligue 2 club to another than the amount of the broadcasting rights.
• Lens, Metz, Brest and Nancy stand out from the other clubs: these four account for almost 55.7% of revenue, i.e. more than the other 16 clubs in Ligue 2.
• The ten Ligue 2 clubs with the lowest revenues account for only 15% of the total.
2.1.2.2. GATE RECEIPTS
732018/2019 SEASON - DNCG REPORT72 2018/2019 SEASON - DNCG REPORT
+ 8%
50
100
150
200
250
300
350
2018/20192017/20182016/20172015/2016
112
4744
273
41%
17%2%2%
113
4753
278
41%
16%2%1%
130
548
115
317
41%
17%3%
36%
141
588
124
344
41%
17%2%
36%
106 39% 110 40%
10 3%13 4%
TOTALPAYROLL
SOCIALCHARGES
AGENTS’ FEES
TRANSFER ALLOWANCES
OTHEREXPENSES
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
BRES
T
CLUB
S
LORI
ENT
LENS
MET
Z
TROY
ES
LE H
AVRE
ORLÉ
ANS
SOCH
AUX
NANC
Y
AUXE
RRE
CHÂT
EAUR
OUX
GAZÉ
LEC
VALE
NCIE
NNES
AC A
JACC
IO
PARI
S FC
RED
STAR
BÉZI
ERS
CLER
MON
T
NIOR
T
GREN
OBLE
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
12.612.6
8.98.9 7.77.7 7.07.0 6.66.6 6.06.0 5.75.7 5.15.1 4.54.5 4.04.0 3.93.9 3.73.7 3.63.6 3.63.6 3.33.3 3.33.3 3.33.3 2.92.9 2.62.6 1.81.8
21.621.6
29.329.3
36.336.3
42.942.9
48.948.9
54.654.6
59.659.6
64.164.168.168.1
72.072.075.775.7
79.279.282.882.8
86.186.189.489.4
92.692.695.595.5
98.298.2 100100
02
Evolution the operating expenses
• Ligue 2 operating expenses amounted to €344 million (+8% compared to 2017/2018).
• The breakdown of the operating expenses of Ligue 2 clubs in 2018/2019 is very similar to that of the 2017/2018 season.
2.1.3. OPERATING EXPENSES
IN M
ILLIO
NS O
F EUR
OS AN
D PE
RCEN
TAGE
OF T
OTAL
2.1.2.3. SPONSORING / ADVERTISING, MERCHANDISING, COMMUNITY SUBSIDIES AND OTHER EARNINGS
• The sponsoring/advertising, merchandising, community subsidies and other earnings categories together account for 35% of total Ligue 2 non-transfer earnings. Community subsidies only total €11 million income for Ligue 2 clubs, representing 5% of their operating income.
• Within these categories, sponsorship and advertising have a preponderant and rather stable weight compared to last season (55% compared to 58% in 2017/2018).
• These revenues are moderately concentrated: 10 clubs represent 68.8% of the total.
Distribution of receipts for sponsoring / advertising, merchandising, community subsidies and other earnings
752018/2019 SEASON - DNCG REPORT74 2018/2019 SEASON - DNCG REPORT
2.1.3.1. TOTAL PAYROLL
Distribution of the total payroll
• There is little payroll concentration in Ligue 2: the top 3 represents only 27.6% of the total payroll (26% in 2017/2018).
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
CLUB
S
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
11.111.18.88.8 7.77.7 7.57.5 7.27.2 6.96.9 6.06.0 5.85.8 4.84.8 4.64.6 4.14.1 3.53.5 3.43.4 3.33.3 3.03.0 2.82.8 2.72.7 2.52.5 2.52.5 1.81.8
19.919.9
27.627.6
35.135.1
42.242.2
49.249.2
55.155.1
60.960.9
65.765.7
70.370.374.474.4
78.078.081.481.4
84.684.687.687.6
90.490.493.193.1
95.695.698.198.1
100100
BRES
T
PARI
S FC
LE H
AVRE
MET
Z
TROY
ES
NANC
Y
AUXE
RRE
ORLÉ
ANS
LENS
LORI
ENT
NIOR
T
CHÂT
EAUR
OUX
GREN
OBLE
AC A
JACC
IO
BÉZI
ERS
RED
STAR
GAZÉ
LEC
CLER
MON
T
SOCH
AUX
VALE
NCIE
NNES
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
CLUB
S
TOTAL PERCENTAGES
PERCENTAGES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
12.112.110.810.8
8.18.1 7.97.9 6.86.8 6.66.6 5.55.5 5.45.4 4.64.6 4.14.1 4.04.0 3.63.6 3.13.1 2.82.8 2.82.8 2.72.7 2.52.5 2.42.4 2.42.4 1.91.9
22,822,8
30,930,9
38,838,8
45,645,6
52,252,2
57,857,8
63,263,2
67,867,871,971,9
75,975,979,479,4
82,582,585,385,3
88,188,190,890,8
93,293,295,795,7
98,198,1100100
BRES
T
VALE
NCIE
NNES
LE H
AVRE
MET
Z
TROY
ES
NANC
Y
AUXE
RRE
ORLÉ
ANS
LENS
LORI
ENT
NIOR
T
CHÂT
EAUR
OUX
RED
STAR
AC A
JACC
IO
BÉZI
ERS
GREN
OBLE
GAZÉ
LEC
CLER
MON
T
SOCH
AUX
PARI
S FC
02
Distribution of operating expenses
• Just like last season, operating expenses are slightly more concentrated than non-transfer earnings in Ligue 2. There are therefore slightly more disparities in the expenses than in earnings between Ligue 2 clubs.
772018/2019 SEASON - DNCG REPORT76 2018/2019 SEASON - DNCG REPORT
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FIXED BONUSES FIXED BONUSES FIXED BONUSES FIXED BONUSES
8686 87878282 8080
9090 91919494
9898
1414 13131818 2020
1010 9966 22
PRO PLAYERS TRAINERS & STAFF OTHER PLAYERS OTHER PERSONNEL
2017/2018 SEASON
2018/2019SEASON
02
Fixed and variable remuneration
• Variable bonuses account for a small proportion of wages for all personnel categories in Ligue 2 clubs.
• The variable share of wages is very stable compared to 2017/2018.
WAGE DETAILS BY PERSONNEL CATEGORY
REMUNERATION BY WAGE CATEGORIES 2017/2018 2018/2019 VARIATIONIn euro thousands
Professional players 76.8 82.1 7%Base salary 66.3 71.1 7%Variable bonuses 10.5 11 5%
Professional coaches and staff 13.4 16.4 22%Base salary 11 13.1 19%Variable bonuses 2.4 3.2 34%
Other players 5.9 5.8 -1%Base salary 5.3 5.3 1%Bonuses 0.6 5.1 -14%
Other personnel 33.8 36.2 7%Base salary 31.8 35.6 12%Bonuses 2 0,6 -72%
Variable remuneration is considered to be the share of wages received once objectives are reached, both individually and collectively. These bonuses may be based on sports results (European Cup qualification, maintenance, final ranking, Cup itinerary, etc, ...) as well as on the presence of players in the personnel (actual presence on the match sheet, number of starts, number of matches played, ...).
2.1.3.2. PAYROLL ANALYSIS
792018/2019 SEASON - DNCG REPORT78 2018/2019 SEASON - DNCG REPORT
0%
5%
10%
15%
20%
25%
30%
90-100%80-90%70-80%60-70%50-60%40-50%30-40%20-30%10-20%0-10%
28%
16%
13%
10%9%
7%6%
4%3%
2%
52%
8%4%
2%
9%
PRO PLAYERSFIXED
PRO PLAYERSVARIABLE
FIIXEDOTHER PLAYERS
OTHER PLAYERSVARIABLE
FIXEDSTAFF
STAFFVARIABLE
FIXEDOTHER PERSONS
VARIABLEOTHER PERSONS
25%25%
02
Cumulative percentage of player wages per decile
• The salaries of players are much more homogeneous in Ligue 2 than in Ligue 1. The top 10% of the highest paid players in Ligue 2 only represent 28% of the Ligue 2 payroll.
Analysis of the player portfolio
30/062019
30/062020
30/062021
30/062022
30/062023
Number of players’ contracts by maturity
44% 31% 18% 1% 5%
Aggregate players’ wages by maturity
39% 34% 19% 1% 7%
Distribution of the total payroll
• Professional players account for 60% of the wages of Ligue 2 clubs.
• The wages of non-players and staff represents 29% of the salaries paid by Ligue 2 clubs, compared with 14% of the salaries paid by Ligue 1 clubs.
812018/2019 SEASON - DNCG REPORT80 2018/2019 SEASON - DNCG REPORT
FOREIGN
PURCHASES
€8,9 M20 TRANSFERS
PURCHASES
€1,5 M3 TRANSFERS
DIRECTION OF PLAYER MOVEMENT
SALES SALES
€48,7 M23 TRANSFERS
€30.8 M17 TRANSFERS
INTRA-LIGUE2 TRANSFERS
€6.1 M11 TRANSFERS
BALANCELIGUE 1 / FOREIGN
€39.8 M
LIGUE 1 / LIGUE 2BALANCE-€29.3 M
02
Evolution of the balance of transfers in €M 2016/2017 2017/2018 2018/2019
France sales 13.1 48.9 36.9Foreign sales 17 11.3 48.7France purchases -0.6 -8.9 -7.6Foreign purchases -2.5 -5.8 -8.9
TRADE BALANCE 27 45.5 69.1
Cross transfers by league in €M Arrival league
Departure league Foreign Ligue 1 Ligue 2 TotalForeignNumber of transfers 83 20 103Amount 370.2 8.9 379.1Ligue 1Number of transfers 61 25 3 89Amount 677.7 106.6 1.5 785.8Ligue 2Number of transfers 23 17 11 51Amount 48.7 30.8 6.1 85.6
TOTAL NUMBER 84 125 34 243
TOTAL AMOUNT OF TRANSFERS 726.4 507.6 16.5 1 250.5
PLAYER TRANSFERS FROM FRENCH PROFESSIONAL CLUBS FOR THE 2018-2019 SEASON
2.1.4. OPERATIONS INVOLVING PLAYERS
832018/2019 SEASON - DNCG REPORT82 2018/2019 SEASON - DNCG REPORT
NETPROFIT(LOSS)-€33 M
GATE RECEIPTS
€21 M
NETRECEIPTS
€316 M
SPONSORS
€41 M
TV RIGHTS
€115 M
TRANSFER OPERATIONS
€105 MOTHER EARNINGS
€34 M
OTHER EXPENSES
€6 M
AMORT. TRANSFER
€13 M
TEAM COSTS
€207 M
OVERHEAD COSTS
€124 M
NETEXPENSES
€349 M
0
115
65
15
-35
-85
-135
IN M
ILLI
ON O
F EU
ROS
2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
2929
-45-45 -69-69-58-58
-102-102
-131-131
4848 5050
8888104104
-18-18-11-11
-16-16
-8-8
-21-21
-14-14-27-27
-33-33-18-18
-8-8
RESULT EXCLUDINGTRANSFERS
TRANSFEREARNINGS
NET PROFIT(LOSS)
CURRENTOP. PROFIT
02
Formation of the net income
2.1.5. RESULTS
• All performance indicators deteriorated compared to the 2017/2018 season, except for the earnings from transfers, which continue to increase (+18%).
• Net profit fell from -€18 million in 2017/2018 to -€33 million in 2018/2019.
Breakdown of net profit
852018/2019 SEASON - DNCG REPORT84 2018/2019 SEASON - DNCG REPORT
TRANSFEROPERATIONS
€105 M
TV RIGHTS€115 M
SPONSORS41 M€
OTHEREARNINGS
€34 M
GATERECEIPTS
€21 M
TEAMCOST
€207 M
OVERHEAD€124 M
OTHEREXPENSES
€6 MNET PROFIT
(LOSS)-€33 M
0
100
200
300
350
REVENUES
EXPENSES
BALANCE
AMORT. TRANSFER
FEES€13 M
Analysis of the composition of the net income
872018/2019 SEASON - DNCG REPORT86 2018/2019 SEASON - DNCG REPORT
0
50
100
150
200
2018/20192017/20182016/20172015/20162014/2015
IN E
URO
MIL
LION
S
43
23
109
36
123
38
146
37
141
36
61
2
144
4
131
4
137
18
137
23
66 63
145 148
161
135
183
155
177
160
SHAREHOLDERS EQUITYAND CURRENT ACCOUNTS
FINANCIALDEBT
PLAYERS INTANGIBLEASSETS
OTHER FIXEDASSETS
0
30
60
90
120
150
2018/20192017/20182016/20172015/20162014/2015
IN E
URO
MIL
LION
S
30
13
77
32
86
37
88
58
67
74
SHAREHOLDERSEQUITY
CURRENTACCOUNTS
02
Coverage of fixed assets by shareholders’ equity and current accounts
• The trend seen in the last three seasons has been confirmed: shareholders equity and current accounts are significantly higher than player intangible assets.
Change of shareholders equity and current accounts
• The upward trend in shareholders equity and current accounts since 2015/2016 does not continue in 2018/2019. There was a decrease of shareholders equity (-€21 million compared to 2017/2018) which was not fully offset by the increase of the current accounts (+€16 million).
2.1.6. FINANCING OF THE CLUBS
892018/2019 SEASON - DNCG REPORT88 2018/2019 SEASON - DNCG REPORT
022.2. LINK BETWEEN SPORTS RESULTS AND FINANCIAL CHARACTERISTICS2.2.1. SPORTS RESULTS
TEAMS CLASSIFICATION POINTS
Metz 1 81Brest 2 74Troyes 3 71Paris FC 4 65Lorient 5 63Lens 6 63Le Havre 7 54Orléans 8 52Grenoble 9 50Châteauroux 10 48Clermont 11 48Niort 12 47Valenciennes 13 43Nancy 14 42Auxerre 15 41Sochaux 16 41AC Ajaccio 17 40Gazélec 18 39Béziers 19 38Red Star 20 30
2.1.7. ANALYSIS OF ACHIEVEMENTS COMPARED TO INITIAL BUDGETS 2018/2019 SEASON
In euro thousandsINITIAL
BUDGETACTUAL GAP
Broadcasting rights 111 436 115 375 3 939Sponsors - Advertising 49 384 41 244 - 8 140Gate receipts 21 133 20 862 - 271Other income (including merchandising) 29 456 33 728 4 272
TOTAL OPERATING INCOME 211 409 211 210 - 199
Total payroll 172 897 198 723 25 826Transfer costs 17 442 20 810 3 368Other expenses 107 154 123 987 16 833
TOTAL OPERATING EXPENSES 297 493 343 519 46 026
OPERATING RESULT (LOSS) - 86 086 -132 309 - 46 223
RESULT OF TRANSFER OPERATIONS 54 143 104 569 50 426
CURRENT OPERATING PROFIT -31 943 -27 740 4 203
Financial profit (loss) - 1 973 -1 998 - 25Exceptional profit (loss): Other 4 256 -1 445 - 5 701Income tax 375 - 1 528 - 1 903Except. profit (loss): Current account write-offs/write-backs 0 -742 - 742
NET PROFIT (LOSS) - 29 285 -33 454 - 4 169
912018/2019 SEASON - DNCG REPORT90 SAISON 2018-2019 - RAPPORT DNCG2018/2019 SEASON - DNCG REPORT
0
1
2
3
4
5
6
7
8
PROFITS > 1MPROFITS < 1MLOSSES < 1MLOSSES > 1M
8
1
8
31234567891011121314151617181920
20
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
BUDGET RANKING
SPOR
TS R
ANKI
NG
02
Number of profitable and loss-making clubs
• 11 Ligue 2 clubs are profitable in the 2018/2019 season, versus 14
the previous season. The number of heavily loss-making clubs (loss > €1 million) increased from 4 to 8.
Budget and sports ranking
• The relationship between budget ranking and sports ranking is very pronounced
in Ligue 2 this season: the champion, Metz, is the club with the biggest budget while the last three in the championship are the three clubs with the smallest budgets.
932018/2019 SEASON - DNCG REPORT92 2018/2019 SEASON - DNCG REPORT
42 points
€7,5 M€10 M
PERSONNEL WAGES (IN MILLIONS OF EUROS)
CHAM
PION
SHIP
POI
NTS
0 10 20 30 40 5020
40
60
80
100
RELEGATIONTO NATONAL 1
MAINTENANCEIN LIGUE 2
PROMOTIONTO LIGUE 1
The following regular features have been observed in Ligue 2 over the past eight seasons:
• The vast majority of the teams that were relegated had a payroll of under €7.5 million.
• No team with a payroll above €10 million was relegated.
• With the exception of Gazélec at the end of the 2014/2015 season and Amiens in 2016/2017, all teams that were promoted to Ligue 1 had a payroll of more than €7.5 million.
2.2.2. SPORTS RISKS/OPPORTUNITIES AND PAYROLL
952018/2019 SEASON - DNCG REPORT94 2018/2019 SEASON - DNCG REPORT
02
At the end of a season, three scenarios are possible for Ligue 2 teams: dropping down to National, remaining in Ligue 2 and advancing to Ligue 1.
• The revenues of clubs relegated to National decline very sharply.
• The revenues of clubs that remain in Ligue 2 vary relatively little from season to season.
• The non-transfer earnings of the two teams promoted at the end of the 2017/2018 season increased more than their expenses between 2017/2018 and 2018/2019:
- The non-transfer earnings of Reims increased from €15.3 million to €41.4 million (multiplied by 2.7), while its expenses increased from €22.3 to 48.6 million (multiplied by 2.2).
- The non-transfer earnings of Nîmes increased from €9.3 million to €32.3 million (multiplied by 3.5), while its expenses increased from €12.7 to 28.5 million (multiplied by 2.2).
2.2.3. STRONG IMPACT OF SPORTS RESULTS ON REVENUES
SPORTS RESULTS BASED ON PAYROLL (2011/2012 TO 2018/2019 SEASONS)
PAYROLLRISK OF
RELEGATION TO NATIONAL 1
CHANCE OF STAYING
IN LIGUE 2
CHANCE OF PROMOTION TO LIGUE 1
Above €10 million 0% 73% 27%
between €7.5 and 10 million 8% 70% 22%
below €7.5 million 26% 70% 4% The table is read line by line. Example: among teams with a payroll of under €7.5 million, 26% were relegated, 70% were maintained and 4% advanced to Ligue 1.
With regard to the observed regular features, we can thus identify three groups of Ligue 2 teams:
• Group 1: clubs with a payroll in excess of €10 million. These teams have almost no risk of being relegated. Most of the time they remain where they are, with a less than 3 in 10 chance of advancing to Ligue 1.
• Group 2: clubs with a payroll of between €7.5 and 10 million. For these teams, all three scenarios are possible, but remaining in Ligue 2 is most common (70% of cases). The main difference between these teams and Group 1 is the risk of relegation.
• Group 3: clubs with a payroll of under €7.5 million. These teams have a one in four chance of being relegated to National 1 and have virtually no chance of advancing to Ligue 1. The main risk for these teams is relegation. A payroll of €7.5 million in Ligue 2 is therefore almost equivalent to a payroll of €30 million in Ligue 1. In both cases, teams that do not cross these thresholds have almost a one in four chance of being relegated to the lower division.
972018/2019 SEASON - DNCG REPORT96 2018/2019 SEASON - DNCG REPORT
0
3
6
9
12
15
PROMOTION TO L1MAINTAINED IN L2RELEGATION
5.5
8.7
12.4
IN EURO MILLIONS
022.2.4. CORRELATION BETWEEN AVERAGE ANNUAL GROSS PAYROLL AND SPORTS SUCCESS
AVERAGE GROSS PAYROLL BASED ON THE SPORTS PERFORMANCE OF CLUBS (2011/2012 TO 2018/2019 SEASON)
Over the past eight seasons:
• Teams relegated to National 1 had an average payroll of €5.5 million.
• Teams that remained in Ligue 2 had an average payroll of €8.7 million.
• Teams that were promoted to Ligue 1 had a payroll of €12.4 million.
992018/2019 SEASON - DNCG REPORT98 2018/2019 SEASON - DNCG REPORT
02
Community of net profit by group
• All three groups generated losses in the 2018/2019 season, especially Group 1.
IN EURO MILLIONS
-25
-20
-15
-10
-5
0
GROUP 3GROUP 2GROUP 1
-24.2
-7.3
-2.0
Subsequent to the above analyses, 3 groups of clubs can be distinguished according to their overall payroll in 2018/2019:
Group 1: payroll above €10 million Metz, Brest, Troyes, Lens, Lorient, Le Havre, Nancy, Auxerre
Group 2: payroll between €7.5 and 10 million Paris FC, Valenciennes, Sochaux
Group 3: payroll below €7.5 millionOrléans, Grenoble, Clermont,
Châteauroux, Niort, AC Ajaccio, Gazélec, Béziers, Red Star
Cumulative operating income by group
• The operating loss in Ligue 2 is mainly due to clubs with payroll costs in excess of €10 million (Group 1).
2.2.5. ANALYSIS BY GROUPS OF CLUBS FOR THE 2018/2019 SEASON
IN EURO MILLIONS
-120
-100
-80
-60
-40
-20
0
GROUP 3GROUP 2GROUP 1
-102.1
-17.9
-12.3
2018/2019 SEASON - DNCG REPORT 1012018/2019 SEASON - DNCG REPORT100
BENCH MARK
EUROPEAN03
03
1032018/2019 SEASON - DNCG REPORT102 2018/2019 SEASON - DNCG REPORT
42 points
€40 M €120 M
PERSONNEL WAGES (IN MILLIONS OF EUROS)
CHAM
PION
SHIP
POI
NTS
0 100 200 300 400 500 600 700 80020
40
60
80
100
RELEGATION
MAINTAINING WITHOUTEUROPEAN CUPS
UELQUALIFICATION
UCLQUALIFICATION
€71 M
€80 M
0 100 200 300 600
€112 M €221 M €659 M
€130 M
€95 M €157 M
€175 M€115 M
€272 M
3.2. CORRELATION BETWEEN SPORTS RESULTS AND TURNOVER
The entry ticket for Ligue 1 is lower than that of other major European leagues:
• Over three seasons, Ligue 1 clubs generated revenues in excess of €450 million on three occasions compared with ten times in the Premier League.
• The lowest Premier League turnover was €103 million compared with €25 million in Ligue 1.
The turnover above which a club is unlikely to be relegated is lower in Ligue 1:
• No Ligue 1 club with a turnover of €40 million has been relegated.
• This non-relegation threshold is equal to €150 million in the Premier League.
Over three seasons, the entry ticket for European Cups is lower in Ligue 1. The minimum turnover at which 90% of the clubs participate in a European Cup is:
• €100 million in Ligue 1,• €160 million for the 58 clubs in question in La Liga, Bundesliga and Serie A,• €280 million for Premier League clubs.
Ligue 1
3.1. EUROPEAN BENCHMARK FOR EARNINGS EXCLUDING TRANSFER OPERATIONS
• Among French clubs that played in the European Cup, PSG stands out with a budget more than twice the average budget of the Premier League clubs.
• Lyo n h a s a b u d g e t b e t w e e n t h e ave ra g e b u d g e t s o f G e r m a n and English clubs. Marseille and Monaco are around the average Italian and Spanish budgets. Rennes and Bordeaux have budgets lower than the average budget of clubs in the big five leagues.
Comparison of the earnings* of the 6 French clubs that played a European Cup in 2018/2019, with the average earnings of the 5 major European leagues
* Revenue excluding transfer operations; Source: Source: DNCG, UEFA Club Licensing Benchmarking Report 2018.
Note: figures for 2018/2019 financial year for Ligue 1 and 2017/2018 financial year for other leagues.
03
1052018/2019 SEASON - DNCG REPORT104 2018/2019 SEASON - DNCG REPORT
€90 M €200 M
PERSONNEL WAGES (IN MILLIONS OF EUROS)
CHAM
PION
SHIP
POI
NTS
0 100 200 300 400 500 600 700 80020
40
60
80
100
RELEGATION
MAINTAINING WITHOUTEUROPEAN CUPS
UELQUALIFICATION
UCLQUALIFICATION
€150 M €250 M
PERSONNEL WAGES (IN MILLIONS OF EUROS)
CHAM
PION
SHIP
POI
NTS
100 200 300 400 500 600 700 800
0
20
40
60
80
100
RELEGATION
MAINTAINING WITHOUTEUROPEAN CUPS
UELQUALIFICATION
UCLQUALIFICATION
Other clubs in La Liga, Bundesliga and Serie A
Perimeter: sample of 58 clubs in La Liga, Bundesliga and Serie A in 2017/2018.
Premier League
03
1072018/2019 SEASON - DNCG REPORT106 2018/2019 SEASON - DNCG REPORT
3.3. COMPARISON OF THE AMOUNTS OF TRANSFERS OVER TURNOVER
Ligue 1
The ratio of the amount of transfers over turnover excluding transfers is 33% in Ligue 1.However, this figure is inflated by Monaco (139%), which stands out clearly, and to a lesser extent by a group of three clubs (Nice, Lille and Toulouse), in which transfer amounts are well above the averages for other European countries.
Conversely, more than half of the Ligue 1 clubs are below 30%.
Note: perimeter difference between Ligue 1 figures and figures from other European leagues.
• European Championships: transfer amounts = Transfer price (2018 for Eastern European Championships, 2017/2018 otherwise), source UEFA Club Licensing Benchmarking Report 2018.
• Ligue 1: transfer amounts = capital gains on disposal 2018/2019.
0 20 40 60 80
-4,0
0,5
5,0
25%25% 50%50% 75%75%
BÉZI
ERS
AC A
JACC
IORE
D ST
AROR
LÉAN
S
GAZÉ
LEC
CHÂT
EAUR
OUX
/ GR
ENOB
LE /
SOC
HAUX
BRES
TCL
ERM
ONT
VALE
NCIE
NNES
NIOR
T
LIGU
E 2
NANC
Y
TROY
ES
LENS
AUXE
RRE
MET
Z
LE H
AVRE
PARI
S FC
LORI
ENT
RUSS
IETU
RQUI
E
ALLE
MAG
NEAN
GLET
ERRE
ESPA
GNE
AUTR
ICHE
SUIS
SEPA
YS-B
ASDA
NEM
ARK
ITALI
E
BELG
IQUE
PORT
UGAL
UKRA
INE
100%100% 144%144%
0 20 40 60 80 100
-4,0
0,5
5,0
25%25% 50%50% 75%75% 100%100% 139%139%
NÎM
ESAN
GERS
PARI
SM
ARSE
ILLE
GUIN
GAM
P /
REIM
S
DIJO
NST
RASB
OURG
/ S
T-ÉT
IENN
ERE
NNES
AMIE
NS
LIGU
E 1
LYON
CAEN
/ M
ONTP
ELLI
ER
NANT
ES /
BOR
DEAU
X
NICE
LILL
E
TOUL
OUSE
MON
ACO
RUSS
IE
TURQ
UIE
ALLE
MAG
NE
ANGL
ETER
REES
PAGN
E
AUTR
ICHE
SUIS
SEPA
YS-B
ASDA
NEM
ARK
ITALI
E
BELG
IQUE
PORT
UGAL
UKRA
INE
Ligue 2
The amount of transfers over the turnover excluding transfers within Ligue 2 is equal to 47%.
One club stands out on the upside: Lorient (144%).
Note: perimeter difference between Ligue 2 figures and figures from other European leagues.
• European Championships: transfer amounts = Transfer price (2018 for Eastern European Championships, 2017/2018 otherwise), source UEFA Club Licensing Benchmarking Report 2018.
• Ligue 2: transfer amounts = capital gains on disposal 2018/2019.
© March 2020 DNCGPhotography credits: FEP.
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