FCBARCELONA.CAT

27.07.2007 14:59

A 19.5 million euro profit

www.fcbarcelona.cat

The club’s finances are looking better than they have done for many years, as indicated by the closure of the 2006/07 financial year presented on Friday.

FC Barcelona has ended 2006/07 with an income of 290.1 million euros and expenses of 270.6 million, meaning it has raked in profits of 19.5 million, “the highest profit in recent years” as put by financial vice-president Ferran Soriano in a Friday press conference. Before-tax, interest and amortization profits (the so-called EBITDA index, one of the best indicators of a business’s financial stability) amounted to 67.9 million.

Generating such profits despite winning no major titles shows that “the club’s financial model is solid and sustainable” said Soriano.

Ferran Soriano added that “the income and expenses are affected by sports performances, but the club’s finances can hold out whether we win or lose. Not all companies or teams are able to say the same.”

290 million sets record

The club has produced better financial results every year since the new Board stepped in, reaching a turnover of 290 million this year, what Ferran Soriano says is “the highest figure in club history”.

In 2005/06 the club made 259.1 so there has been an increase of 31 million in just one year. This is mainly due to better use of the facilities, and that is despite playing two less Champions league games at home than last season, plus added income from sponsorship, tours and friendlies and the sale of advertising space on Barça TV and the sale of Barça TV Internacional.

The cost of sports staff is equivalent to 51% of income, which is below what is recommended by the football industry (55%). That expense is currently 148.3 a year.

As well as its positive financial results, the club has invested 72.2 million net euros in new sports staff and infrastructure (improvements to the stadium, Palau and training facilities).

Positive equity

For the first time in 4 years, FC Barcelona has positive equity. At the end of the 2003/04 season, the club was 73.8 million euros down, which was reduced to 37 million a year later, 4.1 the year after and the club now has a positive balance of 2.7 million.

That recovery, which has been validated by auditors, is an excellent signal of the way the club is progressing.

These figures still have to be approved by the Ordinary General Assembly, which will be held on August 29 on the same day as the Gamper Trophy match.