The 2018/2019 DNCG Financial Report was provided to the Bureau of the Board on March 11th. This document shows aggregate revenues generated by Ligue 1 Conforama and Domino’s Ligue 2 clubs of 2.854 billion euros.
The highlights of the 2018/2019 financial results are as follows :
1. A rising business activity. The aggregate earnings excluding transfers of Ligue 1 Conforama and Domino’s Ligue 2 clubs in the 2018/19 season exceeded 2 billion euros 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 Conforama clubs was mainly due to a €105 million increase of the broadcasting rights of Ligue 1 Conforama clubs (increase of 2018/2021 UEFA broadcasting rights and of domestic broadcasting rights for overseas markets) and to a €102 million increase of commercial earnings excluding braodcasting rights.
2. An operating result from transfer operations remaining at a high level (€740 million for 2018/2019 after a record high of €929 million in the previous season). Ligue 1 Conforama contributed at €635 million to this result, equivalent of 33% of its earnings excluding transfers. Half of the Ligue 1 Conforama 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 illustrate the high proportion of players’ transfers in the activites of the clubs and their capacity to generate important player transfer revenues on a long term basis.
3. An operating loss of €835 million for 2018/2019, mostly due to a 10% increase in operating expenses, which reached 2.949 billion euros. Half of this raise comes from a clubs’ global payroll increase.
4. After financial and tax expenses, Ligue 1 Conforama and Domino’s Ligue 2 clubs post a €160 million net loss for the 2018/2019 season. However, the losses are very highly concentrated. 26 clubs (15 in Ligue 1 Conforama and 11 in Domino’s Ligue 2) have profitable net income and 3 Ligue 1 Conforama clubs concentrate 95% of the cumulative net loss. In Domino’s Ligue 2, the net loss is €33 million.
5. An increase in equity. Professional football clubs’ equity is €1.597 billion on 30 June 2019. For Ligue 1 Conforama, clubs’ equity raises up to €1.457 billion on 30 June 2019, of which €889 million is shareholders’ equity (compared to €732 million of shareholders’ equity for 2017/2018, a +21% increase). In Domino’s Ligue 2, clubs’ equity amounts to €140 million on 30 June 2019, of which €67 million is shareholders’ equity (compared to €89 million of shareholders’ equity for 2017/2018).
Starting next season, clubs will benefit from the higher domestic broadcasting rights of Ligue 1 Conforama championship for the 2020/2024 cycle. In this context, it is important to monitor how the clubs will reinvest these additional resources particularely in order to reduce their operating losses and to improve their equity. The DNCG will strive to support these efforts, notably through the new system of Payroll and Equity Ratios adopted by the LFP General Assembly on December 12th 2019 and by the Federal Assembly on December 14th 2019.
