Europe's Premier Leagues

Total revenue generated by Bundesliga clubs grew 5% to €3.1 billion in 2021/22, a result of improved matchday revenues (€254m increase) and commercial revenues (€169m increase). These were partly offset by a €279m contraction in aggregate broadcast revenues, thanks largely to the weaker performance of German teams in the UEFA Champions League, and the delayed recognition of 2019/20 UEFA distributions in 2020/21.

There is a strong bond between German clubs and their fans, one that is underpinned by established community outreach programmes, low average ticket prices compared to other leagues, and supporter voting control via the ‘50+1’ rule. As a result, the Bundesliga consistently boasts leading attendance numbers, attracting 42,837 persons (92% stadium utilisation) on average during the 2022/23 season, the most recent complete season not impacted by COVID-19 restrictions.

The Bundesliga’s long-standing focus on financial sustainability is reflected in German clubs’ healthy average wages to revenue ratio, which has been no higher than 59% over the past decade (excluding the 2020/21 COVID-19-impacted season). This prudence helped to deliver €227m of aggregate operating profitability in 2021/22.

Despite the domestic appeal of the Bundesliga, its international appeal (measured by the value of international media rights deals, at c.€230m for the 2021/22 season) continues to trail the Premier League (c.€1.6 billion) and La Liga (c.€897m). German clubs are relying on the Deutsche Fußball Liga’s ability to secure substantial increases in forthcoming negotiations, having recently voted to once again suspend talks with external investors and debt providers.

The relaxation of COVID-19 restrictions towards the end of 2021 helped LaLiga clubs generate total matchday revenues of €409m in 2021/22, a €353m increase on the prior season and the main growth driver behind contributor towards LaLiga clubs’ total revenues increasing by 11% to €3.3 billion. However, aggregate LaLiga revenues remain at approximately half that of Premier League clubs, modestly outperforming the Bundesliga by €128m.

Aggregate broadcast revenues fell by €83m (4%) in 2021/22, the first to be partially impacted by the investment from CVC Capital Partners. The 2022/23 season marks the beginning of LaLiga’s new five-year domestic rights deals with DAZN and Telefonica, which, together with certain rights sold on a non-exclusive basis, are estimated to be worth c.€1 billion per season. These deals now require LaLiga to cover production and marketing costs, reflecting LaLiga’s desire to take greater control over its broadcast production quality and narrative.

In 2021/22, LaLiga clubs recorded aggregate operating losses of €82m, driven by Real Madrid (€133m) and FC Barcelona (€53m); 12 of the other 18 clubs were operationally profitable with an average operating profit of €6m per club. Having opted out of any involvement in the investment by CVC Capital Partners into LaLiga’s commercial rights subsidiary, their financial positions, combined with LaLiga’s stringent salary cost controls, led both clubs to seek external investment to improve pre-tax profitability.

This decrease was driven by lower broadcast revenue (down 24% to €1.3 billion) a result of lower value domestic and international rights deals commencing in 2021/22, poorer performances in European competitions and the COVID-19-induced delayed recognition of 2019/20 broadcast revenue in 2020/21.

The reduction in broadcast revenues was partially offset by an increase in matchday revenues, as the relaxation of COVID-19 restrictions during the season saw average attendances increase to 18,236 (47% utilisation) in 2021/22. However, Serie A matchday audiences continue to be limited by the longstanding under-investment into stadia.

Serie A clubs’ average wages/revenue ratio remained fairly consistent, at 83% in 2021/22, as aggregate wages fell (7%) to €2 billion, in line with the decline in total revenues (7%). For the fifth consecutive season, Serie A recorded the second-highest wages/revenue ratio amongst the ‘big five’ leagues, with 14 clubs exceeding a wages/revenue ratio of 80% in 2021/22.

This saw Serie A clubs’ aggregate operating losses reach a record high of €0.4 billion in 2021/22.
Only two clubs – Atalanta and AC Milan – recorded an operating profit, with modest wages/revenue ratios of 62% and 64% respectively. The 18 other Serie A clubs generated operating losses in 2021/22, with the most significant incurred by Roma (€105m), Genoa (€80m) and Juventus (€57m).

Despite generating a record high €2 billion, Ligue 1 still had the lowest total revenue amongst the ‘big five’ leagues.

Growth was predominantly driven by commercial revenues (an increase of €301m, (39%)), with Marseille (€97m) and Paris Saint-Germain (€45m) responsible for 47% of this growth, a result of new commercial deals struck in 2021/22.

There was also an uplift in matchday revenue (up €217m), as COVID-19 restrictions were lifted across the season, and stadium attendances returned to those similar to pre-COVID-19 seasons (average attendance of 20,890 in 2021/22).

Contrastingly, broadcast revenue decreased 13% to €729m in 2021/22, reflecting a full season’s impact of the domestic media rights deals agreed in December 2020, and the delayed recognition of 2019/20 UEFA distributions in 2020/21.  

Despite reducing to 87% in 2021/22, Ligue 1 recorded the highest wages/revenue ratio of the ‘big five’ leagues for the fifth consecutive season, as aggregate wage costs increased by 11% to €1.8 billion. Worryingly for the league’s sustainability, 11 clubs had a wages/revenue ratio of more than 80%, including five that exceeded 100%.

2021/22 was the 15th consecutive year of combined operating losses for Ligue 1 clubs. From the 2022/23 season, the Directorate of Controle of Management (DNCG), an independent body that regulates all financial and legal matters associated with professional football in France, has introduced two financial indicators as part of its annual compliance checks on Ligue 1 clubs to encourage the financial sustainability and solvency of clubs.