In the last 10 years, there are two Spanish sports entities that have led the world ranking of turnover, whose list is known as football money league, in each economic cycle have come to establish a new record of turnover, with forecasts of overcoming the barrier of 700 billion euros.
Therefore, the aim of this work was to carry out an analysis of the economic and financial situation of the two most influential clubs in the Spanish league and in the world, Fútbol Club Barcelona and Real Madrid. Given that their impact on this national economic sector would be around 70% due to their turnover, as well as the expenses they manage to support.
So, it led me to study:
What were their main invoices?
How have your assets evolved?
How is their solvency and how have they evolved?
What costs do they have, unlike a conventional company?
This work was carried out based on their consolidated accounts for the last 5 seasons, from the 2012-13 season to the period, 2016-17. Using an Excel spreadsheet and the knowledge acquired during the course, this analysis was carried out.
The analysis was based on 2 phases:
The first phase consisted of a very exhaustive analysis of the balance sheet and the profit and loss account of each sports entity.
In the economic analysis, the evolution of assets was studied, as well as their solvency. As for the financial analysis, its financial structure was examined with the help of some ratios. Finally, an analysis relating to the season´s profit and loss accounts, in order to determine what their invoicing has been and what are the main expenses of each club and what trend they have had.
In the second phase, a comparison was made between the two clubs, it was seen each club stands in relation to its rival at national level and what the trend has been.
Where I could determine:
Both clubs have maintained a growing total investment, their biggest investment has been in intangible assets. So, it determines the engine of their machinery in this type of sector. Where it is reflected the signings of high purchasing value that can be allowed these 2 clubs
As regards the financial situation, both clubs are in a worrying situation in relation to their short-term solvency, since negative working capital has predominated, although it should be noted that they have slightly increased their own funds and have therefore slightly increased their financial autonomy, in this case to a greater extent than Real Madrid.
As for the main income, we could say that we have determined the 3 main sources: Matchday, Marketing and Right of Remission. Therefore, both clubs have maintained a continuous growth, which stands out worldwide, it is expected that they will pass the 700-million-euro barrier in turnover.
Another thing to emphasize in relation to the invoicing is in television distribution, is that in the Spanish football the biggest quota is taken by Barça and Real Madrid almost at the same time. Unlike other leagues, such as the English league, the distribution is more homogeneous.
Staff costs are the most important element that has a significant impact on operating margins. But what they have in common is that the total personnel cost is around 70% of their operating income.