Sporting SAD recorded losses of €32.85 million in its fiscal year 2020/21 – ended June 30 – against a profit of €12.52 million in the previous season.
No report & accounts released this evening with the CMVM, Sporting justifies the negative evolution of the accounts with “the unavoidable impact of the consequences caused by the covid-19 pandemic, whose effect has been global, Sporting SAD being no exception”.
SAD Leonina highlights the contraction worldwide in the transfer market, with a drop in value of transactions of 2,828 million euros (down 43%) in the top five leagues versus the last summer market before the pandemic). The total value of transactions in the two markets in 2021 (3,822 million euros) is even lower than in 2015 (3,850 million euros), and the value grew by about 73% between 2015 and 2019, he says.
In addition, he points out that he recorded a drop in revenue of 71 million euros (67%) in player transactions, “although it is also worth noting the transactions of Marcos Acuña for 11.25 million euros and Marcus Wendel for 20, 3 million euros plus variables”.
Sporting SAD also reports the estimated drop of 20 million euros in operating income, excluding player transactions, resulting from the closing of sports venues, “with direct consequences in the absence of ticketing revenue, and merchadinsing losses at the time”.
Turnover amounted to 100.21 million euros, a 43% decrease compared to 175.47 million euros for the 2019/2020 fiscal year. In this domain, the SAD of the Alvalade club thus returned to values prior to the 2016/2017 season – and this after the best season ever (2019/2020).
“This decrease is explained on the one hand by the reduction in commercial revenue, as a result of the pandemic, but on the other hand, by the fact that, at the same time, the record turnover of 175 million euros was broken, largely driven by the highest sales ever from Sporting SAD, the player Bruno Fernandes”, he explains.
SAD dos lions states that, “in a ‘normal’ year, without the effect of the pandemic, the results now presented would be significantly better, without the strong contraction in the transfer market and the significant drop in operating results without player transactions resulting from this essentially from playing the main team games behind closed doors”.
“It is visible that the large variation in the net result of 2020/2021 versus the same period of 2019/2020 is due to the impact of covid-19, which resulted in a 95% drop in results in player transactions, to which an estimated negative operational impact of around 16.4 million euros was added (excluding the effect on the player transfer market)”.
In the statement of accounts, SAD Sportinguista emphasizes that this results, in particular, from the holding of games for the professional team behind closed doors, not allowing the sale of the usual Gamebox (annual seats), game-by-game box office, corporate (cabinets and business) seats) – and drastically affecting other revenue lines, such as merchandising, visits and events, among others.
Despite the context of contraction, he points out that on October 4, 2020 he reached an agreement with FC Zenit for the sale of the economic and sporting rights of player Marcus Wendel for the amount of 20.3 million euros, from which the value of the solidarity mechanism and costs associated with the sale, namely intermediation commissions. “The global value could increase in the future up to a maximum of 4 million euros, if the objectives defined in the contract and which are related to the sporting performance of the player and the club are fulfilled”, he recalls.
On the other hand, on September 13, 2020, it reached an agreement with Sevilla FC for the sale of the economic and sporting rights of the player Marcos Acuña for 10.5 million euros, from which the value of the solidarity mechanism and costs associated with the sale, namely intermediation commissions. In this case, the global value may increase to a maximum of 2 million euros “if the objectives defined in the contract and which are related to the sporting performance of the player and the club are achieved”. To date, 0.75 million euros have already been paid, bringing the amount realized to 11.25 million euros.
Source: Jornal de Negócios by www.jornaldenegocios.pt.
*The article has been translated based on the content of Jornal de Negócios by www.jornaldenegocios.pt. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!