As per the latest study from KPMG, among all of Europe's elite clubs, Real Madrid recorded the highest revenue in the 2019-20 season despite suffering a revenue drop because of the pandemic.
KPMG is one of the Big Four accounting organizations in the world, and are known for their auditing work. They frequently conduct studies on the financial aspects of football.
One of their latest studies analyzed the financial side of teams that won the league title in Europe's six biggest leagues - England, Spain, France, Germany, Italy and Portugal.
This study revealed how much overall income these big clubs recorded in the 2019-20 season, despite being drastically affected by the pandemic and its interference with the sport.
As revealed by the study, Real Madrid saw their revenue drop by 8% due to the pandemic, but still generated the most income among the six league champions, recording a total income of €681.2 million ($832 million) after the 2019-20 season.
Liverpool, Paris Saint-Germain, Juventus, Bayern Munich and Porto were the five other clubs that were analyzed. German champions Bayern Munich won every trophy there was on offer and ended the season with a total income of €607.2 million - second only to Real Madrid.
Premier League champions Liverpool (overall income of €557 million), Ligue 1 champions Paris Saint-Germain (overall income of €540.6 million) and Serie A champions Juventus (overall income of €401.4 million) recorded the 3rd, 4th and 5th-highest incomes, respectively. Portugal's Primeira Liga champions Porto were last, having recorded an overall income of €87.3 million.
Crucially, the study revealed that all six clubs, including Real Madrid, endured a decrease in operating revenue because of the pandemic (such as minimal match-day revenue caused by the absence of fans in stadiums, reduced broadcasting revenue, etc).
Speaking about the matter, the author of the study Andrea Sartori (Global Head of Sports at KPMG) said:
"A crisis almost always provides the opportunity to highlight major failings in the business model and also to drive innovation and evolution."
"So it is encouraging to see football`s governing bodies, associations and clubs discussing reforms regarding competitions calendar, cost control measures, alterations to the economics and governance of domestic and European competitions."
Only Real Madrid and Bayern Munich recorded net profits in 2019-20
The 2018-19 season saw all six domestic champions register net profits at the end of the season. However, the 2019-20 season saw only two clubs record net profits - Real Madrid and Bayern Munich.
Real Madrid recorded net profits of €300,000 in the 2019-20 season, while the German champions finished a thoroughly successful season with net profits worth €5.9 million.Published 11 Jan 2021, 15:01 IST