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UEFA CL triumph would mean EUR 7.5 million profit for Barcelona
Spain - 28 April, 2006
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Barcelona’s profit if it wins the UEFA Champions League will only be EUR 7.5 million.
If the club defeats English Arsenal, the EUR 7.5 million would be remaining after expenses have been paid and income received. While long-term income will benefit from winning the European football tournament, it also means short-term expenses such as EUR 12 million in bonus payments due to team members, another EUR 2.5 million to members of the first-team staff entitled to bonuses, plus the price of a city victory celebration.
About EUR 2 million of the EUR 7.5 million would be available from UEFA for TV rights and publicity. There are also bonuses from the most important static publicity
deals from Nike and Sogecable, and the amount recovered from a bonus owing from an insurance company for winning the tournament.
Barcelona would have made considerably money from a victory had it not signed a contract in 1999 with Telefónica, which later became Sogecable. The deal does not expire until the 2007-2008 season.
The deal protects Barcelona with a minimum of EUR 12 million a year for broadcast rights for international matches, but makes no provision for the positive results produced this term. Any money the club receives from broadcast rights on top of EUR 12m - up to a maximum of EUR 24 million - goes to Sogecable. More than EUR 24 million, and the profits are shared equally. Barcelona anticipates broadcast rights revenues of EUR 28 million from this year’s competition, clearing only an extra EUR 2 million.
If the club defeats English Arsenal, the EUR 7.5 million would be remaining after expenses have been paid and income received. While long-term income will benefit from winning the European football tournament, it also means short-term expenses such as EUR 12 million in bonus payments due to team members, another EUR 2.5 million to members of the first-team staff entitled to bonuses, plus the price of a city victory celebration.
About EUR 2 million of the EUR 7.5 million would be available from UEFA for TV rights and publicity. There are also bonuses from the most important static publicity
deals from Nike and Sogecable, and the amount recovered from a bonus owing from an insurance company for winning the tournament.
Barcelona would have made considerably money from a victory had it not signed a contract in 1999 with Telefónica, which later became Sogecable. The deal does not expire until the 2007-2008 season.
The deal protects Barcelona with a minimum of EUR 12 million a year for broadcast rights for international matches, but makes no provision for the positive results produced this term. Any money the club receives from broadcast rights on top of EUR 12m - up to a maximum of EUR 24 million - goes to Sogecable. More than EUR 24 million, and the profits are shared equally. Barcelona anticipates broadcast rights revenues of EUR 28 million from this year’s competition, clearing only an extra EUR 2 million.
Source: euFootball.BIZ © Copyright 2006 -
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