Economists warn of ‘excessive debt’ of football clubs in top 5 European leagues

Experts at the College of Economists of Catalonia have warned of the “excessive debt” that is accumulating in the football industry, after presenting an analysis of the finances of Europe’s top five football leagues. 

According to the study, Europe’s top five football leagues – the Premier League, the Bundesliga, La Liga, Serie A, and Ligue 1 – all operate with higher expenditures than income. Specifically, the study took a look at the financial results of all clubs in the five leagues for the season 2022/23. 

Economists Josep Sanfeliu and Martí Garcia Pons presented the study, which showed England’s Premier League significantly ahead of the other leagues in practically every financial metric, operating at much higher costs, accruing far more debt, and generating far more income. 

The analysis studied synthetic balances accounting for all 98 clubs in the top leagues of England, Germany, Spain, Italy, and France that season. It concluded that the clubs in the Premier League had combined total operating losses of €1.534 billion, while the Bundesliga had total combined losses of €493 million, La Liga had €676 million, Serie A had €856 million, and Ligue 1 had €857 million.

The Premier League generated €7.058 billion and spent €8.592 billion, Germany’s top league generated €3.798bn with operating costs at €4.291bn, Spain’s La Liga made €3.664bn and spent €4.340bn, the Italian top division gained €2.875bn and spent €3.731bn, while the French league made €2.376bn and spent €3.233bn.

European football turnover is increasing yearly, with a dip seen only during the pandemic. However, the industry is already significantly financially stronger than it was before the health crisis.

Counting revenue from all European leagues plus international federations, football as an industry is expected to generate 55% more turnover in 2024/25 than compared to the Covid-hit 2019/20 season, when stadiums were shut. Compared to the last full season before the pandemic, this season is expected to represent 35% growth.

Real Madrid were the highest-earning club in Europe in the season studied, taking in €831 million, followed by Manchester City and Barcelona. 

The economists pointed out that six of the top ten highest-earning clubs in Europe were English, a fact that becomes a problem when considering that only four clubs are guaranteed entry into the UEFA Champions League, a competition that provides vital resources for clubs’ balance sheets across the continent. 

FC Barcelona’s finances

The study also looked specifically at FC Barcelona’s accounts, with the economists remarking that the club’s finances were “complicated.” 

A breakdown of the Catalan club’s assets and liabilities showed that in each of the last four seasons, Barça have had “unsustainable” levels of negative net worth. 

In the past five seasons, the blaugrana have spent significantly more than what they’ve made. Specifically, from 2019/20 until 2023/24, they have spent 124%, 145%, 123%, 134%, and 126% of what they have generated. 

The economists presenting the study made the points that matchday revenue dropped in recent seasons with the move to Montjuïc and expenditure has increased with the renovation works on the Camp Nou.

The study also showed that Barça derives more income from merchandising and commercial activity than any other area, ahead of matchday revenue, TV rights deals, and competition prize money. 

Additionally, Barcelona and Real Madrid accounted for a combined total of nearly half of all the income that La Liga teams made in the season the economists studied in detail. 

Women’s football

The study also looked at the economic impact of the English and Spanish women’s professional football leagues. 

Much like the men’s game, the Women’s Super League generated far more revenue than the Liga F in the season in question, while the debt of the English league was also far higher than the Spanish league, with losses of more than €21 million compared to €10.8 million. 

Despite the difference in income, the report pointed out that Liga F more than doubled its income from the 21/22 season to 22/23, going from making €18.108 million to €39.606 million. 

The main source of income in women’s football is the commercial branch, accounting for 76% of the total income of the Spanish league in the 22/23 season.

FC Barcelona accounted for almost half of the total income of Liga F, with €14.133 million, followed by Real Madrid, with €7.421 million.