This study, reported by Eurohoops, outlines the financial and governance challenges facing the EuroLeague in the future and highlights the importance of working with all major basketball players, including the International Basketball Federation (FIBA). doing.
Created by Cem Karamürsel, who also works with the EuroLeague Head Coach Commission, this report highlights the economic problems facing EuroLeague clubs and also talks about administrative challenges.
Some of the topics in the report are:
All EuroLeague clubs are losing money. With the exception of Alba Berlin, no team has a clear number.
Brose Bamberg, who began to play in the Basketball Champions League, managed to make a profit after the 2018-19 and 2019-20 seasons, which was also one of the consequences of low wages for the players on the team.
The EuroLeague management style is very complex, but its economic model is not sustainable for clubs. On the other hand, rules like financial fair play can still be bent, adapting to owners trying to make money out of their pockets. According to the survey results, “Even in the 2022-23 season, FPSFP (Financial Play Stability and Fair Play) regulations will continue to be open for nearly 50% owner contributions, which is a threshold. It shows that more than half of the teams still exist and lose more than half of their budget each year. Under these (economically unreasonable) circumstances, a “normal” business goes bankrupt in a relatively short time. To do. “
The partnership with the EuroLeague is beneficial to the IMG, despite the joint venture’s loss of € 7 million, according to IMG data. According to the report, “The partnership established by IMG and the EuroLeague is beneficial. In addition to the promotion of the EuroLeague, IMG has generated € 54.1 million in revenue for technology and production services.”
Also, there is no public information about the decisive contribution of the EuroLeague to the club. However, some club representatives have repeatedly complained that the total payment of the champion from the EuroLeague cannot even cover the achievement bonuses of players and coaching staff.
Fenerbahçe Beko, one of the clubs whose detailed financial information is included in the report, has been called one of the most successful teams in the EuroLeague in the last decade. Here’s what the report says about Fenerbahcebeco:
The club submits an annual report. Detailed information for all sports sectors was available in the 2018 report. The following year, only aggregated values were published. For this reason, it is not possible to perform a multi-year trend analysis in the basketball sector. Despite this limitation, 2018 is one of the club’s most successful years, so we believe the 2018 analysis is relevant to this survey as well. Clubs that won the EuroLeague in 2017 and reached the final in 2018 had to have the greatest potential for profit.
In 2018, the club’s direct revenue from the basketball business reached 45.3 million TL (7.9 million euros). The total income is € 18.9 million and is fully allocated with sponsor income and tax subsidies. The direct cost was 158.8 million TL (27.8 million euros) and the club had a (minimum) 8.9 million euro deficit. The EUR / TRY exchange rate has deteriorated significantly since 2018, moving from 5.71 to 17.69 (210%) in June 2022, putting a heavy burden on the Turkish club’s budget, especially with salaries of EUR or USD. Please note that you are calling.
The report concludes: “Overcoming management issues should be a top priority for shareholder clubs within the EuroLeague system, especially given the resignation of EuroLeague CEO Jordi Bertomeu. This should be financial and financial. It is the first step taken to restore trust and order, especially by opening an agreement on both management issues and reaching an agreement with FIBA. Transparency, accountability, completeness. Anyway, it is the most important. The principle must be. Any changes that need to be made to the structure of the budget structure and the decision-making mechanism must be made urgently. “
“If key European basketball executives and decision makers fail to work together with their ego aside, the current crisis will lead to a much greater crisis and European basketball will continue to lose interest.”