Not all Twitter threads are created equal and this one from blogger Swiss Ramble is an absolute gem.
After the decision to end the French football season, I thought that it might be interesting to look at the financial position of clubs in Ligue 1. This analysis will highlight the financial dominance of Paris-Saint Germain, who have won 7 league titles in 8 years.
— Swiss Ramble (@SwissRamble) May 7, 2020
If you have even a remote interest in French football and the financial aspect of the game, I highly recommend you put a pot of coffee on and you sit down and study each one of the 37 tweets.
Essentially, the Twitter explainer outlines the fact that while the majority of Ligue 1 teams are profitable, the league as a whole is unprofitable to the tune of €126 million in 2018-19.
Overall #Ligue1 is unprofitable, losing a total of €126m in 2018/19, a small improvement on the previous season’s €159m deficit. There has only been one profitable season in the last 8 years, which was 2015/16 which achieved a small €20m surplus. pic.twitter.com/gWo8tlkbN4
— Swiss Ramble (@SwissRamble) May 7, 2020
However, 15 of the 20 #Ligue1 clubs were profitable (same as previous season) with the highest profit before tax reported by #PSG €32m, followed by Toulouse €12m and Lyon €8m. The problem was that 3 clubs reported heavy losses: Marseille €91m, Lille €67m and Bordeaux €26m. pic.twitter.com/lPtPKJO8fs
— Swiss Ramble (@SwissRamble) May 7, 2020
As you would imagine, given their financial muscle, Paris Saint-Germain featured prominently in the thread where the numbers showed that they recorded a profit from player sales, led the way in broadcasting revenue, and had the highest sponsorship and advertising revenue in Ligue 1.
Four #Ligue1 clubs posted profit on player sales above €50m. Monaco led the way with €155m (mainly Lemar, Fabinho, Kongolo and Ghezzal), followed by Lyon €77m, #PSG €76m and Lille €54m. On the other hand, 7 clubs had profits less than €10m. pic.twitter.com/PcqBQaJbwp
— Swiss Ramble (@SwissRamble) May 7, 2020
#PSG had the highest broadcasting revenue in France with a total of €157m, followed by Lyon €122m and Monaco €76m. The influence of European qualification is evident here, as the top 6 clubs all competed in either the Champions League or Europa League. pic.twitter.com/Wc0dYGrrBD
— Swiss Ramble (@SwissRamble) May 7, 2020
#PSG have by far the highest sponsorship & advertising revenue of €195m in #Ligue1, which is around €160m more than Marseille €37m and Lyon €31m. This is almost as much as the other 19 clubs combined (€217m). pic.twitter.com/BuVRj4ffeM
— Swiss Ramble (@SwissRamble) May 7, 2020
The thread concludes by stating that while a few clubs may be in a bit of financial trouble, most have low debt and are self-sustaining businesses.
In summary, the majority of French clubs are run as self-sustaining businesses with relatively low debt, though a few have reported significant losses in recent years, namely Marseille, Lille and Bordeaux. #PSG are a huge outlier with by far the highest revenue and wages.
— Swiss Ramble (@SwissRamble) May 7, 2020
However, as with many businesses around the world, the loss in revenue from the coronavirus has put Ligue 1 and Ligue 2 teams in a financial pinch, which is why the Ligue de Football Professionnel (LFP) will seek a government-guaranteed loan of €224.5 million to make up for the loss of revenue after broadcasters Canal Plus and beIN Sports terminated their media rights contract due to the cancelation of the 2019-20 domestic season.
The LFP have this week confirmed that they will be receiving a €225m government loan to support clubs to make up for the shortfall linked to the termination of payments from #Ligue 1 broadcasters Canal + and BeIN Sports. Will be distributed to clubs in line with TV rights.
— Swiss Ramble (@SwissRamble) May 7, 2020
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