Club news

FINANCIAL REPORTS 2018: INCOME STATEMENT

01 Nov 2018
The relegation insurance is now the main income in a club that cut its budget almost in a half. The club has used €14.51 million of the €18.51 in the salary cap.

The shareholders meeting of Deportivo is taking place at the end of the month and the club already sent the financial reports to its shareholders regarding the period 2018-2019. The profit and loss statement reveals some interesting information now that the team is competing at Segunda División.

As it was expected the budget is suffering a reduction, it is passing from €61.5 million to €35.6 million. It’s a reduction of 42% compared to last season (2017-2018). The big novelty is that the TV income is no longer the major source of money for the club, it is now the relegation insurance: €14 million (39% of the total).

The TV income is now €9.5 million (27% of the total), the income for TV rights have decreased in 79% (€36.5 million). That’s the price to pay for the relegation and that problem is partially covered by the relegation insurance. This is an important thing to notice as, next year, if the club doesn’t conquer the promotion, it will cause a deeper reduction of the budget as the insurance disappears.

Other sources of money are the season-ticket holders €4.2 million), publicity (€3 million), competitions (€1.1 million) and other incomes (€1.4 million). According to the new rules by la liga, the transfers of players are no longer part of the ordinary budget, now they are included in a separate budget called “extraordinary incomes”. The amount proposed for this issue is €6.7 million.

To mention that the club already collected €16 million during the summer with the exits of Andone (€6.3 million paid by Brighton), Sidnei (€3.5 million paid by Betis), Schär (€3.5 million paid by Newcastle), Celso Borges (€1.5 million paid by Göztepe), Çolak (€1 million paid by Al-Wehda) and Luisinho (€200,000 paid by Huesca).

About the expenses, the club is expecting to use €30.9 million. The main destiny for the money is the wages of the sporting staff: €14.1 million (46% of the total). This means that Depor is using the 76% of the salary cap established by la liga (€18.51 million).

The cub also present an amount of €6.9 million to sign new players, this not only includes payment of transfers made during the summer, but also the amortizations of previous transfers. In the end the club is expecting to earn €5.76 million, which is almost the double of the €2.42 million earned on the previous campaign.

The evolution of the budget:

Season

Budget (million)

2007/2008

 65.00

2008/2009

 59.83

2009/2010

 55.81

2010/2011

 52.85

2011/2012

 42.95

2012/2013

 39.88

2013/2014

 23.10

2014/2015

 30.08

2015/2016

 39.76

2016/2017

 60.13

2017/2018

 61.56

2018/2019

 35.60

 


ARCHIVE NEWS NOV/18

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