Club news

FINANCIAL REPORTS 2019: BUDGET & INCOME STATEMENT

14 Nov 2019
The club has cut the budget in almost in a half after failing to achieve the promotion, and the 90% of the current income is in danger for next season as the club is in relegation.

The shareholders meeting of Deportivo is taking place on December 17 and the club already sent the financial reports to its shareholders regarding the period 2019-2020. The profit and loss statements reveal that the club is still earning money, but that the budget has been cut almost in a half, with the additional problem of the uncertainty for the current performance in the league tournament.

As it could have been expected, the budget is suffering a big cut. Since the club didn’t clinch the promotion on last season, there isn’t an increase in the TV income -actually, it is reduced from €10.31 million to €8.39 million- and the relegation insurance disappears (€14 million).

Therefore, the budget has passed from €35.6 million to €21.90 million, this means a reduction of 38%. So, the budget is sustained now by the TV income and by the transfers of players, this last department brought €8.57 million for the current season.

This means that the transfers and the TV income represent the 77% of the club’s income, and it means a big problem if the teams isn’t able to change the current negative track at Segunda, because the TV income at Segunda B is practically inexistent and there aren’t too many players at the current squad from whom the club could collect money in terms of transfers.

Deportivo have been trying to adjust the situation reducing the costs, in this sense the club reduced in 26% the amount paid in wages to its sporting personal, the amount passed from €18.44 million to €13.64 million. In the end the club is reporting earnings for €1.7 million, 21% less compared to the previous campaign.

The evolution of the budget:

Year Budget
2010/2011 €52.85 million
2011/2012 €42.95 million
2012/2013 €39.88 million
2013/2014 €39.80 million
2014/2015 €30.08 million
2015/2016 €39.76 million
2016/2017 €60.13 million
2017/2018 €61.56 million
2018/2019 €35.60 million
2019/2020 €21.90 million

ARCHIVE NEWS NOV/19

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