Financial Report 2021/22 and Budget 2022/23
Financial Report 2022/23
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Financial Report 2021/22 and Budget 2022/23
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Financial Report 2021/22 and Budget 2022/23
Contents
Introduction
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Income Statement 2022/23
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1
Funding
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2
Expenses
10
3
Balance Sheet 2022/23
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Budget 2022/23
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Financial Report 2022/23
Introduction
This report covers the financial year 2022/23, corresponding to the ECA financial period from 1 July 2022 to 30 June 2023. All amounts displayed are in EUR (€) and are reported under Swiss GAAP. The figures presented have been audited by Ernst & Young (EY).
participate at the World Cup final tournament, and an insurance programme that safeguards clubs against player injuries during national team duty. Empowering Clubs Through the Club Benefits Programme Central to this MoU, the FIFA Club Benefits Programme is a cornerstone initiative that recognises and rewards the indispensable contribution of football clubs to the national team game. For the FIFA World Cup Qatar 2022, a total of USD 209 million was disbursed to 440 clubs across all six confederations. The upcoming FIFA World Cup editions 2026 and 2030, will witness a substantial increase in the amounts allocated to clubs, reaching an impressive USD 355 million in total. Continued Collaboration with UEFA Our steadfast collaboration with UEFA remains an ongoing priority, most notably exemplified by the continued interim operations of the new Joint Venture. This collaborative new endeavour is dedicated to all commercial matters for the UEFA Club Competitions, thereby putting the clubs together with UEFA at the heart of growing the value of the UEFA Club Competitions.
The 2022/23 financial year bore witness to a series of key achievements that underscored our unwavering commitment to shaping the future of European club football. Through strategic collaborations and transformative initiatives, ECA solidified its role as a driving force for European clubs within the global football community. Renewed MoU with FIFA A significant achievement during this period was the signing of a renewed Memorandum of Understanding (MoU) between FIFA and ECA at the 29th ECA General Assembly in Budapest, Hungary. This enduring, long- term agreement serves to reinforce the important relationship between FIFA, the worldwide governing body of football, and ECA, the sole representative of European clubs at international level. The extended term until 31 December 2030 signifies a new era of collaboration, promising long-term stability for both the national team and club game. This MoU expands on the existing collaboration, encompassing pivotal facets of the men’s and women’s club game, including the Club Benefits Programme whereby clubs receive a share of the revenue for the release of players to
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Financial Report 2022/23
Advancing Internal Governance and Inclusion During 2022/23 ECA members unanimously approved the first steps towards fundamental internal governance reforms for ECA. These groundbreaking reforms embody the principles of transparency, participation, diversity and inclusion. The far-reaching effects of these reforms are marked by a significant expansion of the ECA Family in terms of numbers of clubs, accompanied by progressive structural changes. This transformative step firmly positions ECA as a more representative and inclusive body for European clubs. Enhanced Member Services and Expertise A notable emphasis was placed on enhancing member services. Daily support on key club football topics, such as youth development, legal affairs, commercial matters, and financial topics, experienced substantial growth. Our commitment to providing comprehensive services was further underscored by the hosting of the inaugural ECA Financial Sustainability Workshop and Women’s Football Summit. The successful conclusion of the 4th edition of the Club Management Programme (“CMP”) and the launch of the Club Talent & Mentoring Programme (“CTMP”) exemplified our dedication to enriching members’ expertise via education programmes. Organisational Evolution The progressive evolution of the ECA administration’ s
staff and organisational model resulted in the leasing of additional office space in Nyon. As we look ahead to the 2023-27 membership cycle, a comprehensive review of our strategy and operating model will take place, with a strong focus on evolving membership even further, cultivating robust stakeholder alliances and further elevating club services. Humanitarian Contributions ECA continued its unwavering commitment to humanitarian causes by establishing a new partnership agreement with UNHCR, the UN Refugee Agency. A substantial €0.5m donation was made to aid earthquake relief efforts in Türkiye and Syria. The establishment of the ECA Foundation further cements our dedication to managing impactful initiatives, ensuring a lasting legacy of positive change. In conclusion, the 2022/23 financial year stands as a testament to ECA’s dedication to advancing the European club football landscape. We extend our heartfelt gratitude to our Chairman and Board, our team, our esteemed partners and stakeholders, but most of all to our valued members, as we look forward to a future filled with continued progress and collaborative excellence. The presented 2022/23 ECA accounts were audited by EY and approved by the ECA Executive Board at its meeting on 10 August 2023.
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Financial Report 2022/23
2022/23 Income Statement 1
The operational result (EBIT) for the 2022/23 financial year amounts to €1’512’085 (vs €995’436 in 2021/22). After deduction of financial expenses, and after accounting for the various donations and extraordinary income and taxes, the net result of the 2022/23 financial year amounts to -€77’911 (vs- €45’856 in 2021/22).
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
Income Statement (in €)
2022/2023
2021/2022
Income
15’006’100
10’057’800
Operating expenses
-13’468’041
-9’062’364
Earnings before interest, tax, depreciation, amortization (EBITDA)
1’538’059
995’436
Depreciation
-25’974
—
Earnings before interest and tax (EBIT)
1’512’085
995’436
Financial expenses
-3’216
-12’648
Operating result before taxes
1’508’868
982’788
Extraordinary income, non-recurring Extraordinary expenses, non-recurring
46’952
51’288
-1’500’000 1
-1’000’000 2
Result before taxes
55’820
34’076
Income taxes
-133’732
-79’932
Net result
-77’911
-45’856
been transferred by ECA to a blocked account on behalf of the ECA Foundation. 2 This 2021/22 season item corresponds to the ECA’s contribution to an overall €1.0m donation to European clubs’ efforts with humanitarian initiatives to assist the Ukrainian people. This donation programme was performed under the supervision of the Board- appointed Ukraine Relief Committee and facilitated by the UEFA Foundation for Children.
1 €0.5m was donated to UNCHR to supports efforts with humanitarian initiatives in order to assist with aftermath of the Türkiye and Syria earthquakes. As presented to the ECA General Assembly in March 2023, ECA is currently in a process of creating a dedicated ECA Foundation to run club dedicated activities. The ECA Executive Board approved on 10 June 2023 the presented statutes of the ECA Foundation and confirmed the €1.0m kick-start donation from the 2022/23 season. This amount has
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
2
Funding
The total ECA funding for the 2022/23 period amounted to €15’006’100 (vs. €10’057’800 in 2021/22). As per previous years, the main source of funding remains the contribution from the UEFA Champions League (UCL). Other income was generated from membership fees and education programmes (eg. fourth edition of the ECA Club Management Programme (“CMP”), first edition of the ECA Club Talent & Mentoring Programme (“CTMP”).
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
Financial Report 2021/22 and Budget 2022/23
Funding
Budget
Actual
12 months ending 30 June 2023 (in €)
Membership Fees
24’600
23’800
UCL contribution 21/22
800’000
800’000
UCL contribution 22/23 drawdown
14’000’000
14’000’000
Other income
172’800
182’300
Total Funding
14’997’400
15’006’100
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
3
Expenses
The total expenses in 2022/23 amounted to €14’950’280 (vs. €10’023’724 in 2021/22). The €1.5m total of unbudgeted donations related to the UNCHR Türkiye / Syria programme as well as the ECA Foundation were financed by the lower than originally budgeted operating expenses (around 11%), mostly due to the postponement of recruitments with later staff arrival as well lower consultancy costs.
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
Expenses
Budget
Actual
12 months ending 30 June 2023 (in €)
Staff & HR Costs
8’098’037
7’314’575
Events & Travel Costs
4’403’624
4’466’133
Member Services, Consultancy & Research
2’590’575
1’597’883
Other Items
—
89’451
Total Operating Expenses
15’092’237 13’468’041
Depreciation
58’508
25’974
Financial Expenses
38’835
3’216
Extraordinary items
-14’709
-46’952 3
ECA Donations
—
1’500’000 4
Total Expenses
15’174’871 14’950’280
3 This balance is mostly composed of foreign VAT recovered and withholding tax commission for the period.
4 The amount reported corresponds to the total €1.5m donations (€0.5m to UNHCR in respect of Türkiye/Syria and €1.0m to kick start the ECA Foundation) – cf note 2. Financial Report 2022/23
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Financial Report 2021/22 and Budget 2022/23
2022/23 Balance Sheet 4 The total balance sheet as at 30 June 2023 amounts to €6’360’101 (vs. €4’222’853 as at 30 June 2022). The increase is mostly explained by the accrued costs incurred linked to the year-end events.
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
Balance Sheet 2022/23
ASSETS (in €)
30/06/2023 30/06/2022
Cash & cash equivalents
3'514'388
3’118’924
Blocked account – ECA Foundation
999'979
—
Trade receivables from third parties
1'086'933
882’400
Other short-term receivables from third parties
33'226
80’282
Accrued income and prepaid expenses
459'206
42’176
Tangible fixed assets
165'158
—
Financial assets
101'210
99’070
Total Assets
6’360’101 4’222’853
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
Balance Sheet 2022/23
3% Tangible fixed assets
2% Financial assets
55% Cash & cash equivalents
7% Accrued income & prepaid expenses
1% Other short-term 3 rd party trade receivables
17% 3 rd party Trade receivables
€6’360’101 30/06/2023
16% Blocked account - ECA Foundation
Assets
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
Balance Sheet 2022/23
LIABILITIES & EQUITY (in €)
30/06/2023 30/06/2022
Trade payables & short-term interest-bearing liabilities
1’131’969
333’664
Accrued expenses and deferred income
3'168'646
1’672’102
Provisions
1'513'985
1’593’674
Total equity
545'502
623’413
Total Liabilities & Equity
6’360’101 4’222’853
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
Financial Report 2021/22 and Budget 2022/23
Balance Sheet 2022/23
24% Provisions
9% Total equity
18% Trade payables & short-term interest bearing liabilities
€6’360’101 30/06/2023
50% Accrued expenses & deferred income
Liabilities & Equity
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Financial Report 2021/22 and Budget 2022/23 Financial Report 2022/23
Financial Report 2021/22 and Budget 2022/23
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2023/24 Budget
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Financial Report 2021/22 and Budget 2022/23 Budget 2023/24
Budget 2023/24 General Remarks
The first season of a new Membership Cycle: The 2023/24 fiscal year marks a pivotal moment in our membership association’s trajectory, as we embrace the first year of the 2023-2027 Membership Cycle. This cycle signifies not just a renewal of our commitment to represent European clubs but a significant necessary expansion of our organisation following the unanimously approved internal governance reforms last season. The continuing increase of our membership base underscores the growing recognition of ECA’s value and relevance across diverse strategic pillars. Nurturing Strategic Pillars and member clubs’ representation The proposed budget has been built on the following principles and pillars: • Growing European Club Representation: • Our relentless pursuit of the interests of European clubs was underscored by the renewal of our MoU with FIFA. We expect to renew our MoU with UEFA in the near future. These enduring partnerships act as a conduit, harmonising our objectives with the global football landscape. Through these strategic alliances, we endeavour to safeguard the voices and aspirations of European clubs, ensuring they resonate at international level. The MoU with UEFA forms the cornerstone of our commitment to maintaining an unbroken continuum of engagement between clubs and
their core European partner UEFA, a testament to our determination to champion European clubs on the European stage. • In tandem with our MoU renewal, we continue building on a groundbreaking journey through a commercial joint venture with UEFA. This visionary partnership is set to redefine the commercial landscape of football engagement, establishing new pathways for collaboration and creating an ecosystem that not only bolsters our clubs’ interests but also elevates the collective football experience. This joint venture stands as an emblem of our combined dedication with UEFA to driving innovation, forging partnerships, and etching a legacy of cooperative excellence. • Shaping the Future: The European football landscape is fast moving, and we are now embarking on a journey to pause, reflect and define our organisational strategy for the 2023- 2027 cycle. Part of the coming season’s work, once a new ECA Board is in place, will be to commission a leading consultancy firm to undertake a strategic review. • Scaling Member Services : As our membership base increases so too will the quality and quantity of services and events we deliver for the benefit of all clubs, meaning we will also need to grow our human resource and expertise in a responsible manner, with future recruitment prioritised in the area of account management and the delivery
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Financial Report 2021/22 and Budget 2022/23 Budget 2023/24
of services and events, and a look towards more physical presence in certain key European territories.
UEFA, this funding will be drawn from the surplus of the UCL. The budget increase should be considered in light of the increase of UCC gross revenues for season 23/24, which will grow by at least 200m (vs. core model at €3’500m) due to the back-ending of payments and commercial value to the last year of the 21-24 cycle, which means a minimum incremental impact for UCL Group Stage participating clubs. ECA is a non-profit organisation, and the funding received is used to benefit all of its members. As such, the 2023/24 fiscal year is budgeted to break even. Any financial surplus that arises will be either channelled to reduce the utilisation of UCC funding or allocated to the new ECA Foundation. Alternatively, such surplus might be earmarked as reserves, ensuring greater financial security for the organisation in the future. To achieve this, we will conduct quarterly financial evaluations to closely track progress in relation to the approved budget. This oversight will enable us to optimise resource allocation for the benefit of all members. The Board, Executive Committee and Finance Working Group will oversee these assessments throughout the entirety of the 2023/24 season, ensuring transparency and informed decision-making. Aligned with our well-established principles, we are committed to minimising reliance on UCL revenues which, to date, represent the majority of ECA’s funding. During the 2023/27 cycle, we will look to secure other sources of funding to reduce reliance on contributions solely from the European Club Competitions.
• Increasing the reach of our education and knowledge sharing programmes : The reach of our education and knowledge sharing programmes will expand to include a new version of the renowned ECA Club Management Guide. By optimising online channels, all clubs will be able to access a rich library of information and best practice. • Dedicated Funding to better serve small and medium European clubs: a specific €3.0m pot will be allocated to fund engagement and services focused specifically on the smaller European clubs who are increasingly looking to ECA for tangible support in creating sustainability and success. • Maintaining membership fees at €100 per member. • Additional income generation from the roll-out of certain ECA fee-generating services, with low levels of income assumed in the beginning of this Cycle. Taking all of the above into account, the proposed budget for 2023/24 season is based on a maximum funding request capped at €25.0m including a designated allocation of at least €3.0m for benefit of smaller and newer clubs to ECA. As defined in the existing MoU wit h
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Financial Report 2021/22 and Budget 2022/23 Budget 2023/24
Budget 2023/24 In Thousands Euros (€k)
Membership fees
30
Maximum UCL Contribution 2023/24
25’000
ECA Education & Services
236
Other
—
Total Funding
25’266
Governance & Administrative Expenses
-11’597
Events & Travel Costs
-5’603
Member services, Consultancy & Research
-5’030
Dedicated fund for small/new members
-3’000
Other Items
- 21
Total Expenses
-25’251
Result before Taxes
+15
Taxes
—
Net Result
+15
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Budget 2023/24
www.ecaeurope.com
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Financial Report 2021/22 and Budget 2022/23
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