2016/07/27

FC Barcelona Posts Record Revenue Of $750 Million


Spanish soccer giant FC Barcelona reported record revenue for the 2015-16 season of €679 million or $750 million. It is the highest annual total in the history of sports and up 12% over the previous year. The club projected revenue before the season of €633 million, but blew past the forecast as the team won the La Liga title and Copa del Ray. The tally puts the world’s third most valuable sports franchise at $3.55 billion on pace to meet its target revenue of €1 billion by 2021.

Barcelona is set to begin a $650 million renovation of its Camp Nou stadium next year. The project will modernize the stadium, expand capacity to 105,000 seats and further goose revenue.
(Photo by Alex Caparros/Getty Images)
In addition to the stadium renovation, sponsorships are key to Barcelona’s future revenue growth. Marketing represented the club’s biggest revenue stream at 37% in 2014-15. It is about to soar thanks to a new kit deal with Nike NKE -1.35% inked this year. The new deal is expected to bring in as much as $170 million a year. Barca is also up for a new jersey sponsorship after its three-year deal with Qatar Airways expired. The two parties reached a one-year extension for the 2016-17 season, but as many as a dozen other companies are interested in buying one of the most valuable pieces of real estate in sports.

Barcelona is constantly signing new sponsorship deals since the team resonates in just about every corner of the globe, unlike baseball and American football teams, which are mostly confined to deals within the borders of the United States. In addition to global giants like Nike NKE -1.35%Coca-Cola Audi and Allianz , Barca sponsors include Middle East telecom firm Etisalat , Chang Beer out of Thailand and Bank Mega from Indonesia. Barcelona announced a global sponsorship agreement with Konami on Tuesday.
Sponsors love Barcelona in part because of its role as the top sports team on social media. The club had 148 million followers across Facebook, Instagram and Twitter as of last month thanks to the star power of players like Lionel MessiNeymar and Luis Suarez. Messi and Neymar rank as the most popular athletes in the world on social media behind only Cristiano Ronaldo.

Barcelona’s massive social media following is heavily invested in the team. The team’s posts between June 2015 and June 2016 generated 1.45 billion interactions in terms of likes, shares and comments or nearly 88,000 per post, according to data from Hookit, which tracks sponsorship value in social and digital media. The promoted posts generated $25 million in media value for sponsors from mentions and hashtags with millions more in value created by sponsor images in posts.
Barcelona’s $750 million in revenue includes revenue from all FC Barcelona sporting divisions, including soccer, basketball, handball and field hockey, but the soccer accounts for roughly 90% of the overall business. Barca’s archrival Real Madrid will report revenue in the coming weeks that is expected to top Barcelona’s total. Real, which won its 11th Champions League title in May, has had the highest revenue in the sport for 11 straight years.
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Follow me on Twitter or Facebook. Read all of my Forbes storieshere.Spanish soccer giant FC Barcelona reported record revenue for the 2015-16 season of €679 million or $750 million. It is the highest annual total in the history of sports and up 12% over the previous year. The club projected revenue before the season of €633 million, but blew past the forecast as the team won the La Liga title and Copa del Ray. The tally puts the world’s third most valuable sports franchise at $3.55 billion on pace to meet its target revenue of €1 billion by 2021.
Barcelona is set to begin a $650 million renovation of its Camp Nou stadium next year. The project will modernize the stadium, expand capacity to 105,000 seats and further goose revenue.
(Photo by Alex Caparros/Getty Images)
In addition to the stadium renovation, sponsorships are key to Barcelona’s future revenue growth. Marketing represented the club’s biggest revenue stream at 37% in 2014-15. It is about to soar thanks to a new kit deal with Nike NKE -1.35% inked this year. The new deal is expected to bring in as much as $170 million a year. Barca is also up for a new jersey sponsorship after its three-year deal with Qatar Airways expired. The two parties reached a one-year extension for the 2016-17 season, but as many as a dozen other companies are interested in buying one of the most valuable pieces of real estate in sports.

Barcelona is constantly signing new sponsorship deals since the team resonates in just about every corner of the globe, unlike baseball and American football teams, which are mostly confined to deals within the borders of the United States. In addition to global giants like Nike NKE -1.35%Coca-Cola Audi and Allianz , Barca sponsors include Middle East telecom firm Etisalat , Chang Beer out of Thailand and Bank Mega from Indonesia. Barcelona announced a global sponsorship agreement with Konami on Tuesday.
Sponsors love Barcelona in part because of its role as the top sports team on social media. The club had 148 million followers across Facebook, Instagram and Twitter as of last month thanks to the star power of players like Lionel MessiNeymar and Luis Suarez. Messi and Neymar rank as the most popular athletes in the world on social media behind only Cristiano Ronaldo.

Barcelona’s massive social media following is heavily invested in the team. The team’s posts between June 2015 and June 2016 generated 1.45 billion interactions in terms of likes, shares and comments or nearly 88,000 per post, according to data from Hookit, which tracks sponsorship value in social and digital media. The promoted posts generated $25 million in media value for sponsors from mentions and hashtags with millions more in value created by sponsor images in posts.
Barcelona’s $750 million in revenue includes revenue from all FC Barcelona sporting divisions, including soccer, basketball, handball and field hockey, but the soccer accounts for roughly 90% of the overall business. Barca’s archrival Real Madrid will report revenue in the coming weeks that is expected to top Barcelona’s total. Real, which won its 11th Champions League title in May, has had the highest revenue in the sport for 11 straight years.
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Follow me on Twitter or Facebook. Read all of my Forbes storieshere.
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