Thread by @SwissRamble

Bayern Munich recently published their 2016/17 financial results. Some thoughts follow #FCBayern

#FCBayern profit before tax increased by 23% (€12m) from €54m to a record €66m (profit after tax up from €33m to €39m). Revenue including player sales (Bayern’s definition) also rose €14m to reach a record high of €641m.

#FCBayern profit increase largely due to player sales, up €18m to €53m (Götze and Rode to Dortmund, Hojbjerg to Southampton), while player amortisation also fell €8m.

However, #FCBayern match day revenue was down €4m, while there were small increases in a number of costs: wages €5m, depreciation €3m and other expenses €3m.

This is the 25th year in a row that #FCBayern have been profitable. In fact, profits have been steadily rising in recent times with the club generating €150m profit in the last three years alone.

#FCBayern EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation), which can be considered cash operating profit, fell from €108m to €96m (less than half of #MUFC €226m). However, including player sales increased to record €149m.

Excluding player sales, #FCBayern revenue dropped by 1% (€4m) from €592m to €588m in 2016/17, though this is still €114m more than the €474m reported two years ago. Commercial income accounts for 58% of total revenue.

The gap to Borussia Dortmund (revenue €333m) closed in 2017 following #BVB return to the Champions League, but it still stands at a hefty €255m.

#FCBayern climbed one place to 4th in Deloitte Money League 2017, based on 2015/16 results, overtaking PSG. However, gap to Spanish giants has widened in 2016/17: Real Madrid €675m, Barcelona €635m. There are three other German clubs in the top 30.

Only one other club in the Money League Top 20 earned more commercial income than #FCBayern, namely Manchester United. Bayern have an excellent kit deal with Adidas (€60m a year) and shirt sponsorship agreement with Deutsche Telekom (around €30m a year).

Where #FCBayern lose out is broadcasting revenue. Their total of €148m in 2015/16 was not too bad, but was a long way behind Spanish and English clubs (even before the new Premier League deal in 2016/17).

#FCBayern earned €74m from the Bundesliga TV deal, based on performance over the last 5 years, which is a lot less than English clubs. The good news is that the four-year deal from 2017/18 will be 85% higher.

#FCBayern Champions League revenue was €55m after being eliminated in the quarter-finals by eventual winners Real Madrid, down from €64m after reaching the semi-final the previous season.

#FCBayern Champions League revenue included TV pool payment of €23m, which is on the low side, due to the German TV deal being the smallest of the Big 5 European leagues, e.g. Juventus earned €59m from the TV pool.

Even after the 2016/17 decrease, #FCBayern have earned significantly more revenue (€269m) from European competition than any other German club in the last 5 years. The closest challenger is Dortmund with €189m.

Despite Germany’s reputation for low ticket prices, #FCBayern’s match day revenue of €102 million was actually the 5th largest in the world in 2015/16, though #MUFC and #AFC both generated around €30m more.

The #FCBayern wage bill slightly rose 2% (€5 million) to €265 million in 2016/17, with the wages to turnover ratio increasing to 45%, which is still very impressive.

The #FCBayern wage bill of €265m is €87m higher than Borussia Dortmund’s €178m. The gap has closed in 2016/17, but Bayern’s wages are still around 50% higher than their rivals.

#FCBayern’s other staff cost, player amortisation, fell 11% (€8 million) from €70 million to €62 million. For some context, this is less than half the player amortisation at big spending #MUFC and #MCFC (around €140m).

Although #FCBayern’s net spend on players has remained settled, the gross spend has been increasing, offset by higher player sales. This summer, not included in the 2016/17 accounts, Bayern’s gross spend was over €100m.

Despite these sales, #FCBayern’s net spend of €91m over the last 3 years is still higher than all other German teams – with the exception of new kids on the block RB Leipzig, who have splashed out €143m over this period.