Lazio can't count on ticket revenue, nor does Lazio get much of the stadium operating income, and they have to continue spending money to maintain the stadium.
This is the reason why most of the Serie A stadiums are in shabby condition. Even the San Siro stadium, a temple of football, has turf that is as rotten as a vegetable patch.
There are 129 large football stadiums in Italy, but only three can meet international competition standards...
Poor Italy has not hosted an international competition for many years, and the dilapidated stadiums are one of the main reasons.
Because the stadium does not belong to the club itself, the club has no motivation or reason to spend money to repair the stadium. Therefore, the stadium can only gradually age and decline year after year.
Even if Italy introduced the "Pisanu Law" and the city government asked the club to repair the stadium in accordance with the law, the club ignored it.
For example, the Udinese club refused to pay the cost of renovating the stadium, causing the Udinese City Council to increase the rent of the Friuli Stadium from 100,000 euros to 420,000 euros.
In terms of stadium revenue, Lazio only had 19 million euros in three seasons.
※※※
Chest advertising on the jersey and jersey sponsors are also sources of income.
But in Lazio, this is not obvious.
Because these sponsors determine the amount of sponsorship based on the team's performance.
Lazio's performance in the past few years was not very good, so the sponsorship fees in those years were very low.
In the past three years, Puma's annual sponsorship fee for Lazio has been 2.8 million euros, plus a thousand sets of competition and training uniforms. If the amount exceeds this amount, the Lazio club and players will have to pay for it themselves.
Although Lazio renewed its four-year jersey sponsorship contract with Puma in January this year, increasing the sponsorship fee to 4 million euros per year, the new contract will not take effect until next season.
Compared with the annual sponsorship fees of Juventus and Milan, which easily exceed tens of millions, Lazio is really too poor...
In addition, regarding the chest advertising of the jersey, at the beginning of the 2005-2006 season, Lazio's jersey was in a streaking state because no sponsor for the chest advertising was found. It was not until October that the Italian insurance company ina sponsored Lazio for 3.1 million euros per year.
.for a period of two years.
Before the 2007-2008 season, the contract with ina expired. Lazio had not found a suitable chest advertising sponsor and had to start running naked. The reason why they could not find a suitable chest advertising sponsor was because Lotito's asking price was too high and he required a minimum annual
Starting from €6 million.
He thinks that Roma is in such a state of decline, but they can still get 6 million euros in sponsorship fees from Italian Wind Telecom Company every year. Why can Lazio only accept sponsorship contracts of 4 to 5 million euros?
The companies that were interested in Lazio's chest advertisements couldn't meet his requirements, and the big companies that could meet his requirements looked down on Lazio. At that time, Lazio didn't know that Lazio could win the league championship and the Champions League this season...
Those companies are now feeling remorseful, but it doesn't matter, they are already flocking to Lotito's office to sign the chest ads for the start of the new season.
However, this time, they don't even think about getting this position for 6 million euros. The team's performance is outstanding, so Lotito will naturally follow the market and increase the price!
For most of the 2007-2008 seasons, Lazio's jerseys were in a naked state, with no chest advertising.
During this period, Lotito found the European construction giant edileurop and signed a short-term sponsorship contract for just four games...
The chest advertisement cost 6.2 million euros in the first two years, and the third season was almost zero. How much money can a four-game sponsorship contract cost? It is almost negligible.
As for income from jersey sales, Lazio club has even less.
Because there is a blood-sucking bug in the Lazio club.
That is the extreme fan organization "Uneducable". They signed a jersey sales agreement with Puma two years ago when the Lazio club was in turmoil and the market and business development was in an anarchic and chaotic state. Therefore, part of the jersey sales revenue is
It does not belong to Lazio Club, but to the "Uncultivable" organization.
This is probably one of the reasons why Lotito and the Uncultivated Faction have become enemies. Anyone who takes money from his pocket is an enemy!
※※※
After talking about these little heads, it’s the big head’s turn.
The bulk of Italian football clubs' income comes from television broadcast fees.
Because the stadium belongs to the municipal government as mentioned before, the revenue on match days is minimal, so television broadcasts have become an important source of income for the club's survival.
In the Premier League, television broadcast costs account for 28% of the club's total revenue, while in Serie A, this figure is as high as 55%!
This shows how dependent Serie A clubs are on television broadcast revenue.
But unfortunately, Italy's TV broadcast revenue distribution plan is very...inhumane.
Unlike the Premier League, which sells TV broadcast rights as a whole package, in Serie A, each club goes to the TV broadcast agency to sign a contract.
In this case, those giants with a large number of fans, good performance, and glorious history will naturally get a big piece of the cake, and their TV broadcast fee income is often six or seven times that of lower-tier teams.
Lazio is not among the top three in the north. Before the signing of the current broadcast contract, Lazio's performance was ups and downs. Therefore, Lazio's TV broadcast revenue in each of the past three seasons was only 34 million euros.
Although a new broadcast rights sale agreement was reached at the end of last year, and the individually negotiated sales became collective package sales, the new policy will not be implemented until 2009.
Before this, Lazio could still only get a tough contract of 31 million euros per year.
The good news is that as Lazio's performance improves, they will receive more income from future television broadcast revenue distribution.
However, due to the overall downturn in Serie A and the low sales of broadcast fees, this amount of money is still not comparable to the teams in the Premier League and La Liga.
※※※
For Lazio, the real revenue comes from transfer fees from selling players.
Because they have a winning streak.
Buy low, sell high, and Lazio, who always wins, puts this simple business principle into full play.
The main task of Lazio's winning team when he just took over in 2005 was a purge. Many players were sold for free, just for the sake of reconstruction.
In addition, Lazio's performance was poor, so these players were not sold for much money at that time.
The purge of those players brought Lazio 18 million euros in transfer fees.
However, Lazio spent 16.4 million on the transfer and actually only earned 1.6 million euros.
At the end of the 2005-2006 season, Lazio's main transfer task was to clear out the high-paid players left over from the previous period. These players basically could not be sold at high prices because of their high salaries.
However, because of Pandev and Odo, Lazio still collected a transfer fee of 30.3 million euros in the transfer market.
In terms of buying players, Lazio spent 13.45 million.
The final profit was 16.85 million euros.
It has increased tenfold compared to the first year, which shows Chang Sheng's ability to make money in the transfer market.
In the summer of 2007, Lazio made very small moves, selling only two players, both of which were sold to Juventus. Although there were fewer players, the efficiency increased. Because of their excellent results, Lazio players could be sold at a higher price.
Melo and Lichtsteiner brought Lazio 38 million euros in transfer fees.
They are even stingier when it comes to buying players. One Belletti cost 3.5 million euros. One Chiellini was the addition to Melo's transfer, which didn't cost a penny.
This year, Lazio's net income from the transfer market was 34.5 million euros!
It has doubled from last year.
But this year, 2008, Chang Sheng's ambition is even greater. He wants to settle all his debts in this summer!
※※※
Because of Lazio's good performance, bonuses have become one of the club's main sources of income.
Two league titles, two million euros in prize money.
In the 2005-2006 season, Lazio won the UEFA Cup. The total bonus and broadcast fee share was 3.3 million euros compared with the Champions League. The UEFA Cup is so pitiful. That's why UEFA will find a way to change the UEFA Cup.
Repackaged and changed to the Europa League.
In the 2006-2007 season, Lazio was able to participate in the Champions League, and its income began to surge. This season, because it finally reached the quarterfinals, Lazio received a bonus of 25 million euros and a share of broadcast fees.
The season that just ended, 2007-2008, is even more incredible.
Lazio won the Champions League and received a total of 60 million in TV broadcast shares and bonuses!
As for the ticket revenue from home games, the majority goes to the city government, and the rest belongs to the club itself. It is also included in the income.
Basically, the above is the income of the Lazio club.
Three seasons, a total of 305.35 million euros.
The average annual income is 100 million.
Sounds like a lot, right?
But...don't forget, we still have expenses to calculate.
※※※
Generally speaking, the main expenditures of a team are personnel wages and transfer fees, and the rest is a small portion.
Transfer fees have been calculated before, and the income figures are already after expenses have been deducted, so there will be no repeated statistics.
Let’s talk about players’ wages.
Lazio's first team has remained at 23 players in the past few seasons. The maximum salary is 2 million and the minimum salary is 250,000 euros a year. This "honor" belongs to Kolarov.
In addition, no one’s salary is fixed. There are terms that increase with years, such as an increase of 5% to 10% a year. In addition, there are various bonuses, so after calculation, every year
Lazio will have to pay 23 million euros in player wages alone.
This number doesn't seem like much. The salary expenditure of a wealthy club like AC Milan is 165 million euros.
But please note that this figure for Lazio is the annual salary after tax.
Because the club has to pay the players' personal income tax, the actual expenditure is much higher than this figure.
Players' personal income tax plus special taxes total 48%. Therefore, Lazio has to pay 44.23 million euros a year just for player wages.
Coupled with the insurance similar to China's social security we mentioned in the previous chapter, Lazio has to pay 6.19 million euros per year.
This adds up to 50.42 million.
On average, Lazio earns an average of 100 million euros a year. Salary expenses alone account for 50% of the total income.
In fact, this ratio and figure are both low. You must know that when Lotito first took over, Lazio's annual salary expenditure was more than 70 million euros.
50.42 million in one year, which is 151.26 million euros in three years!
Wages alone have reduced Lazio's income by half.
This is only the salary of the first team, the reserve team and the youth team also need money. Although Lazio has sold the entire youth training camp, it has also retained a reserve team and a youth team.
Although their salary is not much, it adds up to 2 million euros a year. The pre-tax expenses are 3.84 million euros. The total over three years is 11.53 million euros.
Then there is the salary of staff, including the coaching team and club staff, which averages 6 million euros per year. Including taxes, it is about 9.5 million euros. In three years, it is 28 million euros.
For the club to operate normally, various expenses are required, and most of them are trivial amounts of money, such as money to buy disposable paper cups and toilet paper... In total, it works out to about 5 million a year, and 15 million in three years.
Lotito was very stingy about the maintenance of the Vermelo training base. All aspects of the budget were cut, eventually reaching one million euros a year and three million euros in three years.
Stadium rental, maintenance and security costs have been deducted from the stadium income and will not be discussed here. However, there are still 2.5 million euros per year.
In addition, there are transportation expenses, accommodation and dining expenses, and miscellaneous expenses every time the team plays away games. Lotito is already saving money. Lazio always travels in economy class when playing away games... Just like this, every year
The expenditure of more than three million euros will be more than nine million in three years.
There are also various miscellaneous expenses, which are pieced together here and there. In total, the total expenditure for the three seasons is 217.79 million euros.
Total income minus total expenses is net income of 87.56 million euros.
With so much income in three years, Lazio's debt is 140 million.
If you invest all the more than 80 million euros, you can replace half of it, right?
Wait!
As a joint-stock company, Italian football clubs are required to pay corporate income tax in accordance with regulations...
Although many clubs will use false accounting methods to evade taxes.
But Chang Sheng specifically told Lotito that in order to avoid being settled by the Italian prosecutors in the future, it was better to pay taxes honestly. Pay as much as you should.
This is not Chang Sheng's scaremongering, deliberately trying to scare Lotito.
In fact, in 2013, Italian police raided the offices of 41 clubs including Juventus, AC Milan, Napoli, Inter Milan, Roma, and Lazio, targeting tax evasion and avoidance.
Therefore, Lazio still pays corporate income tax in a disciplined manner.
The so-called corporate income tax is the tax obtained from the balance after deducting reasonable personnel wages, costs and related taxes.
According to Italian law, the corporate income tax rate is 31.4%.
Therefore, Lazio's corporate income tax for the past three years totaled 27.49 million euros.
After deducting corporate income tax, Lazio actually has 60,700 euros of money at its disposal.
All the 60 million euros can be used to pay off debts, which can offset nearly half of it.
But the situation is not that simple.
Lazio Club is a listed company and must pay dividends to shareholders every year... If all the money is used to pay off debts and no penny is retained, how will dividends be distributed at the end of the year?
Therefore, only 40 million was actually used to repay debts, and the remaining 20 million was used as working capital.
Before the end of the 2007-2008 season, Lazio had repaid 19.11 million, nearly 20 million. After the end of this season, another 20 million was replaced.
Now Lazio still owes a debt of 100 million.
※※※
The above is the income and expenditure of Lazio in the past three seasons after winning the team.
It looks like there is a lot of income, but in fact the expenses are also a lot.
There is also a corporate income tax of up to 31.4%.
As a result, Lazio's actual income is not as much as people think.
Of course, the situation will get better. With Lazio's performance improving in the past two seasons.
Their income in all aspects will increase.
In the long term, the future of Lazio's debt repayment is bright.
But Chang Sheng couldn't wait so long.
He needs to pay off his debt now.
Because not only his players can't stand the maximum annual salary limit of two million euros, but he can't stand it either!
If the maximum salary cannot be increased, Lazio will not be able to attract more capable players to join.
It will be difficult to continue the glory like that.
He doesn’t want his Lazio to be a shooting star, he wants to be a star! Just like the nickname of the city of Rome.
He wants Lazio to be the star of the Eternal City!
※※※
ps, I found that during this period everyone is very concerned about Lazio’s debt problem and the club’s income and expenses, so I use this chapter to give you a brief introduction.
The actual situation is more complicated. For example, transfer fee income also needs to be taxed, but instead of paying the tax in one go, the money is spread evenly over several years, and then the corporate income tax is calculated based on the total annual income... Considering Due to space issues, we will not discuss it in depth.
In short, you can understand Lazio's income and expenses in one chapter.
This is basically the case for Italian football clubs.
I hope this chapter can help clear up the confusion for those friends who are struggling with debt and income and expenses.
