He Betis will present at the shareholders’ meeting on December 17 a positive balance of 321,000 euros, which is a testimonial figure but which demonstrates the control of the board over its economy as it is the second consecutive campaign in which red numbers are avoided after a sequence worryingly motivated by Covid with very significant losses, so it is worth remembering that in 2021-22 they were 38.2 million euros. Last campaign was also positive in a small amount like 170,000 euros. The club’s evaluation is that after overcoming the complex situation, the future can be faced with greater calm but without confidence since it is conveyed that austerity is necessary to avoid the crisis that does affect other entities. The club once again budgets about 180 million euros of expenses and income for this 2024-25 season, taking into account possible sales and, yes, the team reaching the semifinals of the Conference League.
In this way, the entity includes in its accounts a conservative scenario with three key points: cost containment to avoid the risk if it does not enter Europe, the commitment to quarry and the purchase of assets with a focus on sale. In this way, it is pointed out that the current cost of the squad is around 106 million when the limit imposed by LaLiga is 109, but the overall amount that the club allocates to its players weighs 74 percent over ordinary income when what is considered ideal entity is 60.
In the net amount of the turnover, the club has gone from earning 74 million in 2018 from television, tickets and commercials to 138 currently, but the breakdown shows that it has managed to stabilize in ticketing and even increase in subscriptions to 20, 6 million (something that can continue to grow in La Cartuja) but on television there has been a decrease from 68.1 million to 71.4 million given that the distribution of television rights has stagnated. For this reason, the club has reduced its impact on general income to 49 percent and the intention is for it to continue to be controlled. In European competitions, Betis has gone from earning 21.1 million in the Europa League to 15.7 million last year after falling and moving to the Conference.
Regarding the transfer of players, there was a relevant figure of 45.4 million euros, approaching the summer of 2020 with the transfer of Lo Celso and others (54 million). Since the market is more stagnant, we do not want to focus on this as the main route but rather obtain greater capital gains and performance through the youth system, with the investments made both in the sports city and in the incorporation of players.
The budget for the 2024-25 campaign is adjusted to 144 million euros without sales and with them it is estimated that it will be, like the previous year, around 180 million euros. Betis has included 15 million euros in this budget for a theoretical participation in the Conference semifinals. If you do not reach this round you will have to readjust your economic forecast affecting future seasons. It is thus situated in this very advanced stage, having the approval of LaLiga.
The club is concerned about the increase in personnel expenses from 94 to 106 million euros, motivated because during the pandemic many important salaries were renegotiated with agreements to defer and postpone them but now the club has to assume higher costs in some relationships.
Attention is also paid in the analysis of the accounts to the increase in financial expenses when the club restructured its loans with Pricoa and Shamrock, which exceeded 90 million euros, to the new relationship with Goldman Sachs for 125. And the fact is that the Expenses for previous agreements and their cancellations went from seven to 11.7 million.
In this way, in the general view of the green and white balance sheet, which will be presented on December 17, it is highlighted that the assets go from 193 million to 281. With an increase in non-current assets of 20 million thanks to the sports city and the cost of the template. Current assets are set at 69 million. With the refinancing of the debt, carried out at the end of the season, it is reflected that there is cash on hand of almost 60 million. Liabilities also grow but negative net worth, still in the red, goes from -73 million to -39. If it is valued corrected by the CVC funds (which contribute 63 million) it stands at 23.4 million.
The capital increase was essential to achieve a positive rating from the rating agencies and also to the improvement of many items in these accounts. The Ebitda goes from 32 to 39.7 million and the working capital has a positive variation, as well as the working capital goes to 10.7 million when last year it was -65 and the previous year, -107.
With all these movements, Betis avoids the uncertainty that was reflected in the latest audit reports on its accounts, where the viability and continuity of the club was doubted. Working capital is positive for the first time after the restructuring.
#Betis #committed #reducing #cost #squad #spending #betting #quarry
