The survey, reported by Eurohoops, outlines the financial and administrative challenges facing the Eurolog in the future, highlighting the need for collaboration with all major basketball stakeholders, starting with the International Basketball Federation (FIBA).
The report, prepared by Cem Karamürsel, who works with the EuroLeague head coaching board, highlights the economic problems faced by EuroLeague clubs and also discusses administrative difficulties.
Some of the issues in the report are as follows:
All Eurolig clubs are losing money. With the exception of ALBA Berlin, there are no teams with clear numbers.
Starting to compete in the basketball Champions League, Bros. Bamberg was able to make a profit after the 2018-19 and 2019-20 seasons, but it was also a result of the low wages of the team’s players.
Although Eurolog’s management style is very complex, its economic model is not sustainable for clubs. On the other hand, rules like Financial Fair Play can still be twisted, to suit owners who are willing to take money out of their pockets. According to the survey results: “For the 2022-23 season, the FPSFP (Financial Play Stability and Fair Play) Regulation will still be open to owner contributions, about 50%. It shows that there are still teams above the threshold, losing about half or more of their budget each year. Under these (economically unreasonable) conditions, a “normal” business goes bankrupt after a relatively short time. “
According to IMG, the partnership with Eurolog is profitable for IMG, although the joint venture has lost a total of 7 million euros. According to the report: “We can say that the partnership established by IMG with Eurolog is profitable. In addition to promoting Eurolog, IMG has generated 54.1 million in revenue for technical and manufacturing services. ”
Also, there is no public information about the specific contribution of Eurolig in clubs. However, representatives of some clubs have repeatedly complained that the total payout of the champions from the Euroleague did not even cover the bonuses earned by the players and coaching staff.
Fenerbahçe Beko, one of the clubs whose financial details are included in the report, has been named one of the most successful teams in the EuroLeague over the last ten years. The report goes on to say about Beko in Fenerbahce:
The club submits an annual report. In the 2018 report, detailed information was available for all sports branches. In subsequent years, only aggregate statistics were published. For this reason, we cannot analyze the multi-year trend for the basketball department. Despite these limitations, we believe our 2018 analysis will still be relevant to this study because 2018 represents one of the club’s most successful years. The club, which won the Eurolig in 2017 and reached the final in 2018, should have the maximum profit potential.
In 2018, the club’s direct revenue from basketball operations amounted to TL 45.3 million (Euro 7.9 million). Total revenue is 18.9 million euros, including full allocation of sponsorship revenue and tax subsidies. Direct costs were 158.8 million TL (27.8 million euros) and the club had a (minimum) 8.9 million euro deficit. It should be noted that the EUR / TRY exchange rate has declined significantly since 2018 and moved from 5.71 to 17.69 (210%) in June 2022, imposing a significant burden on the budgets of Turkish clubs, especially since salaries are EUR or USD.
The report concludes: “Shareholder clubs should be the number one priority in the Eurolig system overcoming managerial problems, especially with the departure of Eurolig CEO Jordi Bartomeur. This is the first step in drawing a curtain on both financial and managerial matters and reaching an agreement with FIBA in particular to restore trust and discipline. Transparency, accountability and honesty; Regardless, this should be the most important principle. The changes that need to be made to the budget structure and decision-making structure need to be made urgently. ”
“If European basketball executives and decision makers fail to put their egos aside and work together, the current crisis will escalate and European basketball will lose interest.”