The expected carnage has become a reality. The Belgian professional clubs suffered a total loss of more than 139 million euros last year – barely six teams turned a profit. Corona’s fault? Partly, but the actual problem lies even deeper.
Drop by drop they entered the annual accounts of the Belgian clubs. One even redder than the other. Some small clubs had losses of more than 10 million and Anderlecht took the cake by going more than 29 million below zero.
A situation that the Pro League already saw coming at the end of 2020 during a comparison of the VAT returns on which revenues fell by almost 50%. With the corona pandemic as the main cause.
“The match income is almost completely gone, sponsorship income is falling and the outgoing transfer market is coming to a standstill,” it sounded then.
Ultimately, the loss of income would not be too bad. In the meantime, however, the fixed costs for salaries and infrastructure, for example, continued.
An accident waiting to happen.
Salaries historically high
All the more so because the wage burden for our Belgian clubs did not go down despite the dire situation, but even increased to an average record level.
An examination of the annual accounts of all professional teams by sports economist Thomas Peeters shows that salaries are historically high. Almost always driven out of fear of missing out on the competition.
On the other hand, profit figures have been falling since 2018. The average loss in 2021 was almost twice as high as last year (3.46 million), at just over 6 million euros.
A chart showing average wages (blue line) and average earnings (red line)
“It is therefore striking that many clubs have chosen not to temper wages,” says Thomas Peeters. “You would think that they are demanding an effort from their players, but that is proving difficult to enforce. Perhaps out of fear that they will try their luck abroad.”
Accumulated Losses
Another factor that contributes to the prodigality: more and more Belgian clubs are in the hands of very wealthy (often foreign) owners who are not afraid to swing by the millions in the quest for quick success.
Take Paul Gheysens’ Antwerp, for example. Or OH Leuven and Sint-Truiden as toys of exotic billionaires. They are teams that pile up losses at a rapid pace.
Clubs with a strong local anchorage such as Club Brugge, Racing Genk, AA Gent, Charleroi and Zulte Waregem have a much more sustainable policy. Although it has certainly become an almost unfair battle for the smaller teams.
The cumulative gains and losses of the past 5 years
Only: what if the investor suddenly leaves after piling up the losses?
“Then it is important to find a new owner who wants to make up for the shortages,” says Peeters. “Some clubs are better off in that case than others. Standard, for example, has economic potential due to its status and large following. But what about Westerlo? Although the acquisition of Deinze shows that there is always someone ready for the time being.”
Possibly a new billionaire who will drive up wages and costs further. As a result, the annual accounts threaten to turn a bit redder…
Can this vicious circle be stopped?
