A study carried out by the European Basketball Advisory Group and reported Eurohoops outlines the financial and governance issues that the Euroleague will have to face in the future, stressing once again the need for cooperation with all major basketball stakeholders, starting with FIBA.
Among other things, it reads that while the league’s revenue increases every year, all clubs lose a lot of money, the exact figures in most cases are unknown and the only exception according to public data is currently ALBA Berlin. We can add that ASVEL and AS Monaco must provide data to the French DNCG which will clarify their situations. According to the conclusion of the study:
“During the 2022-23 season, FPSFP regulations will (still) allow up to 50% shareholder contributions. This implies that there are still clubs that are currently above this threshold, i.e. essentially generating losses equal to or even exceeding half of their total budget each year. Under these (economically irrational) circumstances, a ‘normal’ business would go bankrupt after a relatively short period of time.
According to IMG data, the collaboration with the Euroleague is profitable for IMG, despite the fact that the joint venture with the EuroLeague has presented a total of 7 million euros in losses so far. According to the report:
“From IMG’s perspective, and based on the interpretation of publicly available information, it can be concluded that the Euroleague partnership appears to be profitable overall for IMG/Endeavour, as IMG generated total net income of $54.1 million from the provision of technical and production services as well as Euroleague representation since the partnership began in 2016. IMG’s stake in Euroleague Ventures also does not appear to have generated any revenue. losses from IMG’s point of view”.
In the conclusion of the report, one can read:
“Addressing the governance challenges as explained above should have the absolute highest priority for all stakeholders within the Euroleague system, in particular for the new CEO who will succeed Mr. Bertomeu. In particular, reaching an agreement with FIBA and shedding light on the past, both in financial and managerial terms, should be among the first elements of action in order to restore trust and cooperation. Transparency, accountability and integrity should become guiding principles in all areas. All the necessary changes in the structure of the entities, the decision-making bodies, as well as the regulations, must be made urgently”.
And there is a huge pitfall that must be avoided:
“If the main leaders and decision-makers in European basketball do not see the need to act together and put aside egos and personal agendas, then it is likely that the current crisis will evolve into other crises, and European basketball will continue to lose ground.
Photo : Donta Hall (AS Monaco, Euroleague)
