French Club Financial Management: A Call for Prudence and Efficiency

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When reading the figures revealed by Jean-Marc Mickeler, the president of the DNCG, in the columns of L’Equipe, there is the optimistic and pessimistic version. For the optimists, the overall deficit of French clubs is less significant in 2022/23 than the previous season which broke all records (601 million euros). Nevertheless, the hole remains worrying with overall losses of 282 million euros. The crux of the problem is the overall management of clubs with operating accounts which remain “strongly in deficit at 1.06 billion euros” in particular due to an overall payroll which weighs “excluding social charges, 1.6 billion d ‘euros’.

Lagging behind other countries

The real difference therefore lies in the greater investment of shareholders to fill the holes. Which hides very risky management of French clubs. Moreover, Mickeler does not hide a painful observation. Compared to other European countries, money is very poorly invested. “We have calculated the ratio of payroll per point collected in UEFA competitions for teams that have participated in European Cups over the last five years. This average ratio is 11.5 million euros per point for 34 clubs in the main Championships. It is 17.3 million in France… The cost of French club personnel is too high compared to their performance.” Enough to encourage French clubs to adopt much more prudent management in the future, particularly those who will not be entitled to a larger share of the revenue pie, in the event of European qualification.

To sum up

The DNCG reveals a worrying deficit for French clubs, despite a slight improvement compared to the previous year. Losses amounted to 282 million euros, mainly due to poor financial management and excessive payroll. Shareholders compensate for losses, masking risky management. Comparison with other European leagues highlights ineffective investment in France. An incentive for more prudent management is necessary to ensure the financial viability of clubs.

2024-03-28 07:40:00
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