Javier Tebas: "LaLiga clubs deserve recognition from Spanish society"

Javier Tebas, the LaLiga president; Miguel Cardenal, the president of the High Council for Sport (CSD); and Javier Gomez, LaLiga's corporate managing director, presented the 2015 Professional Football Financial Report at the Madrid Stock Exchange on Wednesday. Javier Tebas began the presentation by highlighting the considerable efforts that clubs have made over the last three years. “Our clubs have complied and they have won. Our clubs were convinced that we had to self-regulate in order to achieve solvency. At LaLiga we have only coordinated and steered the restructuring plan, but it’s the clubs that deserve recognition from Spanish society.”

The LaLiga president also stated that the presentation means they are “sticking to a commitment to be transparent by showing society how the figures are developing in professional football once a year.” Tebas referred to 1 May marking the first anniversary of the Royal Decree 05/2015 for the centralised sale of audiovisual rights, thanks to which “it has been possible to tidy up clubs’ finances faster.” He also emphasised the Spanish government’s contribution: “We thank the political movement that has allowed us to implement our clean-up of Spanish football.”

Miguel Cardenal explained how when he took over as CSD president, “the financial situation was very poor. Total debt was over €4.1 billion and was growing year on year. We detected that it wasn’t a financing problem, but a governance one. The government was able to supply the tools to carry out change, the last of which was passing the Royal Decree for audiovisual rights.” Cardenal congratulated the clubs because “they have set in motion our commitment to transparency.”

The CSD president singled out Joaquin Puig de la Bellacasa, assistant director general of professional sport and financial control, for his hard work. “When we presented this project three years ago, nobody believed there was a joint need for reform. Now it’s time not to fall complacent, but to set ourselves new challenges and targets.”

Javier Gomez, LaLiga’s corporate managing director, stated that “by 30 June 2019, we will be the most robust league in Europe, with a ratio below 0.85 while the established UEFA minimum is 1.” He added that “we are creating mechanisms to mitigate risk and at the same time as the debt-revenue ratio falls, the state of the clubs’ books will be suitable for re-entering our mainstream financial system.”

Javier Tebas explained the reduction in debt with the Spanish Tax Agency (AEAT) and the Regional Treasuries. “At the end of this season it will be below €200 million. We’ve managed to invert the question and now we’re cutting the debt at a faster rate.” The LaLiga president also underlined the contribution that the beautiful game makes to the state treasury: “Spanish football contributes €810 million to the state, directly and indirectly from 42 companies. This contribution is transformed into new infrastructure for the state and our citizens.”

The president stated that “many clubs were exemplary before we applied ‘a priori’ financial control, while others weren’t, and this created a competitive imbalance. There’s been a collective realization. Otherwise, it would have been impossible.” On this note, Tebas roundly congratulated “the presidents and CEOs of the clubs because their work has allowed us to get to this situation and win this financial Champions League,” adding that, “without the clubs’ efforts, this project wouldn’t have come to anything.”

Javier Tebas also confirmed that broadcasting revenues would be increasing from €854 million to €1.4 billion thanks to the impact of the Royal Decree. “We’re doing a lot of work with a view to the future. We’ve seen all about Leicester’s earnings, but there’s a bigger population in the United Kingdom and so there are more pay TV subscribers. We’re searching for the way to increase the number of subscribers by growing pay TV penetration, while looking to boost the value of our international rights.”

On the subject of the ongoing negotiations with potential title sponsors, Javier Tebas said that “there may not be one” and revealed that, “we’re talking with a number of brands internationally to pursue a different strategy.”

Javier Tebas went on to describe LaLiga’s challenge as “the Premier League dilemma.” “They earn €2.5 billion more than Spanish football, which entails a risk of our talent being lured to play in the Premier League because of its superior financial clout,” he elaborated, before adding that, “the approval of the Royal Decree left everyone relatively satisfied. We were very smart because we managed to maintain the differences between our biggest clubs and the rest, so as to retain talent.”

As for the Liga Adelante, Javier Tebas explained that the Royal Decree “also guarantees the financial stability of this competition, because it provides guarantees regarding revenue levels.” He went on to argue that “having a solvent Liga Adelante makes it possible to soften the blow of relegation,” with 3.5% of audiovisual revenues split between relegated clubs as parachute payments thanks to the Compensation Funds. The president then highlighted the fact that “no Liga BBVA club will earn less than €40 million from broadcasting rights; that is a token of how LaLiga’s collective project strives for fairness.”

On a different note, Javier Tebas congratulated Atletico Madrid on their recent feat of qualifying for the Champions League final: “I feel proud; they’re a club who had financial problems three years ago but who are doing exceptional work to balance their books.” Cardenal echoed these congratulations: “As a Spaniard, it makes me proud that the most important club competition in the world might be contested between two Spanish sides.”

Both Miguel Cardenal and Javier Tebas commented on the fate of the weekly free-to-air game, stressing that, “there will be an auction process and the provisions of the Spanish Sports Act will be complied with." As for the LaLiga run-in, the president stated that “it’s not only competitive at the top of the table, it's evenly matched all round". Javier Tebas also addressed the rumours over potential match-fixing: "If you are vigilant, there is a better chance of avoiding being robbed. At the end of the season we step up our monitoring of proceedings on the pitch and with regard to betting. The clubs know that finishing a place higher or lower will affect their share [of broadcasting revenues] for the following five years".

 

READ HERE THE PROFESSIONAL FOOTBALL FINANCIAL REPORT