The English Football Association has announced financial results for the 2019 year.
Revenue increased by 24% over the previous 12 months and went from £375 million ($465M at 1.24 exchange rate) to £467 million ($579M). The increase in Turnover was driven by a significant bump of £116.7 million ($144.7M) from Broadcasting. The Broadcast category accounted for 56% of the total Turnover.
The revenue from Broadcast Rights allowed the English FA to pump an additional £37 million into various levels of the game in England.
Prize money for FA competitions increased from £33 million ($41M) to £51 million ($63.2M) and women’s soccer benefited from an increase of £2 million ($2.48M) to £11 million ($13.6M). It is worth noting that a decade ago the level of investment in women’s soccer wasn’t deemed worthy of inclusion.
LONDON, ENGLAND - MAY 04: Manchester City players celebrate with the Women's FA Cup Trophy (Photo by . [+] Catherine Ivill/Getty Images)
The total number of staff employed by the English FA in 2019 was 1,186, about the same as the previous year. However, salary costs increased by £7.5 million ($9.4M) to £70.5 million ($87.4M).
MORE FROM FORBES ADVISOROverall, the bottom line improved by £56 million ($69.4M) - from a loss of £10.5 million ($13.1M) to a profit of £45.4 million ($56.3M).
The FA’s balance sheet shows “shareholders” funds of £159 million ($197M) - a decade ago it was just £54.4 million ($67.5M).
But what stands out on the FA’s balance sheet is a lack of liquidity. The English FA owns and operates Wembley Stadium and the St. George’s Park National Football Centre, and so there is a large fixed assets component (£545 million / $675M) on the balance sheet and over £500 million ($620M) owing to short-term and long-term creditors. There is a relatively small cash balance of £39.2 million ($48.6M).
Of course the future financial fortunes of the FA, like their members, is very much tied to COVID-19 and how long it takes for sport to return. The revenue drivers for the FA are Wembley Stadium hosting events and the broadcast of England national team games. The longer it takes to return to “normal” or even a “new normal” the bigger the financial hit to the FA’s finances.
You can find the most recent financial statements for “Football Association Limited,” as well as past filings, at the UK Companies House website.
The audited financial statements of the United States Soccer Federation shows a very different finance dynamic.
The USSF at March 31, 2019 held cash, cash equivalents and investments of $170M out of total assets of $187.4 million - over 90%.
The USSF is very liquid, but it is likely that the next set of statements will show a big mark down in the investment portfolio reflecting the drop in the stock market.
What’s more in the coming months, the USSF faces the possibility of losing the equal wage dispute filed by the USWNT. Then there is the loss of gate receipts if the National Teams are unable to return to the field.
Cost cutting has already started. The USSF announced two weeks ago that the Development Academy program - estimated annual cost of $12 million - will be scrapped, a casualty of COVID-19 supposedly.
After deducting liabilities of $37.8 million, the USSF was left with net assets of $149.8 million with $145.8 million undesignated - money that isn’t restricted to a specified use.
The USSF’s revenue and expenditure numbers fall well short of the FA figures. USSF revenue totalled $104.7 million with nearly 80% coming from Sponsorship, TV, licensing ($51 million) and gate receipts from National Team games ($29.5 million).
Registration fees from youth, professional and amateur players as well as referees accounted for $8.5 million.
Revenues earned for USMNT (Men’s) events were $16.4 million and for USWNT (Women’s) events were $12.6 million to the 2019 year end.
Fans cheer as members of the World Cup-winning US women's soccer team take part in a ticker tape . [+] parade for the women's World Cup champions on July 10, 2019 in New York. - Amid chants of "equal pay," "USA" and streams of confetti, the World Cup-winning US women's soccer team was feted by tens of thousands of adoring fans with a ticker-tape parade in New York on Wednesday. (Photo credit ANGELA WEISS/AFP via Getty Images)
AFP via Getty Images
The notes to the USSF audited statements shows over 80% of costs ($106.4 million) attributable to “Programs.” Nearly 25% ($25.3 million) of program costs went to salaries and wages and another 18% ($19.4 million) was for professional services. Travel was the largest cost within programs - $31.1 million or 29%.
National Teams’ expenses totaled $82.6 million with youth teams and player development costing the most - $29.9 million. The USMNT cost $15 million to operate; the USWNT $20.3 million.
After deducting expenses, the USSF ran a loss of $27 million with $6 million from investment return reducing the overall loss to $21 million.
The consolidated retained surplus on the USSF’s books at March 31, 2019 was $50 million less than the English Football Association.