Chapter 3 Lazio's Balance Sheet

Lazio can't count on the ticket income, and Lazio can't share much of the stadium operating income, and they have to keep spending money to maintain the stadium.

This is why most of the Serie A stadiums are dilapidated. Even in a football temple like the San Siro Stadium, the turf is rotten like a vegetable field.

There are 129 large football stadiums in Italy, but there are only three that can meet the standards of international competitions...

Poor Italy has not hosted international competitions for many years, and the dilapidated stadium is one of the main reasons.

Because the stadium does not belong to the club itself, the nàe club has no motivation and reason to spend money to repair the stadium. So the stadium can only gradually age and decay year after year.

Even if Italy promulgated the "Pisanu Act" and the city government required the club to repair the stadium in accordance with the act, the club ignored it.

For example, the Udinese City Council raised the rent of the Friuli Stadium from 100,000 euros to 420,000 euros because the Udinese club refused to pay for the reconstruction of the stadium.

In terms of stadium revenue, Lazio only has 19 million euros in three seasons.

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Chest advertising of jerseys and jersey sponsors are also sources of income.

But in Lazio, this is not obvious.

Because these sponsors determine the sponsorship amount based on the team's performance.

Lazio's performance in the past few years was not very good, so the sponsorship fee in those years was very low.

In the past three years, Puma's annual sponsorship fee for Lazio was 2.8 million euros, plus 1,000 sets of game and training uniforms. If it exceeded this figure, the Lazio club and players would have to pay for it.

Although Lazio renewed their four-year jersey sponsorship contract with Puma in January this year, increasing the sponsorship fee to 4 million euros per year, the new contract will not take effect until next season.

Compared with the tens of millions of annual sponsorship fees of the Juventus and Milan duo. Lazio is so poor...

In addition, in terms of the chest advertisement of the jersey, at the beginning of the 2005-2006 season, Lazio's jersey was in a streaking state, because éiyǒu found a chest advertisement sponsor. It was not until October that the Italian insurance company INA sponsored Lazio.

3.1 million euros per year. for a period of two years.

Before the 20072008 season. The contract with INA expired, Lazio has not found a suitable chest advertising sponsor, and had to start streaking. The reason why Lotito couldn't find a suitable chest advertising sponsor was that the asking price was too high. He asked for a minimum of six million euros per year.

He thinks that Rome has fallen into such a state, and can still get six million euros in sponsorship fees from the Italian ind telecom company every year. Why can Lazio only accept four or five million sponsorship contracts?

Companies interested in Lazio's chest advertisements couldn't meet his requirements, and big companies that could meet his requirements looked down on Lazio at the time and speculated that Lazio would win the league championship and the Champions League this season...

Those companies are now full of regrets, but there is no relationship, they flock to Lotito's office hungry to sign the chest advertisement for the start of the new season.

Only, this time. They don't even think about getting this èizhì for six million euros. The team's performance is excellent, and Lotito will naturally follow the market and increase the price!

After most of the 2007-2008 season, the Lazio club's jerseys were streaking, with no chest advertisements.

During this period, Lotito found the European construction giant P Company and signed a short-term sponsorship contract for just four games...

6.2 million euros in the first two years of chest advertising. And the third season is almost equal to zero. How much money can a sponsorship deal for four games make? Almost negligible.

As for the income from shíe jersey sales, the Lazio club has even less.

Because the Lazio club has a bloodsucker.

That is the extreme fan organization "Uncultivable Faction". They were two years earlier. Taking advantage of the turmoil in the Lazio club and the anarchic and chaotic state of market business development, shíhòu signed a jersey consignment agreement with Puma, so part of the jersey sales revenue does not belong to the Lazio club, but to the "Uneducable" organization.

This is probably one of the reasons why Lotito and the Uncultivable faction have become enemies. Anyone who robs him of money is an enemy!

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After talking about these small heads, it was the turn of the big heads.

The bulk of Italian football club income is TV broadcast fees.

Because the stadium mentioned before belongs to the city government. Match day income is negligible, so television broadcasting has become an important source of income for the club's survival.

In the Premier League, TV broadcast fees account for 28% of the club's total revenue, while in Serie A, this figure is as high as 55%!

It can be seen from this. Serie A clubs rely on TV broadcast income.

But unfortunately, Italy's TV broadcast income distribution plan is very... inhumane.

Unlike the Premier League, which sells TV broadcasting rights as a whole, the Serie A league is where each club goes to the TV broadcasting agency to sign a contract.

In this case, those giants with a large number of fans and good results will naturally get a big piece of cake, and their TV broadcast fee income is often six or seven times that of downstream teams.

Lazio does not belong to the top three in the north. Before the current broadcast contract was signed, Lazio's performance was also fluctuating. Therefore, in the past three seasons, Lazio's TV broadcast income in each season was only 34 million euros.

Although a new broadcasting rights sale agreement was reached at the end of last year, and the separately negotiated sale has become a collective package sale, the new policy will not be implemented until 2009.

Before that, Lazio could still only get a hard contract of 31 million euros per year.

The good news is that with the improvement of Lazio's performance, they will get more income in the future distribution of TV broadcast income.

However, due to the overall downturn in Serie A and the low broadcast fees, this amount of money is still not comparable to that of teams in the Premier League and La Liga.

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For Lazio, in fact, the real bulk of income is the transfer fee income from the sale of players.

Because they have a constant victory.

Buy low and sell high, the ever-victorious Lazio has brought this simple business principle into full play.

Changsheng, who had just taken over Lazio in 2005, had the main task of cleaning up, and many players were sold for free. Just to rebuild.

Coupled with Lazio's poor performance, these players were not sold for any money at the time.

The cleaning of those players at the time brought Lazio 18 million euros in transfer fee income.

But on the transfer, Lazio spent 16.4 million, but actually only earned 1.6 million euros.

At the end of the 2005-2006 season, the main job of Lazio's transfer was to clean up the high-paid players left over because of the high salary. So basically can't afford the price.

However, because of Pandev and Odo, Lazio still received a transfer fee of 30.3 million euros in the transfer market.

In terms of buying players, Lazio spent 13.45 million.

The final profit was 16.85 million euros.

It has increased ten times compared to the first year, which shows Chang Sheng's ability to make money in the transfer market.

In the summer of 2007, Lazio's moves were very small, only two players were sold, and they were all sold to Juventus. Although there are fewer people, the efficiency has improved. Because of their excellent performance, Lazio's players can also be sold at a starting price.

Melo and Lichtsteiner brought Lazio 38 million euros in transfer fee income.

Buying players is even more stingy. Three and a half million euros for a Belletti. A Chiellini is the addition of Melo's transfer, and it didn't cost a penny.

This year, Lazio's net income in the transfer market was 34.5 million euros!

Doubled from last year.

And this year, 2008, Chang Sheng's ambition is even bigger, he wants to settle all the debts in this summer!

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Because of Lazio's good performance, bonuses have become one of the club's main sources of income.

Two league titles, two million euros in prize money.

20052006 season. Lazio won the UEFA Cup. The bonus plus the broadcast fee share totaled 3.3 million euros compared with the Champions League. The UEFA Cup is so pitiful. That's why UEFA will find a way to change, change the UEFA Cup, repackage it, and change it to the Europa League.

In the 2006-2007 season, Lazio could participate in the Champions League, and its income began to surge. This season because he finally reached the quarterfinals. Lazio received a bonus of 25 million euros and a share of broadcast fees.

And the just-concluded season 2007-2008 was even more extraordinary.

Lazio won the UEFA Champions League, and the combined TV broadcast share and bonuses they received totaled 60 million!

As for the ticket revenue for home games, most of it is given to the city government, and the rest is left to the club itself. It is also included in the income.

Basically, the above is the income of the Lazio club.

For three seasons, a total of 305.35 million euros.

An average annual income of 100 million.

Sounds like a lot, right?

But... don't forget, we still have expenses to count.

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Generally, the expenses of the team are mainly personnel salaries and transfer fees, and the rest are small.

The transfer fee has been calculated before. In the income figure, yǐjīng is the figure after deducting the expenses, so I will not repeat the statistics.

Talk about player salaries.

The Lazio first team has maintained the number of 23 people in recent seasons. The maximum salary is two million. The "honor" of the minimum salary of 250,000 euros a year belongs to Kolarov.

In addition, no one's salary is not fixed, and there are terms that increase with the number of years, such as an increase of 5% to 10% a year. In addition, there are various bonuses, so after calculation, Lazio has to pay 23 million euros per year just for player salaries.

This figure does not seem to be much. The salary expenditure of a giant like A Milan is 165 million euros.

But please note that this figure for Lazio is the annual salary after tax.

Because the club has to pay the personal income tax of the players, the actual expenditure is much higher than this figure.

The player's personal income tax plus characteristic tax is a total of 48%. Therefore, only on the player's salary expenditure, Lazio has to give 44.23 million euros a year.

In addition to the insurance similar to China's social security mentioned in the previous chapter, Lazio has to pay 6.19 million euros per year.

This adds up to 50.42 million.

On average, Lazio earns an average of 100 million euros a year. Salary expenses alone accounted for 50% of the total income.

In fact, this ratio and figures are considered low. If you want to know that after Lotito just took over, Lazio's annual salary expenditure was more than 70 million euros.

50.42 million a year, 151.26 million euros in three years!

Wages alone cut Lazio's income in half.

This is only the salary of the first team, the reserve team and the youth team also need money. Although Lazio yǐjīng sold the youth academy as a whole, it also retained a reserve team and a youth team.

Although their salaries are not much, they add up to two million euros a year. The pre-tax expenditure is 3.84 million euros. Three years add up to 11.53 million.

Then there is the salary of staff, including the coaching team and club staff, with an average of 6 million euros per year, plus taxes, about 9.5 million euros. , three years is twenty-eight million euros.

For the normal operation of the club, various expenses are required, and most of them are trivial money, such as the money for buying disposable paper cups and toilet paper... In total, it is about 5 million a year, and 15 million in three years.

Lotito is very stingy about the maintenance of the Formello training base. The budget has been cut in all aspects, and finally one million euros a year. 3 million in three years.

The stadium rental, maintenance and security expenses should be deducted from the stadium income, so I won’t talk about it here. But there are two and a half million euros a year.

In addition, there are transportation expenses, accommodation expenses, and meal expenses for the team every time they play away games, and other miscellaneous expenses. Lotito yǐjīng is considered economical. Lazio always sits in economy class when playing away games... In this way, there are more than 3 million euros in expenditure every year, and more than 9 million in three years.

In addition, there are all kinds of miscellaneous expenses, anyway, they are patched together. Added up, the total expenditure for the three seasons is 217.79 million euros.

Total income minus total expenses. That is a net income of 87.56 million euros.

With so much income in three years, Lazio's debt is 140 million.

If you put all the more than 80 million euros in, you can replace half of it, right?

wait!

As a joint-stock limited company, Italian football clubs need to pay corporate income tax according to regulations...

Although many clubs will use false accounts to evade taxes.

But Chang Sheng specifically told Lotito that in order to avoid being settled by the Italian prosecutors in the future, it is better to pay taxes honestly. Pay as much as you need.

This is not Chang Sheng's scaremongering, deliberately scaring Lotito.

In fact, in 2013, the Italian police raided the offices of 41 clubs including Juventus, A Milan, Naples, Inter Milan, Rome, and Lazio, targeting tax evasion.

So Lazio still pays corporate income tax in a regular manner.

The so-called corporate income tax is the tax on the balance obtained after deducting reasonable personnel wages, cost expenses, and relevant taxes.

According to Italian law, the corporate income tax rate is 30-4%.

So Lazio's corporate income tax for the past three years is 27.49 million euros in total.

After deducting corporate income tax. Lazio's actual discretionary money is 60.7 million euros.

All the 60 million euros can be used to repay the debt, which can be offset by nearly half.

But the situation is not that simple.

The Lazio Club is a listed company, and it pays dividends to shareholders every year... rúguǒ all the money is used to repay the debts, and no penny is kept. How will the dividends be distributed at the end of the year?

Therefore, only 40 million is actually used to repay debts, and the remaining 20 million is used as working capital.

Before the end of the 2007-2008 season, Lazio lost 19.11 million, nearly 20 million. After the end of this season, another 20 million was replaced.

Now Lazio still owes a debt of 100 million.

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The above is Lazio's income and expenditure in the past three seasons after Changsheng coached the team.

It looks like a lot of income, but actually a lot of expenses.

There is also a corporate income tax of up to 31.4%.

As a result, Lazio's actual income is not as much as people imagined.

Of course, things will get better. With the improvement of Lazio's performance in these two seasons.

Their income in all aspects will increase.

In the long run, the Lazio club's future looks bright in repaying its debts.

But Chang Sheng couldn't wait so long.

He will now pay off the debt.

Because not only his players can't stand the maximum annual salary limit of two million euros, he can't stand it either!

If the maximum salary cannot be increased, Lazio will not be able to attract more capable players to join.

It will be difficult to continue to be brilliant like that.

He doesn't want the free Lazio to be a shooting star, he wants to be a star! Just like the nickname yīyàng of the city of Rome.

He wants Lazio to be the star of the Eternal City! (to be continued)