March 7 – European football is raking in more cash than ever, but UEFA’s latest Club Licensing Benchmarking Report warns that clubs are walking a financial tightrope. While revenue hit a record €26.8 billion in 2023—up nearly €3 billion from the previous year—so did costs, squeezing operating margins across the board.
Wages remain the biggest expense, with European clubs shelling out €18 billion on salaries in 2023. Some leagues, like Belgium and Turkey, are spending close to 90% of their revenue on wages, while Greek clubs are pushing a worrying 98%.
Meanwhile, clubs in Austria, Germany, and Scandinavia are keeping things under control, with wage-to-revenue ratios below 60%. There’s also a shift in spending priorities – less cash is flowing straight into player salaries, with clubs now investing more in marketing, fan engagement, and business operations.
Despite the record-breaking revenue, profitability remains elusive. European clubs posted a collective operating loss of €0.3 billion in 2023—an improvement from the €0.9 billion lost in 2022, but still in the red. Manchester United, Arsenal, and Real Madrid were among the few turning healthy profits, while PSG, Chelsea, Ajax, and Lyon saw the biggest losses.
The transfer market is also evolving, with net spending cooling off slightly. Saudi clubs’ aggressive recruitment strategies in 2024 helped European teams cash in, while talent factories like Sporting CP, Ajax, and Benfica continued to thrive on player sales.
The report details infrastructure spending hit new highs, with clubs pouring €2.1 billion into stadiums and facilities last year. Predictably, the financial juggernaut that is the Premier League clubs led the way, investing more over the past five years than France, Germany, Italy, and Spain combined.
Ownership trends are shifting too – fewer full takeovers, more minority stakes, and a growing web of multi-club ownership, now involving 123 clubs.
Despite mounting costs and rising debt (which jumped 50% between 2019 and 2024), club insolvencies are at historic lows. Just 12 clubs faced financial collapse in 2024, a major improvement from the early 2010s, when two dozen clubs went under each year, suggesting the stricter financial regulations and smarter governance are helping to stabilise the sport at both ends.
UEFA President Aleksander Čeferin commented: “While most clubs appear to be managing player wages increases responsibly, other costs are rising rapidly, putting greater pressure on operating margins than ever before. The clubs must remain vigilant as considerable work still needs to be done to restore pre-pandemic profitability.”
In short, European football is booming, but clubs can’t afford to get complacent. The money’s flowing, but so are the bills – and financial sustainability will be the real game-changer in the years ahead.
Contact the writer of this story, Harry Ewing, at moc.l1741437991labto1741437991ofdlr1741437991owedi1741437991sni@g1741437991niwe.1741437991yrrah1741437991