In the 2020/21 season, LaLiga clubs together posted losses totaling 892 million euros. Of that amount, 481 million euros, representing 54 percent, came from a single club, Fútbol Club Barcelona. This stark red ink underscored how covid-19 reshaped football finances and marked the worst financial year in the history of Spain’s top rivalry since the pandemic began relentlessly affecting the game.
The Economic-Financial Report, made public this Tuesday by the league’s governing body led by Javier Tebas, highlights the pain felt across Spanish football during a season played almost entirely without spectators. The disruption created an extraordinary revenue gap exceeding 1.2 billion euros for the clubs involved in the competition. This was the first time such a condition had ever deeply disrupted the financial fabric of the league.
Despite the hurdles carried over from March 2020, LaLiga still had a historical revenue peak reaching 5,029 million euros when both divisions are combined. Yet in the subsequent period, Spanish football lost roughly a quarter of its turnover and registered the lowest total since the 2016/2017 season, at 3,817 million euros.
POSITIVE EBITDA
LaLiga argues that the revenue decline did not translate into proportional losses. Indeed, the EBITDA for the 2020/21 academic year stood at a positive 154 million euros, with 12 of the 42 clubs managing to finish the year with a net positive result despite the pandemic’s impact on their accounts. The overall negative net result reached 892 million euros, with 74 percent of the loss tied to income reductions and adjustments recorded by the clubs during the year. After accounting for provisions approved by the league board, the figure would be 717 million euros.
The imbalance between losses and income reductions is attributed largely to cost control measures adopted by clubs in response to the crisis. A report from El Periódico de España notes that LaLiga has been the European competition with the least investment in player signings across four transfer windows since March 2020.
Over the previous five seasons, net investment in LaLiga transfers ranged from 92 to 405 million euros, while by June 2021 the figure had barely reached five million, signaling a period of substantial stabilization.
When comparing with other major leagues, LaLiga’s position looks comparatively strong. The Bundesliga recorded 474 million in losses, while Ligue 1 saw 946 million with a lower turnover. Series A posted 1,792 million and the Premier League faced significantly higher red numbers at 3,119 million, illustrating how LaLiga fared better on a relative scale during the same period.
FORECASTS
Looking ahead to the ongoing season, albeit with limited attendance still in effect, LaLiga projects a negative result near 297 million euros. A considerable portion of this deficit is expected to emanate from Barcelona’s accounts. The league estimates total revenue around 4,000 million euros. Of the near 300 million euro shortfall, roughly 140 million are considered recoverable losses, potentially offset by early cash injections for signings stemming from the CVC deal and owner-supported capital raises. EBITDA is forecast to rise to about 432 million euros.
Javier Tebas’s institution anticipates that the 2022/23 season may close without a loss, and there is cautious optimism that 2023/24 will restore normal revenue levels for Spanish football. This hinges on the health of the industry staying stable enough to avoid renewed disruptions to operations.
One indicator of gradual recovery is the evolution of net financial debt. The 2020/21 season saw debt rise by 14 percent as clubs sought external financing to fund investments. Looking forward, LaLiga expects debt levels to stabilize, suggesting that clubs are regaining the capacity to finance themselves through internal resources rather than relying solely on external loans.