2023-11-25 17:10:07
November 25, 2023 at 6:10 p.m. by Thomas
PSG has a negative profitability rate, but it is not the only one in Ligue 1.
In search of new investors for a minority part of the club’s capital, PSG is prospecting potential partners, wishing to support the football club from the capital of France, in its quest for expansion and sporting trophies. The issue of the extension of the Parc des Princes and the ownership of the stadium is a hot topic to attract attention. The state of the team’s finances is necessarily another one that candidates naturally look at.
PSG has the highest turnover in French football
On this point, Paris Saint-Germain is not the most virtuous of French clubs. It regularly closes its accounting years with a deficit supported by its powerful shareholder, Qatar Sport Investment. It is also that to grow, the club does not play the economics of investments. Proof being that its revenues, at nearly 760 million euros in 2022, are almost three times higher than its French competitors. And the close equivalent of the largest engines on the Old Continent.
An estimated negative rate of return for the club
This nevertheless leads Paris SG to a negative profitability rate of -0.43%, as measured by the Manageo platform. Which defines it as follows: “The rate of profitability is the ratio between the capital invested in the company and the profits generated by the latter”. The figure, if it should be taken with caution, is calculated on the balance sheet accounts for the year 2021, the last official filing of the current champion of France.
Football, this very special business sector
Football being a particularly unique field of business, fueled mainly by the sporting performance of a handful of players and staff, and recruitment that must above all be successful, the majority of professional clubs display a negative rate of profitability. And yet investors’ interest in this universe continues, supported by the general public’s growing enthusiasm for the discipline.
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