Welcome to the 14th edition of the Deloitte Football Money League, in which we profile the highest earning clubs in the world’s most popular sport. The Money League is published nine months after the end of the 2009/10 season, and is therefore the most contemporary and reliable analysis of clubs’ relative financial performance. There are a number of methods that can be used to determine clubs’ relative size – including measures of fan base, attendance, broadcast audience, or on-pitch success. Indeed the relative wealth of certain clubs’ owners has filled many column inches in recent times. However, the Money League focuses on the clubs themselves, comparing revenue from day to day football operations which we believe is the best publicly available financial comparison. Whilst last year’s Money League, covering the 2008/09 season, showed football’s top clubs’ relative resistance during the early stages of the economic downturn, it wasn’t until the 2009/10 season, which is the focus of this edition, that we expected to see the full impact on clubs.
In December 2010 the Current account was negative and amounted to EUR 239.8 mn. As of end-December 2010 gross external debt was EUR 36,918.3 mn (102.3% of GDP) Foreign reserves fell by 5.8% m/m (EUR 752.9mn) to EUR 12.22bn as of end-January According to the seasonally adjusted data, the GDP growth rate in the fourth quarter of 2010 is 1.7% In February 2011 the total business climate indicator increases by 2.7 % points in comparison with the previous month and it is pulling away from its lowest value registered over the last 2 years The annual inflation in January 2011 compared to January 2010 was 4.5% Total producer price index in December 2010 grew by 12.2% comparing to the same month of 2009 The preliminary data showed that the industrial production index, seasonally adjusted, decreased by 1.0% in December 2010 as compared to November 2010 In December 2010 the working day adjusted turnover in retail trade, except of motor vehicles and motorcycles fell by 3.1% in comparison with the same month of the previous year .
Total stock in Sofia reached 1,200,000 sqm, with160, 000 sqm additions during 2010,the highest growth so far. H2 saw another 120,000 sqm of additions to the stock, and as practice recently shows all of it was class A. Some of the newly added buildings are ETC, Mega Park, Galaxy Business Centre, GRAWE, Serdika and Perform business centre.
Still, over 90% of the new supply is speculative, although some owners are trying to release their excess space on to the market, which increase seven more the amount of let table space in the market.
Of the total office space inventory14% is situated in the CBD, 36% in the Midtown and 50% is in the Periphery. The al location between Class A and B in the total stock is about 50%.
The Bulgarian statistics agency reports commissioning of 11,680 dwellings in Q1-Q32010, which is 28% less than the completions in the same period of 2009. The gross area of the newly built residential units is 875,000sqm, a25% drop. The national residential stock is already above 243,000,000 sqm.
Burgas Province continues to be the most productive with 2,850 new units, followed by Varna Province with 2,300 dwellings and Sofia City with about 1,700. While in most provinces the number of completed residential units decreases, Kyustendil and Smolyan show an impressive growth of 120% and 580% respectively, but from very low bases. The average gross area of a newly-built dwelling increases from 72sqm. In Q1-Q32009 to 75sqmin Q1-Q32010.
After a somewhat dynamic previous semester, the logistic segment was quiet in H2 2010. While the first phase of Ruse Logistics Parkis technically ready, the arrival of the first tenants is still to happen. The total stock of contemporary logistics and industrial space in the four major cities of Bulgaria(Sofia, Plovdiv, Varna and Burgas )has grown by approximately 3% and has exceeded3,000,000sqm. The number includes new built and refurbished owner occupied and speculative premises for industrial use. The stock in and around Sofia accounts for about50% of the share.
The market of paints, varnishes and glues is characterized by extremely intense competition on the part of Bulgarian and foreign manufacturers. This market can be sub-divided into an industrial and a consumer segment and in this case the ratio with Orgachim is 40:60%. The main markets for the output are Bulgaria, Turkey, Greece, Romania, Egypt, countries in Central Europe, the Near East and the former Soviet republics. Orgachim holds a market share of around 38% on the domestic market of paints and varnishes. The share of export represents circa 55% of the sales in the industry and it stood at 57% in 2009. The decline of the export is due to the smaller potential for deliveries of raw materials imported from abroad as a result of the global financial and economic crisis. Over 70% of the utilized raw material is imported and the efforts in the industry are targeted at ensuring alternative suppliers in order to mitigate the high rate of dependency. The market of paints and varnishes in Bulgaria is highly fragmented. The main players on the domestic market are Orgachim, Megachim, Lackprom and Boro. The relative share of the remaining participants is 20 %.
The prices of the non-ferrous and the precious metals are going up due to rising
consumption, fear of inflation and adjustments on the stock markets. However, what is good for investors in exchange-traded commodities is not good for producers and consumers. Should the trend persist, it could affect the end prices of products made of metals. Due to the price competition, though, companies are often forced to reduce their profit margins. Copper for March delivery reached a record historic high of 4.3 USD/pound at the COMEX American Commodity exchange. The price of copper continues to rise in the USA and on the
other commodity exchanges around the world due to the expected growth in consumption on the part of the large developing economies such as China.
The automobile market in Bulgaria was strongly affected by the global financial and economic crisis. Bulgarian consumers own 350 automobiles per 1000 citizens upon an average of 500 automobiles per 1000 citizens in Western Europe. Thus the market in Bulgaria has potential for growth both in terms of automobile sales and in terms of the service. The replacing of the car fleet with new cars has imposed on the automobile producers to offer their products at more affordable prices. For instance, Dacia Logan has tried to manufacture a car which to be
affordable and to target clients, who prefer second-hand automobiles. Thus they will offer a cheap car which people can afford and they will prefer a new vehicle instead of a secondhand one.
In November 2010 the Current account was negative and amounted to EUR 337.6 mn. As of end-November 2010 gross external debt was EUR 36,164.8 mn (101.2% of GDP) and this is EUR 1,643.2 mn less compare to the end of 2009. Foreign reserves increased with 0.4% m/m to EUR 12.98 bn. as of December 1, 2010 In January 2011 the total business climate indicator increases by 1.9 percentage points in comparison with December 2010.The annual inflation in December 2010 compared to December 2009 is 4.4% .Producer price index on domestic market in November 2010 grew by 11.1% compared to the same month of 2009. In November 2010 the working day adjusted turnover in retail trade, except of motor vehicles and motorcycles decreased by 5.2% in comparison with the same month of the previous year.
In October 2010 the Current account was negative and amounted to EUR 111.3 mn.
As of end-October 2010 gross external debt was EUR 36,024.5 mn. (99.7% of GDP) and which was by EUR 1,783.6 mn. less against the end of 2009 Foreign reserves increased by 2.6% w/w to EUR 12.34bn as of Nov 26. According to the seasonally adjusted data, the GDP growth rate in the third quarter of 2010 is 0.7%
The annual average inflation, measured by CPI, in the last 12 months (December 2009 - November 2010) compared to the previous 12 months (December 2008 - November 2009) was 2.1%. Producer price index on domestic market in October 2010 grew by 10.1% compared to the same month of 2009. In October 2010 working day adjusted industrial production index rose by 4.3% as compared
to the same month of 2009. In October 2010 the working day adjusted turnover in retail trade, except of motor vehicles and motorcycles decreased by 4.8% in comparison with the same month of the previous year. The unemployment rate for December is 9.2%.