The economic challenges faced by Belgian professional football over the past few years have been significant. In the 2021-2022 season alone, the sport suffered a loss of €213 million, with the 2022-2023 balance sheet showing little improvement.
These financial difficulties have been ongoing since the 2016-2017 season when the last positive records were reported. Nils Van Brantegem, the auditor general of the Licensing Commission, revealed in a recent Le Soir article that the losses amounted to €213 million for 2021-2022 and were already negative at €74 million as of 31 December 2022, for the following season.
The situation has been particularly worrisome as only Club Brugge and Charleroi managed to maintain positive financial results consistently over the past three years. Anderlecht and Genk were the only clubs to successfully reduce their debts over five years. Although some clubs have been kept afloat by shareholder injections of funds, the overall revenue generation has been inadequate.
Various factors contributed to this financial crisis. The Covid-19 pandemic severely impacted revenue streams for clubs, with a significant 22% decrease in overall operating revenue during the 2020-2021 season compared to the previous year. Ticketing and commercial revenues saw a massive decline of 64% and 58%, respectively, due to matches being played without spectators. The global transfer market slowdown also impacted net transfer results, reducing from €109.2 million in 2019-2020 to €38.1 million in 2020-2021.
Credit: PXFuel
Additionally, payroll costs increased in the 2020-2021 season due to a rise in the number of football players and an increase in their average yearly salary. This led to a 6.2% rise in player salary costs and a nearly 70% increase in direct job growth. Despite the pandemic, clubs continued investing in staff and programs, leading to higher payroll costs.
In response to the financial challenges, the Pro League implemented a plan for equity and salaries to address the financial situation of the clubs. For the 2023-2024 season, 25 out of 28 professional clubs are required to undergo financial follow-up from the Licensing Commission.
Although Belgian professional football's contribution to the country's economy has been significant, reaching €962 million and creating 4,493 jobs during the 2020-2021 season, there has been a decline compared to previous years, largely due to reduced operating revenues and net transfer results.
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Nevertheless, football remains an essential sector in the economy, and clubs have shown resilience by engaging their fanbases and making long-term investments.
To ensure the sustainability and resilience of Belgian football, it is crucial for clubs to innovate their business models and diversify revenue streams beyond traditional sources like ticketing and commercial revenues. By doing so, they can navigate through challenging times and develop a more stable financial foundation for the future.
