EuroLeague to distribute 79% of the 2020-21 season revenues to clubs via the market pool

2020-07-09T15:38:50+00:00 2020-07-09T15:43:19+00:00.

Aris Barkas

09/Jul/20 15:38

Despite the cancelation of the 2019-20 season, EuroLeague presented an impressive growth and also changed the distribution of the revenues for next season in order to provide bigger stability.

By Aris Barkas/

EuroLeague approved a new balance of revenue distribution to the clubs for the upcoming season in order to increase their financial stability and help them recover after the COVID-19 pandemic and the cancelation of the 2019-20 season.

Contrary to the previous seasons, where 54% of the revenues were distributed via the market pool, the number was changed to 79% for the upcoming season. Together with an increase in the minimum guaranteed revenues of the clubs, the revenues are expected to be a little bit higher than the initial projection of the 2019-20 season and only 21% of those revenues will be given as performance bonuses according to each club’s results. The previous number was 46% divided according to the wins of each club. According to a ruff estimate, 79% of revenues is a number near 30 million euros.

It has also to be noted that according to the numbers before the pandemic, the growth of fan interest, television audiences, attendance, and digital audience was quite impressive.

Per the Press release:

In a remote meeting held on July 9, 2020, the Euroleague Commercial Assets (ECA) Shareholders reviewed and discussed the strategies needed to resume the Euroleague Basketball competitions and business heading into the 2020-21 season.

Jordi Bertomeu, Euroleague Basketball (EB) President & CEO welcomed the attendees and reported on the 2019-20 season. He included highlights of agreements made by the ECA Shareholders Executive Board since the season was suspended on March 12, and subsequently canceled on May 25, including the decisions not to define any final standings, not to recognise a season champion and not to declare individual awards, as well as the exceptional club licensing system for the 2020-21 season.

The meeting continued with EB executives presenting evolution metrics of the unfinished 2019-20 season compared with the 2018-19 season, which due to the shortened nature of 2019-20 make them even more encouraging:

– 15% average growth* in fan interest across EuroLeague markets, 9% higher than interest in basketball, which also grew at a 6% pace. The growth was led by France, Israel, Turkey, Spain and Germany

– 15% growth in television audiences*, led by France, Italy, Israel and Germany

– Social media growth across all platforms**, averaging 11% in followers, 21% in reach, 25% in video views and 46% in engagement

– growth of 9% in unique users, 13% in sessions and 22% in pageviews

– 94% growth in value delivered to commercial partners in digital channels

– 12% higher in-arena attendance and 75% average arena fill rate

The meeting resulted in the ECA Shareholders taking the following decisions:

– Approved the 2020-21 exceptional temporary measures proposed to support the clubs in increasing revenues and reducing uncertainty to speed up recovery from the impact of the COVID-19 global pandemic, namely:

o An alternative clubs’ economic distribution model based on giving additional weight to market pool distribution (from 54% to 79%) in order to increase economic certainty for all clubs and mitigate uncertainty

o Introduction of ‘Pandemic Response Guidelines’, a group of health, security and commercial recommendations for teams to alleviate customers’ fears of attending live events, provide fans with customizable payment plans, and create transparent and exhaustive communication channels to increase trust by fans when deciding to attend EuroLeague or EuroCup games

o Additional commercial platforms to be accessible for clubs to increase their revenue opportunities, which include court and arena assets as well as additional audiovisual rights, as well as new aggregated commercial models

o Modified EuroLeague training camp dates, which may begin a maximum of eight weeks prior to EuroLeague Regular Season Round 1, or a maximum of five weeks prior to the first official game of the 2020-21 domestic league competitions (earlier date of the two)

– Approved the Euroleague Basketball 2019-20 financial closing and 2020-21 budget, as well as the clubs’ economic distribution

– Approved the proposed modifications of competitions bylaws

– Approved the proposed 2020-21 team lists for the Turkish Airlines EuroLeague and the 7DAYS EuroCup

Additionally, ECA shareholders were updated on the following topics by Euroleague Basketball executives:

– The state of negotiations with the EuroLeague Players Association (ELPA) and EuroLeague Head Coaches Board (EHCB) around potential European Framework Agreements with the aim to implement these from 2021-22 onwards

– The officiating department report, including 2019-20 performance, agreement with the Union of Euroleague Basketball Referees, Instant Replay System, 2020-21 referees release and recruitment, new measures to improve performance, communications with clubs

– Business performance rankings, to be shared with participating clubs as part of the EuroLeague Business Operations & Clubs Services activity (BOCS), with the objective of recognizing best performing clubs, incentivizing sharing, and fostering positive competition between them.

*source: Nielsen Sports