Zalgiris budget projections signal a 20% drop

2020-09-23T11:37:59+00:00 2020-09-23T11:39:04+00:00.

Giannis Askounis

23/Sep/20 11:37

Eurohoops.net

A season budget heavily impacted by the coronavirus pandemic presented by Zalgiris Kaunas.

By Johnny Askounis/ info@eurohoops.net

Lithuanian Turkish Airlines EuroLeague outlet Zalgiris Kaunas announced Wednesday its budget and plans for the 2020-21 season. The projection of €9.7M is 20% lower than last season’s €11.9M, relays Donatas Urbonas.

Per Zalgiris: “As the EuroLeague season is coming to a start, the club hosted a yearly press conference, where club director Paulius Motiejunas traditionally overlooked last season’s results and presented the plans and budget for the 2020-2021 season.

Speaking of the previous season, the COVID-19 pandemic had a major impact on both Zalgiris, and other European teams. Due to the virus stopping the season short, the numbers were clearly visible in the financial statement.

The Lithuanian champions were planning to collect a 10.6 mln. euro budget, but due to decreased funding from sponsors and advertising services with the early stoppage of the season, the budget decreased to 8.8 mln. Euro. Also, due to the pandemic the club lost 0.8 mln. euro in refunds and compensations for the games that were cancelled.

After the season was cancelled, Zalgiris season ticket holders had the chance to receive 25% of their season ticket price as compensation, or use it as credit for the 2020-2021 season. 19% of the season ticket holders took refunds, 57% left it as credit for the upcoming season, while 24% chose not to request either of the two options, thus aiding the team budget.

While the club did not manage to fulfill the planned budget, due to ending the season earlier, the team’s expenses also decreased. Instead of the 11.9 mln. euro expenses, it only reached 9.6 mln. – 2.6 mln. euro were saved on player and coach salaries, while other spending was cut back by 0.6 mln. euro.

In the 2020-2021 season, the budget of the Kaunas side will reach 9.7 mln. euro, and just as last year, the lion’s share of the amount – 7.2 mln. – will be spent on player and coach salaries.

Paulius Motiejunas remained positive during the press conference, assuring that Zalgiris organization’s main goal during the games remains to be unforgettable fan emotions and a great time spent in Zalgirio Arena. Nevertheless, alongside that, we must also pay extra attention to health and safety.

Last season, Zalgiris managed to draw in new partners and expand on the licensed Zalgiris product range. This season, it is expected to double the income in this graph.

Zalgiris’ sportive goals remain the same: a championship in the Betsafe-LKL and the King Mindaugas Cup on the national stage, and enough victories to make the EuroLeague play-offs on the international stage.

Zalgiris isn’t slacking off off the court either. There is a two-year innovation strategy in place and the Zalgiris Innovation Studios are already up and running, while the maximum amount of funding has been received from the EuroLeague for the Digital Transformation Fund initiative.

Motiejunas also shared his joy and addressed the progress of the Kauno Zalgiris football system and the start of operations of the Zalgiris Kaunas basketball and football academies.”