Zalgiris unveils budget for 2019-20 season

2019-09-25T11:21:53+00:00 2019-09-25T11:21:53+00:00.

Giannis Askounis

25/Sep/19 11:21

Zalgiris Kaunas introduces budget projections and other plans for the upcoming season.

By Eurohoops Team/

Despite not being among the biggest EuroLeague spenders, Zalgiris Kaunas made it to the Final Four and the playoffs of the competition the past couple of years, aims to remain on its successful path. With the 2019-20 campaing in view, the Lithuanian club presented an expected budget of 11.9 million euros that includes 8.5 million on salaries.

Per Zalgiris: “As the new season tips off, Zalgiris held a yearly press conference, where they looked over last season’s results and introduced the 2019-2020 season plans and budget.

As he reviewed the previous season, Zalgiris director Paulius Motiejunas began by thanking the fans, who’ve shown continuous support and love for the team that has helped the team once again achieve terrific results.

The one item that stands out is the record-breaking attendance numbers in EuroLeague home games. This type of interest in the team and the team making its way to the EuroLeague Playoffs put together a vital part of Zalgiris season budget – ticket sales amounted to more than a third (4.6 mln. Euro) of the team’s income and beat the season goal of 2.9 mln. Euro by a wide margin.

Looking over the financial situation, the head of Zalgiris once again thanked the government of the Republic of Lithuania, who returned a debt from 20 years ago.

The club’s planned expenses exceeded the expected 10.7 mln. Euro, and amounted to 11.1 mln. Euro, but the income from ticket sales helped offset the increase. Growing income allows the club to grow financially and set away part of the amount in forming the budget of the upcoming season.

For the 2019-2020 season, the Lithuanian champions will look to exhaust a budget of 11.7 mln. Euro, with the lion’s share (8.5 mln. Euro) to be paid out for the salaries of players and coaches. Compared to last season, this figure has grown from 7.4 mln. Euro.

Zalgiris once again expects the largest portion of income to be brought in by the fans, and hopes to collect a lofty 3.6 mln. Euros. An increase from financial support is expected from the sponsors, as the team plans to increase sponsorship and advertisement income from 2.5 mln. Euro to 3.2 mln.

Currently the planned income stands 1.3 mln. Euro below the formed budget. This deficit will be offset by the net profit of the last few seasons.

Speaking of attendance, Motiejunas revealed that a total of 7168 season tickets were sold, and the main goal remains continuous growth in the ticket sales department and to remain the highest-attended arena in the entire EuroLeague.

Zalgiris’ sportive expectations remain intact – continued dominance in the Betsafe-LKL tournament, winning back the King Mindaugas Cup and staying in contention for a EuroLeague Playoffs spot.

Zalgiris director also commended the strengthening of the club’s basketball pyramid. Youth players will be taught in basketball schools in Kaunas, training camps are to be held, while two teams will continue competing in the RKL and NKL leagues under Zalgiris’ name.

During the conference, Zalgiris off-court activities were also widely discussed.

Zalgiris organisation will continue using LEAN methods, which helps create higher value for the client more effectively, and increases the club’s competitive advantage.

The Lithuanian champions will also spread its net of contacts, as the club looks to grow its market with potential clients from abroad. A lot of attention will be paid to the growth of Zalgiris business club.

The #ZalgirisVirgin campaign, which took gold honors in the EuroLeague Devotion Marketing Awards, will continue to be actively used throughout the season.

Several marketing initiatives were also confirmed for the upcoming season – fans trips to EuroLeague away games with VIP class flights, Zalgiris TV long-term partnership with Olybet, Zalgiris products with the Mantinga, Vikeda, Krispo and BIOK laboratorija brands.

During the press conference Motiejunas also mentioned the installation of handicapped seating, which had changes to the arena’s overall capacity. From now on, during basketball games, Zalgirio Arena will be able to accommodate 15415 spectators.

The club director also touched on some other parts of the Zalgiris organisation, as there was talk about the growing Zalgiris football team, the esports activity that was slowed down, and the deformed rugby team.”