Economic distribution to EuroLeague clubs rising to €35m next season
By Simon Ward
Euroleague Basketball has announced a 16-per-cent increase in economic distribution to the teams in its top-tier competition for the forthcoming 2019-20 season.
The total handout to the teams in the EuroLeague is rising to €35 million ($39.4 million) from €30 million in the last campaign.
The clubs will also receive other funding from the league to cover media production and marketing, plus contributions to support their growth and the modernisation of their commercial arms.
Euroleague Basketball is entering the fourth season of a 10-year joint venture with IMG, the international sports agency, which pledged turnover of €630 million over the full period, including €450 million to the clubs.
The elite competition is expanding from 16 to 18 teams in 2019-20 with the addition of two automatic qualifiers in Bayern Munich of Germany and France’s LDLC ASVEL Villeurbanne, which have both been granted two-year licences.
Among the decisions made at yesterday’s meeting of the shareholders of Euroleague Commercial Assets in Munich were the approval of new financial fair play regulations under which, by 2023, the maximum contribution of a club shareholder will be 40 per cent.
This compares with 65 per cent at present.
Speaking at the EuroLeague Final Four in Vitoria-Gasteiz in Spain in May, Jordi Bertomeu, the president, chairman and chief executive of Euroleague Basketball, insisted that the organisation was eager to reduce the reliance on club owners to cover budgets.
He said: “Our main concern at this moment is we have to help our clubs to generate more revenues. Still we have clubs with losses. These losses are covered most of the time by our owners, and this is the most important thing we have to solve. We need to cover this gap. If you want to be sustainable, you have to make a system that is itself sustainable. And you don’t have this with control. You have this by generating more revenues and being smart and efficient with your expenses.”
Meanwhile, Euroleague Basketball has confirmed that with effect from the 2020-21 season, the EuroLeague will comprise the 11 long-term licence-holders, which are guaranteed places in the competition, the champion and runner-up from the second-tier EuroCup, two associated wild cards in Bayern and ASVEL and three other associated wild cards including the champion of the Adriatic League.
This tallies with Bertomeu’s stated aim to prioritise the EuroCup over national leagues in allocating places in the EuroLeague. At present only the EuroCup champion qualifies for the next season’s EuroLeague.
The 2019-20 EuroLeague campaign starts on 3 October.