The Unprofitable sport that keeps on giving

The latest UEFA European Club Finance and Investment Landscape Report published by UEFA in recent months highlights what continues to be a growing trend of increasing revenues flowing through Gibraltar football, but which continues to see an increase in its negative net equity.
According to the latest report based on figures for the 2022 Financial Year and with eleven clubs in scope for the 2022/23 season Gibraltar football saw a total revenue of E3.8 million. Although this was a drop of 32% against 2021, with Gibraltar only having been a member of UEFA during the past decade it highlighted the significant impact the sport is now providing for Gibraltar’s economy.
Significantly the bulk of the revenue, estimated to be 72% of the total comes through UEFA revenue. This totalling to E2.8 million.
Whilst the wage levels decreased by 3.8% compared to 2021, E3million, estimated as 77% of the total revenue the sport was generating was going towards covering for wages. Placing Gibraltar as the 24th highest member association with respect to wages and amortisation as percentage of revenue.
Unlike other member association of a similar level Gibraltar football clubs are 100% private ownership. This contrasts with associations such as San Marino where no club is under private ownership according to the same report.
At least three clubs in Gibraltar have at least one foreign shareholder, from which one has cross-ownership or multi-club investment ties with another club globally.
Significantly the latest report highlights how Gibraltar has seen an increase of 194% in its negative equity. The present financial position of the sport seeing a -E1.3 million net equity.
With the sport presently not generating any revenue from its gate receipts, domestic tv revenue streams, or transfer market its revenue streams continue to be aligned mainly towards, UEFA funds, sponsorship deals and investors. The latter having seen four takeovers or changes in ownerships since 2020.
Whilst the financial prospects of the sport as a profitmaking industry continues to be very much in doubt whilst it fails to generate income at club level from some of its available potential revenue streams, the sport has developed from an amateur sector in which community funding provided its main foundations towards its continued development just over a decade ago to become a significant contributor for both Gibraltar and its surrounding area. With over E3million going towards wages football has become a source of employment where profit margins seem to have been thrown out of the window in exchange for possible glories on the field.