Benfica wants to increase revenues to 500 million euros in five years

For the first time in its history, Benfica presented its interim accounts for the first half of the year on Tuesday, which showed a 128% increase in net profit to 34.6 million euros.

But the big news came from Nuno Catarino, CFO of Benfica SAD, who in an interview with ECO announced an ambitious strategic plan for the next five years: to increase the consolidated revenues of the Benfica universe from around 300 million euros a year to 500 million over the next five years.

“Our ambition is to reach 500 million euros in consolidated revenue between the club and the SAD over the next five years”, said the chief financial officer of Benfica’s SAD. Emphasising that this is a “very ambitious challenge”, Nuno Catarino explained that the expected growth will cut across the group’s various business lines, with average increases of around 30%, depending on the specific areas.

This target represents a growth of more than 60% compared to the current figures and comes at a time when the club and SAD are showing more solid financial results than until very recently. It should be remembered that Benfica SAD recently reported a half-year profit of 40 million euros, double that of the previous year, driven above all by income from participation in the Champions League and player sales.

Growth in all lines of business

One of the key objectives of this growth plan is to significantly reduce dependence on capital gains from player transfers.

“We want to be less dependent on player sales as our main source of income”, emphasised Nuno Catarino. As an alternative, Benfica intends to focus on a clear strategy of diversifying current sources of income, namely by strengthening commercial revenue, merchandising, ticketing and sponsorships.

One of the essential components of this growth is the renegotiation of television rights for the next two years until the centralisation of television rights, currently a hot topic on the agenda of the club. Speaking to ECO, Nuno Catarino was direct: “We’re not going to sell anything cheap, we don’t need to. We want the best possible partner and a fair contract that properly values Benfica brand”.

This position was further reinforced, with Nuno Catarino revealing that negotiations are still ongoing and adding that Benfica has a strong negotiating position due to its national and international dimension. He also guaranteed that any future agreement will necessarily have to reflect the real value of the Benfica brand in the global sports rights market.

Another point emphasised by Nuno Catarino relates to the rigorous management of operating costs. Speaking to ECO, the financial director of the SAD recognises that costs with External Supplies and Services (ES&S) have grown in recent years, but stresses that “the amount of ES&S is quite stable”.

As for the evolution of net debt, Nuno Catarino explains that it is under control and on a downward trajectory in the SAD universe. “I don’t see debt as a threat”, said the CFO, emphasising that the club – unlike SAD – has no significant net financial debt, thus reinforcing a solid financial position to support future investments.