We wrote about Benfica, and now it’s turn to look at Porto’s finances. As well as their rivals, Porto is also having a big rise in revenue.
In 2019 Porto recorded revenue of €176 million, even more than Benfica. They managed to get their revenue 67% higher, and their broadcasting revenue is quite impressive. It rose from €55 million in 2018, to €124 million in 2019. This happened because Portuguese clubs singed new domestic TV deal and their TV rights money improved dramatically.
Also, Porto had a great Champions League campaign. They got lucky in the draw and played in a group with Schalke 04, Galatasaray, and Lokomotiv Moscow. After a draw with Schalke on the opening day of the Champions League, they won the next 5 games and finished on top of the group. Then they eliminated Roma in the round of 16 and got hammered by future champions Liverpool in the quarterfinals.
So, with so much money from the new TV deal, Champions League TV money, and UEFA prize money, Porto managed to get to a healthy €11 million pre-tax profit. This was helped by player sales also.
Porto has always delivered great players. In the 2018/19 season, they sold their full-back pairing of Diogo Dalot and Ricardo Pereira for €22 million each. Willy Boly went to Wolves for €12 million, and other players were sold for around €10 million.
Porto’s wages to turnover ratio dropped from 74% to 52%, so that improved dramatically. Also, as in the case of Benfica, Porto started to decrease its debt. They cut their debt from €279 million in 2018, to €222 million in 2019.
What about next season?
Next year Porto will have much smaller broadcasting revenue because they failed to qualify for the Champions League, but we can expect similar financial results. Their domestic TV deal stays the same, and they have sold their Brazilian centre back pairing of Eder Militao and Felipe for €70 million combined. In addition to that Oliver Torres was sold to Sevilla for €12.5 million, so transfer money will compensate for their lack of UEFA prize money.