José María Cruz at the General Shareholders' Meeting 2021

The Club

THE ANNUAL ACCOUNTS ARE APPROVED AND THE MANAGEMENT REPORT BY 54% OF VOTES

26/10/2021

Also they moved forward with the board of directors and the proposal for the distribution of results

The director-general José María Cruz was in charge of presenting points 2, 3 and 4 of the agenda at the Sevilla FC General Shareholders' Meeting 2021. Cruz carried out a brief summary of the different economic variables, specifying initially that the audit report from EY, which took place one year ago, reflects a perspective with conditions about the decisions of the club in the 2019/20 annual accounts. The months of competition correspond to the increased season due to the pandemic. In any case in the words of Cruz "the decision was consulted with La Liga, UEFA and the main financial institutions. Although the auditors disagree, its is valid in the eyes of UEFA and La Liga. Far from creating a problem with the financial institutions that have supported our growth, the decision has been clearly understood and this supports our decision."

Already deep into the analysis of the numbers, Cruz confirmed that turnover was 170.7 million euros, as well as the decrease from transfers and the rest of income. "The total of ordinary and extraordinary income is 192.9 million, compared to 228.7 million before. This means a growth in turnover but also a decrease in money from transfers due to the loss of the last two transfer windows. The cost of the squad is higher and the cost of debt plus the cost of transfers is very similar to the year before. In total income went from 172 million to 164 million, which gives before tax a loss of 39.1 million, which will be 41.3 million after taxes.

"Of the 39.1 million lost before tax, 27 million was a direct effect of covid"

Breaking it down, Cruz explained that the income from competitions has significantly increased going from a season in the Europa League to another in the Champions League. In terms of season ticket holders, of the 8.1 million from the year before, having to refund them because of covid reduced the total to 0. "In terms of broadcasting and marketing they are practically the same. Analysing the figures Cruz said that "the results are not positive. They are negative like has happened to the majority of Spanish and European clubs, although not all. As a result, we have lost 39 million before tax, 27 million of which is directly as a result of covid. We have lost 12.7 million in the earnings from season tickets and 3.7 million in ticket sales from playing behind closed doors. Also 3.3 million from UEFA for playing without a crowd, 2.4 million in 2019/20 and 2.7 million in 2020/21 from television rights." Cruz also included the costs from covid protocals which cost the club 1.2 million euros. In normal times losses would have been registered but around 10-12 million euros. This is an explication not an excuse why the accounts reflect an important loss. On the other hand, he explained despite this Sevilla FC continue complying with the three key control ratios from La Liga, both the break-even point, the costs of staff and the net debt ratio.

Finally, given that the board of directors doesn't need a statement, with regards to point 4 the proposal for the distribution of results, the loss was calculated at 41.3 million having applied reserve funds, without which the figure would be 50 million. Once the votes were carried out on these points, point 2 was passed by 54.04%, point 3 by 52.12% and point 4 by 40.05% of shareholders.