Wiener Austria published its annual report for 2019/20 and, as was to be expected based on the association’s previous financial reports and the corona crisis, posted a heavy minus.
As usual, the Viennese published a detailed report on the club’s financial situation. Those responsible in Vienna-Favoriten have been emphasizing for a long time that this looks anything but rosy.
Now it is in black and white: Compared to the previous year, total income decreased from 38.7 to 22.7 million euros (41.3 percent), the annual result by 18.8 million euros and equity by 14.5 million euros. Euro. The association blames a large part of these bad numbers on the situation around Covid-19, which has affected sponsoring / VIP (11.3 million euros), ticketing (1.1 million euros) and merchandising (271,000 euros).
FK Austria Wien: “Participate in the European Cup with a strategic partner”
An explanation was also provided in the current report by the Violets and reads as follows:
“The reason for the negative annual result, especially for the EBITDA (earnings before interest, taxes, depreciation and amortization) of EUR -11,903 thousand, are painful one-off effects without which the operating result would be positive. Out of commercial caution, a national and an international major sponsor had to be written down. The COVID-19 crisis made it much more difficult to collect these two claims. These two individual value adjustments result in a total in the double-digit million range.
The business model of FK Austria Wien has always been based on developing with regular European Cup participations and transfers. In the 2017/18 season, in which Austria Wien reached the UEL group stage for the last time, this income totaled around 11.5 million euros and thus more than a third of the revenue at that time.
The club has drawn up a catalog of measures that will be strictly followed and will guarantee the club’s future competitiveness. One of these measures is to work with a strategic partner to ensure that the club can continue to develop with regular European Cup participations and transfers. ”