2024-07-05 09:05:37
A study by KEPE records the financial performance of the Greek PAEs as well as the corporate taxes and the debts of the groups to the Greek State.
In addition, the analysis projects concentration indicators of the 1st national category and an efficiency indicator of the management of the total revenue of PAEs.
The period under consideration covers the 2015/16 to 2021/22 seasons, and the main conclusions are drawn from the following findings:
• Firstly, it is found that most PAEs (77.2%) are loss-making over time, as they record losses in their annual financial statements. Cumulative damages
(€296.33 million) at the level of the 1st national category far exceed the cumulative profits (€28.61 million). The resulting revenue shortfall (€267.72 million), in relation to the expenses, of the PAE
is largely compensated by their (major) shareholders, who do not enjoy a dividend policy in contrast to the majority of financial (and non-financial
financial) businesses.
• Secondly, 14 PAEs are recorded, which have suffered negative equity at least once, as well as several PAEs with continuous negative values in their net worth.
• Thirdly, the Greek State has collectively received net corporate taxes of €14.34 million for four fiscal years and has made a net tax refund of €6.84 million in three
uses. Collectively, the net collection of the State is €7.50 million from 9 PAEs.
• Fourth, the debts to the State and EFKA amount to over €1.14 billion (update: 04/09/2023), with only 9 of the 24 teams having participated in the 1st
national category to maintain a clean record in the AADE debtor list, where a total of 21 different VAT numbers are recorded for the remaining 15 groups.
• Fifth, based on the concentration and competition indicators, it appears that there is low competition and high concentration in the 1st national football division. This
moreover, it is confirmed by the domestic titles which are continuously won by the group of “big four” (also called “big 4”), especially by OSFP the
championships and from PAOK the cups.
• Sixth, regarding the utilization of the revenues, together with the financial support from the (major) shareholders, in terms of winning either the championship or the cup,
it follows that PAOK performs relatively better in terms of revenue management efficiency compared to AEK and OSF. In addition, PAO has the lowest degree of utilization of total revenues among the “big 4”, as the total sources
the team’s revenues seem to not be “taking place” at the level of winning titles.
• Seventh, given 1) Article 76 of Law 2725/1999 and Article 17 of Law 3262/2004 on the “notional value” of athletes and increase of equity, and 2) that in the examined
sample, there are over time several PAEs (41%) with negative equity, the role of the competent committee for the systematic and annual assessment of the value of the
football players of the PAE. This, regardless of whether or not there is a need to apply Article 119 Par. 4 of Law 4548/2018 on the pooling of equity and 50% of
equity.