5th edition | 2020-21 Season | Portuguese Professional Football Yearbook

5th edition 2020-21 Season

Portuguese Professional Football Yearbook ey.com #202021yearbook

Disclaimer: This document was prepared by Liga Portugal and EY. It represents a translation from the "5ª edição Época 2020-21 - Anuário do Futebol Profissional Português". It is private and confidential. This document and its content cannot be transmitted or disclosed to third parties without consent from EY and Liga Portugal.

Index

Message from the President of Liga Portugal

4

Message from EY

5

2020-21 Season Review

6

Chapter 1: Liga Portugal

8

Chapter 2: The Impact of Portuguese Professional Football

18

Chapter 3: Liga Portugal Competitions

30

Chapter 4: Football Today

70

Preface Portuguese Professional Football has always been an example since the pandemic forced us to redefine our strategies and behaviors. And now, at a time of confidence and commitment, we will take on our strong goal of continuing to be a beacon for other activities and industries.

Speeding up the economic recovery Pedro Proença

President of Liga Portugal

These times are of change. Of turning.

Of commitment.

The last two years have been a demanding test of overcoming the strange reality that the pandemic imposed on us. The economy suffered, the activities were weakened, and the downturn was significant. This happened at all levels and in all areas.

Football was no exception, but it bravely kept treading its path.

Now the conversation is different.

4

| Portuguese Professional Football Yearbook 2020-21

The hardships showed us how much we are capable of, the example we can be, and how adversities can turn into opportunities.

The supporters are back in the stadiums.

The industry is back in full swing and there is nothing to be afraid of.

Economic growth should be a common goal and more than enough reason to seal new synergies and partnerships.

Professional Football is a role model in this matter. With the coldness of numbers, this yearbook shows the power of this industry, even in such an atypical and limited revenue season.

The Portuguese Professional Football Sports Societies contributed more than €550 million to the Portuguese Gross Domestic Product (GDP) in 2020-21.

They contributed more than €192 million in taxes.

We at Liga Portugal remain ambitious and assume, without any hesitation, the will to be an example and a promoter of investment. The construction of the Liga Portugal Arena, a new headquarters building that will also serve as home to a business incubator, which will be a meeting point for business, training, and reflection, is proof that we are literally on the ground building a promising future.

Last season we were connected to

more than 3,729 jobs, a number that should increase with the new projects.

In politics, too, governmental changes are spurring us to take action. As always. We continue to demand a different view from the political powers towards Football, inviting them to perceive the relevant weight of the industry as a mass phenomenon of immense potential - €1.962 billion of total media exposure in 2020-21.

Portuguese Professional Football deserves an audible voice and opinion among the most important reflections.

As usual, Liga Portugal is available for dialogue and active participation with the new governing body, counting on the country’s leaders to be allies in the promotion of this activity that we are all passionate about.

The future will be what we make of it and we look forward to tomorrow. The centralization model for audiovisual rights will be a new and beneficial reality for all, contributing to the financial health of the Sports Societies and Portuguese Professional Football.

This is an achievement of this Board that will also be a turning point, bringing us closer to the goal of being among the best European leagues. A lot is happening and we have so much to do.

This game is not over yet!

Despite the 2020-21 season being fully marked by the pandemic, there was an increase in the revenue of the Sports Societies and in the respective impact on the Portuguese national economy, which illustrates the importance and resilience of the industry but also the adaptability of its stakeholders.

2020-21 Season: An unparalleled season in Football Miguel Farinha

Partner and Strategy and Transactions Leader at EY

The partnership between EY and Liga Portugal has been developed over the past five years to stimulate the development and professionalization of Professional Football in Portugal.

This industry’s evolution pace is increasingly pronounced and we can note the emergence of new realities and consumer profiles as a result of generational renewal of fans and the industry’s growing digitalization.

Therefore, understanding the impact and performance of the industry and the ability to develop a perspective on its main challenges are more relevant than ever.

In the 2020-21 season, Portuguese Professional Football directly contributed with over €550 million to the GDP, generating at least 3,729 jobs and over €192 million in taxes.

The start of the competitions was delayed due to the pandemic and it happened at a moment when the rules imposed to combat COVID-19 were in full effect. This resulted in a substantial reduction in ticket revenue, imposing new challenges on the Sports Societies that saw a growing need to generate additional revenue sources.

Even though the 2020-21 season was fully marked by the pandemic, there was revenue growth, which illustrates the resilience of this industry.

Revenue from audiovisual rights continued to be an important source of revenue for Sports Societies. In this context, it is important to highlight the role of Liga Portugal, in 2021, in establishing the company that will be responsible for centralizing the television rights of Portuguese Professional Football as of the 2028-29 season. This new business model should promote the industry’s competitiveness through greater equity in the distribution of television revenue and the valorization of television rights compared to the current decentralized model.

In addition to this topic, others of significant relevance to the future of the industry have also been identified, such as the internationalization of Portuguese Professional Football, digitalization, and the transformation of the fan experience, among others.

As in past editions, we intend that the Yearbook represents an essential tool for analysis, contributing to the reflection process on the challenges, the professionalization process, and the sustainability of the industry and its stakeholders.

Portuguese Professional Football Yearbook 2020-21 |

5

SUMMARY 2020-21 Season Review

The 2020-21 season continued the new strategic cycle of Liga Portugal for the four-year period of 2019-2023, which seeks to position Portuguese Professional Football at the top of the European leagues and promote its sporting and economic valorization.

Despite this season having been strongly marked by the pandemic, with almost all matches having been held without fans in the stadiums, Liga Portugal stays focused on implementing its agenda of affirmation of Portuguese Professional Football.

6

| Portuguese Professional Football Yearbook 2020-21

The Portuguese Professional Football Yearbook results from a strategic partnership between Liga Portugal and EY. The content gathered in the fifth edition of this publication shows the financial, economic, and social impact of Portuguese Professional Football in the 2020-21 season, highlighting the global importance of the sector. The first chapter presents Liga Portugal’s strategic objectives for the four-year period of 2019-2023 and the work developed to address them. The five strategic axes aim to leverage the current phase of maturity of the sector through the affirmation of Liga Portugal, the valorization of its competitions, the investment in the digital world, and the industrialization and internationalization of Portuguese Professional Football - this being the topic that closes the chapter, with a summary of important measures for the projection of the sector abroad.

Then, in the second chapter, we evaluate the direct impact of Portuguese Professional Football in the economic, cultural, and social aspects. Besides the impact on the generation of wealth, employment, and fiscal contributions, we present Liga Portugal’s main initiatives in regards to Social Responsibility, a topic of growing importance for the institution, given its privileged position to act in this field as a result of the notoriety of football and its players.

The third chapter highlights the professional competitions. The online and social media presence continued to grow and gain prominence in a season that saw the most drastic reduction in ticket revenue on record.

We also highlight the initiatives carried out within the scope of the Allianz CUP, which continue to involve fans, focusing on the digital aspect through eSports tournaments and promoting solidarity actions.

Although the decline in ticket revenue has been sharp, Portuguese Professional Football has never lost contact with the fans, exploring the increasingly relevant digital aspect in all areas. The tools have evolved, and Liga Portugal remains committed to increasing the value of its competitions.

Pedro Proença President of Liga Portugal Finally, and as usual, the Yearbook ends with the identification of hot topics in the football industry, which were mapped in close collaboration between EY and Liga Portugal. These were divided into four structural topics: the economic sustainability of the industry, the involvement of the supporter, and the repositioning and competitiveness of Portuguese Professional Football.

This chapter also takes into consideration a group of other topics that are particularly relevant today, such as the fight against piracy, the prevention of violence in football, and issues associated with the legal framework of the Sports Societies and its importance for the reliability and transparency of the sector.

Liga Portugal and the Sports Societies of Liga Portugal bwin and Liga Portugal SABSEG contributed in 2020-21 with:

OVER

OVER

3 729

IMPACT

€192M IN TAXES

OVER

JOB POSITIONS

€550M TO THE GDP

OVER

OVER

€1 574

€1 532M

IN ASSETS

IN LIABILITIES OVER

€827M IN EXPENSES

FINANCIAL

OVER

€795M IN REVENUE

€1 962M 90%

TOTAL MEDIA EXPOSURE (2) (3)

BROADCASTING

OF THE MATCHES WERE BROADCAST

(1) The calculation of revenue does not include non-operational revenue (such as operating subsidies and interest and other similar income). Liga Portugal’s income generated by fines, penalties, and contributions from Sports Societies were subtracted from revenue. (2) Advertising Value Equivalency, is the equivalent cost of advertising in minutes and spaces (traditional/digital) of the competition’s presence in the media. (3) Besides the 1st and 2nd Leagues, the Allianz CUP is also taken into account.

CHAP

TER 1 Liga Portugal Institutional

Liga Portugal and its work Liga Portugal carries out its Activity Plan yearly in accordance with the defined strategy, focusing on its fundamental values and the valorization and projection of the institution and the competitions it organizes Mission, vision, and values of Liga Portugal Mission Vision

Values

To guarantee excellence in the organization of competitions with full respect for the economic and financial sustainability of the institution and its associates.

To assume itself as one of the most important Leagues in Europe, permanently on the path of good international practices by adding economical and sportive value to Portuguese Professional Football.

Credibility

Aggregation

Talent

Spectacle

In all aspects, both in competitions and in business management.

To create the conditions to defend football’s best interests.

Both in the competitions and their players and in the industry as a whole.

To gather the ingredients to make competitions more and more spectacular, both inside and outside the stadiums.

Source: Liga Portugal

Five new strategic lines of action for the 2019-2023 cycle Liga Portugal has outlined an ambitious strategy for Portuguese Professional Football with the purpose of commercially, economically, and sportingly strengthening and enhancing the industry. The five strategic lines of action have been translated into 90 concrete measures that are being monitored by Liga Portugal.

1

2

3

4

5

Affirmation of Liga Portugal

Valorization of the competitions

Industrialization of Portuguese Football

Investment in the digital world

Internationalization of Liga Portugal

Strategy for greater visibility and prominence of Liga Portugal

Strategy for greater transparency and better regulation of Portuguese Professional Football

Integrated strategy for a greater commercial valorization of the spectacle, managed as a business

Strategy for accelerating the digitalization of Liga Portugal and Portuguese Football

Strategy for obtaining a significant international visibility for Liga Portugal

33/90 measures completed

Source: Liga Portugal 10 | Portuguese Professional Football Yearbook 2020-21

41/90 measures undergoing

90 operational measures

Liga Portugal’s goals

1

To organize and regulate competitions of a professional nature under the terms of the applicable legislation;

2

To promote the defense of the common interests of its associates and the management of the matters inherent to the organization and the practice of Professional Football and its competitions;

3

To exercise, concerning its associates, the functions of disciplinary control and supervision established by law in the statutes and regulations of Liga Portugal;

4

To exercise, concerning professional football competitions, the powers of organization, direction, and discipline, under the terms of applicable law;

5

To promote training in matters related to the organization, management, and integrity in professional competitions and the organization of events and activities related to them.

Source: Liga Portugal

Liga Portugal’s strategical goals 1. Competitivity

2. Internationalization

3. Sustainability

Stimulate the competitiveness of competitions by improving their competitive frameworks and models.

Project Portuguese Professional Football abroad, as well as diversify its sources of income.

Guarantee the financial sustainability of the Sports Societies by implementing strict rules for access to competitions.

4. Innovation

5. Integrity

6. Strategy

Promote technological innovation as a lever for sports fairness and ties with the fans.

Promote a joint strategy across all football stakeholders to combat manipulation and corruption.

Develop commercial strategies that meet the new consumer profile and their needs.

7. Valorization

8. Dialogue

9. Business

Qualify and valorize the show, stimulating the interest of the partners and potentiating a greater economic return.

Contribute to social dialogue, making the interests of the protagonists of the show converge.

Counter some of the cultural idiosyncrasies that hinder the implementation of a more advantageous business model.

10. Governance

11.Reflection

Implement a new model of governance that is democratic, agile, and reliable that promotes a modern management of Liga Portugal.

Prepare the reflection of the new challenges that Sports Societies will face regarding their audiovisual rights.

Source: Liga Portugal

Portuguese Professional Football Yearbook 2020-21 | 11

Organizational Structure of Liga Portugal Liga Portugal is organized in a representative and participative model with bodies of deliberation, administration and management of the entity, and several departments of operational competence How was Liga Portugal organized in the 2020-21 season?

GENERAL ASSEMBLY Supreme deliberative body, consisting of all ordinary associates that compete professionally.

BOARD Collegiate body for administration and management, comprising the President of Liga Portugal, a member of the Board of the Portuguese Football Federation and eight Associates.

EXECUTIVE BOARD Presidential executive and deliberative body, consisting of a President and four Executive Directors.

2

votes by each Sports Society Liga Portugal bwin 18 69

Sports Societies % of the votes

1

vote by Sport Society Liga Portugal SABSEG 16 31

Sports Societies % of the votes

5

3

Three for sporting merit that elect two more yearly.

Three per yearly election with unrepeatable terms.

President

Executive Directors

•

•

Helena Pires

•

Tiago Madureira

•

Susana Rodas

members Liga Portugal bwin

Pedro Proença

members Liga Portugal SABSEG

Coordinator Executive Director •

DEPARTMENTS Operational structure to monitor the activity plan outlined for each sports season.

Sónia Carneiro

Financial

Contents & Media

Competitions

Technology

Legal

Integrated Management System

Registrations and contracts

Executive Board Assistance

Marketing and Sales Source: Liga Portugal 12 | Portuguese Professional Football Yearbook 2020-21

Participation in Work Groups The governance of Liga Portugal is based on a representative model. The participation of the Sports Societies in the Work Groups demonstrates their involvement and commitment to the future of Professional Football.

The Work Groups promote the debate between the staff and managers of the Sports Societies about common issues related to different areas. In the 2020-21 season, they began on September 20 of 2020. Several meetings were held, which were attended by the largest number of Sports Societies in recent seasons.

Participation rate in the held meetings

Liga Portugal bwin Sports Societies

Liga Portugal SABSEG Sports Societies

Source: Liga Portugal

Work Group Topics Financial • Financial Assumptions; • Totonegócio; • Sports betting; • Taxation in football; • Sports insurance.

Competitions • Analysis of competitive models;

• Taking advantage of new technologies;

• Importance and investment in infrastructure;

• Sanction of declassification; • Kits; • Stadium bans due to turf conditions.

Contents & Media • Media Accreditation; • Promotion of competitions; • eSports; • COVID-19.

Prevention and Security • Liga Portugal’s security department;

• OLA(1) and RAD(2) training content;

• Monitoring and implementation of Law 113/2019.

Legal

Marketing

• B teams regulation; • Allianz CUP regulation; • Legal framework of the Sports Societies;

• Stadium and return maximization;

• Empowering the fans; • Thinking Football.

• Investors; • Coaches; • Piracy prevention; • Disciplinary proceedings; • Proceedings of the Competition Authority.

Technology

Social Responsibility

• eLiga;

• Accessibility in the stadiums;

• Digital football;

• Environmental League;

• Digital security;

• Social responsibility in football.

• Digital stadium; • Supporter card.

Source: Liga Portugal (1) Supporter Liaison Officer. (2) Accessibility for People with Disabilities Officer.

Portuguese Professional Football Yearbook 2020-21 | 13

Liga Portugal’s Financial Results Liga Portugal had another year of positive results, even though COVID-19 had a negative impact on the 2020-21 season, contributing again to the reduction of revenue Evolution of the revenue structure of Liga Portugal Millions of euros

€16,9M 2020-21

%

Compound Annual Growth Rate

Source: Liga Portugal

Main trade agreements in 2020-21

3 Main Sponsors Official sponsors of Liga Portugal competitions

3OfficialSponsors Official sponsors of Liga Portugal

6OfficialPartners Official partners of Liga Portugal

2 Allianz CUP Sponsors Allianz CUP’s official sponsors

3 Final Four Sponsors Allianz CUP Final Four Official Sponsors

Source: Liga Portugal 14 | Portuguese Professional Football Yearbook 2020-21

Operation of professional competitions

Partners and Liga Portugal

Evolution of the overall results of Liga Portugal(1) Pre-tax results

777k€

Millions of euros

Net results

6th year Positive Results

6,2M€ Distributed among the members

Source: Liga Portugal

Evolution of Liga Portugal’s cost structure Millions of euros

Structure, services, and others Distributed to the Sports Societies

€15,8M 2020-21

Events and training Organisms and entities

%

Source: Liga Portugal

Compound Annual Growth Rate

Support to Sports Societies in 2020-21 Total direct distributions

€982k

Thousands of euros

League Cup Prizes

Solidarity TV Quotas

B Teams Quotas

Stadiums Surveillance Service

Commercial Rights

Others

Total indirect distributions Thousands of euros

Refereeing

€5,2M

Observers and Delegates

Balls Distribution

AG Dez17 Fund(2)

Doping Control

Official Ticket Sales and others

Source: Liga Portugal (1) Liga Portugal’s overall results include Liga Portugal’s and Associative Results and Professional Competitions Operational Results.

(2) Fund approved by the General Assembly in December 2017.

Portuguese Professional Football Yearbook 2020-21 | 15

Internationalization of Liga Portugal Liga Portugal continued to develop its internationalization strategy in collaboration with clubs and television operators, in an effort that it considers fundamental to the growth of Portuguese Professional Football Vision and goal In line with the vision and objectives of Liga Portugal, the 2020-21 season took place with the commitment, development, and continuous implementation of an active policy of internationalization of Liga Portugal.

Internationalization is essential for the promotion of the competitiveness of Portuguese Professional Football, in an effort to reposition and add value to it. About one-third of the established measures in the context of internationalization (17) were completed in 2020-21, with 29% still ongoing. Some of the accomplished measures involved partners of interest in other geographies, such as LaLiga in Spain.

Partner countries and countries of interest for the internationalization of Portuguese Professional Football

Status of internationalization measures

7/17

Taken measures

5/17

Ongoing measures

Some of the accomplished measures

Some of the ongoing measures

• Creation of international competitions, such as the Iberian Cup, with our international partners.

• Creation of a player database with different audiovisual materials that allows the development of content for the international media, facilitating interactions with international partners, and enriching the Liga TV channel.

• Use of the Ambassadors as promoters of Liga Portugal, its competitions and Sports Societies in foreign markets;

• Participation in international fairs, such as Websummit and Soccerex.

Source: Liga Portugal 16 | Portuguese Professional Football Yearbook 2020-21

• Design and implementation of joint actions and/or projects for financing internationalization.

The internationalization of our competitions, along with the centralization of audiovisual rights, is one of the areas in which the present management of Liga Portugal is making a strong investment. These two strategies complement each other and will bring enormous benefits for the Sports Societies.

Initiatives to develop relationships with international leagues and organizations Liga Portugal continued to develop an active policy of promoting and carrying out various actions with international entities of strategic interest.

Extension of the cooperation between Liga Portugal and LaLiga until 2023

Angolan Delegation Visit Liga Portugal

Liga Portugal and LaLiga have extended for three more years the Memorandum of Understanding that aims to deepen the collaboration in economic control, new technologies, and integrity and security, binding the two institutions until July 2023.

We intend to continue fostering the already close relationship between the two leagues that has already led to institutional visits by representatives of Liga Portugal to LaLiga and its clubs, and the exchange of knowledge between the parties.

This relationship has also led to actions such as the creation of the Iberian Cup. It is also the parties’ intention to move forward with digital actions, with the exploration of new fields of collaboration in eSports, among other topics, such as economic control, the fight against audiovisual piracy, against racism, and xenophobia, and the promotion of football.

Liga Portugal opened its doors to the Angolan Football Federation for a training visit. This had the purpose of helping the Angolan clubs’ setting-up committee to acquire knowledge for the establishment of a Professional Football League in Angola.

Besides the visit to the home of Portuguese Professional Football, where the Angolan delegation had the opportunity to learn about the work developed in the various departments of the League, they also paid a visit to four of our Sports Societies. They visited stadiums, museums, academies and met with marketing, legal, and communication directors, with those responsible for training and with the president of one of the club’s board.

Portuguese Professional Football Yearbook 2020-21 | 17

CHAP

TER 2

The Impact of Portuguese Professional Football Economic, cultural, and social

The Impact of Portuguese Professional Football Professional Football, besides its economic relevance in the creation of wealth and employment, has a social and cultural dimension of great importance for Portugal in its ability to inspire and unite communities Football has relevant impacts on Portuguese society

Professional Football is more concentrated in the North and the Metropolitan Area of Lisbon

Football is a universal language, capable of inspiring and uniting communities, and thus has several dimensions social, cultural, and economic.

In this yearbook, its economic dimension receives a greater deal of attention, calculating the impacts of the aggregate results of Liga Portugal and the Sports Societies.

There is a high concentration of Sports Societies in the North of Portugal and the Metropolitan Area of Lisbon.

Only nine out of the 34 Sports Societies (26%) are located in the Center, Alentejo, Algarve, and Islands regions.

Social Dimension

Economic Dimension

50% North

Cultural Dimension

24%

26%

Metropolitan Area of Lisbon

Center, Algarve, and Islands

Source: Liga Portugal

Impacts on the economy Portuguese Professional Football produces direct, indirect, and induced impacts on the economy. However, in this yearbook, only the Sports Societies and Liga Portugal’s direct impacts are calculated.

Impact Drivers Liga Portugal bwin Liga Portugal SABSEG Liga Portugal

Source: EY Analysis 20 | Portuguese Professional Football Yearbook 2020-21

Direct impacts

Indirect impacts

Induced impacts

• Sales and services provided; • External supplies and services; • Transfer balance; • Other operational results; • Job positions; • Taxes paid.

• Economic activity generated by the value chain as a result of the direct impacts of Professional Football; • Take for example the expenses on restaurants on match days.

• Economic activity supported by increased consumption in the economy due to direct and indirect impacts of employment generated by Professional Football.

In 2020-21, Liga Portugal and the Sports Societies had an estimated contribution to the Portuguese GDP of €550 million.

Liga Portugal bwin 18 Sports Societies

2020-21

Total %

€528M

96%

2019-20 variation

Contribution to the GDP

€550M

1.3% increase in 2020-21

Liga Portugal SABSEG 16 Sports Societies

Liga Portugal 1 Organizer

€13M

2%

€8M

2%

Evolution of the total contribution to GDP

0,25%

(1)

Professional Football Yearly Contribution to GDP

Millions of euros

Source: Liga Portugal

%

“The contribution of Football increases in an atypical year, with no fans in the stadiums” Liga Portugal and the Sports Societies generated €792 million in turnover, which translated into a contribution of about €550 million to the Portuguese GDP (0.25%) in 2020-21, returning to prepandemic values, despite the absence of fans in the stadiums. It should be noted that this figure does not include the indirect and induced impacts of Professional Football on the national economy.

Liga Portugal bwin was responsible for 96% of the contribution generated by Professional Football this season.

Despite the drop in ticket revenue, associated with the restrictions on the number of supporters in the stadiums, there was an increase in income compared to the previous season. This increase resulted from the growth in income from television rights (variation of €47 million) and the presence and performance in the European competitions (variation of €11 million), namely the presence of FC Porto in the quarter-finals of the UEFA Champions League.

Compound Annual Growth Rate

(1) The analysis was based on the most recent historical information available. For more detail, see the study methodology section.

Portuguese Professional Football Yearbook 2020-21 | 21

Employment and job positions In yet another season marked by the pandemic, there was again an increase in the number of professionals dedicated to Professional Football in Portugal

Job positions

3 729

In 2020-21, Liga Portugal and its Sports Societies generated the following job positions:

4.2% increase in 2020-21

“Record employability numbers in a season marked by a pandemic” Liga Portugal and the Liga Portugal bwin and Liga Portugal SABSEG Sports Societies were directly responsible for 3,729 jobs(1).

The Liga Portugal bwin Sports Societies are responsible for most of the jobs created. They employ 2,946 people, of which 1,155 are players, 267 coaches, and 1,524 employees assigned to the support, management, and administration areas.

The athletes are the highest paid sports agents, earning a total aggregate amount in salaries of €238 million, followed by staff and coaches.

The average yearly productivity of football professionals (athletes, players, and staff) was €148 thousand. The increase over the previous season (€10 thousand) reflects the greater increase in gross added value compared to the increase in employment.

Total job positions

Total salaries

Total

2 946

712

71

3 729

€313M

Players

1 155

460

-

1 615

€238M

Coaches

267

78

-

345

€37M

Employees

1 524

174

71

1 769

€37M

Evolution of the number of job positions(1) Average annual productivity

Jobs

Players

Coaches

Staff

Source: Liga Portugal 22 | Portuguese Professional Football Yearbook 2020-21

(1) The analysis was based on the most recent historical information available.

For more detail, see the study methodology section. (2) The figures regarding the previous seasons were revised after the end of the 2020-21 financial year.

Employees of the Sports Societies in the 2020-21 season

1 698

Employees

823

Support staff

359

Management

516 Others

Source: Liga Portugal

Theattraction,training,andretentionoftalentareessentialfortheaffirmation of Liga Portugal On the basis of the affirmation of Liga Portugal is a welldefined strategy to increase its prominence and reputation as a reference institution in Portuguese Football.

This strategy is based on 24 initiatives, of which six are directly related to the attraction, retention, and training of human resources.

In this sense, a Trainee Program capable of attracting dynamic young people with demanding academic paths and with a taste for the football industry is being developed

by Liga Portugal. Simultaneously, some policies are being developed to professionalize the management of the upper levels as well as to strengthen academic training and international experience, thus encouraging the flow of professionals between Liga Portugal and the various football institutions in the world and the exchange of best practices between them.

The creation of a center for study and research on Portuguese Professional Football and the partnerships with Universidade Católica for the development of two postgraduate courses - Organization and Management in Professional Football and Communication in Professional Football, prove Liga Portugal’s commitment to the promotion of talent in the industry.

Thus, and being aware of the continued worldwide professionalization of the sector, Liga Portugal creates conditions for the empowerment of the Sports Societies and Agents through industry-oriented training in various areas management, accounting, legal framework, organization of sports competitions, marketing, communication, leadership, sports ethics, among others.

Portuguese Professional Football Yearbook 2020-21 | 23

Fiscal contributions The fiscal contributions indexed to the remuneration of sports agents, such as Personal Income Tax and Social Security, remain the most impacting in terms of the fiscal and parafiscal burden borne by the Sports Societies

Fiscal contribution

€192M

In 2020-21, Liga Portugal and the Sports Societies contributed with the following fiscal impacts:

Liga Portugal bwin 18 Sports Societies

2020-21

Total %

€177M

92%

€11M

6%

€4M

2%

2019-20 variation

2.5% increase in 2020-21

“Personal Income Tax and Social Security represent about 87.9% of fiscal contributions” Portuguese Professional Football earned more than €192 million for the country in taxes. As presented in previous editions, in this edition of the Yearbook we detail taxes such as IRS (Personal Income Tax), VAT (Value Added Tax), and Social Security as reported by the Sports Societies on an aggregate level.

Liga Portugal bwin contributed around €177 million, which corresponds to 92% of the total estimated fiscal impact. Liga Portugal SABSEG and Liga Portugal contributed around €15 million, which represent a weight on fiscal contributions of 6% and 2%, respectively.

The most relevant volume of fiscal contributions is indexed to the remuneration of sports agents. IRS and Social Security contributions reached the amount of €169 million, €13 million more than in the previous season, a weight of 65% and 23%, respectively, on fiscal contributions. These were the main drivers of the growth in contributions from the industry to the country.

Liga Portugal SABSEG 16 Sports Societies

Liga Portugal 1 Organizer

Evolutionofscal fi contributions

(1)(2)

Millions of euros

Tax, VAT, and Social Security non-detailed impact concerning the Sports Societies

Social Security %

CIT

IRS

VAT

VAT

Compound Annual Growth Rate

Source: Liga Portugal 24 | Portuguese Professional Football Yearbook 2020-21

(1) The analysis was based on the most recent historical information available.

For more detail, see the study methodology section. (2) The figures regarding the previous seasons were revised after the end of the 2020-21 financial year

Detailedscal fi impactsoftheSportsSocietiesinthe2020-21season Impact

Detail

Liga Portugal bwin

Liga Portugal SABSEG

Total

•

Players

€65,7M

€3,8M

€69,5M

•

Coaches

€11,4M

€0,4M

€11,8M

•

Employees

€6,2M

€0,3M

€6,5M

•

Unspecified others

€36,3M

€0,1M

€36,4M

•

Players

€6,7M

€1,0M

€7,7M

•

Coaches

€5,1M

€0,4M

€5,5M

•

Employees

€5,0M

€0,3M

€5,3M

•

Unspecified others

€22,6M

€1,4M

€24,0M

•

Ticket sales

€0,1M

€0,0M

€0,1M

•

Merchandising

€0,4M

€0,0M

€0,4M

•

Unspecified others

€12,0M

€2,2M

€14,2M

CIT (Corporate Income Tax)

•

Levied on income

€2,6M

€0,2M

€2,8M

€3,6M

•

Levied on signings

€3,2M

€0,3M

€3,5M

•

Unspecified others

€0,1M

€0,0M

€0,1M

€124,2M

IRS (Personal Income Tax)

€42,6M Social Security

€14,8M VAT (Value Added Tax)

€2,8M

Other taxes

Source: Liga Portugal Portuguese Professional Football Yearbook 2020-21 | 25

Social Responsibility The Liga Portugal Football Foundation was created to promote the connection between the Sports Societies and the communities and thus take advantage of the reach of sport to promote a fairer society, with and for football The Football Foundation - Liga Portugal Since its constitution in 2018, the Football Foundation aims to intervene in Portuguese civil society. It takes advantage of the broad reach of football and its players, acting as an aggregating element of sports agents and using the competitions that Liga Portugal organizes in favor of Social Responsibility. It materializes this objective in five main areas of intervention:

Social inclusion

Environmental sustainability

Great humanitarian causes

Drafting, planning, supporting, and promoting projects of social inclusion for socially vulnerable and/or at-risk groups.

Raising awareness for the implementation of consumption reduction policies, reutilization of materials, and recycling.

Supporting and promoting great national and international humanitarian causes based on the Football industry.

Science and technology for Football

Protection of values Promoting sport and the values that come along with it and its organization, and implementation of actions aimed at promoting fair play among sports agents.

Promoting research in the sector, supporting the study and production of scientific and literary works, encouraging the academic training of young people, and stimulating workgroups and events about the impact of football on society and knowledge.

Football Foundation’s strategic objectives

1

2

3

4

5

Promoting the essence of the Liga Portugal Football Foundation, consolidating the positioning of its scope, and establishing partnerships with reputable organizations in the social and ecological contet.

Promoting the joint and responsi ble participation of Sports Societies, stakeholders and general public.

Contributing to the dissemination of the Liga Portugal Football Foundation’s values, both in Sports and football in particular.

Promoting awareness for Social Responsibility and Environmental Sustainability in Professional Football through the creation of value to the various agents.

Promoting the image of Liga Portugal and the Sports Societies as active agents in the areas of social and environmental intervention, both nationally and internationally.

Source: Liga Portugal 26 | Portuguese Professional Football Yearbook 2020-21

Projects of the Football Foundation in the 2020-21 season Flipchart project

Environmental League Project

• Area of operation: Social inclusion.

• Goal: Enabling the interaction between the families of pediatric home care projects and the teams of the Allianz CUP Final Four.

• A video wall that allowed to interact with the teams’ players upon arrival at Estádio Dr. Magalhães Pessoa, in Leiria, was created.

• Three actions that impacted 22 people from Fundação do Gil and APPACDM Porto were carried out.

• Area of operation: Environmental sustainability.

• Goal: Providing tools and support for the environmental education of Sports Societies according to the UN’s Sustainable Development Goals.

• In the Work Groups, a tool was developed to collect and analyze information to encourage an active role in the implementation of good environmental practices.

Social welfare campaigns

Ligas’ World Project

• Area of operation: Great humanitarian causes.

• Goal: Countering difficulties of different natures, financial, health, and social.

• A campaign against hunger, the “NO” campaign against racism in football, the actions “Bola de Reis” (where footballs were given to youths in foster homes) and “Ligam-NOS os desejos” (in which the wishes of children and youths with serious illnesses were granted) have all been carried out.

• Area of operation: Protection of values.

• Goal: Promoting fair play and good values among children, respect for others, and the game.

• Three children’s stories, in which the League’s mascot promotes the positive values of sports with a focus on football, were created.

An advertising spot and coloring books were also created and distributed throughout the country.

Talent Business Center

Other projects

• Area of operation: Science and technology for Football.

• Goal: Supporting the study and production of scientific/literary works in the football sector, encouraging the academic training of youths that intend to work in this sector.

• The Post-Graduate courses in Organization and Management in Professional Football and Communication in Professional Football were maintained in partnership with Universidade Católica Portuguesa. Other training courses were developed to stimulate and enrich the human resources that work in professional football.

• Connect to the Talks Foundation: informal televised conversations about the synergies between Professional Football and Society, offering an overall view of the work and relationships of all those involved on behalf of Social Responsibility; • Solidarity golf tournament; • United against waste; • Children’s Day; • among others.

Football Foundation’s big numbers in the 2020-21 season

10

Major projects implemented

10

Additional initiatives

5

Workgroup meetings

10

Social Responsibility Awards given

20

National strategic partnerships made

Source: Liga Portugal Portuguese Professional Football Yearbook 2020-21 | 27

Social Action of the Sports Societies Several of the Sports Societies’ actions throughout the 2020-21 season were worthy of Social Responsibility awards given by the Football Foundation every month 2020-21 Social Responsibility Awards

SC Braga

Sep/Oct 2020

“A Nossa Sala” (Our Living Room) Financially assisted the remodeling of 17 inpatient rooms of Braga’s Hospital.

FC Vizela

FC Paços de Ferreira

Dec 2020

“Lucas – Childhood Cancer Research” They joined Lions Club Vizela in a solidarity initiative of selling cookies to fund research grants in the area of childhood cancer.

Rio Ave FC

Feb 2021

“Francisco’s Readings” A new section of the Portuguese National Reading Plan, which brings fans periodic episodes where Francisco Geraldes presents reading suggestions and makes proposals in the fight against illiteracy.

FundaçãoBenfica

Apr 2021

“To You If You Don’t Cut Class” A program that aims to counter academic dropouts and failure, distinguishing the best individual recoveries.

A. Académica

Jun 2021

“Say No to Hate” It marked World Social Media Day with an awareness video against the violence and hate that are propagated on social media.

Source: Liga Portugal 28 | Portuguese Professional Football Yearbook 2020-21

Nov 2020

SC Farense

“Be Responsible. Protect Others. By Protecting Yourself” In cooperation with the city of Faro, launched an awareness campaign appealing to the school community to adopt appropriate and responsible behaviors in pandemic times.

Jan 2021

FC Porto

“More Accessible Stadium” Estádio do Dragão is the first stadium in the world to implement color-coding for colorblind people.

Mar 2021

CD Feirense

“Reporting Domestic Violence” Awareness video for reporting cases of domestic violence, featuring the players of the main squad.

May 2021

AC Viseu

“Together for REFOOD Viseu” Professional players integrated the teams that collect and distribute food for people and families in need.

Our mission is also to recognize the extraordinary work that the Sports Societies have been doing with their communities that have a strong impact on the society in general.

Luís Estrela | Football Foundation

Big numbers from the 2020-21 season

158 Social Responsibility Actions

46

In the protection of values area

85% Average participation of the Sports Societies in the promoted activities

94

Social Responsibility Actions

37

In the protection of values area

Portuguese Professional Football Yearbook 2020-21 | 29

CHAP

TER 3 Liga Portugal competitions Sports and financial

Liga Portugal bwin standings of 2020-21

MP

W

D

L

GD

PT

Sporting CP

34

26

7

1

+45

85

FC Porto

34

24

8

2

+45

80

SL Benfica

34

23

7

4

+42

76

SC Braga

34

19

7

8

+20

64

FC P. Ferreira

34

15

8

11

-1

53

Sta. Clara

34

13

7

14

+8

46

Vitória SC

34

12

7

15

-7

43

Moreirense FC

34

10

13

11

-6

43

FC Famalicão

34

10

10

14

-8

40

Belenenses SAD

34

9

13

12

-10

40

Gil Vicente FC

34

11

6

17

-9

39

CD Tondela

34

10

6

18

-21

36

Boavista FC

34

8

12

14

-10

36

Portimonense SC

34

9

8

17

-7

35

Marítimo M.

34

10

5

19

-20

35

Rio Ave FC

34

7

13

14

-15

34

SC Farense

34

7

10

17

-17

31

CD Nacional

34

6

7

21

-29

25

Champions League Champions League 3rd qualifying round

Europa League Group Stage

Conference League 3rd qualifying round

Playoff Relegation

Conference League 2nd qualifying round

Relegation

Liga Portugal bwin

Sporting CP won the league in 2020-21. FC Porto and SL Benfica got 2nd and 3rd place.

Sporting CP won the competition with 85 points.

Rúben Amorim’s team secured the title after beating Boavista FC (1-0), crowning a run of 26 wins, seven draws, and one defeat. The Lions led Liga Portugal bwin since the sixth matchweek until the end, with 65 goals scored and only 20 conceded, the highest goal difference (45), matched only by FC Porto’s. The champions were the team with the fewest goals conceded in the competition.

9 points

difference between the champion and the third place

26,4M

Total number of viewers(1)

739

Goals scored

(1)

2,4

Average goals per match(1)

€1 341M

Media exposure value of the competition in editorial space

(1) The figures shown do not include the playoff matches.

34 | Portuguese Professional Football Yearbook 2020-21

Liga Portugal bwin under the microscope(1)

306

Matches played in the competition

739

Goals scored in the competition

1 399 Yellow cards shown

Red cards shown

42%

66%

52%

37%

Victories for the hosts (127 matches)

First team to score won the match (203 matches)

Goals scored in the second half(2) (381 goals)

Goals scored in last 30 minutes(2) (275 goals)

52

24

21

32

71

Average attacking plays per match (15,851 plays)

Average crosses per match (7,441 crosses)

Average shots per match (6,433 shots)

Average fouls per match (9,653 fouls)

Best attack in the league

Best defense in the league

Most goals scored in the first half

Most goals scored in the second half

Source: Liga Portugal

The highlights of the season The most common outcome of the competition was 1-0. However, 44% of the matches had three or more goals scored. The average goals per match went from 2.5 in the previous season to 2.4.

23 goals Pedro Gonçalves Sporting CP

11 assists Mehdi Taremi FC Porto

1-0

Most common outcome

135

Matches with three or more goals

2,4

Average goals per match

21

Average shots per goal

Source: Liga Portugal (1) The figures shown do not include the playoff matches.

(2) The figures shown include goals scored after regulation time.

Portuguese Professional Football Yearbook 2020-21 | 35

The show watched from the couch The pandemic took the supporters away from the stands. Still, more than 26 million supporters watched the Liga Portugal bwin matches on television, which represents an average of 86,000 viewers per match.

The impact of COVID-19 In the 2020-21 season, the limitations imposed due to the fight against the pandemic left the stadiums virtually empty.

Total attendance in the stadiums

Stadiums capacity

Thousands of spectators

Capacity percentage

Matches TV audience(1)

The match with the highest TV audience was the one between Sporting CP and SL Benfica from the 16th matchweek on Sunday, November 29 of 2020.

Sports Society

Average audience (2)

Average television share (2)

417 659 People watched the game on television

Source: Liga Portugal (1) The figures shown do not include the playoff matches.

(2) The averages include all of the Liga Portugal bwin matches in which the Sports Societies participated in the 2020-21 season.

36 | Portuguese Professional Football Yearbook 2020-21

8,1% Television share

The television product inherent to Professional Football continues to be highly appealing and mediatic.

Adding value to it is an ongoing mission. It is a goal that is redefined at each new maximum reached.

Matches with reduced attendance There were six matches held with reduced attendance, which served as pilot projects to test new procedures for safely welcoming the supporters.

CD Tondela 1–0 Portimonense 5th matchweek 132 spectators

Santa Clara 0–0 Gil Vicente FC 3rd matchweek 873 spectators

Santa Clara 3–0 FC P.Ferreira 21st matchweek 924 spectators

Santa Clara 1–2 Sporting CP 5th matchweek 932 spectators

SC Farense 0–1 Rio Ave FC 5th matchweek 860 spectators

Santa Clara 2–0 Portimonense 23rd matchweek 774 spectators

Evolution of the audiences during the competition(1) The average TV audience was 86,174 viewers. The lowest figures were registered in the last matchweeks. It was on the 32nd matchweek that Sporting CP secured 1st place after beating Boavista FC by 1-0. The fact that the National Champion was already known may have contributed to the decrease in audiences.

120

Thousands of viewers

Average of number of viewers 86,174

100 80 60 40 20

Matchweeks

0 1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Source: Liga Portugal (1) The figures shown do not include the playoff matches.

Portuguese Professional Football Yearbook 2020-21 | 37

The stars that generate audiences The media return from the competition is estimated to be at €1.341 billion.

In 2020-21, online media will increase its share to €325 million. Television continues to be the predominant medium Broadcast of matches on television(1) The broadcast of Liga Portugal bwin matches is done by two channels, Sport TV and BTV. Sport TV broadcasts all of the competition’s matches except SL Benfica’s home matches, which are the responsibility of the Sports Society’s channel.

Currently, the negotiation of audiovisual rights is done individually by the Sports Societies.

Schedule of broadcasted matches 306 Mathes

Number of broadcasted matches

289

Matches

17

Matches

Source: Liga Portugal

The media return of the competition (AVE(2)) The value of the editorial space generated by Liga Portugal bwin decreased by around €35.7 million compared to last season. Television and online media are the main valuegenerating media. Social media have already had €4.6 million of media return.

Millions of euros

€1 341M 2020-21

TV %

Online

Press

Compound Annual Growth Rate

Source: Liga Portugal

Key value-creating areas Naming

Flash Interviews

Cam carpets

Editorial

Source: Liga Portugal (1) The figures shown do not include the playoff matches. (2) Advertising Value Equivalency, is the equivalent cost of advertising in minutes and spaces (traditional/digital) of the competition presence in the media. (3) In 2020-21, it includes the value of editorial space on Twitter, Instagram, Facebook, and blog.

38 | Portuguese Professional Football Yearbook 2020-21

Acknowledgment of the stars Best Player

Best Coach

Best Youngster

Best Goal

Sebastián Coates Sporting CP

Rúben Amorim Sporting CP

Pedro Gonçalves Sporting CP

Beto Portimonense SC

Best Goalkeeper

Best Defenders

BestMidfielders

Antonio Adán Sporting CP

Pedro Porro Sporting CP

Sérgio Oliveira FC Porto

Carlos Júnior Sta. Clara

Sebastián Coates Sporting CP

João Palhinha Sporting CP

Haris Seferovic SL Benfica

Pepe FC Porto

Pedro Gonçalves Sporting CP

Mehdi Taremi FC Porto

Best Forwards

Nuno Mendes Sporting CP

Portuguese Professional Football Yearbook 2020-21 | 39

Transfer Market In the 2020-21 season, the majority of player transfers in Liga Portugal bwin (50% of departures, and 58% of signings) involved foreign clubs, which illustrates the growing internationalization of Portuguese Professional Football Departure of players(1) In 2020-21, 203 players were transferred from Liga Portugal bwin to international clubs. This corresponds to 50% of the departures (a total of 402).

71 players were transferred to other Liga Portugal bwin Sports Societies (18%), 62 to Liga Portugal SABSEG (15%), and 36 to non-professional leagues (9%).

The positions with the most departures were striker, with 67 departures, and center-back, with 66.

Departures to Liga Portugal bwin

Departures to Liga Portugal SABSEG

Others

Abroad

Departures to non-professional leagues

Signings to foreign leagues

18%

71

15%

62

9%

36

50%

203

Total

Departures

Total

Departures

Total

Departures

Total

Departures

25,3

25,7

22,4

25,3

Average age

Average age

Average age

Average age

Source: Transfermarkt

Principais Main data on dados the sobre departures as saídas

€68M

MostMaior valuable departure saída

Rúben Dias

€297M Total Total departures saídas

77%

SL Benfica

Manchester City

17%

Summer

Striker

Most active marketplace

Position most transferred

Source: Transfermarkt

(1) The Liga Portugal bwin Sports Societies’ player signings and departures include player transfers and loans. Departures of players who have finished their sporting careers were not considered.

40 | Portuguese Professional Football Yearbook 2020-21

The aftermath of the transfer market

414

402

+12

Player signings

Player departures

Transfer balance

Player signings(1)

Signings from Liga Portugal bwin

Signings from Liga Portugal SABSEG

Others

Abroad

Departures to non-professional leagues

Signings to foreign leagues

17%

71

12%

50

10%

40

57%

238

Total

Signings

Total

Signings

Total

Signings

Total

Signings

25,3

24,4

22,9

24,6

Average age

Average age

Average age

Average age

Out of 414 signings, 71 came from Liga Portugal bwin (17%), 50 from Liga Portugal SABSEG (12%), and 238 from foreign leagues (57%).

The average age of the new players is around 24.7 years old.

Similar to the departure market, strikers dominated the player signings in Liga Portugal bwin.

The summer transfer window saw 332 entries, compared to only 82 during the winter.

Source: Transfermarkt

Main data on the signings

€24M Most valuable

Darwin Núñez

16%

UD Almería

SL Benfica

80%

Striker

Summer

Most transferred position

Most active transfer window

€190M Total signings

Source: Transfermarkt

(1) The Liga Portugal bwin Sports Societies’ player signings and departures include player transfers and loans. Departures of players who have finished their sporting careers were not considered.

Portuguese Professional Football Yearbook 2020-21 | 41

Income statement The Liga Portugal bwin Sports Societies revenue increased to €766 million thanks, in part, to an increase in audiovisual rights revenue, resulting from the postponed matches from the previous season

Total revenue

Evolution of the aggregate revenue of the Sports Societies(1)

€766M

Millions of euros

73%

4.4% increase in 2020-21

Revenue 1-3 Positions

“Player economic rights and television rights are the most relevant revenue sources” The Liga Portugal bwin Sports Societies had a total of €766 million(1) in revenue, a 4.4% increase compared to 2019-20.

Revenue remained concentrated in the top three teams, which in 2020-21 had 73% of the total competition revenue. Revenues from player economic rights and television rights are the most relevant, accounting for 37% and 27% of the total, respectively. The latter are impacted by the postponed matches from the previous season, with Liga Portugal estimating an increase of €46 million as a result. The awards for participation in competitions reached €100 million (13% of the total), a 13% increase compared to the previous season, which can be explained by the presence of FC Porto in the quarter-finals of the UEFA Champions League.

The ticket and merchandising revenues maintained a downward trend, having registered a 71% drop (€33 million). This reduction is due to the vast majority of the matches having been held behind closed doors due to the restrictions to fight the pandemic.

9% Revenue 4-6 Positions

Player economic rights

TV rights

Competitions

Commercial activity

Other revenue

19% Revenue 7-18 Positions

Source: Liga Portugal

Evolution of television revenue and commercial activity in Sports Societies outside the podium (top three) Commercial activity Millions of euros

Television revenue Millions of euros

Source: Liga Portugal 42 | Portuguese Professional Football Yearbook 2020-21

(1) The analysis was based on the most recent historical information available. For more detail, see the study methodology section.

Main revenues streams In 2020-21, the Liga Portugal bwin Sports Societies generated the following revenues: 2020-21

Player transfers Transfers and loans revenues

Television rights Sale of tv rights of home matches

Competitions Participation in European competitions

Commercial activity Sponsorship, advertising, and corporate

% of total revenue

2019-20 variation

€283M

37%

-1,5%

€203M

27%

+27,9%

€100M

13%

+12,7%

€65M

8%

-15,7%

Source: Liga Portugal

TV rights contribute to offset the negative impact of the pandemic on the Sports Societies’ results

TV rights are critical for the smaller Sports Societies

TV rights have a relevant impact on the results of Sports Societies.

In the 2020-21 season, there was a substantial growth in television rights revenue (€44 million), which benefited from the postponed matches from the previous season, offsetting the drop in ticket revenue (reduction of €33 million).

The importance of television rights as a source of revenue is significant. It becomes even more important in the revenue of the Sports Societies between the 7th and 18th places in the league table - about 40% of total revenue.

This fact indicates a greater dependence on this source of revenue by the smaller Sports Societies.

Impact of television rights on results

Impact of television rights on total revenue

Millions of euros

Average percentage of each Sports Society’s total revenue

TV rights revenue

Source: Liga Portugal

Net result

1-3 Positions

4-6 Positions

7-18 Positions

Source: Liga Portugal Portuguese Professional Football Yearbook 2020-21 | 43

Income statement The expenses of the Liga Portugal bwin’s Sports Societies increased compared to last season, with personnel expenses being the area that most contributed to the increase

Total expenses

€783M

Evolution of the aggregate expenses of Sports Societies(1) Millions of euros

71%

5.7% increase in 2020-21

Expenses 1-3 Positions

“Personnel expenses were the main driver of the increase in total expenses” The sum of all the Liga Portugal bwin Sports Societies expenses was €783 million(1) in 2020-21, which represents a 5.7% increase over the previous season.

The expenses are also relatively concentrated in the top three teams in the competition (73% of total expenses).

Some €389 million of total expenses were made on personnel. Approximately 61% of this amount corresponds to the remuneration of athletes and 10% to the remuneration of coaches. As for expenses related to players’ economic rights, €121 million were amortized.

Supplies and external services totaled €148 million in the 2020-21 season, a decrease of around 11% compared to the previous season.

8% Expenses 4-6 Positions

Staff

ESS

Player economic rights

Other expenses

Interest and similar

Source: Liga Portugal

21% Expenses 7-18 Positions

Evolution of the remuneration of athletes and coaches of the Sports Societies outside the podium Coaches remuneration Millions of euros

Athletes’ remuneration Millions of euros

Source: Liga Portugal 44 | Portuguese Professional Football Yearbook 2020-21

(1) The analysis was based on the most recent historical information available. For more detail, see the study methodology section.

Main expense streams In 2020-21, the Liga Portugal bwin Sports Societies had the following expenses: 2020-21

Personnel expenses Athletes, coaches, and others

ESS External supplies and services

Player transfers rights Transaction expenses and amortizations

Financial markets Interest and other similar expenses

% of total revenue

2019-20 variation

€389M

50%

+15,9%

€148M

19%

-10,8%

€148M

19%

+5,1%

€58M

7%

0,0%

Source: Liga Portugal

Investment in professional football players and an increase in the remaining agents(1)

The weight of personnel expenses increased due to the lower increase in revenue

The Sports Societies’ expenses on personnel reached €389 million in 2020-21, an increase of 16% compared to the previous season.

Contrary to the previous seasons, in which expense increases were driven by increases in expenses on players, this season the growth was mostly driven by expenses on the remaining agents.

In the 2020-21 season, total revenue increased despite the adverse effects of the pandemic.

However, the importance of personnel expenses in revenue also increased due to the higher increase in the absolute value of personnel expenses this season.

Evolution of personnel expenses

Average weight of personnel expenses in total revenues % of total revenue

Millions of euros

Players

Remaining agents

Source: Liga Portugal

Millions of euros

Total revenue

Staff expenditures weight

Source: Liga Portugal

(1) Other agents include coaches and other staff.

Portuguese Professional Football Yearbook 2020-21 | 45

The financial position The assets and liabilities of the Sports Societies have increased compared to the previous season. Most Sports Societies show negative net results in a season marked again by the pandemic

Total assets

€1 506M

In 2020-21, the main components of the assets of the Liga Portugal bwin Sports Societies were as follows: 2019-20 2020-21 Total % variation

Intangible assets

19.6% increase in 2020-21

Value of athletes and others

“The assets of the Sports Societies increased by 20%”

Tangibleassets(fixed)

The sum of all the Liga Portugal bwin Sports Societies assets was €1.506 billion(1), an increase of 19.6% compared to the previous season.

Compared to the last edition of the yearbook, there is a greater concentration of assets in the top three clubs, as a result of Sporting CP’s return to one of the top three places in the competition (in 2019-20, they ended the season in the 4th position of Liga Portugal bwin).

Intangible assets reached €580 million, representing a weight of 38% in the value of total assets, a lower percentage than last season. The Sports Societies’ tangible fixed assets were valued at €301 million.

Owned by the Sports Societies

Customers Payments to be received

€580M

38%

+12,0%

€301M

20%

+86,5%

€279M

19%

+32,2%

Evolution of the Sports Societies assets structure(1)

Millions of euros 1 506

1 272

1 322

1 259

80% Assets 1-3 Positions

7% Assets 4-6 Positions

13% Current assets

Non-current assets

Assets 7-18 Positions

Source: Liga Portugal 46 | Portuguese Professional Football Yearbook 2020-21

(1) The analysis was based on the most recent historical information available. For more detail, see the study methodology section.

Sports Societies net result The Sports Companies of Liga Portugal bwin showed net aggregate losses of €48 million, still reflecting the impact of the pandemic.

In total, 13 out of the 18 Sports Societies had negative results, thus reflecting the impacts felt during the season.

In 2020-21, the main components of the Liga Portugal bwin Sports Societies liabilities were as follows: 2019-20 2020-21 Total % variation

Loans Banks and credit institutions

Suppliers Amounts payable

Other payables Amounts of diverse nature

€496M

33%

+46,3%

€329M

22%

+31,1%

€212M

14%

-7,0%

Evolution of the Sports Societies liabilities structure(1)

Millions of euros 1 520

1 283

1 284

1 280

80% Liabilities 1-3 Positions

5%

Sports Societies with positive net results

Total liabilities

€1 520M 18.8% increase in 2020-21

“The liabilities evolve with greater indebtedness to banks and suppliers” The sum of all the Liga Portugal bwin Sports Societies liabilities was €1.520 billion(1), a figure relatively higher than last season (€1.280 billion).

Bank loans stood out as the main source of financing with around €496 million, which represent 33% of the total liabilities.

The bond loans were another relevant source of financing for the Sports Societies with around €174 million, representing 11% of the liabilities.

Debts to suppliers accounted for 22% of liabilities in the season under review.

Liabilities 4-6 Positions

15% Current liabilities

Non-current liabilities

Liabilities 4-6 Positions

Source: Liga Portugal (1) The analysis was based on the most recent historical information available. For more detail, see the study methodology section.

Portuguese Professional Football Yearbook 2020-21 | 47

Liga Portugal SABSEG standings of 2020-21

MP

W

D

L

GD

PT

Estoril Praia

34

20

10

4

+29

70

FC Vizela

34

18

12

4

+24

66

FC Arouca

34

19

8

7

+20

65

A. Académica

34

17

11

6

+16

62

CD Feirense

34

17

7

10

+15

58

GD Chaves

34

16

9

9

+10

57

FC Penafiel

34

12

10

12

0

46

SL Benfica B

34

12

8

14

+9

44

Casa Pia AC

34

10

13

11

-5

43

Leixões SC

34

10

10

14

-8

40

CD C. Piedade

34

8

13

13

-9

37

CD Mafra

34

9

10

15

-13

37

SC Covilhã

34

8

13

13

-6

37

Ac. de Viseu

34

9

9

16

-13

36

Varzim SC

34

9

6

19

-18

33

FC Porto B

34

7

11

16

-7

32

Vilafranquense

34

5

16

13

-20

31

UD Oliveirense

34

7

10

17

-24

31

Promotion Promotion playoff

Relegation

Liga Portugal SABSEG

Estoril Praia become once again the champions of Liga Portugal SABSEG and return to the top tier of Portuguese Professional Football

Three years later, Estoril Praia return to the top tier after becoming champions of Liga Portugal SABSEG for the third time. Estoril Praia led the competition almost since the beginning of the season.

FC Vizela and FC Arouca, who had been promoted to Liga Portugal SABSEG in the season under review, integrated the podium, ensuring their participation in the highest tier of Portuguese Professional Football in 2021-22.

FC Vizela, undefeated in the previous 26 matchweeks of the competition, reached second place, and FC Arouca sealed their promotion in a playoff match thanks to having finished in third place.

4 points

Difference between the Champions and the second place

6,3M

Total number of viewers(1)

741

Goals scored(1)

2,4

Average goals per match(1)

€280M

Media exposure value of the competition in editorial space

(1) The figures shown do not include the playoff matches.

The figures shown do not include the replayed fixture of the 26th matchweek between A. Académica and Vilafranquense.

Liga Portugal SABSEG under the microscope(1)

306

Matches played in the competition

741

Goals scored in the competition

1 543 Yellow cards shown

Red cards shown

39%

61%

54%

38%

Victories for the hosts (119 matches)

First team to score won the match (188 matches)

Goals scored in the second half(2) (400 goals)

Goals scored in last 30 minutes(2) (280 goals)

56

30

21

34

83

Average attacking plays per match (17,014 plays)

Average crosses per match (9,134 crosses)

Average shots per match (6,310 shots)

Average fouls per match (10,457 fouls)

Best attack in the league

Best defense in the league

Most goals scored in the first half

Most goals scored in the second half

Source: Liga Portugal

The highlights of the season The number of goals per match remained the same as the previous season, 2.4 goals. Cassiano finished the season as the top scorer, with 16 goals.

16 goals Cassiano FC Vizela

10 assists Kiko Bondoso FC Vizela

1-1

Most common outcome

144

Matches with three or more goals

2,4

Average goals per match

20,6

Average shots per goal

Source: Liga Portugal (1) The figures shown do not include the playoff matches. The figures shown do not include the replayed fixture of the 26th matchweek between A. Académica and Vilafranquense.

(2) The figures shown include goals scored after regulation time.

Portuguese Professional Football Yearbook 2020-21 | 51

The show watched from the couch The pandemic left behind a season of empty stadiums. However, more than 6 million supporters watched the Liga Portugal SABSEG matches on their TV sets, an average of 26,000 viewers per match The impact of COVID-19 In the 2020-21 season, the limitations imposed due to the fight against the pandemic left the stadiums virtually empty.

Total attendance in the stadiums

Stadiums capacity

Thousands of viewers

Capacity percentage

TV audience of the matches(1)

The match with the highest TV audience was the one on the 18th matchweek between A. Académica and Académico de Viseu, held on Sunday, January 31st of 2021.

95 037 People watched the game on television

1,9% Television share

Source: Liga Portugal (1) The figures shown do not include the playoff matches. The figures shown do not include the replayed fixture of the 26th matchweek between A. Académica and Vilafranquense.(2) The averages include all and only the broadcast Liga Portugal SABSEG matches in which the Sports Societies participated in the 2020-21 season.

52 | Portuguese Professional Football Yearbook 2020-21

Rehearsals of matches with supporters on the stands Similar to what happened in Liga Portugal bwin, a few matches (two) were held with reduced attendance, which served to test the procedures for safely hosting the crowds.

CD Feirense 0–4 GD Chaves 1st matchweek 392 spectators

Ac. Viseu 0–0 A. Académica 1st matchweek 208 spectators

Evolution of the audiences during the competition(1) The average audiences throughout the season oscillated between 14,527 on the 3rd matchweek and 42,917 on the 20th.

The beginning of the season, similarly to what happens in Liga Portugal bwin, is a period of low audiences.

It was in the 32nd matchweek that Estoril Praia secured 1st place after drawing 1-1 at home against GD Chaves and that FC Vizela secured 2nd place with a draw, which may explain the audience drop in the last two matchweeks.

Thousands of viewers Average of number of viewers(2) 25 786

Matchweeks

Source: Liga Portugal (1) The figures shown do not include the playoff matches. The figures shown do not include the replayed fixture of the 26th matchweek between A. Académica and Vilafranquense. (2) The averages include all and only the broadcast Liga Portugal SABSEG matches in which the Sports Societies participated in the 2020-21 season.

Portuguese Professional Football Yearbook 2020-21 | 53

Talent with more exposure With the increasing broadcasting of matches on television, Liga Portugal SABSEG increased the exposure capacity of its talent, which increased its media return Broadcast of matches on television(1) The television broadcasting of Liga Portugal SABSEG matches is carried out by four channels, Sport TV, BTV, Porto Canal, and Canal 11. The matches of the B teams of FC Porto and SL Benfica are broadcast by the channels of the Sports Societies.

In the 2020-21 season, 80% of the Liga Portugal SABSEG matches were broadcast on television. The remaining matches were broadcast by the SportTV Match Player streaming service.

Match schedule 306 Matches

Number of matches

211(1)

Matches

17

Matches

17

Source: Liga Portugal

Matches

51

The media return of the competition for each match (AVE ) (2)

The value of the editorial space generated by Liga Portugal SABSEG has been increasing, having reached the value of €280 million this season.

In this area, television stands out, with a contribution of approximately 50%.

Matches

Millions of euros

€279M 2020-21

Online %

TV

Press

Compound Annual Growth Rate

Source: Liga Portugal

Key value-creating areas Naming

Fixed Advertising Panels

Super Flash

Kits

(1) The figures shown do not include the playoff matches. The figures shown do not include the replayed fixture of the 26th matchweek between A. Académica and Vilafranquense. (2) The matches shown in the chart include only those broadcast on television (not including those broadcast on Sport TV Match Player).

(3) In 2020-21, it includes the value of editorial space on Twitter, Instagram, Facebook, and blog.

54 | Portuguese Professional Football Yearbook 2020-21

Acknowledgment of the stars Best Player

Best Coach

Youngster to Watch

Best Goalkeeper

Miguel Crespo Estoril Praia

Álvaro Pacheco FC Vizela

André Vidigal Estoril Praia

Dani Figueira Estoril Praia

B Teams

84

From the B Team to the main squad

Athletes developed in the B teams who played in a Big 5 League(1)

Total number of players

Valorization of young talents

61% The B teams play a relevant role in sustaining the notoriety of Liga Portugal SABSEG and in the national and international affirmation of young players.

50

35

players

32

players

31

players

28

players

22

players

players

Vitória SC continues to be the Sports Society with the largest promotion of players from the B team to the main squad.

Millions of euros

-2 1 20

SL Benfica was the Sports Society with the highest financial volume in transfers.

Source: Liga Portugal

(1) England, Spain, Italy, Germany, and France.

(2) The historical values were corrected after the end of the financial year

B teams matches broadcast on TV in the 2020-21 season

20

-2 0 19 20

-1 9 18 20

-1 8 17 20

-1 7 16 20

-1 6 20

15

-1 5 14

152

122

117

65

20

-1 4 13 20

220

204

201 34

2

B teams playing in Liga Portugal SABSEG in the 2020-21 season

29%

B team player transfers(2) 300 200 100 0

2020 Portuguese National Team athletes developed in B teams

€1,1M

Direct sales of athletes that played for a B team since 2013-14

Portuguese Professional Football Yearbook 2020-21 | 55

Income statement The decrease in the average amount of expenses of the Liga Portugal SABSEG Sports Societies, combined with the increase in revenues, resulted in an improved financial performance in the 2020-21 season

Total revenues

€29,9M

Average increase of 12.9% per Sports Society in 2020-21

In 2020-21, the Liga Portugal SABSEG Sports Societies generated the following revenues: 2019-20 2020-21 Total % variation

Television rights Sale of home match rights

€7,7M

26%

€4,5M

15%

€3,3M

11%

“TV rights and player transfers drive the increase in revenue”

Player transfers rights

The Liga Portugal SABSEG Sports Societies had €29.9 million(1) in revenue.

The revenue average increased by 12.9% to €1.9 million in 2020-21.

Revenue from television rights for home matches and player transfers are the main revenue sources for the Sports Societies, with a weight of 26% and 15% of total revenue, respectively.

It is also noteworthy that the weight of revenue from television rights increased 7 pp as a result of an increase from €5.0 million to €7.7 million.

On the other hand, there was a decrease in the importance of subsidies and contributions by 7 pp (from 18% to 11%), the result of a reduction from €4.8 million to €3.3 million.

Evolution of the revenue average per Sports Society(1)

Transfers and loans revenues

Subsidies and contributions Attributed to Sports Societies

Millions of euros

22% Revenue 1-3 Positions

22% Revenue 4-6 Positions Player economic rights

TV rights

Commercial activity

Subsidies/contributions

56%

Other revenue %

Compound Annual Growth Rate

Revenue 7-18 Positions

Source: Liga Portugal 56 | Portuguese Professional Football Yearbook 2020-21

(1) The analysis was based on the most recent historical information available.

For more detail, see the study methodology section; (2) The figures regarding the 2019-20 season were revised after the end of the financial year

In 2020-21, the Liga Portugal SABSEG Sports Societies had the following expenses: 2019-20 2020-21 Total % variation

Personnel expenses Athletes, coaches, and others

ESS External supplies and services

€29,6M

68%

€10,7M

24%

€0,2M

1%

Financial markets Interest and other similar expenses

“The reduction in personnel expenses drove the observed decrease”

Millions of euros

22% Expenses 1-3 Positions

25% Expenses 4-6 Positions ESS

Interest and similar

Merchandise cost

€43,6M

Average decrease of 6.2% per Sports Society in 2020-21

Evolution of the expenses average per Sports Society(1)

Staff

Total expenses

53%

The Liga Portugal SABSEG Sports Societies had €43.6 million(1) in expenses.

After the Sports Societies had seen a significant drop in revenue and an increase in expenses in the previous season, in 2020-21 the trend was reversed, with an increase in revenue and a decrease in expense. The average value of expenses per Sports Society decreased by around 6.2% to €2.7 million.

The overall decrease is partially related to a reduction in personnel costs of around €3.3 million (partly due to CD Nacional and SC Farense’s promotion in the previous season, two of the Sports Societies with above-average personnel costs). This reduction more than offset the increase in expenses on supplies and external services and financial markets, among others.

Other expenses %

Compound Annual Growth Rate

Expenses 7-18 Positions

Source: Liga Portugal (1) The analysis was based on the most recent historical information available.

For more detail, see the study methodology section; (2) The figures regarding the 2019-20 season were revised after the end of the financial year

Portuguese Professional Football Yearbook 2020-21 | 57

The financial position In the 2020-21 season, we highlight the increase in the average value of assets and the decrease in the average value of liabilities of the Liga Portugal SABSEG Sports Societies, which resulted in greater financial autonomy(1)

Total assets

€26,3M

Average increase of 5.0% per Sports Society in 2020-21

In 2020-21, the main components of the assets of the Liga Portugal SABSEG Sports Societies were as follows: 2019-20 2020-21 Total % variation

Tangiblefixedassets Owned by the Sports Societies

€7,7M

26%

€4,5M

15%

€3,3M

11%

“More equitable distribution of assets than in Liga Portugal bwin”

Customers

The sum of all the assets of the Liga Portugal SABSEG Sports Societies was €26.3 million(2).

The distribution of assets among the Sports Societies was less even than in the previous season. The clubs in the first third of the league table in 2020-21 had 70% of the assets, when in the previous season this number was 45%. However, considering this indicator as a reference, there is greater equity in the distribution of the assets in Liga Portugal SABSEG than in Liga Portugal bwin. This season there was also growth in the average value of assets, which grew 5.0% to €1.6 million.

The increase in customer debt, investment properties, and tangible fixed assets were the main drivers behind this growth.

Evolution of the average of the assets per Sports Society(2)

Payments to be received from clients

Other payables Montantes de natureza diversa

34%

Millions of euros

Assets 1-3 Positions

36% Assets 4-6 Positions

30% Current assets %

Non-current assets

Compound Annual Growth Rate

Assets 7-18 Positions

Source: Liga Portugal 58 | Portuguese Professional Football Yearbook 2020-21

(1) Ratio between equity and assets; (2) The analysis was based on the most recent historical information available. For more detail, see the study methodology section; (3) The figures regarding the 2019-20 season were revised after the end of the financial year

Sports Societies net result In the 2020-21 season, even though there was a negative aggregate net result of €17 million, there was an improvement in the financial performance of the Liga Portugal SABSEG Sports Societies with aggregate net results that were around €5 million higher than in the previous season. However, in total, only 3 of the 16 Sports Societies had positive net results.

Sports Societies with positive net results

In 2020-21, the main components of the Liga Portugal SABSEG Societies liabilities were as follows: 2019-20 2020-21 Total % variation

Other payables Amounts of diverse nature

Loans obtained Owned by the Sports Societies

Government

Amount payable to the Government and other public

€26,9M

50%

€12,2M

23%

€6,6M

12%

€53,2M

Average decrease of 2.3% per Sports Society in 2020-21

“Debt reduction stimulated by the reduction of current liabilities”

Evolution of the liabilities average per Sports Society(1)

17%

Millions of euros

Total liabilities

Liabilities 1-3 Positions

48% Liabilities 4-6 Positions

The sum of all the Sports Societies liabilities was €53.2 million(1).

The average value of liabilities decreased, reaching €3.3 million, a 2.3% reduction compared to last season - contrary to the growth trend seen in the previous two seasons. The decrease in liabilities is explained by the decrease in debts to associates of around €18.2 million (mostly current liabilities).

Part of this evolution (€5 million) is related to the net impact of the promotion of clubs with debts above average.

However, this decrease was partially offset by the increase in debts to the Government (€2.5 million), suppliers (€1.4 million), and other payables (€10.7 million). These debts are mostly noncurrent.

35% Current liabilities %

Non-current liabilities

Compound Annual Growth Rate

Liabilities Position 7-18

Source: Liga Portugal (1) Ratio between equity and assets; (2) The analysis was based on the most recent historical information available. For more detail, see the study methodology section; (3) The figures regarding the 2019-20 season were revised after the end of the financial year

Portuguese Professional Football Yearbook 2020-21 | 59

Quarter-finals

Sporting CP

FC Porto

QF1

2-0

QF2

2-1

CD Mafra

SL Ben ca

QF3

1-1

Vitória SC

4-1 g.p.

FC P.Ferreira

SC Braga

QF4

3-1

Estoril Praia

Semi-finals

Sporting CP

SF1

2-1

FC Porto

Sporting CP

SC Braga

FINAL

1-0

SF2

2-1

SC Braga

SL Ben ca

Allianz CUP Sporting CP win again two years later

Two years later, Sporting CP win the Allianz Cup again.

After winning Liga Portugal bwin, the Lions also won their third League Cup. SC Braga, who had won the competition the year before, were the defeated finalists.

After beating Estoril Praia in the quarter-finals and SL Benfica in the semi-finals, they were beaten by 1-0 in the final.

In a year marked by the change in the competition’s format, which no longer had a group stage, thus having fewer matches (reduction from 45 to 7), we got to see a very competitive Final Four.

5 Goals

Scored by Sporting CP in this edition of the Allianz CUP

7,2M

Total number of viewers

18

Goals scored

2,6

Average goals per match

€341M

Media exposure value of the competition in editorial space

62 | Portuguese Professional Football Yearbook 2020-21

Allianz CUP under the microscope

7

18

36

1

Matches played in the competition

Goals scored in the competition

Yellow cards shown

Red cards shown

43%

71%

72%

61%

Victories for the hosts (3 matches)

First team to score won the match (5 matches)

Goals scored in the second half(1) (13 goals)

Goals scored in last 30 minutes(1) (11 goals)

51

24

22

33

Average attacking plays per match (354 plays)

Average crosses per match (167crosses)

Average shots per match (151 shots)

Average fouls per match (229 fouls)

Best attack in the league

Best defense in the league

Most goals scored in the first half

Most goals scored in the second half

Source: Liga Portugal

The highlights of the season After a decrease observed in the 2019-20 season, the average number of goals per match increased from 2.4 to 2.6 goals.

This season, the defeated finalists (SC Braga) had the top scorer and the player with the most assists.

3 goals Paulinho SC Braga

2 assists Ricardo Horta SC Braga

2-1

Most common outcome

4

Matches with three or more goals

2,6

Average goals per match

21,6

Average shots per goal

Source: Liga Portugal (1) The figures shown include goals scored after regulation time.

Portuguese Professional Football Yearbook 2020-21 | 63

The show watched from the couch With the restrictive measures to combat the pandemic, the Allianz CUP’s structure was changed. This season, the competition had 38 fewer matches and the fans could only watch it on television Matches TV audience

7,2M Total TV Audience

19% Average share of all the matches

TV audience by competition stage The Final Four had the majority of the total audience.

0,6M

AUDIENCE IN THE REGULAR STAGE

1,0M

Average TV audience per match

6,6M

38%

AUDIENCE IN THE FINAL FOUR

Average share of the Final Four matches

Source: Liga Portugal

Semi-finals

2 238 760 Match with the highest TV audience

Source: Liga Portugal 64 | Portuguese Professional Football Yearbook 2020-21

The Fan Zone gives rise to the Fan Home

The Final Four is a stage for Social Responsibility

The Allianz CUP Final Four is much more than just three football matches. It is a football party created for the fans.

Pandemic restrictions prevented us from creating the party spirit in the stadiums this season, but the connection to the fans through digital media was maintained.

Several solidarity initiatives were carried out during a time when we were facing one of the biggest socio-economic and public health challenges of recent decades.

FreeNow Carpool with António Raminhos 431 000 Views

1 955 919 Posts reach

Maluco Beleza with Rui Unas 100 000 Views

1 998 214 Posts reach

Fan Music with Dino D’Santiago FT. Surma 70 000 Views

2 320 835 Posts reach

22 children

The children from Fundação do Gil made some drawings that were included on the Allianz CUP Final ball to draw attention to socially vulnerable children in need of medical care.

4 jerseys and 2 balls

Were auctioned, the value went to the Football Foundation.

18 tons

Of food donated to Rede de Emergência Alimentar (Emergency Food Aid Network) - two tons for each goal scored in the Final Four, plus one ton for each team donated

by Minipreço and the Football Foundation.

Source: Liga Portugal Portuguese Professional Football Yearbook 2020-21 | 65

The impact of the media Despite the lower number of matches compared to previous seasons and the absence of fans in the stadiums, the Allianz CUP’s media return exceeded the value of previous seasons Broadcast of matches on television With empty stadiums, all Allianz CUP matches were broadcast on television.

Sport TV stood out as the competition’s operator of choice, having broadcast 100% of the matches played during the competition. The Final Four matches were also broadcast on network TV.

Schedule of broadcasted matches per TV channel

Number of broadcasted matches

7 matches

(100% of the matches)

3 matches

(43% of the macthes)

Network TV

Source: Liga Portugal

The media return of the competition (AVE(1)) The value of the generated editorial space increased by €144 million, reaching €341 million. Although there were fewer matches, all of them were broadcast on television, which contributed to the increase.

Millions of euros

€341M 2020-21

TV %

Online

Press

Radio

Compound Annual Growth Rate

Source: Liga Portugal

Key value-creating areas Editorial

Naming

Press conferences

LED Panels

(1) Advertising Value Equivalency is the equivalent cost of advertising in minutes and spaces (traditional/digital) of the competition presence in the media. (2) The AVE figure in 2019-20 was corrected after the end of the financial year from €193 million to €197 million. (3) In 2020-21, it includes the value of editorial space on Twitter, Instagram, Facebook, and blog.

66 | Portuguese Professional Football Yearbook 2020-21

Entertainment for the whole family The Allianz CUP is a competition that is distinguished by the entertainment and concepts it brings to the whole family.

eSports

Zero Zero Quizz

Fan Music

Themed competitions

eAllianz CUP tournament

The most complete quiz on football

Concerts by Dino D’Santiago ft. Surma

Fan’s run

Final Four

Consolidation of attractiveness

2,2M

Ingredients for success

Football week

Focus on Online

Final match TV audience

Fair Play

Passion of the fans

6 605

No. of news generated from the Final Four

Emotion and audiences

7,2M FANS ON TV 2020-21

The Final Four was held without people in the stadiums for the first time ever.

But, through television, it managed to attract more than 7 million fans.

37% Final match TV share

112M

Main sources of media return Millions of euros

Allianz CUP Final Four media return

11M

Although the online medium accounts for 39% of the total AVE, the main source of media return is television (56%).

Total social media impressions

Source: Liga Portugal

Portuguese Professional Football Yearbook 2020-21 | 67

The prize distribution The Allianz CUP provided the Sports Societies with an additional source of revenue.

The value of the prizes distributed was based on the performance of the teams in the competition Distribution of the competition revenue In 2020-21, due to the reduction of the competitive framework, reformulated in the context of the constraints caused by the COVID-19 pandemic, direct commercial income had a significant reduction, which led to a reduction in the prizes to be distributed.

Liga Portugal distributed around €422 thousand to the Sports Societies, which represents a decrease of around 76% concerning the previous season. The Final Four is the stage in which the amount distributed per Sports Society is greater.

Millions of euros

Quarter-finals

Semi-finals

Final

%

Compound Annual Growth Rate

Source: Liga Portugal

Source: Liga Portugal

The Liga Portugal bwin Sports Societies continue to pocket higher prizes, as a result not only of better performance in the competition but also of this season’s competition new format. In 2020-21, only eight teams fought for the trophy: the top six teams in Liga Portugal bwin after eight matchweeks, and the top two teams in Liga Portugal SABSEG after the 10th matchweek.

Source: Liga Portugal

68 | Portuguese Professional Football Yearbook 2020-21

Thousands of euros

The biggest prize winners in the competition From a total of approximately €422 thousand distributed, 82% of that was concentrated on the Sports Societies that secured their presence in the Final Four of the competition.

Sporting CP and SC Braga, as a result of their better performance, were the Sports Societies that obtained the highest revenue distribution in the competition.

Matches played

Financial Result of the Competition The competition obtained this season a net result 72% lower than in the previous season, having been negatively affected by the restrictions related to the pandemic and by the change in the format of the competition.

Thousands of euros

Thousands of euros

Source: Liga Portugal

Revenue

Net results Thousands of euros

(1) The operational results attributed to the competition in 2019-20 have been corrected after the end of the financial year (publication of the 2019-20 Yearbook).

2019-20 (1)

995

Expenses

2020-21

274

Source: Liga Portugal Portuguese Professional Football Yearbook 2020-21 | 69

CHAP

TER 4 Football today Strategy

Topics of football today The topics of football today are identified to bring Portuguese Professional Football closer to the main European leagues In this edition of the Yearbook, the following topics have been identified:

01

The industry’s economic sustainability • Impact of COVID-19; • Empowerment of the management of Sports Societies; • Financial control of the Sports Societies; • Tax burden on Portuguese Professional Football; • Work insurance.

02

Involvement of the supporter • The transformation of the digital experience for the supporter;

03

Repositioning of Portuguese Professional Football • Centralization of audiovisual rights;

04

Competitiveness of Portuguese Professional Football • Sports betting and compensation models for agents;

05

Outros temas da atualidade • Fighting piracy and counterfeit goods;

• Stadium attendance and supporter involvement.

• Internationalization of Portuguese Professional Football.

• Promotion of positive football (match-fixing).

• Prevention of violence in the football ecosystem; • Legal framework of the Sports Societies.

01 The industry’s economic sustainability Hot topics

Impact of COVID-19 The 2020-21 season is, once again, marked by COVID-19 and the consequent absence of spectators in the stands, which drastically reduced the stadiums’ capacities.

More than a year after the beginning of the pandemic - and even though according to UEFA, Portugal was, like England, Israel, and Scotland, one of only four countries to complete their competition’s league matches - the football industry continues to suffer significant impacts.

In financial terms, there was a decrease in revenue for the Sports Societies, which even so benefited from the postponing of the matches of the previous season, which resulted, according to Liga Portugal, in an increase of €46m in revenue from television rights.

In terms of expenses, the 30% decrease on match days

and commercial activity, sponsorships, advertising, and hospitality was offset by an increase in expenses with personnel and others, for example, with player transfers.

It should be noted that the impacts of the pandemic extend beyond the financial effects on the accounts of the Sports Societies. Initiatives such as the Presidents’ Summit, the Ambassadors’ Inauguration, the participation in eSports fairs, and the fan zones, which gave way to the Fan Home, were canceled. The Allianz Cup also had a structural change in the competitive model with the extinction of the group stage, which was replaced by quarter-finals, effectively changing the paradigm of Professional Football in Portugal.

COVID-19’s real impact on the Sports Societies’ results Revenue(1)

Expenses

Operational results

Source: Liga Portugal (1) Due to the postponing of matches from the 2019-20 season, Liga Portugal estimates an increase in television rights revenue of €46 million in 2020-21.

Portuguese Professional Football Yearbook 2020-21 | 75

Empowerment of the management of Sports Societies With the increased competitiveness in football, the success of the Sports Societies is increasingly dependent on the existence of agents, executives, and departmental structures with strategic vision and the ability to innovate, promote change, and communicate appropriately. The continued commitment to the professionalization of Professional Football emerges, therefore, as an essential tool for decision making.

At a time when football has been gaining capital importance in the lives of fans outside the pitch, the competitive advantage of clubs has to come from fostering knowledge in marketing, management, technology (Artificial Intelligence and Data Science, for example), and even legal areas.

Aware of this need, Liga Portugal promotes several measures that aim to empower the stakeholders. The 2020-21 season saw the continuation of the Talent Business Center postgraduate courses, directed to the areas of management and communication, the promotion of the Delegates preparation course, and also the organization of 12 sessions under the 2020-21 Training Program, addressing issues such as sustainability, team management, first aid, among others.

We also promoted networking and knowledge sharing events, such as Soccerex, one of the world’s largest debate events of the football industry, for the first time in Portugal, and the realization of webinars under the Thinking Football Summit.

Financial control of the Sports Societies The rules of financial integrity play a key role in the competitiveness of Sports Societies. Financial fair play induces good management practices, imposing control mechanisms that might otherwise, in the pursuit of sporting success, not be applied. Aware of this, Liga Portugal has challenged its members in the process of standardization and accuracy of financial reporting.

In the context of the crisis brought by the pandemic, we also discuss the need to change the current rules of financial fair play. The absence of people in the stadiums has impacted ticket, merchandising, and even sponsorship revenues.

Financial control for the sake of competitiveness cannot disregard this fact. In the 12th edition of The European Club Footballing Landscape, UEFA recognizes the need to adapt and update these rules, particularly concerning player remuneration and transfers.

The financial sustainability of the industry remains a priority of this entity and of Liga Portugal, which will work together towards this goal.

76 | Portuguese Professional Football Yearbook 2020-21

People who enrolled and applied to the post-graduate courses and others promoted

by Liga Portugal (2021)

29

74

CANDIDATES

ORGANIZATION AND MANAGEMENT IN PROFESSIONAL FOOTBALL

1

50

CANDIDATES

37

COMMUNICATION IN PROFESSIONAL FOOTBALL

DELEGATES PREPARATION COURS

12

TRAINING SESSIONS

Transfer earnings as a percentage of the total revenuesofclubsfromthefirstleague(2021)

League

Transfer revenue % in total revenue

Clubs by value of transfer revenue % in total revenue

Source: The European Club Footballing Landscape 2021

The tax burden on Portuguese Professional Football Portuguese Professional Football contributes to the revitalization of the economy through job creation and contributions to the Government in fiscal and parafiscal matters. However, there has been a gradual increase in the taxation applicable to Sports Societies in Portugal.

A comparison between the major European leagues on this matter allows us to conclude that there is higher income taxation of professional athletes in Portugal, where personal income tax rates vary between 14.5%, for incomes below €7,112, and 48.0%, for incomes above €80,882. Tax rates vary between 19.0% up to €12,450 and 47% above €300,000 in Spain, 23% up to €15,000 and 43% above €75,000 in Italy, and 20% up to €37,700 and 45% above €1,336,500 in England.

From Liga Portugal’s perspective, it is important to consider reducing the personal income tax of athletes and reestablishing the strenuous profession regime to provide this sector with a more advantageous and fitting tax framework.

Liga Portugal proposes the reformulation of the fiscal regime in terms of VAT and CIT with the reduction of the rate applicable to tickets from 23% to 6% and the increase of the activities eligible for a tax deduction.

Thescal fi andparafiscalburdenonthe average income of a Liga Portugal bwin athlete(1) (2020-21) Thousands of euros

Cost for the company

Contribution to SS (company)

Average Gross Income

Contribution to SS (player)

Taxable income

Personal income tax liability

Net income after personal income tax and SS contributions for the player

Additional solidarity surcharge

Personal income tax Level 7 Taxable income

Social Security Player

Additional solidarity surcharge

Sports Society

Source: EY Analysis; European Parliament 2021; Switch by Pay Fit 2021

Work insurance The mandatory subscription of insurance policies is a social achievement that should not be neglected.

However, the antiquity of the current legal regime harms, in Liga Portugal’s opinion, the competitiveness of Portuguese Professional Football. The downturn of the insurance market results in the need to make a deal with the last resource insurance company, perpetuating a monopoly situation in which the legally imposed offer is ensured by the insurance company with the largest market presence.

Liga Portugal, the Portuguese Insurance Association, the Players Union, and the Portuguese Football Federation have all been working with the Secretary of State for Youth and Sports on a proposal to amend the sports labor insurance law. Liga Portugal and the Portuguese Insurance Association reached a compromise on the main revision points of the applicable legislation in the scope of a workgroup created for this purpose by the Secretary of State for Youth and Sports, which also includes, among others, the Portuguese Football Federation and the Players Union.

Average expenses with players and coaches insurance per Sports Society Thousands of euros

Source: Liga Portugal (1) This estimate was based on the legal rules in force, assuming: (i) Professional player, resident for tax purposes in mainland Portugal (not benefiting from any special taxation regime), single, no children, no disabilities, earning exclusively income from employed work; (ii) Income is fully subject to Income Tax and Social Security; (iii) The contribution base is composed of a fifth of the value of the effective remuneration, under the terms of the SS regime applicable to professional athletes; (iv) No deductions to the gross collection of Income Tax nor any tax benefits related to the participation of Municipalities in the Income Tax Collection are contemplated. (v) Based on the legal norms in force for the year 2021.

Portuguese Professional Football Yearbook 2020-21 | 77

02 Involvement of the supporter Hot topics

The transformation of the digital experience for the supporter The way fans interact with the clubs and leagues is changing.

Interactions are no longer limited to the time and place of the match, driven not only by the pandemic context that accelerated the transition to digital media but also by the generational renewal of the fan base, whose demands and expectations have changed.

This transition is materialized in a greater investment by the major European Professional Football leagues, in sharing content on social media, the creation of over-the-top content, and the promotion of eSports events. But that’s not all.

For example, the potential of blockchain is being leveraged to unlock new ways for clubs, athletes, and fans to interact.

Non-fungible tokens (or NFTs) are emerging as the new paradigm of fan engagement, having grown in popularity after their introduction in fantasy leagues. The partnership established between La Liga and Sorare in 2021 marks the entry of a Big 5 European league into this universe.

Since the launch of the Liga Portugal app in 2018, Liga Portugal has continuously invested in transforming the fans’ digital experience. We highlight the consolidation of Liga Portugal’s presence on social media, with 951 thousand followers, and the focus on eSports, with the launch of a new competition in 2020-21 - the eLiga Supercup.

Liga Portugal’s social media followers Thousands of followers

Source: Liga Portugal

Stadium attendance and supporter involvement The boundaries of fan participation in the digital age are widening. While the trend has been reinforced by the restrictions imposed in the fight against the pandemic, it has rather been driven by the growing interest in the gamification of experiences.

What started with state-of-the-art wi-fi access in stadiums and fan apps that delivered content in real-time has evolved to give more and more space and voice to the fan in the stands. From the use of virtual reality and augmented reality technology to the sale of fan tokens that enable fans to choose the playlist that plays in the venue, all of these technologies were designed to boost fan engagement at the crossroads between the real and virtual worlds. The adaptation of stadium attendance during the pandemic was another factor that highlighted the importance of technology, for example through the introduction of Artificial Intelligence and Internet of Things tools to control social distance and affluence in certain areas through the use of cameras.

Room has been made for an omnichannel strategy that complements the involvement of the supporter outside the stadium with a more social and digital experience in the stadium.

Evolution of attendance in the stadiums of the main European clubs Thousands of fans

Source: The European Club Footballing Landscape 2021 Portuguese Professional Football Yearbook 2020-21 | 79

03 Repositioning of Portuguese Professional Football Hot topics

Centralization of audiovisual rights(1) The legislative initiative that mandates the centralization of audiovisual rights in professional leagues as of the 202829 season will lead to the reduction of financial disparities between Sports Societies through a more equitable revenue distribution model.

This model is materialized in revenue sharing criteria that promote sports competitiveness and the valorization of the audiovisual product through the creation of match packages with complementary value more aligned with consumer preferences. Assuming several scenarios for the centralization model, the value of the rights is estimated to be between €275 million and €325 million, which translates into a 56-85% increase in value compared to the current situation. LaLiga, for example, has seen an increase in revenue from national rights by 80% in two years.

The revenue redistribution strategy did not result in a drop in revenue for the biggest clubs (Barcelona and Real Madrid) and progressively increased revenue for the others. As a result of a collective understanding of the Sports Societies, in December 2021, Liga Portugal created the company Liga Centralização, which has the goal of studying and planning a proposal for the future model of centralized selling of television and multimedia rights, and other audiovisual content, of professional football competitions in Portugal, as well as its subsequent commercialization.

The total value of audiovisual rights of professional competitions in Portugal Millions of euros

Current value

Single operator

La Liga growth

Benchmarks

Source: EY, International Study on Sports Audiovisual Rights

Internationalization of Portuguese Professional Football Nationalities of players Investing in internationalization, seeking to promote Portuguese leagues Portuguese Professional Football abroad and diversify its revenue sources, is one of Liga Portugal’s strategic goals for the 2019-2023 cycle.

In this sense, there has been a focus on promoting the brand and the competitions internationally through initiatives such as the internationalization of the League Cup, the use of ambassadors, and the creation of fan zones with the Portuguese communities abroad, among others.

For example, in 2021, Liga Portugal joined efforts with a Japanese agency to create Twitter and Yahoo accounts entirely in Japanese to capitalize on the presence of eight Japanese athletes in the Portuguese competitions. The centralization of the selling of audiovisual rights will allow Portugal to explore its potential in international markets in a more structured way, inspired by the strategy of other European leagues. The Portugal Europe Africa Premier League, for example, always allocates a club from the big six to the premium time slot in the Asian market, and LaLiga broadcasts the first El Clasico of the league at Source: Liga Portugal lunchtime and the 2nd at night to capture, respectively, the Asian and American markets.

(1) The international audiovisual rights agreement predicts revenue of €4.485 billion spread over five years. For the analysis of the 2019-22 cycle, 3/5 of the five-year estimated amount was considered.

in the main

America

Asia

Australia

Portuguese Professional Football Yearbook 2020-21 | 81

04 Competitiveness of Portuguese Professional Football Hot topics

Sports betting and compensation models for agents Technology has been boosting the sports betting industry, making it easier to access this market, especially online.

In the 2020-21 season, according to the Serviço de Regulação e Inspeção de Jogos (Portuguese Betting Regulation and Inspection Service), football made up 87% of the sports betting volume in Portugal. Liga Portugal bwin accounted for 14% of the total bets. This predominance of football in sports betting has translated into bookmaker sponsorships of leagues and clubs that are worth millions.

Bwin, for example, became the official sponsor of Liga Portugal in 2021 in a deal worth €35 million, and Betano sponsors several Liga Portugal bwin and Liga Portugal SABSEG Sports Societies. In regulatory terms, the principle that sports betting must monetarily contribute to the events on which it is focused was established.

With the growing dynamism of the market, there is an increasing need to reformulate the distribution amounts provided to properly compensate the representative structures of those involved in sports events. In this sense, Liga Portugal proposed the change in the legal regime applicable to sports betting, anticipating an increase in the percentage distributed to entities representing Professional Football.

Sports betting amount by method

Millions of euros

Placard

Online Betting

Source: Liga Portugal

Promotion of positive football (match-fixing) With the growth of the sports betting market, match-fixing practices have increased in international Professional Football. Factors such as the exposure of defenders to influence the outcome, delays in the payment of salaries, or the lack of incentives for teams competing for the places just above the relegation zone and below the zone of access to European competitions should be monitored and mitigated.

Promoting and implementing positive values in sport, capitalizing on the social, educational, and cultural role of this sport, is an increasingly evident priority of Liga Portugal.

In 2021, Liga Portugal established a partnership with the Sport Integrity Global Alliance with the goal of collaborating on topics such as integrity and transparency, preventing and combating illegal betting and match-fixing, good governance methods, training, and youth protection through sport.

Additionally, the “Integrity in Football” program, from the Football Integrity Unit of Liga Portugal’s Legal Department, aims to monitor international developments, prevent and combat match-fixing, monitor compliance with the principles of financial and sporting integrity, and control the Sports Societies transfers.

Liga Portugal bwin Sports Societies without additional motivation(1) in the last two matchweeks Number of Sports Societies

Source: EY Analysis (1) Without additional motivation considers the Sports Societies that had already secured their presence in the competition for the next season and are not fighting for an additional objective (such as the title or access to the European competitions) with just two matchweeks to go. For standardization reasons, two relatation places were considered in 2019-20.

Portuguese Professional Football Yearbook 2020-21 | 83

05 Other current topics Hot topics

Fighting piracy and counterfeit good Piracy results in the reduction of the economic value of audiovisual rights, not only for the owners but also for other stakeholders (fans, organizers of competitions, and the Government). The spread of illegal broadcast formats has translated into a significant reduction in formal subscriptions and, consequently, in the profitability of operators and their ability to invest in new contracting cycles. As such, the adoption of a strategy to fight piracy, which protects and adds values to audiovisual rights, is a priority. The centralization of selling of the audiovisual rights, to be implemented by 2028-29 in Portugal, is, in itself, a step towards freeing up funds for investment in anti-piracy tools, thus increasing the value of audiovisual rights assigned by buyers. Centralization also allows for better identification of buyers and distributors, by allowing greater control over broadcasts and favoring a more efficient control of anti-piracy strategies. The League’s Commission for the Protection of Intellectual Property has also acted to reduce the impact of product piracy and counterfeiting.

Estimated lost revenue due to counterfeiting of audiovisual content in Portugal Method

Users Lost revenue

(thousands)

(millions of euros)

Undeclared taxes

(millions of euros)

Card sharing Streaming and IPTV(1) Tickets

Source: EY, International Study on Sports Audiovisual Rights

Prevention of violence in the football ecosystem Professional Football is often linked to incidents of violence and indiscipline by its fans, which, although they represent a minority, condition attendance at football matches.

In the 2020-21 season, there were 2,335 incidents in sports, with football accounting for 88% of that number. Despite the absence of supporters at the venues due to COVID-19, there was a 30% increase in football incidents, with predominance in Liga Portugal bwin matches, which saw an increase in violations from 912 to 1,498.

The 2020-21 season was marked by the implementation of the Supporter’s Card, which was later revoked in the 2021-22 season. This card allowed the identification of its holders to manage access to areas with special conditions of access and permanence for supporters (ZCEAP).

In the 2021-22 season, the ZCEAP are still active, with access only being granted after the presentation of an identification document with a photo and a ticket with the holder’s name. At the same time, Liga Portugal has conducted several actions to raise awareness and reduce violence in football. We highlight the association to the campaign “Zero Violence” promoted in partnership with the Portuguese Institute for Sports and Youth, and the campaign “NO to Racism”.

Incidents registered in sports Number of recorded incidents

Football

Other sports

Source: APCVD (1) IPTV (Internet Protocol Television) is a method of transmitting television signals over IP networks.

Portuguese Professional Football Yearbook 2020-21 | 85

The legal framework of the Sports Societies The approval of Decree-Law No. 10/2013, of January 25, dictated the definitive removal of the possibility of participating in professional competitions under a form other than society, creating a new legal form, the Sociedade Desportiva Unipessoal por Quotas (Limited Single-member Sports Society) (SDUQ).

From 2013 to the present day, the challenges to the economy and Sports Societies, as economic agents, have multiplied and assumed new configurations not contemplated in the aforementioned document. Although the founding clubs still have a relevant presence in the capital of the societies, the entry of external investors in the share capital of the Sports Societies of the professional leagues is a trend for which solutions are not yet sufficiently agile within the current legal framework.

Liga Portugal, in its capacity as an organizer of professional competitions, is destined to contribute in a decisive way to the creation of a new legal regime, more adequate to the current reality of Sports Societies.

To this end, we have already sent concrete proposals to the Secretary of State for Youth and Sports at the end of 2020, developed by the Legal Work Group formed by the Board of Liga Portugal.

At the end of 2021, the Secretary of State for Youth and Sports, after collecting contributions from several Portuguese sports entities, such as Liga Portugal, together with the Portuguese Football Federation and the Olympic and Paralympic Committee, prepared a proposal for the global revision of the decree which the Legal Work Group, in December 2021, analyzed and reviewed extensively.

The representatives of the Sports Societies in the said Work Group formulated a detailed report on the proposal, in which they proposed more than fifty amendments to the legal text to ensure greater scrutiny, credibility, transparency, and integrity in sports in Portugal.

86 | Portuguese Professional Football Yearbook 2020-21

Participation (%) of the founding club in the share capital of Sports Societies (2020-21) Number of Sports Societies

Source: Liga Portugal

Methodology and contents This yearbook was made by EY based on information provided

by Liga Portugal and the Sports Societies.

EY did not perform an analysis on the quality of the information and assumed that the information received was correct.

1. The financial information of the Sports Societies was provided

by Liga Portugal for the seasons 2017-18, 2018-19, 2019-20 and 2020-21 in two distinct formats: (i) aggregation of the Reports and Accounts of the Sports Societies for the mentioned seasons, (ii) detail provided by the Sports Societies for the mentioned seasons. Whenever possible, preference was given to the use of the Reports and Accounts aggregator format.

2. File (i) was provided by the Sports Societies via two different ways: a) provision of the Report and Accounts in scanned PDF format, b) completion of Annex 1 of the EY-Liga Portugal Yearbook request list. In the cases in which the files were received through both methods, the use of a) was preferred.

3. File (ii) was provided by the Sports Societies via two different ways: a) provision of Annex 1 sent annually to Liga Portugal, in Excel format, b) completion of Annex 4 of the EY-Liga Portugal Yearbook request list. In the cases in which the files were received through both methods, the use of a) was preferred.

4. For Liga Portugal bwin, the files (i) and (ii) of point 1 were obtained for the 2020-21 season for all Sports Societies, except for file (ii) for Santa Clara and Belenenses SAD. 5. The files (ii) of point 1 provided by FC Porto in 2019-20 and 2020-21 relate to the consolidated accounts.

Given the unavailability of detailed information regarding the individual

88 | Portuguese Professional Football Yearbook 2020-21

accounts, the consolidated data were used.

6. For Liga Portugal SABSEG, the files (I) and (ii) of point 1 from two Sports Societies, CD Cova da Piedade and UD Oliveirense, were not received.

7. For the Sports Societies that did not provide the necessary information in the season under analysis, the most recent historical information available was used.

8. The files (i) of point 1 were not received from two Liga Portugal bwin Sports Societies in 2019-20.

9. File (ii) of point 1 from three Liga Portugal SABSEG Sports Societies in the 2017-18 season, two in 201819, and two in 2019-20, as well as from two Liga Portugal bwin Sports Societies in the 2019-20 season, were not received.

10. File (ii) of point 1 provided by Leixões SC in 2019-20 does not match with the audited financial statements. Given the unavailability of an alternative detailed information source, the data made available were used.

11.The economic analysis of Professional Football was focused on the direct impact of the activity of Liga Portugal and the participating Sports Societies of Liga Portugal bwin and Liga Portugal SABSEG on the Portuguese economy.

12. The information on jobs, tax burden, and remunerations of players, coaches, and the staff was provided by the completion of Annex 2 of the EY-Liga Portugal Yearbook request list.

13. However, not all information was sent. Information for three Sports Societies in the 2017-18 season, four in 2018-19, five in 201920, and four in 2020-21 wasn’t provided.

14. Annex 2 of the EY-Liga Portugal Yearbook file for the FC Porto Sports Society was provided for the first time this season. The values in the historical period were revised considering the information made available for this edition.

15. The formula contemplated for the calculation of the gross added value was inspired by the INE (National Institute of Statistics) metadata, which subtracts the value of production from its intermediate consumption. The formula was adapted to the Professional Football sector.

16. The gross value added of the Sports Societies from Liga Portugal bwin and Liga Portugal SABSEG results from the sum of sales and services provided, other income and earnings, balances from player transfers, cost of sold goods, external supplies and services, other expenses and losses, and inventory changes in the period under analysis. The gross value added of Professional Football was compared to the value of the GDP projection of the Portuguese economy in 2021, according to INE data and projections from the European Commission (DG ECFIN).

17. The turnover of the Liga Portugal bwin and Liga Portugal SABSEG Sports Societies results from the sum of sales and services provided,

other income and earnings and balances from player transfers, while the turnover of Liga Portugal results from the sum of sales and services provided and other income. Liga Portugal’s revenue from its own Sports Societies was excluded.

18. The information on player transfers of the Liga Portugal bwin Sports Societies was obtained from the Transfermarkt website, focusing only on the analysis of player signings and departures.

19. Professional competitions management information, including schedules, attendances, and television broadcasts of matches was provided by Liga Portugal for the 2020-21 season.

20. The total aggregate revenues, expenses, assets, and liabilities were calculated with data from file (i) of aggregation of the Reports and Accounts of the Sports Societies for the seasons mentioned in point 1 with the information restrictions described in points 4 to 10.

21. Personnel costs, external supplies and services, interest and similar costs, assets and liabilities components, and net income were also calculated with data from file (i), with the same restrictions.

22. The calculation of income details, such as earnings on player transfers and loans, television rights, and commercial activity, was made with data from file (ii), with details provided by the Sports Societies for the seasons mentioned in point 1, with the

restrictions on information described in points 4 to 10.

23. The calculation of detailed expenses, such as transaction costs and amortization of athletes’ rights, and remunerations of sports agents, was made with data from file (ii), with the same restrictions.

Portuguese Professional Football Yearbook 2020-21 | 89

Contacts Miguel Farinha EY - Head of Strategy and Transactions, Partner Phone number: +351 217 912 000 Email: miguel.farinha@pt.ey.com

Telma Franco BMC – Press Relations Phone number: +351 217 912 292 Email: telma.franco@pt.ey.com

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