La Liga, the organising body for Spanish soccer’s top two leagues, has announced that its club revenues surged 20.6 per cent during the 2017/18 season to reach a record €4.479 billion (US$5 billion).

In what were hailed as the best financial results in the competition’s history, La Liga’s gross operating profit reached €945 million (US$1.1 billion), while operating profit was €325 million (US$364 million) and net profit for the year was €189 million (US$211 million).

La Liga attributed the double-digit revenue increase to a significant uptick in sponsorship revenue (€838 million) and revenue from player transfers (€1.018 billion), which the league says have now taken a central role alongside broadcast revenues as key drivers of annual growth.

In addition, La Liga noted that audiovisual turnover received by the clubs broke the €1.5 billion (US$1.67 billion) mark for the first time, with that figure set to increase from the 2019/20 season when the league’s new domestic and international rights agreements kick in.

The league was also keen to point out that its clubs have been able to spend a considerable amount on infrastructure and players (€1.341 billion) while maintaining a downward trend in the degree of leverage. The ratio of financial debt to earnings before interest depreciation and amortisation was 0.9 times, which represented the lowest level on record.

Speaking to members of the press in London, Keegan Pierce, La Liga's UK and Ireland delegate, said: “The idea is La Liga clubs have gone from a situation where they had considerable debts, they were making losses as businesses, [to where] they have now been steadily paying off those debts, and as a fiscally responsible sector are now investing in the future of Spanish football.”

The latest results, which come at the midway stage of La Liga’s three-year domestic rights cycle, continue several financial years in which the Spanish soccer league has been able to post double-digit growth rates.

In relation to European soccer’s other top leagues, the latest revenue figure positions La Liga as the second best performing league from a financial perspective behind the Premier League.

It was announced at the end of April that combined revenue for clubs in England’s top tier climbed to UK£4.8 billion (US$6.2 billion) during the 2017/18 season, according to professional services firm Deloitte.