Activities and Accounts Report 2017-18 by Liga Portugal

ACTIVITIES AND ACCOUNTS REPORT

2017-18

STRATEGIC PARTNER

ÍNDICE

1. PRESIDENT’S MESSAGE

#004

3. STRATEGIC SUMMARY OF THE 2017-18 SEASON

#006

2. STRATEGIC POSITIONING 2015-19

#020

#030

5. GENERAL TIMELINE OF ACTIVITIES EXECUTED

#094

4. IMPLEMENTATION OF THE 2017-18 ACTION PLAN

#098

7. INDIVIDUAL FINANCIAL STATEMENTS AS OF JUNE 30, 2018

#122

6. INDIVIDUAL REPORT AND ACCOUNTS 2017-18

#152

9. CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2018

#158

8. CONSOLIDATED REPORT AND ACCOUNTS 2017-18

#190

10. APPENDIX

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 3

1. PRESIDENT’S MESSAGE The 2017-18 Season was characterized by

agent capable of generating vital dynami-

sustainable business model. Today we have

I would like to highlight the signing of a Me-

the sheer competitiveness of the tourna-

cs for professional football in Portugal. The

an industry that is cemented by best inter-

morandum of Understanding with our Spa-

ments, as well by the fact that we fulfilled

season was also marked by increased struc-

national practices.

nish counterpart LaLiga, the unequivocal

the main goals set out for the phase of de-

turing within the sector. First of all, two Pre-

Over the last few months we have towed

involvement in the activities of European

velopment.

sidents’ Summits were held; a fundamental

a strategy based on investment, know-how

Leagues, now a member of UEFA, and our

In terms of sportsmanship and competitive-

meeting for necessary reflections on the

and specialized diplomacy.

partnership with EY, one of the most presti-

ness, the three professional competitions in

industry, which allowed us to resume face-

To single out a few key points in this strategy,

gious consultancies worldwide.

the 2017-18 Season were simply fantastic,

-to-face contact with those in charge of the

with the Liga NOS and LEDMAN LigaPro ti-

clubs that participate in our competitions.

tles being fiercely disputed right until the

Today we are even better equipped to pre-

very last match. The winners were deserving

-empt and cater for the new challenges of

of victory and put up a good and exciting

Portuguese Professional Football, thanks to

fight for their places in the European com-

our economic and financial restructuring.

petitions, coupled with one of the most

As a result, the Taça CTT prizes, among other

sensational Taça CTT finals to date. We are

income for the Clubs, are handed out in full,

also proud to announce that the objectives

and we have attained organization par ex-

set out by the Management have been ex-

cellence in all professional competitions.

ceeded, emphasizing, once again, the ef-

That what was left over from the operating

ficient and inexhaustible efforts of all those

results made it possible to continue redu-

who walk this path of progress with us. We

cing the negative equity of five million eu-

have increasingly come to uphold a sus-

ros, through transparency, rigor and cons-

tainable resource strategy and have been

traint, so that in the next financial year it will

leveraging our growth, attaining an intelli-

be fully liquidated, which will fulfill one of

gent positioning bolstered by the diversity

the major objectives of the current Mana-

of initiatives.

gement / mandate.

This year Liga Portugal celebrated its 40th

Today, we can say with certainty that Liga

anniversary; our confidence in the future

Portugal is truly healthy and that the sacrifi-

growth of Professional Football is steadfast,

ces made in the past have proved to be re-

and we also remain fully committed to the

levant to its affirmation / financial recovery.

Liga’s mission of organizing, managing and

We should all welcome the fact that the

regulating the Professional Football industry.

Liga has regained its credibility and, funda-

In addition, we enhance and showcase the

mentally, its sustainability.

talent of our players and coaches within our

Liga Portugal is reborn. Today, we are a

competitions, which are our biggest asset.

robust Liga Portugal; wholly invested in mo-

We believe that Liga Portugal is a bonding

dernization and the implementation of a

4 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

With the realities of this industry in mind, we

plementation of the Liga’s Match Center,

This report intends to provide an overview

son, were able to carry out the Manage-

partner with the Portuguese Football Fede-

where professionals from different depart-

of the main projects carried out during the

ment’s intents so efficiently and professio-

ration (FPF) and the Players’ Union, in an ac-

ments and varying expertise ensure good

2017-18 Season, both within the scope of

nally. Talent is in your DNA.

tive campaign to combat match-fixing and

practices on a daily basis. And we continue

the Activities Plan and new projects that

protect the integrity of competitions.

invested in the training of the various sports

were not planned, but have also been

We invest in ways of monitoring the com-

personnel, in particular our Officials and

carried out.

petitions and the matches, with the im-

Ground Managers, Security and Media.

We are grateful to all those who, this sea-

Photo of the team responsible for organizing the 11th edition of the Taça CTT Final Four.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 5

2. SUMMARY OF THE 2017-18 SPORTS SEASON

FC Porto secured the 28th title in their his-

both away from their home-ground Estádio

Europa League. SC Braga will also be taking

tory after becoming National Champions in

do Dragão (FC P. Ferreira in their 26th match

part in this tournament, but in an earlier rou-

the 33rd matchday of Liga NOS, following a

and Belenenses, SAD in the 28th matchday).

nd, after coming in 4th place.

draw between Sporting CP and SL Benfica

The team can add another feather to its cap

Excitement and showmanship was not lac-

in a goalless derby that took place at the Es-

after becoming the side with the most goals

king in this edition of Liga NOS, with the last

tádio de Alvalade. The unrecoverable point

scored in the competition (82), and least suf-

matches being decisive at various levels.

difference between the cross-city rivals and

fered (18), having finished 7 points clear of

Five clubs entered the 34th round, their futu-

their northern opponents meant early cele-

second-placed SL Benfica.

res yet to be decided; though for two of the

brations for FC Porto fans, whose team only

SL Benfica, for its part, took 2nd place on the

clubs the taste is bittersweet. While Moreiren-

played against – and won – adversary CD

podium, after starting their last match with

se FC, Vitória FC and CD Feirense secured

Feirense the following day, and went into it

the same points as opponents Sporting CP,

their places in the top tier, FC P. Ferreira and

knowing they had already bagged the title.

despite being at a disadvantage. With the

Estoril Praia were not as lucky.

Portugal’s

Champions

national title already having gone to FC Por-

The great unpredictability in the fight for the ti-

showed their mettle in a demanding com-

to, the two teams battled it out for the remai-

tle and access to the European competitions,

petition that stretched out over almost 10

ning places in the Champions League’s 3rd

as well as the fight to stay there, made this

months. The side, captained by Sérgio Con-

qualifying round, with SL Benfica eventually

edition of Liga NOS absolutely memorable.

ceição, finished the season with an impressi-

clinching the deal following a home win

The numbers are undeniable.

ve score-sheet. The 88-point record held by SL

against Moreirense FC.

The 2017-18 Season was prolific in shots on

Benfica since the 2015-16 season was equa-

In Funchal, Jorge Jesus’s Sporting CP was de-

target. Proof of this was that about more 100

led by Sérgio Conceição’s men this season,

feated by Marítimo M., which secured them

goals were scored compared to the previous

with 28 wins, two draws and just two losses,

a place in the 3rd qualifying round of the

season.

newest

National

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 9

Final Classification of the Liga NOS 2017-18 Season P

TEAM

OVERALL W D L

HOME P W D L

AWAY P W D L

GOALS GS GC

FC Porto

34 28 4

SL Benfica

3 4

17 16 1

17 12 3

82 18

2.4 0.5 88

34 25 6

17 14 1

17 11 5

80 22

2.4 0.6 81

Sporting CP

34 24 6

17 14 3

17 10 3

63 24

1.9 0.7 78

SC Braga

34 24 3

17 14 1 2

17 10 2 5

74 29

2.2 0.9 75

Rio Ave FC

34 15 6 13

17 11 3 3

17 4 3 10

40 42

1.2 1.2 51

GD Chaves

34 13 8 13

17 6

17 7

47 55

1.4 1.6 47

Marítimo M.

34 13 8 13

17 10 4

17 3

4 10

36 49

1.1 1.4 47

Boavista FC

34 13 6 15

17 11 2 4

17 2 4 11

35 44

1.0 1.3 45

Vitória SC

34 13 4 17

17 9

17 4

1 12

45 56

1.3 1.6 43

10 Portimonense

34 10 8 16

17 8

17 2

52 60

1.5 1.8 38

11 CD Tondela

34 10 8 16

17 5 3 9

17 5 5 7

41 50 1.2 1.5 38

12 Os Belenenses

9 10 15

17 7

17 2

5 10

33 46

1.0 1.4 37

13 CD Aves

7 18

17 5

17 4

36 51

1.1 1.5 34

14 Vitória FC

7 11 16

17 6

17 1

5 11

39 62

1.1 1.8 32

15 Moreirense FC

8 18

17 5

17 3

2 12

29 50

0.9 1.5 32

16 CD Feirense

4 21

17 6

17 3

1 13

32 48

0.9 1.4 31

17 FC P.Ferreira

9 18

17 6

17 1

3 13

33 59

1.0 1.7 30

18 Estoril Praia

6 20

17 5

17 3

3 11

29 61

0.9 1.8 30

AVERAGE GS GC

Evolution of Average Advertising Value Equivalency Return (AVE) of the Competition and NOS (Seasons 2015-16; 2016-17; 2017-18 Season; millions of euros) M1 234

M1 166

416

475

M933

281 2015-16

2016-17

2017-18

AVE (Advertising Value Equivalency) - equivalent of cost of advertising the Competition in the Media in minutes and spots (traditional and digital) * CISION Sponsorship Report, 2015/16 Season, complete (estimated total value), 2016-17 Season and 2017-18 Season, CISION Impact Report, 2016-17 Season and 2017-18 Season.

MAIN REVENUE-GENERATING PROPERTIES NAMING

2 PLACES

(1 PRE-QUALIFICATION)

3 Places

(2 PRE-QUALIFICATION)

10 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

FLASH INTERVIEW

PORTIREDE

CAM CARPET

SEASON

SPECTATORS

NO. MATCHES

AVERAGE NO. SPECTATORS PER MATCH

2017-18

3 655 213

306

11 945

2016-17

3 622 372

306

11 838

2015-16

3 305 708

306

10 803

TEAMS

306

MATCHES

826

GOALS 2,7

AVERAGE PER MATCH

34 GOALS

JONAS (SL BENFICA)

306 BROADCASTED MATCHES

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 11

The LEDMAN LigaPro 2017-18 season compe-

Competitiveness was the overriding tone

of the highest scoring team, but the most re-

tition saw 20 teams take part, two fewer than

in the Portuguese Championships and the

markable accolade goes to Real SC player

the previous edition, with its duration also re-

LEDMAN LigaPro was no exception. Quite

Vinicius, who finished in 2nd, having scored 19

duced from 42 to 38 matchdays.

the contrary. In a competition with 20 teams,

goals for his team.

The return of CD Nacional to the Liga NOS

the team that ranked middle of the table, in

No team emerged unvanquished in what

left a mark when they lifted, for the first time

10th place, notched up 50 points, just six more

was a particularly hotly disputed and well-ba-

ever, the LEDMAN LigaPro winner’s trophy, in

than U. Madeira, the first team in the relega-

lanced championship, with Costinha’s side

a tournament in which Sta. Clara traced a

tion zone.

being the team with the fewest defeats (5),

parallel ascension to the highest rungs and

The last LEDMAN LigaPro matches made rive-

during a season that drew 436 378 spectators

finished in second.

ting viewing, both at the top of the table, and

to the stadiums.

A year later, CD National consolidated their

with regards to those fighting to avoid relega-

Thanks to their successful competitive perfor-

return to the Liga NOS by becoming cham-

tion. Real SC, Gil Vicente FC and Sporting CP

mance, CD Nacional and Sta. Clara take the

pions of the LEDMAN LigaPro, with a five point

B were unable to stop themselves from dro-

places of the relegated Estoril Praia and FC

advantage over Sta. Clara, who were also

pping down the ranks, with U. Madeira joining

Paços de Ferreira in the next edition of Liga

back on the main stage after 15 years, and

this batch in the closing round.

NOS.

seven points ahead of the third-ranked Ac.

CD National also topped the list of best sco-

Viseu.

rers, with Ricardo scoring 22 of the 72 goals

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 13

Final classification of the LEDMAN LigaPro 2017-18 Season HOME P W D L

AWAY P W D L

GOALS GS GC

AVERAGE GS GC

Evolution of Average Advertising Value Equivalency Return (AVE) of the Competition and LEDMAN

38 19 14 5

19 11 7

19 8

72 45

1.9 1.2

M218

Sta. Clara

38 19 9 10

19 11 6

19 8

55 40

1.4 1.1

Ac. Viseu

38 17 13 8

19 9

19 8

50 40

1.3 1.1

A. Académica

38 19 6 13

19 10 4

19 9

59 40

1.6 1.1

FC Penafiel

38 17 11 10

19 10 5

19 7

55 43

1.4 1.1

FC Arouca

38 16 11 11

19 10 5

19 6

42 37

1.1 1.0

FC Porto B

38 18 4 16

19 12 1

19 6

3 10

50 55

1.3 1.4

Leixões SC

38 14 14 10

19 11 6

19 3

50 43

1.3 1.1

CD C. Piedade

38 14 9 15

19 11 4

19 3

5 11

42 45

1.1 1.2

10 Varzim SC

38 13 11 14

19 8

19 5

3 11

41 41

1.1 1.1

11 Vitória SC B

38 14 8 16

19 7

44 49

1.2 1.3

12 UD Oliveirense

38 13 10 15

19 7

19 6

45 47

1.2 1.2

13 SL Benfica B

38 14 7 17

19 9

19 5

4 10

54 60

1.4 1.6

14 FC Famalicão

38 13 9 16

19 10 4

19 3

5 11

46 49

1.2 1.3

15 SC Covilhã

38 12 11 15

19 8

19 4

32 41

0.8 1.1

2015-16

2016-17

16 SC Braga B

38 10 14 14

19 5

44 48

1.2 1.3

17 U. Madeira

38 12 8 18

19 8

19 4

2 13

44 53

1.2 1.4

18 Sporting CP B

38 11 9 18

19 7

19 4

46 65

1.2 1.7

19 Gil Vicente FC

8 12 18

19 5

4 10

19 3

29 45

0.8 1.2

20 Real SC

19 6

19 2

4 13

47 61

1.2 1.6

TEAM

CD Nacional

2 3

OVERALL W D L

8 22

(Seasons 2015-16; 2016-17; 2017-18 Season; millions of euros)

M186

14 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

13 2017-18

AVE (Advertising Value Equivalency) – equivalent of cost of advertising the Competition in the Media in minutes and spots (traditional and digital) * CISION Sponsorship Report, 2015/16 Season, complete (estimated total value), and 2016-17 Season and 2017-18 Season; CISION Impact Report, 2016-17 Season and 2017-18 Season.

MAIN REVENUE-GENERATING PROPERTIES NAMING

2 PLACES

M185

FRONT LINE ADVERTISING

FLASH INTERVIEW

SEASON

SPECTATORS

NO. MATCHES

AVERAGE NO. SPECTATORS PER MATCH

2017-18

436 378

380

1 148

2016-17

500 289

462

1 083

2015-16

497 525

552

901

TEAMS

380

MATCHES

947

GOALS 2,49

AVERAGE PER MATCH

22 GOALS

RICARDO GOMES (CD NACIONAL)

103 BROADCASTED MATCHES | SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 15

Four teams made it through to Football

takes a year to minutely plan a full week

a game that saw Sporting CP and Vitória

Week, which this season took place in

that lives and breathes football. It’s a true

FC take the stage. After a 1-1 draw in nor-

Braga, where the 2017-18 Winter Cham-

party. And this is what the four finalists

mal time, the winner was finally decided

pion was declared. During the Final Four,

would have experienced thanks to the

by a penalty kick, with Jorge Jesus’ squad

FC Porto, UD Oliveirense, Vitória FC and

environment in Braga. The first match took

taking the advantage (5-4) over José Cou-

Sporting CP all showed their determination

place on January 23, 2018, between Vitó-

ceiro’s men.

to win what is the most recent, yet no less

ria FC and UD Oliveirense, which saw the

Sporting CP’s victory of the Taça CTT by

interesting sporting event on the national

former through to the final.

has left a NOTEble mark in the history of the

football calendar. Quite the opposite. The

The next day’s clash, a real classic, was

winners of this competition. Jorge Jesus be-

Taça CTT was a success, both on the pitch

exceptional on all levels. The stadium’s

came the first coach to win the trophy for

and beyond it, where crowds filled the city

stands were packed to welcome FC Por-

two different teams, having won the 2009-

center Fan Zone.

to and Sporting CP, but the broadcasted

10, 2010-11, 2011-12, 2013-14 and 2014-15

The Liga Cup is today a huge success and

version was also a success, with a share

editions while manager of SL Benfica.

a source of pride for an organization that

of 36.9, surpassing that of the final (32.4);

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 17

Final classification of the Taça CTT 2017-18 Season L

TEAM

OVERALL W D L

GOALS GS GC

AVERAGE GS GC

Evolution of Average Advertising Value Equivalency Return (AVE) of the Competition and CTT (Seasons 2015-16; 2016-17; 2017-18 Season; millions of euros) M267

A 1

Vitória FC

2.0

1.3

SL Benfica

1.7

Portimonense

1.7

2.0

SC Braga

1.3

1.7

Sporting CP

2.3

0.3

Marítimo M.

1.0

0.7

Os Belenenses

0.7

U. Madeira

1.0

3.3

UD Oliveirense

2.0

1.0

Moreirense FC

1.7

1.3

Taça da Liga

CTT

CD Feirense

1.3

1.7

Vitória SC

1.7

2.7

M180

M95

M52

D 1

FC Porto

2.0

0.7

Leixões SC

1.0

Rio Ave FC

1.3

2.0

FC P.Ferreira

1.0

1.7

Taça da Liga

2016-17

CTT

2017-18

AVE (Advertising Value Equivalency) custo equivalente da publicidade em minutos e espaços (tradicional e digital) da presençaAdvertising Value Equivalency) – equivalent of cost of advertising the Competition in the Media in minutes and spots (traditional and digital) * CISION Sponsorship Report, 2015/16 Season, complete (estimated total value), and 2016-17 Season and 2017-18 Season; CISION Impact Report, 2016-17 Season and 2017-18 Season.

MAIN REVENUE-GENERATING PROPERTIES NAMING

19 BROADCASTED MATCHES 18 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

FRONT LINE ADVERTISING

PRESS CONFERENCES

BADGES ON EQUIPMENT

SEASON

SPECTATORS

NO. MATCHES

AVERAGE NO. SPECTATORS PER MATCH

2017-18

258 865

5 883

2016-17

245 146

5 329

2015-16

185 120

3 857

GOALS

PACIÊNCIA (VITÓRIA FC)

3. STRATEGIC SUMMARY OF 2017-18 SEASON

At the start of the mandate, the Ligaâ&#x20AC;&#x2122;s management set out a strategic course for the organization, cemented in the past and projecting a four-year future. Four key pillars are defined in our Business Plan: Sustainability, Consolidation, Development and Maturity. With the taking-over of the present Board, on July 30, 2015, a diagnosis was made of the Liga Portugalâ&#x20AC;&#x2122;s Human Resources and at a financial, material, technical and technological level. Bearing in mind the defined starting point, it was decided what stance Liga Portugal should adopt before its stakeholders, identifying the long-term strategic objectives for the 2015-19 cycle.

22 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

3.1 MISSION, VISION AND VALUES Mission, Vision and Values define the essence of the organizationâ&#x20AC;&#x2122;s aspirations and outline its position before the World. Vision and Mission are designed to swiftly convey what is important and fundamental to the organization, and are the basis of the map of action outlined and executed. Liga Portugal is governed by the values of Rigor, Talent, Professionalism and Aggregation, which are the principles by which we guide our actions and activities. They reflect not only what we believe, but also our aspirations as an organization to achieve our goals.

MISSION

To ensure the excellence of the organization in its professional competitions, ensuring commercial revenues for this purpose.

AGGREGATION

VISION

To change the current reality with the creation of a more profitable business model,

PROFISSIONALISM

able to attract greater interest from the media and more investors; Portuguese professional football

VALUES

TALENT

should be economically self-sustaining and the management of all Clubs should be professional; To project the Liga Portugal brand and its

RIGOR

international competitions.

VALUE PROPOSITION Football with Talent.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 23

3.2 GLOBAL STRATEGY Planning, executing, controlling and readjusting should be an ongoing process, ensuring the consolidation and sustainable growth of operational organizations and teams. For this, and as mentioned earlier, the Liga went through a phase of sustainability and consolidation, with the reorganization of its financial and human resources, before entering a phase of development in the 2017-18 Season. In each of the phases, the focus of the organization differed, and will always differ, notwithstanding the ultimate goal of steadily moving towards maturity. It is Liga Portugal’s objective to have sufficiently mature levels of management to focus its activity on the organization of professional competitions, the constant introduction of new technologies, the creativity of its promotion, the training of all Professionals, and the football industry, as a whole, as one of the most dynamic sectors and with the greatest impact on the national socio-economic fabric.

2015-16 SUSTAINABILITY

Financial Economic Stabilization Boost revenue - renewal of contracts

Control and reduction of management and operational costs

2016-17 CONSOLIDATION

Develop a business strategy to increase profitability Develop an effective model to measure revenue generated by the Liga Reformulate the current competition model, making competitions more attractive and balanced Streamline and reformulate IT-supported processes and procedures Create a technically robust organizational structure Develop a strong corporate culture and enhance internal communication

2017-18 DEVELOPMENT

Increase the Liga’s visibility to 360-degrees Establish more enhancing relationships / partnerships Develop alternative content, products and services Systematically increase events and promotion of competitions Maintain operations of excellence in events and competitions Create a 360-degree culture of service to clubs, fans, sponsors and other sports authorities Maintain a meticulous strategy and efficiency in management and operations

24 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

2018-19 MATURITY

Diversify the visibility of the Liga internationally Strengthen relations / partnerships, maintaining a policy of negotiation Develop an active trade policy with financial return and visibility Create a domain with increasing audience levels for events and competitions Create new service concepts, ensuring their operation Systematically develop and maintain the Liga’s IT areas Develop a long-term Social Responsibility strategy

3.3 STRATEGIC GUIDELINES The strategic objectives of Liga Portugal for the 2015-19 timeframe were clearly defined, underpinned by operational objectives. The main goal is to create value, credibility and internationalize Liga Portugal and professional football. In this context, the strategic objectives of Liga Portugal for the period spanning 2015 and 2019 fall into six perspectives of development:

ENSURE THE SUSTAINABILITY OF THE LIGA AND ITS CLUBS

ADOPT THE SUCCESSFUL PRACTICES OF THE MAIN EUROPEAN LEAGUES

A MEASURABLE AND FEASIBLE BUSINESS PLAN

MAKE THE VARIOUS COMPONENTS OF THE GAME MORE PROFITABLE

5 ATTRACT MORE SPECTATORS AND SPONSORS

6 LEND CREDIBILITY TO THE FOOTBALL BUSINESS

Develop new

Become a

Develop and

Enhance and create

Develop a

Develop a strategy

competition models

benchmark in the

implement a business

new revenue drivers.

“360-degree”

of thoroughness,

and encourage

promotion and

model that allows

communication policy

transparency

good management

management of

for the assessment

and enhance added

and efficiency in

practices within Clubs

international football.

of results, which

value from partnerships

management and

is ambitious, but

and sponsorships.

operations.

achievable.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 25

3.4 STRATEGIC OBJECTIVES AND RESULTS 2017-18 To ensure that, strategically, the defined actions fulfill the objectives set out for the four-year period, and that the Liga is on the right track, short-term strategic objectives were drawn up in 2017-18, whose degree of compliance is summarized below.

Financial Objectives TARGET

Commercial Objectives Target Total Revenue

15.3 M€

Target Debt Ratio (P/CP)

REAL

Total Revenues

15.6 M€

500 M€

229%

Target Operating Results

Operating Results

2.2 M€

2.1 M€ Target Solvency Ratio (CP/P)

477 M€

44%

Average Deadline for Payments to Suppliers 30 Days

30 DIAS

REAL

Distribution of Income among Clubs

Average Deadline for Payments to Suppliers 30 Days

10.8 M€

3.1 M€

Total Commercial Income

Commercial Properties for Competitions

Solvency Ratio

38,69%

Total Commercial Income

Commercial Properties for Competitions

Debt Ratio (P/CP)

258,46%

TARGET

Distribution of Income among Clubs

10.7 M€

3.13 M€

30 DIAS

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 27

Promotion and Communication Objectives Promoting Liga Portugal has allowed us to increase its visibility, promote its competi-

TARGET

tions and its products, and to create engagement with fans. Its promotion was achieTarget Advertising Value Equivalency

ved through campaigns that strengthened the Liga Portugal brand, reinforced its positioning and its competitions in an integrated fashion, consistent with the guidelines established for the organization. The large number of games that Liga Portugal organizes allows us to produce a large volume of content that is highly-attractive to football followers, thus increasing engagement with the public through the ease and speed with which information reaches

and promotional activity of the competi-

1 000 M€/AVE

250 M€/AVE

161 M€/AVE

220 M€/AVE

267 M€/AVE

60 M€/AVE

95 M€/AVE

REAL

Advertising Value Equivalency

AVE (Advertising Value Equivalency) equivalent cost of advertising the Competition in the media, in minutes and spots (traditional and digital); Cision Sponsorship Report, 2015-16 Season, complete (estimated total value), 2016-17 Season and 2017-18 Season; Cision Impact Report, 2016-17 Season and 2017-18 Season.

the fans. Monitoring the impact of the commercial

1 300 M€/AVE

TARGET

tions and their partners was another of Liga Portugal’s concerns. To this end, the AVE

Spectators in Stadiums Target

(Advertising Value Equivalent) was adopted, which consists in determining the monetary value of news, based on the quantification of the corresponding advertising cost. This calculation allows us to provide

3.7 M

3.65 M

550 000

436 378

300 000

258 865

REAL Spectators in Stadiums

partners with information about their investment, as well as to measure the value

In the LEDMAN LigaPro, due to the reduction in the number of broadcasted games – 103, as opposed to the 125 last season – the value of AVE did

of the competitions under Liga Portugal’s

not reach the target set for the season. In order to achieve the desired return, a strategy was developed that involved increasing the number of

responsibility. As we can see from the data

games televised by Sport TV and the transmission of the remaining games via streaming.

presented in this report, the Liga NOS AVE

The Liga Cup presented the best results in terms of the AVE of the season, with a return of more than € 267M, of which €95M derive from the Final

values have stabilized at € 1 billion, and the

Four, a 75% increase compared to last season’s figures, which was very positive. Despite the reshaping of the Liga Cup’s competitive model – and

sponsor has achieved better results, which is

even though it is a smaller competition than the Liga NOS – the return per invested euro has proved very attractive. Investing in Football Week has

in fact a highly relevant indication.

made the Final Four a unique and consolidated product.

28 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

Digital Ecosystem of Competitions During the 2017-18 season Liga Portugal made concerted efforts with its digital ecosystem, which includes social media sites Facebook, Instagram, Twitter, YouTube and LinkedIn, as well as the Liga Portugal website Liga NOS Virtual.

15 M

12 M

VIEWS WEBSITE + LIGA NOS VIRTUAL

10 000 60 000 TARGET

Target Digital Ecosystem

60 000 325 000 43 000 10 000 7 500

LNV TEAMS

SEGMENTED CONTACTS

FACEBOOK FOLLOWERS

TWITTER FOLLOWERS

INSTAGRAM FOLLOWERS

LINKEDIN FOLLOWERS

WEIBO FOLLOWERS

16 000 N/A (RGPD) 54 000 Digital Ecosystem

331 000 68 000 600 N/A

REAL

4. IMPLEMENTATION OF THE 2017-18 ACTION PLAN Liga Portugalâ&#x20AC;&#x2122;s 2017-18 Action Plan provided for a set of actions which, as already mentioned, were carried out in full. The results are presented in this document.

The projects and activities presented at the date of the said plan were classified into two main groups:

4.1 Transversal projects and activities;

4.2 Department-specific projects and activities;

which, while in many situations are spearheaded by one particular department, require the joint, organized and block participation of the various departments, which makes the projects transversal to the entire organization;

which, despite contributing to the whole, were assigned to and carried out specifically by one department. The various departments additionally developed a series of actions that, despite not being stand-alone actions, were specific to each department.

Each of the groups is further divided into planned and completed projects and activities, which were planned for the 2017-18 season and which were carried out; and unforeseen projects and activities that were not planned for the season but were also carried out.

32 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 33

4.1

TRANSVERSAL PROJECTS AND ACTIVITIES

34 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

TAÇA CTT AND FINAL FOUR

KICK OFF

LEDMAN LIGAPRO

CENTRAL LIGA

POSTGRADUATE STUDIES

BUSINESS INTELLIGENCE

LIGA NOS

WORKING GROUPS AND ANNUAL CONFERENCES

PRESIDENTS’ SUMMIT

MATCH CENTER

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 35

KICK-OFF 2017-18 Kick-Off marked the official start of the new season, namely of the three professional competitions organized by Liga Portugal: Liga NOS, LEDMAN LigaPro, and the Liga Cup. It was designed to be a defining moment for the Portuguese football market and society in general. The draw ceremony of the professional competition calendars for the 2017-18 Season was held at the Leixões Port Cruise Terminal, in Matosinhos, on July 7, 2017, with around 250 guests and media representatives in attendance. In addition to the draw, the winners of Liga Portugal’s Official Prizes were awarded, and the host city for the Final Four of the formerly designated Taça CTT was also unveiled. ////////////////////////////////////////////////////////////////////////////////////////////////////////

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 37

This competition required the integration and participation of the Ligaâ&#x20AC;&#x2122;s various departments, and their constant communication and articulation. In addition to the normal organization of the matches and their scheduling by the Competitions Department, a series of actions were carried out throughout the season with a view to their promotion and projection. ////////////////////////////////////////////////

‘AMOR À CAMISOLA’ (LOVE FOR THE SHIRT CAMPAIGN)

TROPHY AWARDS CEREMONY

Liga Portugal and its main Liga NOS sponsor worked closely together during the 2017-18 season

The awards ceremony to hand over the competition trophy to the winner FC Porto was organi-

to promote the “Amor à Camisola” (Love for the Shirt) campaign. Focused on the unique rela-

zed as planned. The National Champions Cup ceremony was held on May 6, after the match

tionship between fans and their club’s shirt, this action was promoted on television, radio, and

with CD Feirense at the Estádio do Dragão, and was attended by Pedro Proença, President

digital media and at Liga NOS stadiums.

of Liga Portugal and Miguel Almeida, President of NOS. The Liga endeavored to revamp the

Driven by the emotional bond between fans and their club’s shirt, this campaign was built on

image of the event with a new ceremony concept, which was highly-profitable for the com-

18 testimonies from supporters of all Liga NOS clubs.

petition.

The moments, the memories and the unforgettable emotions experienced by each one of the-

////////////////////////////////////////////////////////////////////////////////////////////////////////

se fans served as a motto for 18 true stories that mark the deep relationship between supporters and their club. Invested in contributing towards the appreciation of Portuguese football, NOS celebrated the positive values of football and healthy competition through a campaign guided by one of Liga NOS’ main values: unity. ////////////////////////////////////////////////////////////////////////////////////////////////////////

Boavista FC

CD Aves

apresenta

A primeira camisola

O treinador

Diogo Lopes Adepto do Boavista FC

Francisco Martins Adepto do CD Aves

CD Feirense apresenta

O sonho Artur Brandão Adepto do CD Feirense

CS Marítimo

4,6 milhões

24.633

Moreirense FC

apresenta

As 3 gerações

Paula Gaidão Adepta do GD Estoril Praia

Paulo Neto Adepto do FC Paços de Ferreira

FC Porto apresenta

As finais Nuno Lobo Adepto do FC Porto

GD Chaves apresenta

O primeiro jogo Marisa Pires Adepta do GD de Chaves

Francisco Martins

Artur Brandão

Miriam Raquel

Paula Gaidão

Paulo Neto

Nuno Lobo

Marisa Pires

Diogo Lopes é conhecido pelo “Boavisteiro” desde pequenino. O clube que o tio e o avô lhe ensinaram a amar. Ainda guarda com carinho a primeira camisola axadrezada, que um dia será para o seu ﬁlho. É com grande orgulho “Boavisteiro 100%”.

Francisco Martins é adepto do Desportivo das Aves. Já foi jogador do clube e agora é treinador. Recorda, com carinho, uma camisola que lhe foi dada por acompanhar o seu clube a todo o lado. Uma recompensa mais do que merecida.

Artur Brandão tinha um sonho: ser jogador do Feirense. A camisola do seu coração não poderia ser outra que não aquela que usou para realizar esse sonho. Foi jogador, treinador e presidente do clube. Hoje é um adepto de coração.

Miriam Raquel é adepta convicta do Tondela. Vai com o seu clube para todo o lado. E não se esquece do dia em que o clube veio até a si, até a sua casa e o capitão lhe ofereceu a camisola da nova época. Quando pensa no clube, o seu coração bate mais rápido.

Paula Gaidão, desde os 3 anos, acompanhava o pai aos jogos do Estoril. Hoje é adepta e jogadora do clube. O ano passado entrou em campo com a equipa principal e foi um momento que não esquecerá nunca. Essa camisola não sai junto de si, nem do seu coração.

Paulo Neto é adepto do Paços de Ferreira desde menino. Aliás, nasceu e cresceu no estádio do clube, onde a família vive há 3 gerações. Uma família que respira futebol. Dentro das 4 paredes da sua casa e das 4 linhas do seu clube de sempre.

Nuno Lobo, 45 anos de dragão ao peito. Em 1987, comprou uma camisola para ver a Final da Taça dos Campeões Europeus, que o FC Porto venceu e, a partir daí, nunca mais a largou. Viena, Sevilha, Gelsenkirchen, Dubline muito mais. É a camisola das ﬁnais.

Marisa Pires, sempre foi do Chaves. Para ela, não há outro clube como o seu. O seu pai fez parte da primeira equipa do clube em 1949. Ainda guarda essa camisola azul grená com muito carinho e admiração. É, e sempre será, uma valente transmontana.

602.482 visualizações

583.737 visualizações

533.848 visualizações

513.084 visualizações

563.736 visualizações

609.965 visualizações

1.577.429 visualizações

661.017 visualizações

CF Os Belenenses

Portimonense SC

Rio Ave FC

SC Braga

SL Benﬁca

Sporting CP

Vitória FC

Vitória SC

apresenta

O casamento

A tempestade

Corte e cabelo

A segunda pele

O ídolo

Márcio Teixeira Adepto do Moreirense FC

FC P. Ferreira

apresenta

A jogadora

Miriam Raquel Adepta do CD Tondela

A recompensa Rafael Nóbrega Adepto do CS Marítimo

Estoril Praia

apresenta

A surpresa

Diogo Lopes

12,3 milhões de views 7,7 milhões

CD Tondela

Ana Fernandes Adepta do CF Os Belenenses

João Monteiro Adepto do Portimonense SC

Joaquim Vareiro Adepto do Rio Ave FC

José Lopes Adepto do SC Braga

apresenta

As lendas Emílio Júnior Adepto do SL Benfica

apresenta

A herança

A segunda casa

Pedro Monteiro Adepto do Sporting CP

D. Conceição Adepta do Vitória FC

apresenta

A família Carlos Freitas Adepto do Vitória SC

Rafael Nóbrega

Débora e Márcio

Ana Fernandes

João Monteiro

Joaquim Vareiro

José Lopes

Emílio Júnior

Pedro Monteiro

Conceição Casaca

Carlos Freitas

Rafael Nóbrega é adepto do Marítimo desde que nasceu. Obra do seu avô, que é adepto do clube. No dia em que fez 19 anos, recebeu uma grande recompensa: a camisola do seu coração. Nas vitórias e nas derrotas, ele está sempre lá.

Débora e Márcio partilham mais do que a vida, partilham a paixão por um clube: o Moreirense. E foi ali, em pleno estádio, que fizeram a sessão fotográfica para o seu casamento. Um dia que ficou para sempre gravado em película. E nos seus corações.

Ana Fernandes é adepta fervorosa do Belenenses. Foi num dia de tempestade que ela recebeu do Miguel Rosa uma camisola muito especial para o seu ﬁlho. Ela e o ﬁlho não perdem um jogo do seu clube do coração. Faça chuva ou faça sol.

João Monteiro não se esquece nunca do seu Portimonense. Nem do mar, da mística e das velhas glórias. Ainda hoje oferece a todos os jogadores “barba e cabelo”, na barbearia de que é proprietário. É o mínimo que pode fazer pelo clube que tantas alegrias lhe dá.

Joaquim Vareiro é Rio Ave de alma e coração. Aliás, considera o equipamento do clube como a sua segunda pele. Durante o dia e a noite, está sempre vestido de Rio Ave. Quando veste a camisola do seu clube de sempre não hesita em dizer que “se sente no paraíso”.

José Pinto Lopes, é adepto guerreiro do seu Braga. É ali que tem a sua segunda família. Guarda com carinho uma camisola dada pelo Alan, o seu ídolo, e vai com ela para todo o lado. E sempre com as mesmas meias e cuecas, por superstição. Tudo pelo seu Braga.

Senhor Emílio Júnior, sócio número 5 do Benﬁca é um dos mais icónicos adeptos do clube. Tinha uma relação com os grandes talentos do clube e, destaca, a amizade que sempre teve com Eusébio. Recebeu uma camisola dos antigos campeões europeus que guarda com carinho.

Pedro Monteiro, herdou do avô (Jesus Correia, um dos 5 violinos) a paixão pelo Sporting. Foi atleta do clube e agora é um adepto apaixonado. Mesmo longe do país, tem sempre o Sporting por perto. A sua camisola de eleição representa esta valiosa herança.

Para a Dona Conceição, o Vitória de Setúbal é a sua segunda casa. Ainda guarda com carinho uma camisola que todos os jogadores assinaram pelo seu grande Vitorianismo. “Quando falarem do Vitória ponham-se em pé”, gosta de dizer.

Carlos Freitas, o amor pelo Vitória é de família. O pai foi jogador do clube e agora passou esse mesmo sentimento aos ﬁlhos. A camisola que melhores recordações lhe traz foi a que recebeu na ﬁnal do Jamor, onde o Vitória ganhou a primeira Taça de Portugal. É a joia da família.

997.706 visualizações

517.929 visualizações

572.074 visualizações

544.922 visualizações

737.605 visualizações

713.736 visualizações

1.892.028 visualizações

1.474.049 visualizações

575.010 visualizações

761.122 visualizações

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 39

INTRODUCTION AND REFORMULATION OF OFFICIAL MONTHLY AND ANNUAL PRIZES

BEST GOALKEEPER

During the 2017-18 Season, as expected, the Liga NOS annual and monthly prizes were introduced and reformulated, with

RUI PATRÍCIO

BEST DEFENDERS

SPORTING CP

sponsors such as SAMSUNG and EuroBic. These prizes encouraged the talent in the competition, singling out the best professionals and bringing together Liga Portugal’s various stakeholders. Voting also took place for the first time on Liga NOS’ ‘Eleven of the Year’. The voting took place via Liga Portugal and Liga NOS’ websites. ////////////////////////////////////////////////

RICARDO PEREIRA FC PORTO

FELIPE

SEBÁSTIAN COATES

FC PORTO

SPORTING CP

ALEX TELLES FC PORTO

BEST MIDFIELDERS

BRUNO FERNANDES SPORTING CP

HERRERA

PIZZI

FC PORTO

SL BENFICA

JONAS

GELSON MARTINS

BEST FORWARDS

MAREGA FC PORTO

40 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

SL BENFICA

SPORTING CP

LEDMAN LigaPro has been reinvigorated by the enhancement of its visual aspects, namely through greater investment in the trophy awards ceremony, collaboration with television operators to broadcast matches, and promoting the competition through Liga Portugalâ&#x20AC;&#x2122;s social networks, giving it greater visibility. Within the field of Competitions, a great deal of work went towards improving stadium infrastructures, including pitches, as well as bringing all documents relating to the organization of matches into line. Liga Portugal rallied and closely monitored the Clubs, to make the competition better qualified and more professional, to enhance and promote it. ////////////////////////////////////////////////

The Liga Cup is a compelling facet of the

were managed in a way that was substan-

mes, the Fan Zone, with its vast and diversi-

We are strongly invested in eSports, promo-

Portuguese football sector, as it bundles 3

tially different from a normal championship

fied program of complementary activities,

ting the first face-to-face Pro Clubs compe-

top-level games into one week entirely de-

game. For this reason, technical visits and

filled the city of Braga with liveliness and

tition in Europe, and we also promoted a se-

dicated to football. This competition takes

briefings were held with all stakeholders to

boosted the visibility and contact between

ries of digital activities that ran continuously.

place at a time when there are no other

ensure the operating of the event. Among

fans and the competition’s partners.

The Fan Zone was the bridge between the

major finals, and awards the first title of the

internal resources, volunteers, suppliers, pri-

Throughout the week, an agenda of events

city of Braga and the stadium. The space

season - the Winter Champion.

vate security, club supporters, host city of-

enlivened the city center from morning to

was, above all, a meeting point for the fans

The Final Four took place during the last

ficials and others, the final match involved

night, with more than 100,000 people atten-

of the teams involved in the match, and

week of January 2018, in Braga; the venue

around 500 people.

ding. Comedian Herman José, the e-Taça

also an anchor that involved the entire lo-

that was announced on July 7 at the Kick-

Liga Portugal invested heavily in the Foo-

CTT tournament, presenter / DJ Fernando

cal community, as per the spirit of the Final

-Off event. It is important to highlight the

tball Week concept, with the creation of

Alvim, Gin Party Sound System and singer

Four.

high level of organization required of the

a Fan Zone in Braga city center. The Fan

Anselmo Ralph were some of the highlights

////////////////////////////////////////////////

Liga’s team, as the entire operation of the

Zone was created to extend the atmosphe-

of the week, which also featured the Game

Final Four is their responsibility.

re of excitement surrounding the Final Four

of Legends, which involved former players

The stadium preparative began on January

beyond the stadium for the whole week.

such as Helton, Frechaut, German interna-

15 with the arrival of assembly teams in se-

Located in the heart of the city, the Fan

tional Simon Rolfes, Ruben Amorim, Hélder

veral areas: decoration and dressing, signa-

Zone comprised a mini-stadium, a ‘digital

Postiga, Luís Boa Morte, Jorge Andrade,

ge, assembly of equipment and turf.

spot’, a Fan Tent and a food court, in ad-

César Peixoto, Hugo Viana, Barroso, Nuno

The Final Four was hosted in a neutral sta-

dition to the RTP Tent and a concert stage.

Gomes, Almani Moreira and Alan, coa-

dium, which meant that the operations

Simultaneous to the excitement of the ga-

ched by Augusto Inácio.

44 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

2017-18 WORKING GROUPS The Working Groups began their endeavors on September 18, 2017, culminating in a plenary session for the global presentation of their conclusions on March 23, 2018, at the Annual Conference. The early identification of topics and priorities, topic subgroups and the involvement of Club representatives as leaders of the topics strongly contributed towards the results achieved. Hence, the themes discussed during the 2017-18 season were as follows:

FINANCIAL

COMPETITIONS

LEGAL

MARKETING

COMMUNICATION

Financial Assumptions

Law No. 39/2009

Central Marketing

Program of Sustainability

Competitive Tables

Disciplinary management and refereeing

Competition Assets

Hierarchy and segregation

Revision of Decree 50/2013

Kit Regulation

Policing

Ticketing

Fair Play Regulation

Multi-propriety and Register of Interests

Digital and Social Media

Workplace Accident Insurance VAT on Ticketing

Video-Referee Enrollment Periods

Sports betting

Media vests / press Content and social networks Credibility of competitions Flash interview

Regulation Changes

Camera layout / VAR requirements

The second Liga Portugal Annual Confe-

motivating conclusions.

the promotion of the Professional Football

to see the invaluable positioning of NOS in

rence, whose 2017-18 edition took place

The Ligaâ&#x20AC;&#x2122;s Executive Management and the

industry.

our main competition.

at the Coimbra City Stadium, proved the

entire team of professionals involved in the

The conclusions of the Working Groups also

///////////////////////////////////////////////

vitality of the Clubs we represent, not only

organization have displayed, in comple-

served to launch the Portuguese Professio-

through their high level of participation but

te harmony with the professionals from all

nal Football Yearbook, compiled by the

also in the vast array of challenging and

of our 33 clubs, a continual effort towards

prestigious consultancy firm EY, as well as

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 47

CONCLUSIONS OF WORKING GROUPS 2017-18 Competitions Marketing Communication Financial Legal Total Regulation Changes 11 1 4 1 4 21 Legislative changes 4 3 4 11 Competition Manual Kit Manual - 2

Regulations

Marketing

Events

eSports eTaรงa CTT

Competitions

by Allianz

Strategic Debate

(april 10th 2018) FuteCom (Final Four 2019)

Trade Agreement Konami 1 e-Fan Program Sustainability

Projects / Programs

Shared Project Tickets LEDMAN LigaPro

Program (introduction of 5

new ratio/variables to be monitored)

It was also announced that, next year, a new group will be formed: A Technology group will join the Competitions, Legal, Financial, Marketing and Communication groups. ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

48 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

BUSINESS INTELLIGENCE The strategic partnership between Liga Por-

The report further made an evaluation of

tugal and consultancy firm EY led to the

Liga NOS’ economic indicators, analyzing

drafting of a yearbook on the sustainability

its added value, job creation, the fiscal im-

of Professional Football in Portugal and the

pact of clubs and players, and the indirect

preparation and monitoring of Liga’s Strate-

impacts of this competition.

gic Plan and Business Plan for the next 1 + 4

This study on the real dimension of Portu-

years’ timeframe.

guese Professional Football, in terms of num-

The main objective of the yearbook, who-

bers, had the main objectives of promoting

se first edition, relating to the 2016-17 sports

greater financial transparency, contributing

season, was unveiled in March 2018, at the

to informed decision-making by key sta-

Annual Conference, was the analysis, from

keholders in the sector and attracting more

a global perspective, of the Portuguese Pro-

foreign investors based in the creation of fi-

fessional Football sector. This analysis was

nancial information with a greater level of

based on financial information and its evo-

detail.

lution, and also presented an assessment of

Within the same strategic partnership, EY

the evolution of the Clubs’ main indicators

also supported Liga Portugal in the prepa-

and the main sector trends.

ration of its Strategic Plan and Business Plan

The document also highlighted the compe-

for next 1 + 4 years’ timeframe, as well as in

titive and financial benchmarks of the three

monitoring its implementation.

competitions organized by Liga Portugal in

////////////////////////////////////////////////

2016-17 (Liga NOS, LEDMAN LigaPro, and Taça CTT), with information on the evolution of sources of revenue and expenditure, transfer balance, Club profit, capital structure and financial ratios.

Postgraduate Course

Organization and Management in Professional Football Liga Portugal and the Porto Catholic

graduate students had face-to-face con-

University’s Faculty of Law worked togeth-

tact with Liga Portugal representatives from

er, for the second consecutive year, on a

the most diverse fields, as well as represent-

Post-Graduation course on Organization

atives of the Liga NOS Sports Clubs, which

and Management in Professional Football,

led to a huge sharing of issues related to

coordinated by Professor Maria de Fátima

football management.

Ribeiro.

• Different topics for professional competi-

The first edition was a true success, which

tions:

swayed the two organizations to extend the

• Organization of professional competitions;

partnership, investing this time in a post-

• Marketing and Communication;

graduate course held in Porto and, for the

• Legal framework;

first time, in Lisbon.

• Management and Accounting.

In all, 57 trainees enrolled on this postgradu-

• 125 hours of classroom training;

ate course; 36 attended classes at the Porto

• 16 professors from the Católica University;

Catholic University and 21 attended the

• 25 nationally and internationally re-

training sessions at the Jamor Sports Center

nowned guests linked to Professional Foot-

for High Performance, through a partner-

ball, including: Luís Vicente, FIFA’s Leader

ship with the Portuguese Sports and Youth

in Transformation and Innovation; Alberto

Institute (IPDJ). All showed great satisfaction

Colombo, European Leagues Secretary

with the way the course was conducted.

General; Alfredo Lorenzo, LaLiga Director

Throughout the course year, which began

of Security and Integrity; Miguel Cardoso,

on September 22, 2017, there were many

Coach of FC Nantes; Duarte Gomes, For-

practical cases of soccer issues that were

mer International Referee; João Sacramen-

put to trainees. For example, real-life events

to, LOSC Lille Assistant coach.

at the Estádio do Bessa, in Porto, Estádio

////////////////////////////////////////////////

Coimbra da Mota, in Estoril, and later at Estádio do Rio Ave FC were held as examples of technical issues and game preparation. In addition to the University’s professors,

50 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

CENTRAL LIGA In 2017-18, Liga Portugal’s new Shared Services Center and Purchasing Central platform was launched. This new platform was named Central Liga and was launched on July 16, 2018. This fulfilled an old ambition that the Clubs had asked of Liga Portugal. Liga Portugal believes now was the ideal moment to formalize this project, which is intended to be of great relevance to a wide range of Sports Clubs. Central Liga is managed in an integrated fashion, and aims to achieve the following benefits: • Promote economies of scale through block trading; • Enhance cost reduction; • A faster and more efficient acquisition process for the goods or services made available on the platform; • Increased global bargaining power; • Aggregation of Sports Clubs through Liga Portugal. A partner with high technical capacity was chosen for the development of this dynamic platform; Quadratura Lógica, a company belonging to the Clever Group. Central Liga will undertake constant analysis of the market, to create value for its Sports Clubs, through new agreements, business models and preferential suppliers. ////////////////////////////////////////////////////////////////////////////////////////////////////////

UNFORESEEN TRANSVERSAL PROJECTS AND ACTIVITIES THAT WERE CARRIED OUT

MATCH CENTER With the launch of the Match Center - Professional Football Monitoring Center, on April 15, 2018, Liga Portugal introduced a new methodology of organizing and monitoring all procedures relating to the organization of the matches in the professional competitions. The Match Center’s debut coincided with the 30th Liga NOS and 34th LEDMAN LigaPro matchdays, in particular with the Portuguese football classic between SL Benfica and FC Porto at the Estádio Sport Lisboa e Benfica. Installed at the Liga’s headquarters, in Porto, the Match Center permits us to formalize and systematize existing practices, providing centralized support to the different parties involved in the organization of the matches, namely Officials, Sports Clubs, refereeing teams, press and sponsors. The creation of this center meant an addition to the already high level of professionalism that exists within the organization of professional football matches in Portugal. It also contributed towards a greater efficiency in several areas, namely in line-ups, activations such as the awarding of prizes and the receipt by the Liga of information from the various stadiums, also ensuring that the e-Liga platform is always operational. From Liga Portugal’s headquarters, a bridge was created to all the stadiums, which will allow, in due course, to see if the timings and the procedures that the regulations of the competitions impose are being fulfilled ////////////////////////////////////////////////////////////////////////////////////////////////////////

52 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

PRESIDENTS’ SUMMIT The 2017-18 Season coincided with the Presidents’ Summit. It was precisely on April 25, 2017, still in the previous season, that the President of Liga Portugal publicly voiced the desire to bring all the heads of the various Sports Clubs to the same table. Analyzing, debating and deciding issues at the highest level has always been the will of President Pedro Proença, who managed to fulfill this desire on March 7 when, in Coimbra, he brought together 30 Sports Clubs, who later left the Convento de São Francisco with a feeling of unity. The II Presidents’ Summit served to validate the amendment to the Liga’s Statutes, with the purpose of formalizing the Council of Presidents, an entity that will start operating from 2018-19. The suggestion that came out of the meeting in Coimbra involves the creation of a deliberative body, which will be composed of the Presidents of Liga Portugal and the Clubs, which will have quarterly meetings. This Council of Presidents, among other tasks, may suggest regulatory changes and also ratify decisions of the Executive Board, as well as having powers to establish the Working Groups and Permanent Committees. Liga Portugal believes that the subjects of crucial importance for the development of Professional Football should be discussed behind closed doors and where all, without exception, can give their opinion on the most varied subjects. ////////////////////////////////////////////////////////////////////////////////////////////////////////

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 53

54 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

4.2

DEPARTAMENT SPECIFIC PROJECTS AND ACTIVITIES

During the 2017-18 Season, Liga Portugalâ&#x20AC;&#x2122;s various departments developed their activities, focused on achieving the specific objectives within their fields, which were defined to contribute to the whole.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 55

FINANCIAL DEPARTAMENT

This department was responsible for Liga Portugal’s administrative and financial functions, and is responsible for a set of specific and transversal activities for the 2017-18 sports season. Also, it was in charge of the financial and administrative supervision of the whole organization and Sports Clubs. The Financial Department complied 100% with the activities defined for the 2017-18 season, which were:

• Activity planning and budget control • Administrative and Financial Monitoring • LEDMAN LigaPro Infrastructure Fund • Internal Purchasing Control System • Assumptions of a Financial Nature 2018-19 • VAT campaign 23% • Proposed Program for the Financial Recovery of Sports Clubs • Performance Management and Evaluation System (SGAD) • Training Program 2017-18

Activity planning and budget control

needs and resources, keeping the treasury

Internal Purchasing Control System

Financial Assumptions 2018-19

budget up to date and in line with the

Since the 2016-17 Season the Liga has

Liga’s current needs;

During the 2016-17 Season, the Internal

sumptions inherent to the admission and

employed a rigorous system of budgeting

• Development of the budget control sys-

Purchasing Control System was developed

participation of Clubs in the professional

based on analytical accounting by de-

tem by cost and project center, with due

with clearly defined governance rules,

competitions organized by the Liga. Of

partment and cost centers, supported by a

monitoring of the ROC, whose reports were

which came to be implemented following

note is the inclusion of the Clubs’ Program

management app (PHC).

presented to the Management;

a series of tests at the end of the season,

of Economic and Financial Sustainability, in

The afore-mentioned system allows the va-

• Preparation of the annual financial

being fully operational by July 2017.

the Assumptions.

rious departments to be more rigorous in

statements for 2016-17, in accordance with

The main and initial objectives of the Sys-

The Financial Department, with the support

budgeting and in the monthly operational

current accounting standards, reflecting in

tem were to control all procurements /

of the Legal Department, analyzed the do-

control of spending.

a true and transparent manner the existing

purchases, oversee the process demate-

cumentation submitted by the Clubs within

The financial department was responsible

financial situation, developing the annual

rialization, and optimize the price / quality

the scope of the two phases of applica-

for the coordination of this project, as plan-

Report and Accounts of the organization;

ratio of goods and services to be contrac-

tions, regarding compliance with the man-

ned. Monthly, cross-checks were carried

• Conducting all billing and payment

ted.

datory financial assumptions.

out through the support of departments in

control;

The results were clearly immediate, but it

In this activity was also included the re-

the identification of deviations and defini-

• Supporting the treasury management of

was essentially in 2017-18, through impro-

ception, treatment and analysis of the re-

tion of corrective measures of deviations

Sports Clubs;

vements made to the platform, such as

ports and accounts delivered by the Sports

identified.

• Was responsible for the management

the improvement of the governance and

Clubs referring to the sports season of 2016-

On the other hand, the Activities Plan for

and maintenance of the Liga’s infrastructu-

segregation of functions system, the effi-

17.

the 2018-19 period, a relevant and predic-

res and facilities.

ciency of captives and consumptions to

////////////////////////////////////////////////

tive structuring instrument of all the objecti-

////////////////////////////////////////////////

be made, as well as the certification of

ves and strategies of the organization, was

Preparation and analysis of the set of as-

suppliers who provide services to the Liga,

23% VAT campaign

with a clear objective of greater control

This campaign was developed within the

and presented to the Sports Clubs, which

LEDMAN LigaPro Infrastructure Fund

over all of the Liga’s acquisitions and ad-

framework of the Working Group and pre-

deserved due approval, in the General As-

In conjunction with the LEDMAN LigaPro

judications, thereby making that control

sented to the Sports Clubs, during the An-

sembly.

Clubs, Liga Portugal developed and as-

more robust in its fullness. The results obtai-

nual Conference. It sets out the potential

////////////////////////////////////////////////

sisted in a collaboration protocol with the

ned were clearly positive and even excee-

framework for the strategy of reducing VAT

Portuguese Football Federation, based on

ded expectations.

on the sale of match tickets.

the issuance of opinions on the improve-

Thus, in 2017-18, this process proved to be

////////////////////////////////////////////////

ments proposed in the application for re-

fully efficient and stable in view of the de-

Transversally, and through a wide range of

qualification and / or construction of sports

sired rigor and optimization of best mana-

activities, the Finance Department ensured

infrastructures and support for fans, factors

gement practices.

Proposal for a Program for the Clubs’ Financial Recovery

the normal functioning of the Liga’s admi-

that are essential for the promotion of the

////////////////////////////////////////////////

During the period under analysis the Liga,

nistrative and financial areas, namely:

spectator sport.

due to its clear restructuring in the context

• Accounting treatment of all documents,

////////////////////////////////////////////////

of the Financial Assumptions, held talks

carefully developed by each department,

Administrative and financial monitoring

allowing the monthly closing of accounting

about taking on an active role in defining

on the 6 of each month;

parameters and creating control guidance

• Monthly analysis of changes in cash

mechanisms.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 57

Thus, a Program for the Economic and Fi-

The SGAD represents a process of para-

nancial Sustainability of Sports Clubs was

mount importance in the management of

created, inserted within the Financial As-

Human Resources of an organization, which

sumptions, with the main objective of intro-

seeks to reward the talent, professionalism

ducing mechanisms that contribute to the

and aggregation of employees.

economic and financial sustainability of the

It should be noted that the processes of

aforementioned Clubs, with the purpose of

promotion and progression in careers, in

assuring sports loyalty and financial fair play

all “businesses”, are based on meritocracy

in favor of professional soccer competitions.

and are the result of the performance of

This program came to be seen as very as-

Liga Portugal’s employees.

sertive in terms of the recommended indi-

////////////////////////////////////////////////

cators and ratios, and is seen by the Sports Clubs as a key instrument for the streamli-

2017-18 Training Program

ning of expenditures in relation to revenues

The internal training program, launched in

obtained.

the 2016-17 season, proved to be an ex-

////////////////////////////////////////////////

tremely efficient program during the 2017-

Performance Management and Evaluation System (SGAD)

18 sports season. Based on the survey of internal training needs, a number of needs were identi-

With the best international human resour-

fied, monitored and implemented, which

ces management practices in mind, Liga

proved to be highly successful, allowing a

Portugal

Performan-

sustainable growth of employees’ Profes-

ce Management and Evaluation System

sional and Technical abilities, using the Li-

(SGAD), which is an unprecedented me-

ga’s internal resources.

thodology in the history of the organiza-

Also in 2017-18, a set of external training

tion.

activities, a clear indicator of the path we

Organizational development is not possi-

intend to follow, were added to further pro-

ble without the development of people.

fessionalize and upgrade the Liga’s key ar-

The implementation of the SGAD allowed

eas.

the alignment of the Human Resources

These skills improved this implemented pro-

strategy to be tweaked, leading to im-

cess, and its execution was scrupulously ful-

proved performance for the fulfillment of

filled.

individual, departmental and organizatio-

////////////////////////////////////////////////

implemented

the

nal skills, reinforcing commitment between employees and the organization, which was noticeable in how the employees allowed the strengthening of commitments and alignment of strategies.

58 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

COMPETITIONS DEPARTMENT

Liga Portugal’s core business is to guarantee the organization of Professional Football competitions in Portugal as well as the constant analysis of the competitive models, so that the competitions are self-sustaining, which is why this department is at the core of the Liga’s activity. This department was responsible for organizing and planning all of the matches in the three Professional Soccer competitions in Portugal, guaranteeing the organization, the planning, the balance and the stability between them. Articulation between the parties involved was all-encompassing, aligning and connecting Sports Clubs, security forces, on-site activations, councils and television operators, among others. The Competitions Department complied 100% with the activities defined for the 2017-18 season, which were: • Match Scheduling and Sports Calendar • SMJJ Project • Preparation of the New Sports Season • Sports Monitoring 2017-18 • Technical Inspections Committee (CTV) • Awareness for Pitch Improvement • Stadium Licensing • Workshop with the PRIO Championship Sports Clubs • Officials - Recruitment, Training, Monitoring and Evaluation • Refereeing and Video-referee • Study of the Competitive Models of the Three Competitions

Match Scheduling and Sports Calendar

view to the necessary documents being

As advocated for this season, a policy of greater proximity to the Clubs was developed, permitting

drawn-up, tweaked, and adjusted.

a deeper understanding of the current realities.

The scheduling of dates and times of the

In cooperation with the Marketing Depart-

This strategy allowed the Liga to be aware of the main difficulties experienced by the Clubs and

matches for each day throughout the sea-

ment, promotional activities were launched

their players, their procedures and ways of operating. This understanding was important for defining

son was carried out following the applicable

for the sponsors of the competitions, vou-

concrete actions which are part of the 2017-18 Activity Plan.

regulations, in coordination with the Clubs

chers were attributed, the layout of tickets

and TV operators. As planned, a strategy

and vouchers planned, along with back-

was developed that allowed the dates and

drops and information on sponsors and

times of the matches to be announced as

partners, among others.

far ahead as possible, so fans could orga-

The

nize travel to and from the stadiums as well

the distribution of the official balls of the

as a better planning for all parties involved.

competitions and the management of the

Meetings of the Standing Committee for

whole operation with the Clubs, in terms of

Scheduling have proved to be instrumental

information about the official teams of the

in the proper functioning of the competi-

respective Clubs.

tions, with nine meetings being held. During

////////////////////////////////////////////////

the 2017-18 Season only six matches were

Competitions

Department

ensured Total games organized and monitored 2017-18

LIGA CUP

306

LIGA NOS

380

LEDMAN LIGAPRO

(fog) and two due to infrastructure (bench

Monitoring of the 2017-18 Season

and lighting) issues.

Transversally, and through a wide range of

////////////////////////////////////////////////

activities, this department ensures the balan-

Global overview of the season

ce and normal functioning of competitions.

• 730 matches monitored by the Match Center, by all the Liga’s departments, coordinated by

postponed; four due to weather conditions

SMJJ Project

730

TOTAL MATCHES

the Competitions Department;

An app has been developed within the wor-

• 9,678 items verified and validated in match reports by various departments (12 items per LED-

king meetings held by the Standing Com-

MAN LigaPro report and 15 Liga NOS items).

mittee for Scheduling, which coordinates

////////////////////////////////////////////////////////////////////////////////////////////////////////

and articulates the different requirements for scheduling matches and supports the regula-

Technical Inspections Committee (CTV)

rity and alignment of match dates and times,

A procedures manual was implemented by the Technical Inspections Committee that allowed

based on applicable regulations and practi-

for greater articulation and monitoring of all regulatory procedures.

ce. This project was developed in coordina-

Thus, during the 2017-18 Season, a series of inspections were carried out to verify compliance

tion with the Technology Department..

with regulations, with a view to monitoring the Clubs, providing clarifications and support.

////////////////////////////////////////////////

Preparing the new Season As planned, at the start of the new season, contact was initiated between the Clubs

111

INSPECTIONS

CTV MEETINGS

PITCH MEETINGS

PITCH INSPECTIONS

and the Competitions Department with a

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 61

Awareness for Pitch Improvement

publication took place during the first “Li-

• Ensuring regulatory compliance;

Like in the previous season, the Officials

ga-te” event in October, a Liga Portugal

• Decreased asymmetries between sta-

were again submitted to a trio of training

Conscious of its importance, this season

event that consisted of themed workshops

diums.

sessions which took place in July and No-

the committee developed, in conjunction

and joint strategic reflection with the Clubs.

///////////////////////////////////////////////

vember 2017 and March 2018, at Liga Por-

with specialist company RED, the ‘Guide

In order to reward the evolution and com-

to Natural Pitches for Sports Clubs’, based

mitment of the Clubs to the constant im-

on effective and innovative recommen-

provement of the pitches, a prize was

Workshop for PRIO Championship clubs

dations from UEFA and FIFA, for the laying,

launched in 2017-18 for the best pitch. The

In acknowledgement of the difficulties that

within Liga Portugal’s regulatory, commer-

maintenance and good use of the “green

pitch at Estádio de Portimão was conside-

Clubs face when transitioning to professio-

cial, disciplinary and legal framework; si-

carpet”.

red the best of the season.

nal competitions, namely to the LEDMAN

mulated the execution of tasks - including

Lawn laying, fertilization, watering, cutting,

After securing their rise to the Liga NOS, in

LigaPro, the Liga developed a specific

technological tasks - and carried out kno-

aeration, sand-scattering, re-seeding, line

2016-17, the Algarve club made a huge

workshop on this topic. This workshop, whi-

wledge assessment tests.

markings, verti-drain cleaning and reco-

investment in upgrading the team’s grou-

ch took place on April 24, in Lisbon, aimed

As with the Liga’s Officials, and as stipula-

very are instrumental in raising the stan-

nds, including drilling, cleaning and resee-

to ensure the correct knowledge of the re-

ted in the Competition Rules, Members of

dards of quality.

ding the entire pitch. Portimonense Futebol

gulations and rules of access to the com-

the Clubs also participated, on invitation,

The ‘Guide to Natural Pitches’ also served

SAD saw their efforts rewarded after a sea-

petitions organized by the Liga.

in training actions: the first at the Jamor

to monitor and evaluate the progress of

son in which the club’s pitch was praised

///////////////////////////////////////////////

National Sports Center, in Oeiras, and the

pitches, whose yield was the subject of

by various sports authorities.

three regulatory surveys in 2017-18, using

///////////////////////////////////////////////

objective and measurable parameters of classification, and then awarded the title

Stadium Licensing

of ‘Best of the Season’.

Officials - Recruitment, Training, Monitoring and Evaluation

tugal’s headquarters and at the Restelo Stadium in Lisbon. More than 50 participants were trained

second in Coimbra, in which there were about 160 representatives. During both sessions, in addition to the sha-

Liga Portugal continued in 2017-18 with the

ring of experiences and case simulation,

During the 2017-18 season, a new stadium

development of the skills of its Officials in

the requirements and duties of the res-

The parameters evaluated were:

licensing system was implemented, which

the organization and management of ga-

pective functions were put to the Ground

• Structure (irrigation system, infiltration

ensures the conditions for professional

mes, and also promoted training actions

Managers, Security and Media, under the

rate and planimetry);

competitions under the aegis of Liga

for Ground Managers, Security and Club

current regulations, as well as the security

• Performance (regularity, compaction

Portugal, with a view to their licensing for

Press Officers.

and tensile strength);

this purpose.

• Maintenance (density, level of infesta-

Within this timeframe, the program for

tion, cutting height, maintenance plan

Listing Professional Competitions Stadiums

and visual aspect).

by Level, developed during the 2016-17

Liga Portugal further established a proto-

season, was again implemented in a more

col with the Portuguese Football Federa-

timely and schematic fashion.

tion (FPF) with the aim of creating an in-

Under this project, the Department inter-

frastructural fund to support the LEDMAN

vened in the following areas:

LigaPro Sports Clubs and create financial

• Licensing of sports clubs participating in

conditions including for the improvement

professional competitions:

of pitches.

• 18 Liga NOS,

The launch of this unique and pioneering

• 20 LEDMAN LigaPro;

REPORTS

DISCIPLINARY COMMITTEE

CLARIFICATIONS

ORGANIZATION

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 63

• 3 Training Actions for Officials;

Study of the Three Competitions’ Competitive Models

• 8 occasions of ongoing assessment of

During the 2017-18 season three studies

Officials;

were carried out, one for each of the com-

• 129 performance evaluations in official

petitions, to reformulate the competitive

matches;

models of the professional competitions.

• 344 ongoing assessments of Officials in

Each study presented a diagnosis of the

the evaluation process;

current situation, international benchmar-

• 70 SAND nomination meetings;

king, delineation of a tactical plan and

• 18 Officials exchange-trips;

concrete actions to stimulate each of the

• 3 meetings of the Standing Committee

competitions: Liga NOS, LEDMAN LigaPro

of Officials.

and the Liga Cup.

////////////////////////////////////////////////

These studies allowed us to obtain infor-

plans of each venue. Overall Summary of the Officials’ Project:

Refereeing and video referee

mation on the competitive formats, which serve as indicators for improvements in the

On every match day, and in articulation

level of competitions next season.

with the Portuguese Football Federation’s

Within the scope of this project, a study was

Refereeing Council, all logistics (ac-

carried out of the effective impact and

commodation and travel) of refereeing

return of the B teams, which gave rise to

inherent to the matches in the scope

the publication ‘Plan B: Reflection of the B

of the three competitions were put into

teams in the 2012-17 Season’.

operation.

////////////////////////////////////////////////

In terms of logistics organization, to ensure the effective presence of the referees in the games, the Competitions Department was responsible for: • 730 games with logistics under the responsibility of the Competitions Department; • 78 referee trips between the mainland and the islands; • 146 assistant referee trips of between the mainland and the islands. ////////////////////////////////////////////////

64 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

LEGAL

AND CONTRACT REGISTRATION DEPARTAMENT

According to Liga Portugal’s organogram, this department worked throughout the season in two broad areas, in an integrated and articulated way, towards the organization’s common objectives. Taking into account the intersecting of the performance of this Department and the specificity of its skills, the work it develops underpins the whole of Liga Portugal and its various departments, as well as providing support to the Clubs’ activities, whenever they request it. The Legal and Contract Registration Department complied 100% with the activities defined for the 2017-18 season, which were:

LEGAL • Overseeing Protocols, Contracts and Legal Situations • Regulatory Amendments, Bylaws, General Regulation, Official Statement No. 1 (CO1) • Legal Monitoring of and Involvement in Legislative Amendments • Integrity in Football Unit

CONTRACT REGISTRATION • Registration of Players’ Contracts • Players’ wages • TRANSFER

The Legal area focused its activity on the

public entities;

Legal Monitoring of and Involvement in Legislative Amendments

management of ongoing legal procee-

• Overseeing new and pending judicial

During the 2016-17 Season this Department

with the European Leagues, as well as with

dings, both internal and external, and, du-

cases;

ensured the constant adaptation of legisla-

the PJ Judicial Police, the Public Prosecu-

ring the period under review, the internal

• Overseeing new judicial cases in which

tion to professional competitions by syste-

tor, the Santa Casa da Misericórdia cha-

sponsorship of most of the new judicial and

the Liga is a party;

matically analyzing the legislation in force

rity, Bookmakers, Interpol and worldwide

arbitrary proceedings.

• Follow-up of protocols between the Liga

and being drawn up.

agencies.

Within its competences, it managed the

and its various partners;

It also carried out the necessary follow-ups

This department also supervised possible

process of revising regulations, intensely

• Managing cooperation between entities

to ensure that the Liga tailored its regula-

match-fixing, monitored international re-

collaborating on the elaboration of the

such as the SEF Immigration and Borders

tions and processes to the best practices of

ports, monitored compliance with the prin-

proposals to amend the Statutes with the

Service, the Portuguese Football Federa-

its counterparts.

ciples of financial and sporting integrity,

working groups’ club members; it analy-

tion and the Union of Professional Football

As planned, the Liga, through this Depart-

monitored transfers and developed a Code

zed and drafted the necessary contracts for

Players, Social Security and Tax Authority.

ment, has maintained close links throughout

of Conduct.

Liga Portugal to conduct its activity and the

////////////////////////////////////////////////

the season with its partners, namely with the

////////////////////////////////////////////////

LEGAL

organization of competitions; responded to

(PSP), National Republican Guard (GNR), Tax Authority, Social Security and other

led legal information and responded to inquiries from members and other interested

Between April and May 2017, this Depart-

and the Portuguese Football Federation

parties.

ment, in close collaboration with the other

(FPF), among others. To this end, the De-

departments, prepared amendment pro-

partment conceives and enunciates the

posals to the Liga’s Regulations on Discipli-

Liga’s position, analyzing documents and

ne, Refereeing and Competitions. Working

projects and providing proposals of contri-

Groups were created with the ultimate goal

butions from the Liga to the work of these

of producing regulatory changes reflecting

entities.

The main activities of this area, for the

the concrete needs of the competitions

////////////////////////////////////////////////

2017-18 Season, were as follows:

and Clubs. For this, all Clubs were invited to

• Negotiation of collective work contracts,

participate in periodic meetings, addres-

Integrity in Football Unit

with entities such as the Union of Profes-

sing the five major themes already mentio-

The Integrity in Football Unit has worked clo-

sional Football Players and the National

ned in this document, namely with regards

sely with the Clubs, the Portuguese Football

Association of Football Coaches, among

to the Liga’s transversal projects.

Federation and the Union of Professional

others;

////////////////////////////////////////////////

Football Players, on theoretical-practical

Overseeing Protocols, Contracts and Legal Situations

and swapped experiences with LaLiga, promoting the exchange of instructors, and

Professional Football Association (SJPF), Na-

Regulatory amendments and Official Statement No. 1 (CO1)

notifications addressed to the Liga; compi-

practices, the Department has gathered

tional Football Coaches Association (ANTF), Portuguese Association of Referees (APAF)

• Judicial and legal consultation and su-

training visits in the field of Integrity, aimed

pport, throughout the Season, to statutory

at the squads of professional sports clubs.

bodies, other departments and Members;

35 sessions were held, for 37 teams, on this

• Replying to all types of notifications and

relevant topic.

requests from courts, enforcement agents,

In this context, and in order to familiarize its

Judicial Police (PJ), Public Security Police

staff with national and international best

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 67

CONTRACT REGISTRATION

This division was responsible for all proce-

Contract Registration This division receives, analyzes and registers players’ contracts or their revocations, assignments, revocation of assignments and amendments.

dures associated to the registration of contracts of the various sports authorities of the

The main phases relating to the registration of contracts and enrolling players are closely moni-

professional football sector in Portugal.

tored by Contract Registration, and are the following: • Registration periods - from July to September 2017; and in January and February 2018; • Exceptions (unemployed) - from September 2017 to 28 February, 2018; • Exceptions (injured or junior goalkeepers, among others) - from September to December 2017; and from February to June 2018. During the 2017-18 Season players’ enrolments were made via the online TRANSFER platform.

LIGA NOS

LEDMAN LIGAPRO

TOTAL

Players

878

510

1 388

Coaches

151

100

251

Medical Staff

133

214

Other Sports Personnel

622

357

979

1 784

1 048

2 832

SPORTS PERSONNEL

TOTAL

////////////////////////////////////////////////////////////////////////////////////////////////////////

Players’ Wages

TRANSFER

of players and coaches were complied

improvements were made to the TRANSFER

with by Clubs during the statutory periods

platform so that all Sports Clubs could ac-

- January, April and May / June (PNF). This

cess this service for the enrolment of various

allowed tabs to be kept on whether the

persons in sports, and thus expedite the pro-

Clubs were complying with the abovemen-

cess in terms of speed and ease of use.

tioned, under the terms of the regulations,

Training was given to the Clubs through

namely the Liga’s Rules of Competition

workshops, to clarify doubts, receive input

and Disciplinary Regulations, at penalty of

and involve the various parties who use

fines / sanctions.

this tool.

////////////////////////////////////////////////

This department also ensured the salaries

68 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

During the 2017-18 Season, upgrades and

MARKETING DEPARTAMENT

For the 2017-18 Season this department was organized in four broad areas, contributing to different objectives, but in an integrated way. The Marketing Department is one of the areas the supports the whole of Liga Portugal and its purpose is to develop actions to increase the penetration and promotion of the Liga among its stakeholders, in particular the clubs and fans The Marketing Department complied 100% with the activities defined for the 2017-18 season, which were:

COMMERCIAL AND SPONSORSHIP • Management of Sponsorships and Partners

INTERNAL MAR KETING

• New Business Partners

• European Sports Week 2017

• Return on Media Activity Monitoring

• Christmas parties

• eSports Competitions

• Woman’s Day

• Official Products

• International Day of Sport

• LEDMAN LigaPro Tickets Common Projec

• Children’s Day

MARKETING & EVENTS • 40 Years of Liga Portugal

• Season Closure Party • Commemorative dates

• Monthly and Annual Awards

UNFORESEEN PROJECTS AND ACTIVITIES CARRIED OUT

• LIGA-TE

• Coverage of videos of various activities

• Social Events

• Visual Vsports Video Integration

• Marketing and Promotional Materials

DIGITAL MARKETING • Liga Portugal Website • Liga Portugal APP • Virtual Liga NOS • Liga Portugal’s Social Networks • Promotion on Selected Websites • App Architecture for Audience Management

• Web Summit 2017 • Easter • Social Impact Platform

COMMERCIAL AREA

New Business Partners Procuring new sponsors (sponsors and official partners), by identifying the companies in the

This area was responsible for the ongoing management of the sponsors and partners, including

economic sectors of greatest relevance to Liga Portugal. Thus, the following key sectors were

operational and strategic planning, sponsor follow-up, brand activities, return-value analysis of

chosen, divided into criteria that showed prominent economic vitality:

sponsorship, and contract execution. This area was also responsible for the development, creation and negotiation of new attributes, products and services, to try and increase the Liga’s income-generating properties. It also undertook all conceptual and operational activities with a view to the development of new sponsorships and partnerships. DRINKS

TRANSPORTATION AND TRANSPORTERS

MEDIA

TOURISM

FINANCIAL / INSURANCE

CLOTHING

SPORTS EQUIPMENT

CAR

FOOD DISTRIBUTION

TECHNOLOGY

UTILITIES

TELECOMMUNICATIONS

Management of Sponsors and Partners The main activities developed during the 2017-18 season within this area, were the following: • Renegotiation of new contracts with Holmes Place, Lacatoni and Under Blue; • Introduction of SAMSUNG, as a technological partner, at the Web Summit 2017;

A series of meetings were held to put forward commercial proposals aligned with this strategy

• Involvement of Lacatoni and SAMSUNG in Liga Portugal’s Liga Cup Final Four Social Responsibility

and according to the Activities Plan presented and approved for the 2017-18 season.

activities;

The active policy of looking for new business partners culminated in the entry of EuroBic as

• Participation of Holmes Place in Liga Portugal’s internal marketing actions;

official sponsor of the Liga NOS, for two seasons, using Portirede equipment in all Liga NOS

• Creation of new points of contact with sponsors and partners.

matches.

////////////////////////////////////////////////////////////////////////////////////////////////////////

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 71

Return on Media Activity Monitoring

the competition and offering true experien-

Monitoring the impact of the commercial and

The uniqueness of this project was based on

promotional activity of the competitions and

the emotion factor. A high quality product

their partners was one of Liga Portugal’s con-

line with its own distinct design was develo-

cerns. To this end the AVE (Advertising Value

ped, available online and in Liga Portugal of-

Equivalent) was adopted, which consists in

ficial stores, at the Municipal Stadium of Bra-

determining the monetary value of news in

ga and at the Fan Zone during the week of

the media, based on the quantification of

the Final Four. Mystery boxes were also crea-

the equivalent advertising cost. This calcu-

ted, offering exclusive products and amazing

lation allowed to keep partners informed on

experiences, from match tickets to exclusive

how their investment was performing, as well

merchandising, behind the scenes tours of

as to measure the value of the competitions

Braga Municipal Stadium, meet and greets

under the responsibility of Liga Portugal.

with guest artists such as Anselmo Ralph, Her-

////////////////////////////////////////////////

man José and Fernando Alvim, and more.

eSports Competitions

ces to the fans of this event.

////////////////////////////////////////////////

ket was tested with the staging of the e-Taça

LEDMAN LigaPro Tickets Common Project

CTT by Allianz. After the success of this first edi-

It is Liga Portugal’s responsibility to plan, im-

tion of the eSports competition it has become

plement and monitor projects that invoke or-

imperative to invest in its professionalization.

ganizational value and promote professional

The Liga analyzed the market and outlined a

competitions, as well as facilitate access of

strategy with the Clubs for the professionaliza-

Clubs to the skills required for greater innova-

tion of this competition, and that allows the

tion and professionalism. A survey was carried

emulation of Liga NOS.

out into the structural needs inherent to the

////////////////////////////////////////////////

implementation of the project, as well as a

During the 11th edition of Final Four, the mar-

Official Liga Portugal Products

market consultation for its tender, taking into account the most favorable business poten-

Liga Portugal kicked off its merchandising

tial for the implementation of the platform.

with the launch of the official Liga Portugal

////////////////////////////////////////////////

Final Four Taça CTT products, dedicated to and intended for fans who wanted to enjoy all the excitement of the event. The Football Festival, which took fans to Braga, was the driving force behind the launch of the unique and exclusive Taça CTT collection, with the aim of boosting the image of

72 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

MARKETING & EVENTS

tive photographs of moments captured in the different eras can also be seen by all

This area was responsible for marketing

who visit the Liga during the course of this

operations,

year.

events

and

engagements,

among others, implemented in the 2016-17

During the 2017-18 Season Liga Portugal

season, guaranteeing the delivery of the Li-

comprised 33 clubs, of which 14 are already

ga’s own marketing actions or as defined

over 100 years old, which clearly demons-

with sponsors and partners.

trates the history that exists in Portuguese

This area also carried out, in an integrated

football. Francisco Pinheiro makes a point

manner, the brand management, digital

of showcasing snippets of this history in the

marketing, marketing materials, the choo-

exhibition that adorns the walls of Liga Por-

sing and production of merchandising and

tugal’s headquarters, where 130 years of

gifts, signage and billboards and the internal

football are eternalized.

marketing of Liga Portugal, as well as helping

This exhibition also marked the start of trans-

with remaining related operational issues.

formations to take place within the building throughout the year, which aim to aesthe-

40 Years of Liga Portugal

tically restructure the headquarters with

On February 3, 2018, Liga Portugal celebrated the 40th anniversary of its founding. To commemorate the date, Liga Portugal organized an exhibition that showcased the 40 years. The exhibition was inaugurated on February 27, 2018 and will be open until December 2018, at Liga Portugal’s headquarters in Porto. Comprising the exhibition, whose coordination was the responsibility of historian Francisco Pinheiro and which is on show at Liga Portugal’s headquarters in Porto, are historical documents, such as the deeds of its foundation, and the report published in

items evocative of Liga Portugal’s 40 years.

newspaper A Bola on the day immediately

The plan to promote the commemoration

following the foundation, and where the

of the 40th anniversary involved a sequen-

names of the 20 clubs that signed the do-

ce of actions aimed at creating visibility re-

cument can be seen. The various balls that

garding the work carried out by this organi-

have been used in the Portuguese cham-

zation throughout its existence.

pionships over the years and several illustra-

////////////////////////////////////////////////

74 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

Marketing and Promotional Materials

Monthly and Annual Awards

Social Events

The concept of monthly and annual awards for 2017-18 was developed in order to boost Ta-

This consists in the development of an acti-

The marketing department was responsible

lent, promoting the best of the best and bringing together the various Liga Portugal stakehol-

ve network policy and a close relationship

for the development of all marketing mate-

ders. This permitted the creation of value through commercialization with sponsors and / or to

with the various stakeholders, providing

rials and ensuring the promotion of Liga Por-

enhance the Liga’s communications and positioning.

premium and exclusive experiences for our

tugal’s various actions and departments,

////////////////////////////////////////////////////////////////////////////////////////////////////////

partners.

namely presentations, standards manuals,

For this, the following actions were carried

brand architecture, stationary, templates,

LIGA-TE

brochures, digital promotion materials, sig-

On October 11, Liga Portugal held the first “Liga-te” meeting, an initiative geared towards the

Stadium and during the Final Four matches;

nage, billboards and decoration, gifts and

Clubs that introduced a new concept of themed workshops and strategic reflection, aimed at

complimentary match tickets, invitations to

souvenirs.

the presentation and discussion of projects and services which can be applied by the various

Liga events and workshops, among others,

The Liga has structured a plan for annual

teams.

both for partners and for new businesses.

out: behind the scenes tour of Sporting CP’s

publications, which can be consulted on its

These actions provided opportunities for

website - www.ligaportugal.pt – which were

Liga Portugal and its partners to touch base.

digitally printed or developed, according

////////////////////////////////////////////////

to the targets and the intended communication. The following publications were developed for the 2017-18 Season: • Annual Conferences; • 2017-18 Season Review; • Football Finances Yearbook 2016-17; • 2017-18 Activities Report; • 2018-19 Activities Plan; • Presentation of Financial Assumptions; • Guide to Natural Pitches; • Liga magazine (four editions); • Final Four Match Book; • Final Four Fun Booklet; • International Women’s Day Publication • Publication ‘Plan B: Reflection of the B teams in the 2012-17 Season’; • Brand book ///////////////////////////////////////////////

This first session, which counted over a hundred registered participants, addressed aspects relevant to operations within the administrative and financial, competitions and marketing areas. Following the success and positive feedback of the first edition of “Liga-te”, two more editions were organized: Central Liga, General Data Protection Regulations, Fundação do Futebol and the presentation of the Liga NOS strategy. ////////////////////////////////////////////////////////////////////////////////////////////////////////

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 75

Liga Portugal Website

DIGITAL MARKETING

Liga Portugal’s current website was develo-

LIGA PORTUGAL’S DIGITAL \ ECOSYSTEM

Digital marketing has increasingly become a strategy or set of marketing and advertising strategies to promote ongoing contact

ped during the 2017-18 Season. The Liga’s online communications prioritized the generic website and the different microsites.

with fans, sports clubs and other parties.

The Liga’s official portal provides informa-

Liga Portugal’s strategy is to gear its commu-

tion relevant to the user, such as news,

nications towards the needs and satisfac-

match times and dates, official statistics

tion of its stakeholders, having updated its

from each match and videos of the main

Social Media

website and developed an APP containing official information and data from professional football matches.

Liga NOS highlights in real time. The redesign of the site ensured its responsiveness, with the aim of increasing user

The large number of games that Liga Por-

navigability and usability.

tugal organized during the season allowed

• Number of views: 8 044 760

the production of a large volume of con-

• Users: 1 204 842

tent, with a high pulling power for football

• Sessions: 2 428 041

fans. Liga Portugal has formatted its digital

////////////////////////////////////////////////

ecosystem with long-term perspectives, seeing as this has become the preferred channel of communication with fans and other stakeholders.

Liga NOS Virtual

Website

(Point of departure

APP

Liga Portugal APP

and arrival)

Plataforms

The need for official information from professional competitions led Liga Portugal to invest in the development of an app. Stakeholders now have an essential tool for their smartphones or tablets, via which they can receive all information on each game. Line-ups, official game records, and real-time highlights footage: all at the click of a button and free of charge to the user.

76 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

Launched on March 2, 2018, the Liga

carried out with the aim of increasing the

Portugal APP already has 77,000 users,

Liga’s visibility among users of the networks.

with more than 2.5 million sessions initiated,

With more than 2.2 billion users worldwide,

Liga Portugal

and on April 15 attained the greatest ever

social network Facebook was one of the Li-

number of users in one day with more than

ga’s main drivers among its audience, fruit

Liga NOS

23 000 fans accessing the APP.

of more than 2,800 publications, 18.4 million

LEDMAN LigaPro

////////////////////////////////////////////////

impressions, and 26,000 new followers of the

Total

Liga NOS Virtual

platform. Instagram, the most popular digital plat-

Facebook

Twitter

Instagram

Total

49 000

330 000

64 700

443 700

11 587 094

3 173 032

2 285 126

17 045 252

410 912

29 728

33 836

480 476

12 053 006

3 532 760

2 383 662

17 969 428

Total number of followers of social networks Facebook, Twitter and Instagram of Liga Portugal, sum of the followers of the channels of the Sports Societies of Liga NOS and LEDMAN LigaPro.

In the 2017-18 Season, the Liga NOS Virtual

form, was the social network where the Liga

hit the proposed targets set for the season

grew most in the 2017-18 season. It drew

by increasing the number of teams involved

almost 34,000 new followers, nearly double

possible to understand the dimension of

in the game, thus leveraging the visibility of

the amount obtained in 2016-17 (18,305),

followers of the clubs’ various social media

App Architecture for Audience Management

Liga Portugal’s main competition.

which proves the exponential growth of the

channels. This monitoring aimed to explore

A diagnosis was made of the Liga Portu-

The Liga NOS Virtual saw the number of

social network. We made 1,800 posts, 500

the potential universe of communication

gal’s current application structure, namely

views and sessions initiated double, tripling

more than during the previous season. With

and promotion for Liga Portugal and the

in terms of interaction with the public. Ba-

the number of users, in comparison to last

regard to users impressions, figures tripled,

Clubs that comprise it.

sed on this diagnosis, a multidisciplinary

season.

soaring from 12 million to almost 37 million.

////////////////////////////////////////////////

application development plan was deve-

• Number of views: 4 608 080

Liga Portugal’s Twitter feed, as a means of

• Users: 116 077

more immediate contact with the users,

• Sessions: 597 056

saw the number posts grow, attracting new

Promotion on Selected Websites

followers, as well as an increase in the num-

Liga Portugal developed an active digital

the various existing Liga Portugal platforms

ber of impressions.

promotion policy, using interactive digital

as well as those in implementation, both

YouTube was no exception, tripling the

media with the target audience.

in terms of business management and au-

number of new subscribers obtained in

We were found on all main websites of na-

dience management, allowing a project

comparison to the previous season, 251

tional news and sports news sites, increa-

to be defined for the upcoming seasons for

against 187, respectively. One of the main

sing the visibility return of the Liga Portugal

the global integration of the Liga’s databa-

Social networks were, during the 2017-18

factors for this increase in interest was the

brand.

ses.

season, the main channel of communica-

Liga’s concerted endeavors in the elabora-

A number of contacts were created by

///////////////////////////////////////////////

tion for the promotion of professional com-

tion of more video content, based on the

initiative of the Liga with a view to sharing

petitions and clubs. The objective was to

creation of Liga TV.

the contents of our website through several

create a platform through which the main

LinkedIn, a platform aimed at professional

world-renowned publications, in particular

protagonists could get to know their follo-

contacts, was increasingly used towards

with regard to videos of goals and / or Liga

wers, to establish relationships and contribu-

the end of the season to disseminate institu-

NOS summaries.

te to their involvement in competitions.

tional content, having already seen its num-

////////////////////////////////////////////////

The monitoring and enhancement of social

ber of followers increase notwithstanding

network pages – on Facebook, Twitter, Ins-

recent efforts.

tagram, YouTube, LinkedIn and Issuu – was

With the monitoring of these networks it was

////////////////////////////////////////////////

Liga Portugal Social Networks

loped that resulted in the development of several apps this season. This project gave rise to the organization of

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 77

In doing this we intend to highlight impor-

INTERNAL MARKETING

tant moments for employees, creating

This area was responsible for Marketing actions centered on Liga Portugal’s Human Resources,

an important opportunities for interaction

aiming to promote the Liga’s values among employees. Internal Marketing has taken on a

among all.

preponderant role within Liga Portugal, focused on the commitment of Human Resources to the

////////////////////////////////////////////////

organization and its unity.

Season Closure Party To mark the end of the season a moment

European Sports Week 2017

highlighting and reinforcing their important

of true aggregation and social interaction

In a joint initiative with partner Holmes Pla-

role in this sector, with the publication, for

was organized for employees, celebrating

ce, we organized indoor group classes for

the second consecutive year, of a maga-

the completion of another work cycle. The

Liga Portugal’s Human Resources, allowing

zine where we promoted gender equality.

objective was to foster team spirit and re-

them to practice sport together. The ob-

////////////////////////////////////////////////

ward outstanding employees in different

jective was to raise awareness among the Liga’s employees about the importance

International Day of Sport

of physical exercise and the promotion of

A screening of the Liga’s Human Resour-

team spirit.

ces was carried out in a joint initiative with

////////////////////////////////////////////////

partner Holmes Place, to check employees’

Christmas parties

well-being and physical condition. This action was intended to make the Li-

Liga Portugal organized two Christmas Par-

ga’s employees aware of the importance

ties, one for the Liga’s Human Resources

of physical well-being, health and nutrition.

and another for the children of employees

////////////////////////////////////////////////

and governing bodies. The Kids Christmas

categories.

Party 2017-18 was the first event organized

Children’s Day

in this scope, at the beginning of the current

To celebrate Children’s Day, Liga Portugal

Board’s mandate. Taking into account the

provided, along with the main sponsor of

festive season, the objective was to promo-

Liga NOS, a moment of togetherness for

te a moment of togetherness and convi-

employees and their children, by offering

In the context of this closing party, a soccer

viality, at a time that celebrates values of

movie tickets, to reinforce the role and im-

game was held among fellow workers and

family and union.

portance of family.

a moment of relaxation was provided with

////////////////////////////////////////////////

the option of a massage.

Women’s Day

Commemorative dates

This event was organized in the scope of

Throughout the season, birthdays within

the historical context of International Wo-

Human Resources and company anniver-

men’s Day. Liga Portugal honored the wo-

saries were celebrated, and outings were

men in Portuguese Professional Football,

organized.

78 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

////////////////////////////////////////////////

UNFORESEEN PROJECTS AND ACTIVITIES CARRIED OUT Video Coverage of Various Activities In-keeping with one of the biggest trends in marketing – video content – Liga Portugal

gital content marketing strategy. Through

is a solution that makes it possible to re-

their integration with Liga Portugal’s websi-

cognize, train and involve all employees,

te and APP, it is now possible to have real

expanding their strategies of impact and

time videos of the highlights, goals and

social responsibility, creating a culture of

summaries of the main professional com-

cooperation and community within the

petitions. Throughout the 2017-18 season,

organization itself.

Vsports videos accounted for about 40% of

Liga Portugal employees can thus share

new traffic and contributed to an increase

and discuss their own ideas, develop skills

in the visibility of the Liga Portugal brand.

and work as a team, as well as support

////////////////////////////////////////////////

their own causes. The functions available on the platform

strove to produce video coverage for its

Web Summit 2017

various activities.

Liga Portugal took part in the Web Summit

• Gift Cards & Donation Multiplication;

The reasons for this effort are the following:

2017, which was held in Lisbon, with the

• Social Wall;

• Rapid growth of mobile devices that fa-

presentation of the e-Liga. Our participa-

• Charitable Auctions;

vor video content;

tion in this event allowed us to reinforce

• Crowdfunding campaigns;

• Video is already seen as an essential ele-

the image of Liga Portugal as a pioneer in

• Needs Pool.

ment in attracting fans;

the development of technology for foo-

////////////////////////////////////////////////

• Video platforms like YouTube are the

tball.

most popular around the world;

The Web Summit made it possible to in-

• Videos are easier and more attractive to

crease contacts and showcase the e-Liga

watch;

internationally, stirring the interest of other

• Search site algorithms consider videos

European leagues and taking our brand

more relevant and interesting options.

to international stages.

With the implementation of Liga TV we

////////////////////////////////////////////////

had to react quickly and ensure we had

are as follows:

the skills available for the production of

Easter

content. Video content has allowed us to

Liga Portugal organized an Easter get-to-

increase the rate of engagement with and

gether for its employees, once again pro-

sharing of Liga Portugal’s social networks,

moting a moment of aggregation.

as well as better positioning online search

////////////////////////////////////////////////

mechanisms. ////////////////////////////////////////////////

Visual Integration of Vsports Videos

Social Impact Platform Liga Portugal has registered as a user of eSolidar business, a social impact platform that improves and enhances the

Following on from the previous point, Vs-

way the Liga creates social impact and

ports videos brought extra value to the di-

engages with its Human Resources. This

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 81

COMUNICATION DEPARTAMENT This department was responsible for managing and developing communications on a daily basis, informing and updating stakeholders about the institution’s daily running, along with the timely production of news content, and managing media organization during professional competitions, in favor of public interest. The Press and Public Relations division continues to report directly to the President of Liga Portugal, in order to leverage and strengthen the organization’s effective response capacity, in line with the interests of Clubs, stakeholders and the media. In view of Liga Portugal’s varied target audiences that reflect Professional Football, this department implemented a policy of active, 360-degree public relations, also cooperating in the promotion and commercial communication of the organization’s products and services. This department further played an active role in the management of Liga Portugal’s traditional, digital, audio and video communications, integrated in the Marketing Department. The Communication Department complied 100% with the activities defined for the 2017-18 season, which were:

• Detailed Coverage of Professional Competitions • Management of Liga Portugal’s Involvement with Media Organizations • Football and Media Debate/Reflection • Communication Campaigns • Media Management (vests and accreditations) • Content for Website and Social Networks • Press office • Social Events

UNFORESEEN PROJECTS AND ACTIVITIES CARRIED OUT • Liga Magazine • Liga TV

Comprehensive coverage of professional competitions

at Liga Portugal’s headquarters in a show

communication actions and related pro-

Social Events

of commitment to the credibility of informa-

motional activities relating to the competi-

Providing an occasion for debate and ex-

Members of the Communication Depart-

tion regarding Professional Football, outli-

tions were developed, generating engage-

change of opinions, the first themed mee-

ment provided full coverage of each mat-

ning strategies to demonstrate best efforts

ment with fans and the general public.

ting between Liga Portugal / Clubs and the

ch in the professional competitions, with the

are made. The creation of a Commission for

////////////////////////////////////////////////

Media / Influencers took place at the Liga’s

publication on its official website of the of-

Reflection on Football and Media origina-

ficial team line-ups, news (previews, game

ted during the first meetings, to be actively

chronicles and balance sheets) and still

developed in 2018-19.

Media Management (vests and accreditations)

photo-gallery, with reproduction of these

The Communication Department was res-

contents in social networks.

ponsible for the allocation of vests for pho-

After the end of the matches, another Sea-

tojournalists from Media Organizations, duly

son Review was published, an annual publi-

accredited for the coverage of Professional

cation of the season’s history, including per-

Football games, based on Liga Portugal’s

formances, rankings and statistics, in which

Rules of Competition, as well as for events

Liga Portugal’s three competitions were

organized by Liga Portugal that required

exhaustively analyzed.

prior accreditation.

////////////////////////////////////////////////

Management of Liga Portugal’s Involvement with Media Organizations

Content for Website and Social Networks

Liga Portugal’s Communication Depart-

the professional competitions and players’

ment served, throughout the season, as

milestones were covered via publications

a bridge between Liga Portugal and its

on the Liga’s official website and social

management and Media Organizations,

networks. In addition, we took advantage

promoting information and clarifications,

of Club events to also cover on the Liga’s

interviews with themed frameworks, defini-

platforms.

tion of setups, editing of chronicles, advising

////////////////////////////////////////////////

Football and Media Debate/ Reflection

from both parties. ////////////////////////////////////////////////

Throughout the season, all key moments in

on press conferences and magazine / daily press monitoring.

headquarters, with significant participation

////////////////////////////////////////////////

Communication Campaigns

Press office At each Liga Portugal event, the Communication Department supplied the informa-

The main communication campaigns rela-

tion considered relevant by the institution

ting to Liga Portugal’s institutional activity

to Media Organizations, also conveying

On April 10, 2018, representatives of the

were rolled out during the 2017-18 season

complementary briefs on the organization’s

Clubs’ Communication Departments, the

among Clubs and Governing Bodies to

activity.

Journalists’ Union, the CNID and the heads

emphasize the values of Rigor, Talent, Pro-

////////////////////////////////////////////////

of the Social Communication Agencies met

fessionalism and Aggregation. In addition,

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 83

UNFORESEEN PROJECTS AND ACTIVITIES CARRIED OUT

Liga Magazine A bimonthly publication dedicated to the activities of the Professional Football industry, promoting the Liga NOS, LEDMAN LigaPro and the Taça CTT, as well as Social Responsibility and stakeholders’ events.

Club Presidents and key names in Professional Football were given an opportunity to voice their thoughts, and articles dedicated to the sport were featured, such as the ‘Stars of the Future’, where those who dream of being professional players were interviewed. Interviews with successful Portuguese nationals in football overseas were also featured. Fundamentally, it was an effort by Liga Portugal to link Professional Football Clubs with their fans. ////////////////////////////////////////////////////////////////////////////////////////////////////////

Liga TV During the early stages following Liga TV’s launch, most of Liga Portugal’s activities were covered, namely those relating to professional competitions and the institution itself, Social Responsibility actions and events involving stakeholders. Thematic content was also created.

It is a project that has conveyed - and will continue to convey - everything that is being done in Professional Football and by the Liga Portugal, with the aim of giving a voice to all those who endeavor on a daily basis to make the sport so appealing. ////////////////////////////////////////////////////////////////////////////////////////////////////////

84 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

TECHNOLOGY DEPARTMENT

This department was responsible for the integrated management of Liga Portugal’s technological infrastructure and supporting the organization’s competitions. Thus, it was responsible for the programming and development of CRM, ERP and competition business/management apps; management of the Liga’s physical IT pool, help desk/technical support, system security, support in the collection and management of databases, support for the management of mobile applications and management of devices, among others. The Technology Department complied 100% with the activities defined for the 2017-18 season, which were:

e-Liga Platform • Goal Line technology (GLT) • RGPD (General Regulation on Data Protection) • SIP fixed communications • Official Portuguese Football Statistics • Diverse Support Activities for other Departments

UNFORESEEN PROJECTS AND ACTIVITIES CARRIED OUT • Participation in the “Tokyo 2020” Event • Participation in the Web Summit 2017 • Participation in the Future of Football Congress • NOS Innovation Award • Ticketing system

E-Liga Platform

Goal Line technology (GLT)

The e-Liga platform has provided a funda-

An economic-financial feasibility study was

Official Portuguese Football Statistics

mental streamlining of all game informa-

developed to assess the feasibility of imple-

In 2017-18, the focus of the department

tion. However, during the 2017-18 Season it

menting GLT technology, with a view to intro-

was on the collection and certification of

was necessary to consolidate, update, op-

ducing it in all professional competitions under

Liga Portugal’s statistics, namely Media

timize and maintain the platform.

Liga Portugal’s umbrella. This technology was

Data and Fast Data, and its interconnec-

The e-Liga operated with a 100% success

tested in the Final Four and helped increase

tion with the Liga’s platforms, such as: in-

rate throughout the 2017-18 Season, with

transparency and rigor in the competitions.

traliga, Liga website, Liga NOS Virtual, and

more than 1,500 reports on 730 matches,

////////////////////////////////////////////////

the same support for Clubs.

with a complete dematerialization of the

GDPR (General Data Protection Regulation)

Liga’s three competitions.

///////////////////////////////////////////////

Within the scope of certification, the General

Miscellaneous Support for Other Departments

Data Protection Regulation was implemen-

There were a number of other projects in

ted, as a result of the new directive issued

which this department intervened, and

by the European Union. All of Liga Portugal’s

although they have already been mentio-

platforms have been altered and certified

ned, it is important to reiterate:

according to the highest standards of com-

• Development of the current Liga Portu-

puter security. Information security, particu-

gal website. The Liga’s official portal now

larly in terms of data protection and quali-

provides relevant information from the

fied information, is vital in the relationship

user’s perspective, such as news, match

between Liga Portugal, the Clubs and the

schedules, official statistics of each match

other entities involved. Two training courses

and videos of the main Liga NOS real-time

se the speed of completing reports and to

were carried out with clubs within ths project.

highlights;

aid the referees in play, with information

////////////////////////////////////////////////

• Maintenance and constant updating

New functionalities have been created, including the dematerialization of Security Bulletins and the launch of the smartwatch e-Liga project for referees, becoming a fundamental tool for refereeing and in the gathering of Liga NOS information. Two smartwatches were provided to each refereeing team, with the ability to introduce match events as they occur, synchronizing the information with the tablet at the end of the match. The objective with the introduction of this technology was to increa-

pertinent to their performance. With the launch of the interconnection between the e-Liga, tablets and the SAMSUNG smartwatch, this application has augmented its scope and potential. It is noteworthy that the e-Liga is a pioneer application worldwide in the management and organization of professional football competitions. ////////////////////////////////////////////////

SAND The SAND - Support System for Nomination of Officials – was developed and implemented in collaboration with the Competitions Department. The project consisted in the development of a new portal to support the nomination of Officials. The purpose of this portal is to ensure that the appointments are more rigorous and balanced, taking into account a set of criteria, such as distances, the number of matches played, the alternation of teams and other aspects relevant to the organization of the competition.

SMJJ Developed in coordination with the Competitions Department, the SMJJ allowed consistency in the scheduling of match days in each round;

MATCH CENTER This aims to allow teams to complete internal reports on each match, which are attached to the official e-Liga reports. It was executed in coordination with the Competitions Department.

SIP Fixed Communications

of the Liga Portugal and Virtual Liga NOS websites;

The Liga has proactively modified the fixed

• Development of the Liga Portugal APP,

communications infrastructure for next ge-

in partnership with the Marketing Depart-

neration SIPs and their maintenance. The

ment;

traditional PBX was replaced with a dema-

• Support for the integration on the Liga’s

terialized Skype 4 Business PBX connected

website of a platform for the sale of

to a SIP infrastructure with 67 users.

tickets;

The Liga’s goal was to have a more mo-

• Support in developing the technological

dern, efficient and configurable telephone

model for the “eTaça”;

infrastructure, adaptable to the real needs

• Support for the creation of a web-ba-

of the organization and the Clubs.

sed platform for the centralization of votes

///////////////////////////////////////////////

and facilitation of processes related to

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 87

monthly and annual awards;

the 2016-17 season was at the center of the

Football” Congress, an international initia-

• Support for the installation of the video-

intervention by Liga Portugal’s President, Pe-

tive by Sporting CP, held at the Pavilhão

-referee in the field, in alignment with the

dro Proença, on the topic “5 ways how tech-

João Rocha in Lisbon from March 21 to 22.

Portuguese Football Federation, ensuring

nology is changing Football”.

In addition to the President’s participa-

its feasibility.

tion, Liga Portugal showcased the e-Liga

////////////////////////////////////////////////

ecosystem, where all the functionalities of the platform were presented to congress visitors.

UNFORESEEN PROJECTS AND ACTIVITIES CARRIED OUT

////////////////////////////////////////////////

NOS Innovation Award Liga Portugal was a finalist in the Portuguese “Large Companies” category for the NOS Innovation Award, which distinguishes The Liga’s presence at the Web Summit was

new projects in business that play a rele-

therefore “extremely important for Liga Por-

vant role in boosting the national business

tugal and for the country itself, because we

sector and economy.

are talking about innovation; technology

As a finalist of this 3rd edition of the NOS In-

Given that this event focused wholly on pro-

developed in our country and placed at the

novation Award 2017, the Liga was proud

jects of innovation in sport, Liga Portugal’s

service not only of the organization of ma-

to showcase the e-Liga project, which was

participation centered on the presentation

jor sporting events, but also environmental

devised in 2015 and which today is recog-

of the e-Liga. The Liga’s Technology Director,

preservation, saving more than one ton of

nized as a valuable tool for all those who

Miguel Faria, who is responsible for the de-

paper per season in the Liga NOS, LEDMAN

work in football matches.

velopment of the project, explained to the

LigaPro and the CTT Cup”, he explained.

////////////////////////////////////////////////

Prime Minister the many advantages of as-

This project, developed in coordination with

sociating digital features to the organization

the Marketing Department, allowed the Liga

Ticketing system

////////////////////////////////////////////////

to position itself at the forefront of technolo-

The Technology Department implemen-

gy in sports, which is why we made a point at

ted, in the 2017-18 season, a digital help

the Web Summit of showing the world what

desk system, which allowed the optimiza-

we are doing and what this investment in in-

tion of technological support to the other

As previously mentioned, the e-Liga techno-

novation means in terms of organization of

departments.

logical ecosystem, developed by Liga Portu-

professional football competitions.

////////////////////////////////////////////////

gal and unique in the world, was highlighted

////////////////////////////////////////////////

Participation in the “Tokyo 2020” Event

Participation in the Web Summit 2017

at the Sports Trade conference on Novemmit 2017.

Participation in the Future of Football Congress

The way that this platform has revolutioni-

The President of Liga Portugal, Pedro

zed Professional Football since its launch in

Proença, was a speaker at the “Future of

ber 7, within the framework of the Web Sum-

88 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

DADE

DEPARTMENT OF SUPPORT FOR THE EXECUTIVE BOARD

This department provided direct support to Liga Portugal’s President, the Executive Board and the Governing Bodies. It was its responsibility to organize, coordinate and execute all the activities inherent to the advisory, secretariat and protocols of the Executive Board, as well as to advise the interconnection between the diverse stakeholders of the Liga with public and private entities. This department managed the logistics related to meetings, acts of representation, visits, invitations and others. It also ensured the correct implementation of protocol rules in the events organized by Liga Portugal, and support in several organizational procedures. DADE complied 100% with the activities defined for the 2017-18 season, which were: • Secretariat and Protocol Monitoring • Support in the Management of Events and General Assemblies • Quality Certification - EN ISO 9001: 2015

Secretariat and Protocol Monitoring

Quality certification - EN ISO 9001: 2015

This department carried out the manage-

The Liga encouraged the implementation

ment and control of the agenda and the

of a Quality Management System, which is

commitments of the President, the Board,

certified and requires ongoing monitoring.

the Executive Board and the Governing Bo-

The system has improved internal lines of

dies, also supporting the Joint Refereeing

communication, document standardiza-

Commission (PAC), General Assemblies, and

tion and monitoring of processes and ob-

Jurisdictional Council, among others.

jectives. This system is based on increasing

During the 2017-18 Season, the department

operational quality, reflecting a more effi-

elaborated, registered and promoted the

cient and constantly-improving manage-

dissemination of dispatches, circular letters,

ment. In addition to this the system has an

internal communications and other deci-

analysis dashboard that constantly moni-

sions by the President and the Management.

tors the achievement ratios of the defined

It upheld practical working case support

goals and objectives. During the 2017-18

in the preparation of various documents,

season, DADE will continue to guarantee

such as presentations, letters, newsletters,

the constant updating of strategic, support

and internal and external communications,

and business / organizational proceedings,

among others.

with the respective updating of the suppor-

In addition, this department managed pro-

ting and execution documents, as well as

tocol in several events, direct or transversal

the renewal of the certification process. It

to the Liga: invitations, implementation of

is considered that the organization has ge-

protocol rules, and hosting of guests.

nerally complied with the normative, legal

////////////////////////////////////////////////

and internal methodologies in the proces-

Support for the Management of Events and General Assemblies DADE supported the management and organization of General Assemblies, collaborating with the General Assembly Board, and during the 2017-18 Season nine major meetings were held. In addition, this department was responsible for the implementation of festive events, namely those of an internal nature, inserted within the marketing policies defined for the Liga. ////////////////////////////////////////////////

ses and requirements audited. ////////////////////////////////////////////////

SOCIAL

RESPONSIBILITY According to the European Commission, in its Green Paper dated July 18, 2001, cor-

porate social responsibility is defined “as the voluntary integration by companies of social and environmental concerns into their operations and in their interaction with other stakeholders”. Liga Portugal, as a socially responsible organization with concerns in this area, decided during the 2017-18 season to organize and plan this new project. Liga Portugal’s Social Responsibility comprised a variety of activities and social initiatives, which directly affected the well-being of various social groups, such as social organizations, Human Resources, suppliers and fans, as well as future generations, in a perspective of social and environmental sustainability.

• European Sports Week 2017 • International Breast Cancer Prevention Day • International Day for the Elimination of Violence against Women • Live Football

UNFORESEEN PROJECTS AND ACTIVITIES CARRIED OUT • World Autism Day

European Sports Week 2017

International Day for the Elimination of Violence against Women

For the third consecutive year, the Euro-

Awareness-raising action organized in partnership with the State Secretary for Citizenship and

pean Commissionâ&#x20AC;&#x2122;s Sport Unit promoted

Equality. The objectives of the action guided the populationâ&#x20AC;&#x2122;s awareness towards the existence

the European Sports Week. The #BEACTIVE

of this cause. It was also intended to involve the population and to encourage it to contribu-

campaign aimed to promote sport and

te to the eradication of all forms of violence against women, either through denunciation or

physical activity throughout Europe.

through the backing or dissemination of the campaign.

Liga Portugal adopted this campaign to

UNFORESEEN PROJECTS AND ACTIVITIES CARRIED OUT

emphasize that sport is for everyone and

World Autism Day

that football and in particular should in-

Actions staged within the context of World

fluence society in a unique and positive

Autism Awareness Day, developed in part-

way, through the promotion of healthy ha-

nership with a Club. This awareness-raising

bits and social union.

action was part of a program designed to

European Leagues and all the leagues it

bridge the gap between the club and its lo-

comprises were official partners of the Eu-

cal community.

ropean Sports Week. In Portugal, the cam-

////////////////////////////////////////////////

paign was rolled out with the support of all Clubs, aiming to raise awareness among the Portuguese population about the importance of physical exercise. ////////////////////////////////////////////////

International Breast Cancer Prevention Day This campaign was organized in conjunc-

////////////////////////////////////////////////////////////////////////////////////////////////////////

tion with the LPCC - Portuguese League

Live Football

against Cancer. The awareness campaign

Through this event, within the realm of Social Inclusion, the aim was to promote access to Pro-

was rolled out with the support of all Clubs,

fessional Football events during the sports season among social groups deemed to be vulnera-

and aimed to raise awareness among the

ble and at social risk. The Football for All campaign was geared towards the users of public or

general population about breast cancer.

private non-profit social entities whose purpose is community intervention and education, and

Awareness can save lives through early

to develop their own or subsidized projects.

detection.

////////////////////////////////////////////////////////////////////////////////////////////////////////

////////////////////////////////////////////////

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 93

5. GENERAL TIMELINE OF ACTIVITIES EXECUTED

Activity

July

August

September

October

November December January

February

March

April

May

June

Objective

Transversal Projects and ActivitiesKick Off 2017-18 Kick Off 2017-18

Fulfilled

Liga NOS

Fulfilled

LEDMAN LigaPro

Fulfilled

Taça CTT and Final Four

Fulfilled

Working Groups and Annual Conferences

Fulfilled

Business Intelligence

Fulfilled

Central Liga

Fulfilled

Match Center

Held

Presidents’ Summit

Held

Department-Specific Projects and Activities Administrative and Financial Department Planning of Activities and Budget Control

Fulfilled

Administrative and Financial Monitoring

Fulfilled

Infrastructure Fund for LEDMAN LigaPro

Fulfilled

Internal Purchasing Control System

Fulfilled

Assumptions of a Financial Nature 2018-19

Fulfilled

23% VAT campaign

Fulfilled

Financial Restructuring Program for Clubs

Fulfilled

Performance Management and Evaluation System (SGAD)

Fulfilled

Training Program 2017-18

Fulfilled

Competitions Department Match Scheduling and Sports Calendar

Fulfilled

SMJJ Project

Fulfilled

Preparation of the New Sports Season

Fulfilled

Sport Monitoring 2017-18

Fulfilled

Technical Inspections Committee

Fulfilled

Stadium Licensing

Fulfilled

Awareness for Improvement of Pitches

Fulfilled

Workshop with the PRIO Championship Sports Clubs

Fulfilled

Officials - Recruitment, Training, Monitoring and Evaluation

Fulfilled

Refereeing and Video Referee

Fulfilled

Studies of the Three Competitions’ Competitive Models

Fulfilled

Legal Department Follow-up of Protocols, Contracts and Legal Situations

Fulfilled

Regulatory Amendments, Bylaws, General Regulation, CO1

Fulfilled

Legal Monitoring and Reporting of Legislative Amendments

Fulfilled

Integrity Unit in Football

Fulfilled

Registration of Players’ Contracts

Fulfilled

Players’ Wages

Fulfilled

TRANSFER

Fulfilled

Executive Management Support Department (DADE) Secretariat and Protocol Monitoring

Fulfilled

Support for the Management of Events and General Assemblies

Fulfilled

Quality Certification - EN ISO 9001: 2015

Fulfilled

Social responsibility European Sports Week 2017

Fulfilled

International Day of Prevention against Breast Cancer

Fulfilled

International Day for the Elimination of Violence Against Women

Fulfilled

Live Football

Fulfilled

World Autism Day

96 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

Held

Activity

July

August

September

October

November December

January

February

March

April

May

June

Objective

Department-Specific Projects and Activities Marketing department Management of Sponsors and Partners

Fulfilled

New Business Partners

Fulfilled

Return on Media Activity Monitoring

Fulfilled

eSports Competitions

Fulfilled

Official Liga Portugal Products

Fulfilled

Tickets Common Project LEDMAN LigaPro

Fulfilled

40 Years of Liga Portugal

Fulfilled

Marketing and Promotional Materials

Fulfilled

Monthly and Annual Awards

Fulfilled

LIGA-TE

Fulfilled

Social Events

Fulfilled

Liga Portugal Website

Fulfilled

Liga Portugal APP

Fulfilled

Liga NOS Virtual

Fulfilled

Social Networking

Fulfilled

Promotion on Selected Websites

Fulfilled

App Architecture for Audience Management

Fulfilled

Internal Marketing Activities

Fulfilled

Video Coverage of Various Activities

Held

Visual Integration Vsports Videos

Held

Web Summit 2017

Held

Social Impact Platforml

Held

Communication Department Detailed Coverage of Professional Competitions

Fulfilled

Management of Liga Portugalâ&#x20AC;&#x2122;s involvement with the media

Fulfilled

Football and Media Debate / Reflection

Fulfilled

Communication Campaigns

Fulfilled

Media Management (Assignment of vests)

Fulfilled

Content for Website and Social Networks

Fulfilled

Press office

Fulfilled

Social Events

Fulfilled

Liga Magazine

Held

Liga TV

Held

Technology Department E-Liga Platform

Fulfilled

SAND Project

Fulfilled

SMJJ Project

Fulfilled

Goal Line Technology

Fulfilled

GDPR (General Data Protection Regulation)

Fulfilled

SIP Fixed Communications

Fulfilled

Official Portuguese Football Statistics

Fulfilled

Miscellaneous Support for Other Departments

Fulfilled

Participation at Tokyo 2020

Fulfilled

Participation at the Web Summit 2017

Held

Participation at The Future of Football Congress

Held

NOS Innovation Award

Held

Ticketing system

Held

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 97

6. INDIVIDUAL REPORT AND ACCOUNTS 2017-18

6.1 ANALYSIS OF BALANCE ON JUNE 30 2017

After the 2017-18 Season, guided by the

rselves as an organization of excellence in

Liga Portugal’s Balance Sheet showed, on June 30, 2017, a Net Profit for the Period of € 1,232,597.

achievement of all the major challenges

all professional competitions.

The table below shows the development and make-up of the Assets:

presented for the development phase, we

We can now also ensure that Clubs are

are proud to say that we are even more

able to self-regulate, committed to rules of

capable today of facing, in a preempted

transparency and fair competition, such as

ASSETS

2016-18

Asset Make-up

Value (€)

manner, the new challenges of Portuguese

strict compliance with the Assumptions of a

Professional Football.

Financial Nature.

We follow a sustainability strategy of resour-

The period covered by this Report and

ces and have leveraged our growth, to

Accounts demonstrates that Liga Portugal

achieve an intelligent positioning, suppor-

can now move slowly but surely towards the

ted by the diversity of initiatives.

Strategic Positioning defined: Football with

Currently, we have a robust Liga Portugal,

Talent.

Current Assets

wholly geared towards the modernization

Hence, the next few pages present the

Receivables

and implementation of a sustainable bu-

main financial items of this period, showing

State and Others Public Entities

siness model. Today, we have an industry

positive operating results for the third conse-

Members

fully acclimated to best international prac-

cutive year, and proving that we are able

tices.

to enter fully into the last phase of this term,

Based on an economic and financial res-

which will be of maturity.

2016-17 Value (€)

Bearing (%)

Variation

Bearing (%)

2015-16

17-18 / 16-17

Value (€)

Bearing (%)

Non-Current Assets Fixed Tangible Assets

1 521 353

15,33%

1 535 955

19,65%

(14 602)

1 490 860

23,18%

849

0,01%

849

0,01%

849

0,01%

459 490

4,63%

491 904

6,29%

(32 414)

480 625

7,47%

Other Financial Investments

1 537 149

15,49%

771 962

9,88%

765 187

100 784

1,57%

Total Non-Current Assets

3 518 841

35,46%

2 800 670

35,83%

718 171

2 073 117

32,23%

Intangible Assets Financial Holdings

352 092

3,55%

157 908

2,02%

194 183

324 804

5,05%

3 261 082

32,86%

2 573 612

32,92%

687 470

1 377 314

21,41%

9 506

0,10%

21 068

0,27%

(11 561)

304 837

4,74%

860 287

8,67%

875 580

11,20%

(15 293)

860 967

13,38%

Other Current Assets

168 297

1,70%

91 182

1,17%

77 115

5 961

0,09%

Cash and Bank Deposits

1 752 846

17,66%

1 297 168

16,59%

455 678

1 485 613

23,10%

Total Current Assets

6 404 110

64,54%

5 016 518

64,17%

1 387 592

4 359 496

67,77%

Total Assets

9 922 950

100,00%

7 817 187 100,00%

2 105 763

6 432 613

100,00%

Deferrals

tructuring, we attenuated, after three seasons - and one year ahead of schedule -

Amounts in EUR (€)

the negative results carried over and a loss of more than five million euros. We can now

ted to the Taça CTT, among other income, to the Clubs, and we have established ou-

2 574 Tangíveis

Intangible Assets Ativos Intangíveis

Financial Holdings Participações Financeiras

Receivable Credits Créditos a

2015-16

Receber

2016-17

State and Estados e Other Outros Public Entities E. P.

1 753 1 297

1 486 Membership Associados

168

91 6

Other Financial Outros Investments Investimentos Financeiros

876

861 305

352

325 101

1 Fixed Tangible Assets Ativos Fixos

860

1 377

1 537 772

500 €

As promised, we distributed the prizes rela-

158

/ Mandate.

1 000 € 492

of the greatest desires of this Management

1 500 €

459

year it will be fully liquidated, fulfilling one

481

and containment, that in the next fiscal

2 000 €

tion, clearly predicting, through strictness

2 500 €

continue reducing the negative net situa-

3 000 €

1 536

The surplus operational results allowed us to

1 521

and partners.

3 500 €

1 491

ment and approval of investors, sponsors

THOUSANDS

zation and competitions, with the endorse-

3 261

Development of Liga Portugal’s Assets (Amounts in thousands of euros, period 2015-16 to 2017-18)

guarantee the sustainability of the organi-

Other Current Assets Outros Ativos

Correntes

Deferrals Diferimentos

Casheand Bank Caixa Depósitos Deposits Bancários

2017-18

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 101

Analyzing in detail the Asset accounts, namely the Non-Current Assets, we verified that the

hand, the expenses incurred in the orga-

main variation occurs in the Other Investments Financial category, having increased by 99%.

nization of such events, shall be charged

This increase is due to the creation of two bank guarantees in favor of the Tax Authority (TA), in

to the Clubs which participated in them

the form of a time deposit in the BIC bank, related to VAT tax inspection procedures.

at that time, in accordance with the criteria that may be decided by the General Meeting, after the following deductions have been made:

Bearing of Liga Portugal’s Asset Items (Amounts in percentages, Seasons 2015-16, 2017-18) 35%

• A portion corresponding to 10% for the Financial Equilibrium Fund provided for in

33% 33%

Article 70; • A portion corresponding to 10% alloca-

30%

25%

23%

ted to the Liga budget to finance its gene-

23% 21%

20%

ral operating expenses.

20% 17%

15%

15% 15%

11%

10%

6% 5%

5% 0% Ativos Fixos Tangible Assets Tangíveis

Ativos Intangíveis Intangible Assets

0% Participações Financial Holdings Financeiras

Other Financial Outros Investments Investimentos Financeiros

for in Article 70a, up to a maximum of EUR

9% 5%

500 000. ‘

0% Receivable Credits Estados State and Other E. Créditos a Receber e Outros PublicP. Entities

2015-16

2016-17

• A portion corresponding to 25% for the Infrastructure Fund of the II Liga, provided

13%

10%

18%

Associados Members

Other Current Assets Outros Ativos

Correntes

Once the deductions provided for in the

Diferimentos Deferrals

Caixa Depósitos Casheand Bank Deposits Bancários

2017-18

by-laws have been made, the positive balance of commercial exploitation for the 2017-18 season is €644,373. It should also be noted that Article 8 (5)

The Intangible Assets have not changed

Sabseg and European Leagues.

of the Liga’s Statutes provides that the ne-

since the previous period.

The heading “State and Other Public

gative balance found in a sporting season

There is a slight increase of 6.6% in relation

Entities” essentially reflects the value of

is deducted from the positive balances,

to the previous period in Financial Sha-

the requested VAT refunds (€1,709,685),

if any, of one or more subsequent sports

reholdings, which reflects the application

as well as payments made under PERES

seasons.

of the Equity Method of the subsidiaries

(€1,110,890).

Thus, the total of the positive balance was

SABSEG Desporto Seguro, Lda. And Via

Members has a balance of €9,506. The

offset by the negative balance of com-

Castilho - Gestão Imobiliária, Unipessoal,

same integrates existing debts to the Liga

mercial exploitation from previous periods.

Lda.

of Clubs, and not due, on June 30, 2018.

“Other Current Assets”, compared to the

Regarding the current account, the ba-

In accordance with Article 8 (4) of the

previous period, decreased slightly by

lance registered in the Receivables ac-

Liga’s Statutes, ‘the positive balance of

1.7% to €860,287. This heading includes the

count amounted to €352,092, an increa-

accounts for professional competitions,

accrued income, both for sponsorship and

se of €194,183 in relation to the previous

resulting from the difference in each sports

the additions related to the Liga-incurred

period. This balance is mainly due to exis-

season between, on the one hand, inco-

amounts regarding Placard and Online

ting credits on sponsors and partners as of

me from commercial exploitation net of

Bets for the second quarter of 2018. It also

June 30, namely with SAMSUNG, LEDMAN,

incurred to obtain them, and, on the other

includes amounts related to the Football

102 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

PASSIVE

Foundation, which awaits legal recogni-

total €6,909,797, consisting of Non-Current

tion to start their activity.

Liabilities and Current Liabilities, which,

Deferrals show an increase of €77,115, with

compared to total liabilities, are 32.8% and

Non-Current Liabilities

the final balance of €168,297. They essen-

67.2% respectively.

2017-18

Passive Make-up

Value (€)

2016-17

Bearing (%)

Value (€)

Variation

Bearing (%)

2015-16

17-18 / 16-17

Value (€)

Bearing (%)

Provisions

1 608 667

23,28%

1 345 470

20,32%

263 197

1 201 229

16,45%

tially include expenses to be recognized

Members

659 166

9,54%

1 289 266

19,47%

(630 099)

1 977 169

27,08%

with insurance, surveys, software licenses

Financing Obtained

0,00%

250 000

3,78%

(250 000)

490 000

6,71%

Deferred Taxes

0,00%

2 267 833

32,82%

2 884 735

43,57%

(616 902)

3 668 398

50,24%

Suppliers

364 061

5,27%

537 356

8,12%

(173 295)

387 803

5,31%

State and Other Public Entities

272 115

3,94%

191 924

2,90%

80 191

153 362

2,10%

1 612 340

23,33%

865 828

13,08%

746 512

972 250

13,31%

230 062

3,33%

240 119

3,63%

(10 058)

244 823

3,35%

1 200

0,02%

13 499

0,20%

(12 299)

10 095

0,14%

31,29%

1 886 888

28,50%

275 297

1 865 543

25,55%

3 735 614

56,43%

906 349

3 633 876

49,76%

6 620 350 100,00%

289 447

7 302 274

100,00%

and expenses related to the ‘40 years of

Total Non-Current Liabilities

Liga Portugal’ gala, to be held in the 2018-

Current Liabilities

19 season. On the balance sheet date, cash and cash equivalents in current assets amoun-

Members

ted to €1,752,846, an increase of approxi-

Financing Obtained

mately 35% on the previous year. The total

Other Current

amount of Cash and Bank Deposits also

Deferrals

2 162 185

Total Current Liabilities

4 641 964

67,18%

Total Liabilities

6 909 797

100,00%

includes deposits under bond amounting to €1,537,149 and which are recorded in

Amounts in EUR (€)

Non-Current Assets. Equity Funds were at €3,013,153, thereby

Evolution of Liga Portugal’s Liabilities items (Amounts in thousands of euros, Seasons 2015-16 to 2017-18)

lances, if any, of one or more subsequent sports seasons. Thus, the positive value now determined, resulting from the operation of the commercial activity, was, under statutory terms, linked to the coverage of accumulated losses in previous periods. According to the table below, Liabilities

104 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

0€

Provisões Provisions

1 887

2 162

Associados Members

Fornecedores Suppliers

2015-16

2016-17

Estado e Outros State and Other E. PublicP. Entities.

2017-18

Associados Members

Financiamentos Financing Obtained

Obtidos

Outros Passivos Other Current Correntes Liabilities

230

245

240

192

153

Financiamentos Diferidos Financing Obtained Impostos Deferred Taxes

Obtidos

272

537

season is deducted from the positive ba-

gative balance determined in a sporting

364

250

500 €

388

490

with Article 8 (5) of the Liga’s Statutes. This statutory provision provides that the ne-

1 866 972

1 000 € 659

to the amount of € 644,373, in accordance

866

sults of previous years’ commercial activity

1 345

1 500 €

1 201

€1,232,597 contributed to this amount, as well as the coverage of the negative re-

1 612

2 000 €

the Net Profit for the Positive Period of

1 977

It should be noted that the inclusion of

2 500 €

1 289

nancial autonomy.

THOUSANDS

pital and an improvement in the Liga’s fi-

1 609

achieving a strengthening of equity ca-

Diferimentos Deferrals

Bearing of Liga Portugal’s Liabilities items (Amounts in percentages, Seasons 2015-16 to 2017-18)

29% 23% 19%

23%

ments by applying the equity method. Thus, ViaCastilho is a company whose

Associados Members

13%

13% Provisões Provisions

Financiamentos Obtained Financing Obtidos

Impostos Taxes DeferredDiferidos

Fornecedores Suppliers

2015-16

Estado e Outros Other E. State and Entities. PublicP.

2016-17

Associados Members

Financiamentos Obtained Financing Obtidos

Outros Passivos Other Current Correntes Liabilities

the management, promotion, adminis-

estate investments, including the purchase and sale of real estate, as well as

10%

main purpose is the realization of real

10%

15%

in Liga Portugal’s itemized financial state-

16%

20%

25%

participations are recorded as an asset

26%

27%

30%

20%

porto Seguro, Lda. (30%). Both financial

31%

35%

Diferimentos Deferrals

2017-18

tration, operation and leasing of own or third party real estate. ViaCastilho owns a property located in Rua Castilho in Lisbon that is used by Liga Portugal, according to a lease agreement between both companies. The value of the property represents approximately 84.4% of the value of the ViaCastilho asset (€351,259).

Non-current Liabilities have a balance of

30 days.

On the other hand, SabSeg Sports Insuran-

€2,267,833 representing a negative varia-

The Members’ account in Current Liabili-

ce, Lda. is an insurance mediation com-

tion of 21.4%. This decrease is mainly ex-

ties has a balance of € 1,612,340 (86.2%

pany, and its main customers are Sports

plained by the decrease in debts with the

higher than in the previous period). This

Clubs.

Portuguese Football Federation (FPF) and

balance refers to the amounts not paid to

Based on the reading and application of

the payments made in connection with

the FPF, referring to the registration / trans-

Decree-Law no. 98/2015, of June 2, Liga

the financing obtained from Caixa Geral

fer fees of the sports persons and to the

Portugal will present, for the first time in this

de Depósitos (settlement of the current

protocol signed with the FPF, which are

period, consolidated financial statements

account secured with installments until

included in the current benefits plan. This

in which the subsidiary ViaCastilho will be

July 2018). With regard to the amount of

heading also includes the value of the In-

consolidated by the full consolidation me-

the Provisions, these were revalued by the

frastructure Fund, provided for in Article 8

thod and the investee SabSeg Desporto

Liga and the balance was increased by

(4) (c) of the Liga’s Statutes, which amou-

Seguro, Lda. via the equity method of ac-

€ 263,197.

nts to €292,897.

counting.

The amount of debts to Suppliers is

The balance of Deferrals relates only to in-

€364,061, down 32.2% over the previous

come from the Capitol Building.

period. This decrease reflects a strict pay-

Liga Portugal holds two holdings in the

ment policy employed by the Liga, whose

following companies: ViaCastilho Gestão

average term of payment to suppliers is

Imobiliária, Lda. (100%) and SabSeg Des-

6.2 ANALYSIS OF OPERATING ACCOUNTS ON JUNE 30, 2018 6.2.1 Income

ment with Banco BIC and the creation of a

The evolution of the main income items can be analyzed in the following table and graph:

new revenue area in partnership with European Leagues in the scope of statistical col-

REVENUES

2017-18

Sales and services rendered

Variation 17-18 / 16-17

2016-17

lection services.

2015-16

4 794 213

4 456 138

338 075

4 543 538

6 594

5 512

1 083

Operating subsidies Reversals of Receivable Debts

The main income item continues to be sponsorships for the financing of sports competitions, representing around 58.1% of total in-

175 337

(175 337)

39 718

Other Income

10 753 959

10 282 835

471 123

10 129 116

come.

Total Income

15 554 766

14 919 822

634 944

14 712 371

The Liga’s sponsors, namely: NOS Communications, SARL, Guerin Rent-a-Car, Lda., SAM-

Amounts in EUR (€)

SUNG Electronic Portugal, SA, Electronic Arts, INC, Ledman Optoelectronic Co, Lta, Rádio e Televisão de Portugal, SA, Olivedesportos,

10 283

10 129

10 754

SA, Nike European Operations Netherlands

12 000 €

10 000 €

BV, Banco BIC Português, SA, among other sponsors / partners, contributed €9,038,883 in this period to finance the competitions organized by the Liga.

8 000 €

Services

Rendered

totaling

total Liga Income. In spite of the stability of

4 000 €

most of the items that make up the Sales and Services provided in the period under review,

Vendas e Serviços Prestados

Subsídios à exploração

2015-16

there was an increase in fines resulting from 0

175

2 000 €

0€

and

€4,794,213 in this period represent 30.8% of

4 794

4 456

Sales 6 000 €

4 544

MILHARES

Evolution of Liga Portugal’s Revenues (Amounts in thousands of euros, Seasons 2016-17 to 2017-18)

Reversões de Dívidas a Receber

2016-17

Outros Rendimentos

2017-18

the disciplinary regulation (€1,749,466). Also considered in this account was the amount allocated to the Liga referring to the Placard and Online Games prizes (€964,584),

The Liga’s revenues for the period en-

and Allocation of Investment Grants).

thus contributing to the increase in these

ded June 30, 2018 reflect an increase to

Compared to the previous period, there was

revenues.

€15,554,766 (€14,919,822 in 2016-17), amou-

an increase in total revenues of € 634,944,

nting to €4,794,231 for Sales and Services

with a positive change of € 338,075 in Sales

Rendered, €6,594 Operating Subsidies and

and Services Rendered, due to the increase

€10,753,959 Other Income (including amou-

in fines and protests, and a positive variation

nts owed by Sponsors / Partners, Interest Ob-

of € 471,123 in Other Income, mainly due to

tained, Revenue and Gains on Subsidiaries

the conclusion of a new sponsorship agree-

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 107

6.2.2 Expenditure

prizes awarded to participation Members

information, image and design advisory

The Liga’s Expenditure reached, in the period of 2017-18, €14,321,858, representing a slight in-

and television rights (€1,500,000).

services, clipping analysis services and

crease over the previous period of 6.3%.

The sponsorship services registered the

monitoring of the return of competitions

Because of this we will look, and according to the table and chart that follows, to analyze the

value of €429,732, including in this accou-

and sponsors, marketing services associa-

main items and behavior of the expenses:

nt the commercial rights inherent to LED-

ted with the application of sponsorship

MAN’s sponsorship, as well as the value of

contracts, presentation of sweepstakes of

the official balls delivered to the Clubs.

the competitions / events, and other com-

In Specialized Services, the Fees heading

mercial expenses that the Liga incurred in

decreased by 4.2%, and essentially inclu-

the course of its activity during the period

des the remuneration for refereeing of the

under analysis.

EXPENDITURE

2017-18

Supply and External Services Personnel expenses

Other Expenses

9 465 528

597 598

9 472 754

2 554 247

1 917 083

637 164

1 614 141

91 500

81 894

9 606

68 116

272 360

405 903

(133 543)

47 815

1 337 314

1 742 614

(405 300)

2 035 684

competitions organized by the Liga, as

Travel and Accommodation, which falls

3 311

10 790

(7 479)

34 003

well as several service providers, recording

under Travel, Accommodation and Trans-

14 321 858

13 623 812

698 046

13 272 512

a total balance of €3,300,229. This decrea-

port, registered an increase of €54,421

se was mainly due to the decrease, com-

(€501,517 against €447,097 the previous

pared to 2016-17 in the number of games

year). This item covers all transportation

related to LEDMAN LigaPro.

and accommodation related to refe-

The Surveillance and Security section in-

reeing and Officials, as well as the various

corporates, in addition to the services

transport and accommodation necessary

provided at the premises of the Liga, the

throughout the sporting season, in particu-

charges assumed by the Liga with ARD

lar in the context of the various events. The

watchmen in the LEDMAN LigaPro mat-

expenses incurred in the scope of the Final

ches for the 2017-18 Season. This item also

Four of the Taça CTT are of particular rele-

includes values relating to surveillance

vance to this item.

and security in the organization of the Fi-

Rents and rentals included in the various

nal Four of the Taça CTT, thus totaling €

services amount to €638,196 (up €3,214 on

205,000.

the previous period), whose main compo-

Specialized Tasks totaled €1,535,219, in-

nent is the rental of vehicles to carry the

creased by 27.4% over the previous pe-

refereeing officials to and from the various

riod. This increase is due to the Liga’s strong

venues of professional competitions.

commitment in promoting and publicizing

Personnel

Expenses and Losses of Financing Total Expenditure

2015-16

10 063 126

Depreciation and Amortization Expenses Provisions / Imparities

Variation 17-18 / 16-17

2016-17

Amounts in EUR (€)

10 000 €

10 063

9 466

12 000 € 9 473

8 000 €

0€

Fornecimento e Serviços Supply and External Services Externos

Gastos com Pessoal Personnel expenses

2015-16

2016-17

Provisões/Imparidades / Imparities Provisions

34 Outros Gastos Other Expenses

1 337

1 743

272

406

2 036 Gastos de Depreciação e de and Amortization Depreciation Amortização Expenses

2 000 €

1 917

4 000 €

2 554

6 000 €

1 614

THOUSANDS

Evolution of Liga Portugal’s Expenditure (Amounts in thousands of euros, times 2015-16 to 2017-18)

Gastos e and Perdas de Losses Expenses Financiamento of Financing

2017-18

Expenses

increased

from

the Taça CTT. They also include the cost of

€1,917,083 to €2,554,247. In this exercise a

Regarding External Supplies and Servi-

in this period (€122,134) and expenses with

anti-doping tests carried out by ADOP (An-

continuous investment plan has been car-

ces, the details of which are presented

protocol also with the FPF (€400,000). They

ti-Doping Authority of Portugal), software

ried out, which was exercised in all areas

in Note 17.6, and in particular under Sub-

also include expenses with other entities,

application development services within

of expertise, through the recruitment of

contracts, these comprise the expenses

such as the SJPF and ANTF.

the various departments of the Liga (intra-

specialists, in the search for the constant

with the Portuguese Football Federation

Lastly, Taça CTT expenditures are also in-

liga, Liga Virtual, Liga Portugal Website),

improvement of the Liga’s competences,

(FPF), regarding registrations and transfers

cluded in the subcontracts, namely the

maintenance services, computer servers,

thus creating a set of “tools” for the ac-

108 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

complishment of the strategic objectives

the commercial exploitation of the com-

drawn up by the Liga’s Management.

petitions during the period under analysis

Based on this goal, it is hoped that the

(€937,269), as well as to the value of the

Liga’s human resources will increasingly

monetary support granted to LEDMAN Li-

have greater abilities and skills to impro-

gaPro clubs, namely the amount offset by

ve the services provided to Members and

the teams that have “B” teams in the afo-

to meet the needs of the Liga’s sponsors

rementioned championship (€250,000).

and partners. The focus recently has been on human resources of excellence and a commitment to young trainees, who have had the faculty to train and show their quality, gradually allowing the regeneration of the organization and its clear and blatant improvement in its efficiency. Thus, on June 30, 2018, the number of Liga employees stood at 54, while on June 30, 2017 the number of Liga employees was 44. Remuneration of Personnel, including governing bodies, registered a balance of €2,078,031, while taxes on remuneration amounted to €439,227 in this period. The remaining amount is essentially related to Insurance and Hygiene and Safety at Work. Depreciation for the period was calculated according to the corresponding estimated working life of each asset, which does not differ significantly from the maximum rates provided for in the general table of Regulatory Decree no. 25/2009, of September 14, reaching a value of €91,500. Analyzing Other Expenses, we noticed a decrease compared to the previous period of €405,300. This item corresponds essentially to the calculation of the value of

6.2.3 Results As foreseen in the Business Plan put forward by this Board at the beginning of the four year pe-

Evolution of Liga Portugal’s Membership and Commercial Earnings (Amounts in thousands of euros; seasons 2012-13 to 2017-18) 2012-13

the 2016-17 season, which is now over, proving to be a period of consolidation and financial stability, showing marked improvements when compared to its recent past.

Milhares

riod, the first year was wholly dedicated to the Liga’s economic and financial sustainability, with

2013-14

2014-15

2015-16

2016-17

2017-18

2 000 €

1 440

1 500 € 1 000 €

Thus, with an increase in income of 4.3% and an increase in spending of 5.1%, the result obtai-

500 €

1 427

1 296

1 174

682

1 233 937

340

220

0€

ned was balanced and, again, quite positive. According to the structure of the analytical centers, the Liga, during the 2017-18 sports season, achieved a positive balance to the total amount of €2,170,177, thus presenting a very favorable development of results over the last years.

-500 €

-1 000 € -1 500 €

-1 408

-1 448

-2 000 € -2 500 €

-3 000 €

Evolution of Liga Portugal’s Overall Earnings * (Amounts in thousands of euros; seasons 2012-13 to 2017-18)

-2 873

-3 500 €

MEMBERSHIP EARNINGS

COMMERCIAL EARNIN

(*) Earnings before taxes 2013-14

2014-15

2015-16

2016-17

2017-18

4 000 €

The following graph shows the very positive performance of Earnings before Taxes that was

2 867

3 000 €

2 470

2 170

achieved in comparison to the previous seasons:

2 000 €

Evolution of Liga Portugal’s Earnings before Taxes (Amounts in thousands of euros; seasons 2012-13 to 2017-18)

1 000 €

0€

2012-13

-1 000 €

-726 -1 228

-2 000 €

-3 000 €

MILHARES

THOUSANDS

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

1 296

1 233

2 000 €

1 440

1 500 €

1 000 €

-2 532

500 € 0€

(*) Earnings before Taxes

-500 €

-726

-1 000 €

Despite a slight decrease in results, both in Membership Activity and in Commercial Activity, positive results were observed in both. Analyzing the following chart, we can see how each activity evolved in recent years.

-1 500 €

-1 228

-2 000 €

-2 500 €

-2 532 -3 000 €

Accordingly, the Liga’s net income, consisting only of the positive balance relating to revenues and Membership fees, provided for in articles 63, 64 and 69 of the Liga’s Statutes, deducted from the estimated Income Tax period to the amount of €311, is €1,232,597.

110 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

6.2.4 ANALYSIS OF ANALYTICAL CENTERS

As can be seen from the previous map and in the charts below, optimization of the expenses on refereeing was due to a reduction, in the period under analysis, in the number of LEDMAN

Liga Portugal, in its bid for constant innovation and control, has been refining its financial de-

LigaPro matches, which dropped from 552 to 462 games (90 fewer games). Lastly, this reduc-

partment by upgrading its computerized tools, to allow greater control and accuracy of its

tion is also due to the result of a strict set of rules and procedures that the Liga has implemented

accounts, namely in the imputation and description of its Expenses and income, both in the

within refereeing.

organization of the competitions, to its own structure, governing bodies, and to other bodies and standards. These tools allow a greater efficiency in identifying expenses and income in terms of their origins. Analysis of Expenditure and Revenue by sector is extremely relevant for benchmarking specific expenses and income. With this in mind, it is noted that the competitions specifically amount to €6,858,101 and absorb 55.6% of the Liga’s total Expenses. They are subdivided into 15.5%, 22.1% and 18% by the Liga NOS, LEDMAN LigaPro and Taça CTT respectively.

Bearing of Liga Portugal’s Refereeing Items (Amounts in percentages, 2017-18 season) Refereeing Council 1%

Evolution of the heading Referees, Assistant Referees and 4th Officials (Amounts in thousands of euros, seasons 2016-17 and 2017-18)

Training 2%

Referee Observers 10%

3 500 €

Spending on Refereeing is also relevant, due to its financial impact on all activities developed

3 400 €

by the Liga, and despite a marked reduction compared to recent times. This takes up about

3 369

3 300 €

31.3% of the Liga’s total expenditure, which includes, as shown in the table below, fees paid to referees and observers, travel and accommodation, expenses with Members of the Refereeing

3 200 €

Council, as well as the training of these sports authorities.

3 100 €

3 000 €

Referees, Assistants and 4th Officials 87%

2 932

2 900 € 2 800 €

REFEREEING Item Referees, Assistants and 4th Officials Referee Observers

2017-18 Value (€)

2016-17

Bearing (%)

Value (€)

2015-16

Bearing (%)

Value (€)

2 700 €

Bearing (%)

2 932 002

86,81%

3 368 742

87,20%

3 625 552

85,47%

2016-17

338 991

10,04%

377 389

9,77%

377 069

8,89%

Technical Support Bureau

0,00%

90 574

2,14%

Analysis Committee

0,00%

Office of Studies and Training

0,00%

Refereeing Committee

0,00%

400 €

Refereeing Board

48 795

1,44%

51 684

1,34%

60 912

1,44%

350 €

Training

57 732

1,71%

65 496

1,70%

87 791

2,07%

300 €

0,00%

3 377 520

100%

3 863 311

100%

4 241 899

100%

250 €

Studies and Projects Total Spend on Refereeing Amounts in EUR (€)

2017-18

Evolution of Liga Portugal’s Refereeing Items (Amounts in thousands of euros, seasons 2016-17 and 2017-18) 377

339

200 € 150 € 100 €

50 € 0€

Referee Observers

Refereeing Council 2016-17

Training

2017-18

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 113

Spending on the Liga’s Structure, which includes Expenditure on Officials and all Management

A significant part of the income earned by the Liga in the period 2017-18 was made available

/ Departments in operation, represents a total bearing on overall expenses of 36.4%

to the Associated Sports Societies through:

The Governing Bodies, which, as defined by the Articles of Incorporation, and according to the period under review, comprise the General Assembly, the Management, the President, the

CLUB SUPPORT

2017-18

2016-17

Fiscal Council and the Jurisdictional Council, which represent 9.7% of the Expenditure.

Liga Cup - Awards

1 500 000

1 522 212

756 006

Regarding Revenue, while the Income Statement might not correlate directly to Expenses, its

Liga Cup - Operating Expenses

648 229

488 733

432 133

functional distribution can be divided into Membership Activity and Commercial Activity.

Stadium monitoring service

112 062

115 411

155 618

32 762

39 710

38 454

Anti-doping control

100 026

108 175

100 923

Ball distribution

135 779

5 031

524 121

B Team Distribution Quotas

250 000

449 999

Membership Activity includes quotas of Clubs, identification cards, fines and penalties, registra-

Distribution of Commercial Rights

231 707

256 098

73 700

tion and transfer fees for players, coaches and other sports authorities, all of which represent

Total Distributed

3 010 565

2 785 370

2 530 954

It should be noted that at the time of analysis and in the scope of the calculation of the results by the analytical center, the imputation rates were maintained, with the introduction of some duly-deliberated changes relating to TV Quotas and the FPF Protocol.

31.4% of the Liga’s Total income.

Official Ticketing Service

2015-16

Amounts in euros - €

For the financing of the competitions - Commercial Activity - sponsorships are the main source of income: NOS Communications SARL, Ledman Optoelectronic Co, Lta, Electronic Arts, Inc.,

Thus, support to Clubs reached, in 2017-18, the total amount of €3,010,565. The increase of

SAMSUNG Electronics, SA, for the Liga NOS and LEDMAN LigaPro; Rádio e Televisão de Portu-

€225,195 in the last two seasons is explained essentially by investment in the Liga Cup and by

gal, SA and Olivedesportos, SA, for the Taça CTT; SABSEG Desporto Seguro, Lda., for refereeing,

the invoicing of the official balls used in the competitions by the sponsor NIKE.

and Guerin Rent a Car, plus the financing of the Liga’s structure itself, in addition to the income

The financial contributions of the Liga to the Agencies and Entities with which it has protocols

obtained from the Provision of Services to the Member Clubs.

and responsibilities were € 833 782, representing 6.2% of the Liga’s total Expenditure in the 2017-

Let’s take a look, in summary, the table of expenses and income:

18 season:

AGENCIES AND ENTITIES EXPENDITURE Governing Bodies

2017-18

Variation 17-18 / 16-17

2016-17

1 294 254

1 088 768

2015-16

205 486

1 010 248

522 134

537 354

1 222 138

234 199

241 356

196 761

18,87%

National Coach Association

14 400

European Leagues (EL) / World Leagues Forum (WLF)

63 050

66 050

56 853

Portuguese Association of Football Referees

Fans Ombudsman

315

833 782

859 160

1 490 466

4 868 468

3 746 239

1 122 229

2 233 786

29,96%

3 010 565

2 785 370

225 195

2 868 859

8,08%

Refereeing

3 377 520

3 863 311

(485 791)

4 241 899

-12,57%

833 782

859 160

(25 377)

1 433 613

-2,95%

56 853

0,00%

13 384 589

12 342 847

1 041 742

11 845 258

8,44%

Total Expenditure Amounts in euros (€)

REVENUE

2017-18

2016-17

Variation 17-18 / 16-17

2015-16

Variation %

Membership activity

4 889 299

4 796 255

93 044

4 643 847

Commercial activity

10 665 467

10 016 567

648 900

10 068 524

6,48%

Total Income

15 554 766

14 812 822

741 944

14 712 371

5,01%

Amounts in euros (€)

114 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

2015-16

Union of Professional Football Players

Club Support

Common Expenditure

2016-17

Portuguese Football Federation

Variation %

Liga Structure

Other Organizations and Entities

2017-18

1,94%

Total Reimbursements Entities Amounts in euros - €

6.3 GRAPHIC ANALYSIS OF COMPETITIONS 1 The three professional competitions organized by the Liga totaled 730 games, divided into Liga NOS (306 games), LEDMAN LigaPro (380 games) and Taça CTT (44 games). Thus, by competition, the following operating results were obtained: Development by Season (amounts in euro)

Liga NOS (amounts in euro)

20 000 000 €

LEDMAN LigaPro (amounts in euro)

15 000 000 €

Taça CTT (amounts in euro) 4 000 000 €

4 000 000 €

15 000 000 €

10 000 000 €

2 000 000 €

5 000 000 €

0€

10 000 000 €

5 000 000 €

0€

-2 000 000 €

0€

-2 000 000 €

-5 000 000 € -4 000 000 €

-5 000 000 €

-4 000 000 €

-10 000 000 € -6 000 000 € -15 000 000 €

Total Season Income Spending Balance

-10 000 000 €

2017-18

2016-17

15 554 766

14 812 822

(13 384 589)

(12 342 847)

2 170 177

2 469 975

Liga NOS

-6 000 000 €

2017-18

Income Spending Balance

2016-17

9 786 831

9 098 290

(6 182 188)

(5 282 526)

3 604 643

3 815 764

LEDMAN LIGAPRO Income Spending Balance

2017-18

2016-17

2 792 098

2 934 637

(3 525 219)

(3 812 083)

(733 121)

(877 446)

TAÇA CTT Income Spending Balance

2017-18

2016-17

2 975 837

2 779 895

(3 677 182 )

(3 248 238)

(701 344)

(468 343)

The basis for calculation of the Common Expenses incurred per competition was assessed in proportion to the Income obtained by this same competition. From the analysis of the previous graphs that reflect the overall result of the Liga’s competitions, there is a positive balance with the organization and exploitation of them, as happened in the previous period.

Results before tax and imputation according to article 8 of Liga Portugal’s Statutes

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 117

6.4 FUTURE PERSPECTIVES The 2017-18 season was characterized by the stability and consolidation of revenues and by increases in operating efficiency. Members were granted around €3,010,565, both from profits resulting from the Taça CTT, and for the provision of goods and services for the activity of Clubs and support for competitions. It reversed the trend of negative results obtained in the 2012-13, 2013-14 and 2014-15 seasons. The 2015-16, 2016-17 and 2017-18 seasons generated positive results, allowing the process of reversal of the organization’s negative financial situation to begin. From this perspective financial stabilization, the budget for the 2018-19 Season provides for total revenues of €17.0 million and expenses of €15.1 million, which means a positive operating result of €1.9 million, constituting a development budget and strong commitment to the continuous improvement of the Liga’s economic and financial situation. This solid financial liquidity allows us to define a sustainable strategy for our resources and leverage our growth, to an intelligent positioning, supported by the diversity of initiatives. With this in mind, the management, based on the values that guide this institution, such as Rigor, Professionalism, Talent and Aggregation, proposes: • To invest in the internationalization of our brand and to move towards the penetration of the international market, capitalizing on the talent that is in our DNA; • Strengthen the Council of Presidents so that topics of key importance to the development of Professional Football can be discussed by all industry leaders; • To continue studying measures that will allow us to reformulate and invigorate the current competitive model of the competitions; • Execute the new managerial model of the organization, seeking for the Clubs to have greater understanding of the Liga’s realities, and be part of all of it decisions; • Increase commercial dynamics with greater connection to the sponsors and analysis of the economic and media impact of the competitions; • Increase operational efficiency through the automation of management processes and budgetary control; • Systematically develop and maintain new technologies in competitions, to ensure a more efficient organization and increase the transparency and speed of information for all stakeholders; • Develop a long-term Social Responsibility strategy. With this new economic and financial reality, Clubs and Professional Football as a whole can count on a stronger and more dynamic Liga, capable of generating vital dynamics for the sector, in Portugal and beyond.

118 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

PROPOSED APPLICATION OF RESULTS

As a result of the analysis of the structure of the analytical centers, and taking into account the associative revenues and taxes, provided for in Articles 63, 64 and 69 of the Liga’s Statutes, in the period ending June 30, 2018, the net result of Membership Activity was of €1,232,597.16. Therefore, the Liga Management proposes that, as defined by the Statutes and attentive to the fact that the Liga is a non-profit private association, the said results be applied as follows: • Liga Financial Balance Fund to the amount of €1,000,000, as provided in Article 70, paragraph 3 of the Liga Portugal Statutes; and • Retained Earnings to the amount of €232 597.16.

Porto, August 24, 2018 The Liga Portugal Management - Mandate 2015-19

Additional Explanatory Note: The balance recorded during commercial activity was €644,373, net of statutory deductions. Pursuant to Article 8 (4) of the Liga’s Statutes, this amount shall be allocated to Clubs and, in accordance with paragraph 5 of the same article, if there is a negative balance, it must be deducted from the positive balances of the following sports seasons. Thus, the total amount of the positive balance recorded in this sport season was used to cover negative results of previous years’ commercial activity, in accordance with article 8, paragraph 5, of the Liga’s Statutes. This statutory provision provides that the negative balance determined in a sporting season is deducted from the positive balances, if any, of one or more subsequent sports seasons. As a result, the positive value now obtained, as a result of operating the commercial activity, was, under the statutory terms, was used to cover accumulated losses in previous periods, under the item Retained Earnings.

7. ITEMIZED FINANCIAL STATEMENTS ON JUNE 30, 2017

7.1 BALANCE SHEET ON JUNE 30, 2018 AND 2017 BALANCE ITEMS

NOTES*

30.06.2018

30.06.2017

ACTIVE NON-CURRENT ASSETS Tangible Assets

1 521 353,14

Intangible assets

848,60

1 535 955,46 848,60

Financial investments - financial holdings

459 490,22

491 903,90

Financial investments - other investments

1 537 148,59

771 961,71

3 518 840,55

2 800 669,67

CURRENT ASSETS Receivable Credits

352 091,75

157 908,37

State and other public entities

3 261 082,03

2 573 611,85

Members

5,16

9 506,42

21 067,73

Other current assets

16,17

860 287,20

875 579,99

Deferrals

168 296,84

91 181,95

Float and bank deposits

1 752 845,58

1 297 167,66

6 404 109,82

5 016 517,55

9 922 950,37

7 817 187,22

TOTAL ASSETS ENDOWMENT FUNDS AND LIABILITIES ENDOWMENT FUNDS Funds

853 886,00

Reserves

2 682 990,68

DACP

87 952,05

(4 534 784,46)

838 718,07

899 371,45

1 780 556,12

(98 536,33)

Transited results Adjustments / Other changes to the Equity Fund Net income for the period

1 232 597,16

1 295 373,33

TOTAL ENDOWMENT FUNDS

3 013 153,28

1 196 837,00

1 608 667,03

1 345 469,77

659 166,45

1 289 265,70

LIABILITIES NON-CURRENT LIABILITIES Provisions

Members

5,16

Financing obtained

250 000,00

2 267 833,48

2 884 735,47

CURRENT LIABILITIES Providers

364 061,40

537 355,90

State and other public entities

272 115,04

191 923,62

Suppliers Financing obtained Deferrals Other Current Liabilities

5,16 16 17 16,17

1 612 340,20

865 828,40

230 061,60

240 119,45

1 200,00

13 499,03

2 162 185,37

1 886 888,35

4 641 963,61

3 735 614,75

TOTAL LIABILITIES

6 909 797,09

6 620 350,22

TOTAL ENDOWMENT FUNDS AND LIABILITIES

9 922 950,37

7 817 187,22

Amounts in EUR (€) * The accompanying notes (Note 6.5) form an integral part of the Balance Sheet for the period ended June 30, 2018 and 2017.

124 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

7.2 STATEMENT OF INCOME BY NATURE FOR THE PERIOD ENDED JUNE 30, 2018 AND 2017

7.3 STATEMENT OF CASH FLOWS OF THE PERIOD ENDED JUNE 30, 2018 AND 2017

INCOME STATEMENT INCOME AND EXPENSES

STATEMENT OF CASH FLOWS NOTES *

30.06.2018

30.06.2017

NOTES *

30.06.2018

30.06.2017

OPERATIONAL ACTIVITIES Sales and services

11,17

Grants, donations and bequests

4 794 213,26

4 456 138,05

6 594,38

5 511,67

Imputed gains / losses from associated subsidies and joint ventures

13 275,76

11 279,18

Supplies and external services

(10 063 126,01)

(9 465 528,44)

Staff costs

(2 554 247,19)

(1 917 083,43)

Impairment of receivables (losses / reversals)

(9 162,83)

174 845,45

Provisions (increases / decreases) Other income Other expenses

Customer Receipts Payments to suppliers Payments to staff Payment / receipt of income tax Other receipts / payments Flows from operating activities (1)

(263 197,26)

(144 240,86)

11,17

10 727 125,15

10 008 297,97

INVESTMENT ACTIVITIES

(1 325 407,21)

(1 742 613,75)

Payments concerning:

1 326 068,05

1 386 605,84

(91 500,09)

(81 893,91)

Financial investments Income before depreciation, financing expenses and taxes Expenses / reversals of depreciation and amortization

Impairment of depreciable / amortizable investments (losses / reversals)

Tangible Assets

1 234 567,96

1 304 711,93

13 000 345,27 (9 307 587,89)

(2 415 297,15)

(1 846 753,21)

2 450 494,61

1 846 004,17

178 622,78

2 599,51

(1 074 588,33)

(972 966,36)

1 554 529,06

875 637,32

(765 186,91)

(671 961,71)

(84 828,94)

(143 050,12)

14 400,00

10 800,00

Receivables From: Tangible Assets Interest and similar income

Operating income (before financing expenses and taxes)

15 868 427,49 (11 002 635,73)

Cash flows from investment activities (2)

98,21

1 832,15

(835 517,64)

(802 379,68)

(260 057,85)

(244 703,17)

(3 275,65)

(16 999,81)

(263 333,50)

(261 702,98)

455 677,92

(188 445,34)

FINANCING ACTIVITIES Interest and similar income obtained

1 651,18

2 087,71

Interest and similar expenses incurred

(3 310,95)

(10 789,95)

1 232 908,19

1 296 009,69

(311,03)

(636,36)

1 232 597,16

1 295 373,33

Earnings before tax

Receivables from: Financing obtained Payments Concerning: Financing obtained

Tax over the period’s income Net income for the period

Amounts in EUR (€)

Interest and similar expenses Flows from financing activities (3) Variations in cash and cash equivalents (4) = (1) + (2) + (3) Effect of exchange rate differences

Cash and cash equivalents at the beginning of the period

1 297 167,66

1 485 613,00

Cash and cash equivalents at end of period

1 752 845,58

1 297 167,66

Amounts in EUR (€)

* The accompanying notes (Note 6.5) form an integral part of the Income Statement for the period ended June 30, 2018 and 2017.

* The accompanying notes (Note 6.5) form an integral part of the Statement of Cash Flows for the period ended June 30, 2018 and 2017.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 125

7.4 STATEMENT OF ALTERATIONS IN SHAREHOLDERS’ EQUITY FOR THE PERIOD ENDED JUNE 30, 2018 AND 2017 EQUITY FUNDS ALLOCATED TO MEMBERS Note Reading on 06.30.2017

# 51

# 551

# 552

Funds

Legal reserves

Other reserves

853 886,00

# 56

#57 e # 59 # 81 Other alterations in Net income for the equity funds period (4 534 784,46) 899 371,45 1 295 373,33

Retained earnings

2 682 990,68

Total 1 196 837,00

Alterations in the period Application of net income for 2016-17

1 234 735,71

60 637,62

Other alterations recognized in the endowment funds - subs invested.

(1 295 373,33)

Loss coverage - commercial activity

(3 917 726,39)

3 917 726,39

(2 682 990,68)

3 978 364,01

Application of the equity method

(45 689,44)

Total alterations in period

(60 653,38)

(14 963,94)

(1 295 373,33)

(60 653,38)

Net income for the period

1 232 597,16

Overall earnings

1 171 943,78

Operations with Members

Other operations - hedging business activity losses

644 372,50

Total transactions with Members Reading on 06.30.2018

644 372,50

853 886,00

87 952,05

838 718,07

1 232 597,16

3 013 153,28

Amounts in EUR (€)

ENDOWMENT FUNDS ALLOCATED TO MEMBERS Note Reading on 06.30.2016

# 51

# 551

# 552

Funds

Legal reserves

Other reserves

853 886,00

# 56

#57 e # 59 # 81 Other alterations in Net income for the equity funds period (5 505 457,03) 914 335,39 1 439 794,78

Retained earnings

1 427 780,13

Total (869 660,73)

Alterations in the period Application of net income for 2015-16

1 255 210,55

184 584,23

Other alterations recognized in the endowment funds - subs invested. Total alterations in period

(1 439 794,78)

1 255 210,55

184 584,23

(14 963,94)

(14 963,94) (1 439 794,78)

(14 963,94)

Net income for the period

1 295 373,33

Overall earnings

1 280 409,39

Operations with Members

Other operations Total transactions with Members Reading on 06.30.2016

786 088,34

853 886,00

2 682 990,68

(4 534 784,46)

899 371,45

1 295 373,33

1 196 837,00

Amounts in EUR (€) * The accompanying notes (Note 6.5) form an integral part of the Statement of Changes in Equity Funds for the period ended 30 June 2018 and 2017.

126 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

786 088,34

7.5 NOTES TO THE FINANCIAL STATEMENTS ON JUNE 30, 2018 The Portuguese Professional Football League (which operates under the brand name Liga Por-

NOTE 2- ACCOUNTING REFERENCES IN PREPARATION OF THE FINANCIAL STATEMENTS

tugal) is a private-law association of national scope, established in 1978, whose headquarters

NOTE 2.1. LEGISLATION

are on Rua da Constituição, 2555, 4250-173 Porto.

These financial statements were prepared under the assumption of continuity of operations,

The main purpose of Liga Portugal is to exercise the powers and competences legally confer-

based on the accounting records of the Company and in accordance with the standards of

red on the Portuguese Football Federation (FPF) with reference to professional football com-

the Accounting Standardization System, regulated by the following statutory instruments:

petitions; the promotion and defense of the common interests of its Members and the mana-

• Decree-Law No. 158/2009, of July 13 (Accounting Standardization System), amended by De-

gement of matters inherent to the organization and practice of professional football and its

cree-Law No. 98/2015, of July 2;

competitions; organization and regulation of professional competitions held within the frame-

• Ordinance No. 218/2015, of July 23 (Code of Accounts);

work of the FPF; negotiation, management and supervision in the interest and on behalf of its

• Ordinance No. 220/2015, of July 24 (Models of Financial Statements);

Members of the commercial exploitation of professional competitions.

• Notice No. 8254/2015, of July 29 (Conceptual Framework);

The following notes refer to the numbering defined in the Accounting Standardization Regime

• Notice No. 8259/2015, of July 29 (Accounting and Financial Reporting Standards for non-profit

for Non-Profit Entities (SNC-ESNL), including only disclosures of the Financial Reporting Standards

entities); and

applicable to the Portuguese Professional Football League.

• Notice No. 8258/2015, of July 29 (Explanatory Guidelines).

NOTE 1- IDENTIFICATION OF THE ENTITY

The Management understands that these financial statements reflect in a true and appropriate manner the operations of the Portuguese Professional Football League, as well as its financial

NOTE 2.2. COMPARABILITY

position, performance and cash flows.

The amounts for the period ended December 31, 2016, included in the Financial Statements for

All the amounts presented in this Annex are in EUR (€).

comparative purposes are presented in accordance with the model resulting from the changes introduced by the legal provisions referred to in the previous paragraph. It should only be noted that, following the amendments introduced by Decree no. 220/2015 of 24 July, in the financial statement models, the denominations of the following items were changed: “customers” to “receivables”, “other accounts receivable “to” other current assets “,” other accounts payable “to” other current liabilities “,” other expenses and losses “to” other expenses “and” other income and gains “to” other income “. As defined in the SNC-ESNL, the caption “Investment properties” is shown in the caption “Tangible Assets”, as can be seen in Note 7. NOTE 2.3. DEROGATIONS FROM THE PROVISIONS OF THE ACCOUNTING STANDARDIZATION SYSTEM There were no exceptions to any provision of the Accounting Standardization System rules during the period to which these financial statements relate.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 127

NOTE 3 - MAIN ACCOUNTING POLICIES

Maintenance and repair costs that do not cover the useful life of these fixed assets are recor-

NOTE 3.1 BASIS OF MEASUREMENT USED IN THE PREPARATION OF FINANCIAL STATEMENTS

ded as expenses in the period in which they occur. Expenses on major repairs and remodeling

NOTE 3.1.1 INTANGIBLE ASSETS

are included in the book value of the asset whenever expected that it will result in additional

Intangible assets, which essentially comprise computer programs and the registration of trade-

future economic benefits.

marks, are recorded at acquisition cost, minus any impairment losses and accumulated amor-

Tangible Assets in progress represent assets still under construction, and are recorded at cost

tization. These assets are amortized as of the time the underlying assets are completed or in a

minus any impairment losses. These assets depreciate from the moment they are in use.

state of use, on a straight-line basis over a period of 3 years.

Gains or losses arising from the sale or write-off of these assets are determined as the difference

Intangible assets are only recognized when it is probable that future economic benefits will ac-

between the sale price and the net book value at the date of sale / write-off and are recorded

crue to the Liga, are controllable by the Liga, and that they can be measured reliably.

at the net amount in the income statement as “Other Income” or “Other Expenses”.

By deed of December 19, 1995, the Porto Council ceded to the Liga, free of charge in surface right, the portion of land located on Rua da Constituição. On July 18, 2000, the Council ceded the said land in full ownership on the condition of immediate reversal if it is given a different

NOTE 3.1.3 LEASES

purpose of use.

The classification of leases as financial or operating is done according to the substance and not

The gains or losses arising from the sale or write-off of these assets are determined as the diffe-

the type of contract. Leasing contracts in which the Liga is a lessee are classified as financial

rence between the sale price and the net book value at the date of sale / write-off and are

leases if substantially all the risks and rewards of ownership are transferred through them, and as

recorded at the net amount in the income statement as “Other Income” or “Other Expenses”.

operating leases if they are not transferred, substantially all the risks and advantages inherent in possession. According to the financial method, the cost of the asset is recorded as an asset, the corres-

NOTE 3.1.2 TANGIBLE ASSETS

ponding liability is recorded under liabilities, under the caption “Financing obtained”, and the

Tangible Assets acquired up to July 1, 2009, are recorded at deemed cost, which corresponds

interest included in the amount of the rent and the reintegration of the asset are recorded as

to acquisition cost, minus accumulated depreciation and impairment losses.

expense in the statement of profit and loss for the period to which they relate.

Tangible Assets acquired after that date are recorded at acquisition cost, minus accumulated

In leases considered to be operating, rents due are recognized as expenses on the income

depreciation and impairment losses.

statement, on a straight-line basis, during the period of the lease.

Depreciation shall be calculated, after assets start to be used, using the constant quota method on an annual / twelfth basis, according to the following estimated service lives: NOTE 3.1.4 FINANCIAL INVESTMENTS Financial investments in the group’s companies and Members are accounted for under the

USEFUL LIFE Buildings and other constructions Transport equipment Office equipment

YEARS

equity method, and the investments are initially recorded at acquisition cost, which was increa-

3 - 50

sed or reduced to the amount proportional to the equity interest of these companies, as of the

4 3 - 10

date of acquisition or first use of the equity method. Under the equity method, financial investments are adjusted annually by the amount corresponding to the participation in the net results of group companies and Members by counterpart of gains or losses of the period. Shares are further adjusted by the amount corresponding to the participation in other changes in the equity funds of these companies, against the “Financial Adjustments”. In addition, dividends received from these companies are recorded as a decrease in the value of financial investments.

128 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

NOTE 3.1.5 IMPAIRMENT OF NON-CURRENT ASSETS (EXCEPT GOODWILL)

NOTE 3.1.7 FINANCIAL INSTRUMENTS

Whenever an event or change in circumstances is identified that indicates that the amount

THIRD PARTY DEBTS

for which the asset is registered cannot be recovered, an impairment assessment is made

The debts of third parties are recorded at their face value and included in the balance

with reference to the end of each period.

sheet, deducted from any impairment losses, recognized under the heading Impairment of

Whenever the amount by which the asset is registered is greater than its recoverable amount,

receivables (losses / reversals), in order to reflect their net achievable value.

an impairment loss is recognized as an expense under the caption â&#x20AC;&#x153;Impairment of deprecia-

Impairment losses are recorded as a result of events that objectively and quantifiably indi-

ble assetsâ&#x20AC;?. The recoverable amount is the highest of the net selling price and the value in

cate that all or part of the outstanding balance will not be received. To this end, the Liga

use.

takes into account market information that proves the customer is in breach of its responsi-

The net selling price is the amount that would be obtained by splitting the asset into a tran-

bilities, as well as historical information on balances due and not received.

saction between independent and knowledgeable entities, minus costs directly attributable

The impairment losses recognized correspond to the difference between the write-down

to the sale. Value in use is the present value of the estimated future cash flows that you ex-

of the balance receivable and the respective amortized cost. To date, the amortized cost

pect to arise from the continued use of the asset and its disposal at the end of its useful life.

does not differ by face value.

The recoverable amount is estimated for each asset, individually or, if it is not possible, for the cash-generating unit to which the asset belongs.

LOANS

After recognition of an impairment loss, the amortization / depreciation charge on the asset

Loans are recorded in liabilities at their face value, minus transaction costs that are directly

is adjusted in future periods to allocate the assetâ&#x20AC;&#x2122;s carrying amount, minus its residual value (if

attributable to the issuance of these liabilities. Financial charges are calculated at the ef-

any) on a its remaining useful life.

fective interest rate and recorded in the statement of profit and loss for the period in accor-

The reversal of impairment losses recognized in prior periods is recorded when it is concluded

dance with the accrual scheme. The portion of the effective interest related to commissions

that recognized impairment losses no longer exist or have decreased. This analysis is carried

with the issue of loans is added to the book value of the loans if they are not settled during

out whenever there is evidence that the previously recognized impairment loss has reversed.

the period.

The reversal of impairment losses is recognized as an income in the income statement. Howe-

Whenever there is a compulsory right to offset assets and liabilities and the Management in-

ver, the reversal of the impairment loss is made up to the amount that would be recognized

tends to liquidate on a net basis or to realize the asset simultaneously liquidating the liability,

(net of amortization or depreciation) if the impairment loss had not been recorded in prior

they are offset and presented in the balance sheet at their net amount.

periods. SUPPLIERS AND DEBTS TO THIRD PARTIES Debts to suppliers or to other third parties, which do not bear interest, are recorded at their 3.1.6. LENDING COSTS OBTAINED

face value.

Financial charges on loans are recognized as expenses under the accrual system. In cases where these charges are directly attributable to the acquisition, construction or pro-

FINANCIAL LIABILITIES

duction of an asset whose period of time to be ready for the intended use is substantial, they

Financial liabilities are classified according to the contractual substance of the transaction,

are capitalized up to the time when all the activities necessary to prepare the asset for its use

regardless of the legal form they assume.

or sale are completed.

A financial instrument is classified as a financial liability when there is a contractual obligation for its liquidation to be effected through the delivery of money or other financial asset, regardless of its legal form. Financial liabilities are initially recorded at cost, minus transaction costs incurred, and subsequently cost minus impairment loss.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 129

NOTE 3.1.8 CASH AND BANK DEPOSITS

accounting purposes and the respective amounts for tax purposes, as well as those resulting

The amounts included under “Cash and Bank Deposits” correspond to cash values, bank

from tax benefits obtained and temporary differences between the taxable income and ac-

deposits, and other treasury applications which mature in under three months and can be

counting. The Liga did not record deferred taxes.

immediately mobilized without significant risk of change in value.

According to the legislation in force, the declarations are subject to review and correction by the Tax Administration during a period of 4 years (5 years for Social Security), except when there were tax losses, benefits have been granted inspections, complaints or appeals are in progress,

NOTE 3.1.9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

in which case, depending on the circumstances, the time limits may be extended or suspen-

Provisions are recognized only when there is a present obligation (legal or implicit) resulting from

ded. In this way the tax declarations for the years 2014 to 2017 can still be reviewed.

a past event, and it is probable that the resolution of this obligation will result in an outflow of resources and the amount of the obligation can reasonably be estimated. Provisions are reviewed

NOTE 3.1.12 GOVERNMENT GRANTS OR OTHER PUBLIC ENTITIES

on the date of each statement assessment and adjusted to reflect the best estimate at that date.

Subsidies assigned to non-performing loans are recorded on the balance sheet as “Other changes

Provisions for restructuring costs are recognized whenever there is a formal and detailed restruc-

in equity funds” and recognized in the income statement in proportion to the reintegration of sub-

turing plan and the restructuring plan has been communicated to the parties involved.

sidized assets.

Contingent liabilities are assessed by the Liga as: (i) possible obligations arising from past events and whose existence will only be confirmed by the occurrence or not of one or more future events, uncertain and not totally under the control of Liga Portugal; (ii) present obligations arising

NOTE 3.1.13 EMPLOYEE BENEFITS

from past events but not recognized because it is not probable that an outflow of resources em-

The Liga has undertaken the liabilities associated with employee benefits under the applicable laws,

bodying economic benefits is required to settle the obligation or, if probable, the amount of the

recognizing in expenses the short-term benefits for employees who have rendered services during

obligation cannot be measured reliably .

the accounted period and as a liability after deducting the amount already paid.

Contingent assets usually arise from unplanned or other expected events that will give rise to the

The Liga has established and registered all the commitments it has made to grant its employees

possibility of an influx of economic benefits to the Liga. The Liga does not recognize contingent

short-term benefits.

assets in its financial statements, but only discloses them if it considers that the economic benefits that may result for the Liga are likely. When the fulfillment of the benefit is certain, then the asset is not contingent and recognition is appropriate.

NOTE 3.1.14 REVENUE Revenue from the sale of assets is recognized only in the income statement when (i) the risks and significant advantages of ownership of the assets are transferred to the buyer, (ii) there is no continued

NOTE 3.1.10 ECONOMIC PERIODIZATIONS

involvement of management with a degree generally associated with the effective ownership or

Expenses and income are recorded in the period to which they refer regardless of their pay-

control of the assets sold, (iii) the amount of revenue can be measured reliably, (iv) the economic

ment or receipt, in accordance with the accrual accounting regime. The differences between

benefits associated with the transactions are likely to flow to the entity, and (v) the costs incurred or

the amounts received and paid and the corresponding revenues and expenses are recorded

to be incurred relating to the transaction

under “Other receivables” and “Other payables” or “Deferred charges”. NOTE 3.1.15 SUBSEQUENT EVENTS NOTE 3.1.11 CURRENT TAXES

Events occurring after the balance sheet date that provide evidence or additional information

Regarding income taxes, these are recorded in the Liga’s income statement and include the

about conditions that existed at the time of the balance sheet’s date (“events that give rise to ad-

effect of current taxes. Current income tax is calculated on the basis of taxable income, in

justments”) are reflected in the Liga’s financial statements. Events after the balance sheet date that

accordance with the tax rules in force.

are indicative of conditions that arose after the balance sheet date (“non-adjusting events”), when

Deferred taxes refer to temporary differences between the amounts of assets and liabilities for

material, are disclosed in the notes to the financial statements.

130 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

NOTE 3.1.16 JUDGMENTS AND ESTIMATES When preparing the financial statements, the Liga’s Management applies best knowledge and experience of past and / or current events when taking into account certain assumptions regarding future events. The most significant accounting estimates reflected in the financial statements for the periods ended June 30, 2018 and 2017 include: • Service lives of tangible and intangible Assets; • Registration of provisions; • Record of impairment losses. Estimates were determined based on the best information available at the date the financial statements were drawn up. However, situations may occur in subsequent periods which, if not foreseeable at the time, were not taken into account in these estimates. Changes to estimates that occur after the date of the financial statements will be corrected prospectively. For this reason and given the degree of uncertainty associated to them, the actual results of the transactions in question may differ from the corresponding estimates. Changes to these estimates that occur after the date of the financial statements will be adjusted in the income statement prospectively.

3.2. OTHER RELEVANT ACCOUNTING POLICIES

NOTE 3.2.4 MAIN ASSUMPTIONS REGARDING THE FUTURE

NOTE 3.2.1 CASH FLOWS

The accompanying financial statements were based on ongoing assumptions relating to the

The cash flow statement is prepared in accordance with NCRF 2, using the direct method.

Liga’s operations, accounting books and records, maintained in accordance with accounting

The Liga classifies investments with maturities of under three months, and for which the risk of

principles generally accepted in Portugal.

change in value is insignificant, including fixed-term deposits, under the heading “Cash and

Events occurring after the balance sheet date that affect the value of the assets and liabilities

cash equivalents”.

existing at the balance sheet date are taken into account in the preparation of the financial

The statement of cash flows is classified under operating activities, financing and investment.

statements for the period.

Operating activities include client and supplier payments, payments to personnel and other related to operating activity. The cash flows covered under investing activities include, namely,

acquisitions and disposals of investments in investees and revenue and payments arising from

NOTE 3.2.5 MAJOR SOURCES OF UNCERTAINTY

the purchase and sale of fixed assets.

This note refers to key assumptions that related to the future, adopted in the preparation of the

The cash flows covered under financing activities include, in particular, payments and revenue

accompanying financial statements, which may entail a significant risk of material adjustments

relating to loans obtained, finance lease contracts and dividend payments.

to the valuation of assets and liabilities of future financial periods. Accordingly, certain assumptions were used in the preparation of the financial statements, na-

NOTE 3.2.2 FOREIGN CURRENCY

mely, in relation to the determination of provisions and disclosure of contingent liabilities (Note

All assets and liabilities paid in foreign currency are translated into the functional currency,

12). This assessment was made based on information obtained from the internal and external

using the official prices in effect on date of reporting. Exchange differences, favorable and

lawyers responsible for the cases in question.

unfavorable, arising from the differences between exchange rates prevailing at the date of the transactions and those in effect at the date of collection, payment or balance sheet date, are recorded as gains and losses in the income statement of the period. Currency exchange differences associated with receivable / payable accounts whose maturity is not defined are recorded in the income statement for the period when such receivable / payable accounts are depreciated / disposed of / settled.

NOTE 3.2.3 VALUATION JUDGMENTS BY THE MANAGEMENT IN THE CASE OF ACCOUNTING POLICY APPLICATION AND WHICH HAD A HIGHER IMPACT ON THE AMOUNTS REGISTERED IN THE FINANCIAL STATEMENTS When preparing financial statements in accordance with the NCRF-SNL, the Liga’s Management uses estimates and assumptions that affect the application of policies and reported amounts. Estimates and judgments are continuously evaluated and are based on past experience and other factors, including expectations regarding future events that are considered probable in the circumstances in which the estimates are based or resulting from information or experience acquired.

132 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

NOTE 4 - CASH FLOWS

NOTE 5 RELATED PARTIES

NOTE 4.1 BREAKDOWN OF AMOUNTS REGISTERED UNDER CASH AND BANK DEPOSITS

NOTE 5.1. REMUNERATION OF KEY MANAGEMENT STAFF

As of June 30, 2018 and 2017, the balance of Cash and Bank Deposits was broken down as follows:

TOTAL REMUNERATION 30.06.2018 Remuneration of key management personnel

CASH AND BANK DEPOSITS 30.06.2017

Cash: 773,20

2 725,48

773,20

2 725,48

1 752 072,38

794 442,18

500 000,00

1 752 072,38

1 294 442,18

1 752 845,58

1 297 167,66

Bank deposits: Sight deposits: Fixed-term Deposits: TOTAL CASH AND BANK DEPOSITS

657 285,67

(Total value of remuneration including the respective taxes) 30.06.2018

Cash:

30.06.2017

844 162,63

Liga Portugal maintains two fixed-term deposits totaling €770,000.00 plus two more to the total

NOTE 5.2. TRANSACTIONS AND BALANCES BETWEEN RELATED PARTIES NOTE5.2.1. OUTSTANDING TRANSACTIONS AND BALANCES Throughout the course of the year the Liga recorded the following transactions and balances with related entities:

JUNE 30, 2018 Transactions Nature of Related Parties

Income

Outstanding balances

Spending

Active

Losses for impairment in the period analysed

Impairment Liability

Losses

amount of €762,384.01 that are recorded under “Other Financial Investments” (Note 10.3) as

Federations

639 790,79

- (1 468 710,40)

they are associated with bonds provided in favor of third parties:

Referee support fund

751 135,10

612 282,78

766 956,96

(764 320,23)

43 757,94

3 125 139,08

1 558 336,92

178 739,70

(171 870,01)

466 141,71

644 372,50

3 876 274,18

2 810 410,49

945 696,66

(936 190,24)

(314 438,25)

9 506,42

(314 438,25)

Individually-owned Clubs Public-limited Clubs Balance of commercial activity TOTAL

OTHER FINANCIAL INVESTMENTS

NET TOTAL 30.06.2018

30.06.2017

Legal proceedings in progress

862 384,01

100 000,00

Financing obtained – secured current account (a)

670 000,00

Work Compensation Fund

Note (a): according to Note 16.2.2, the debt on June 30, 2018 amounts to €230,00.

4 764,58

1 961,71

1 537 148,59

771 961,71

Notes: 1. Values of transactions inc. VAT, when applicable; and 2. The value of Members in liabilities is presented in non-current liabilities (June 2018: € 659,166.45 and June 2017: €1,289,265.70) and current liabilities (June 2018: €1,612,340.20 and June 2017: € 865,828.40).

JUNE 30, 2017 Transações Nature of Related Parties Federations

Income

Saldos pendentes

Spending

Active

Impairment liability

Losses

Losses for impairment in the period analyzed

27 451,01

502 542,33

2 123 295,58

145,00

Individually-owned Clubs

1 736 032,80

689 723,26

764 445,23

(764 320,23)

7 930,50

Public-limited Clubs

4 236 441,28

2 985 245,76

192 802,74

(171 870,01)

23 723,02

491,74

Referee support fund

Balance of commercial activity TOTAL NET TOTAL

786 088,34

(175 337,19)

5 999 925,09

4 177 511,35

957 247,97

(936 190,24)

2 941 182,44

(174 845,45)

21 057,73

2 941 182,44

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 133

NOTE 6 - INTANGIBLE ASSETS NOTE 6.1. DISCLOSURES FOR EACH CATEGORY OF INTANGIBLE ASSETS, DISTINGUISHING BETWEEN

JUNE 30, 2017 Software

a) Depreciation for the period is calculated taking into account the following service lives and average amortization rates:

Balance at 01.7.2016

LIFESPAN Industrial property

TOTAL

Useful life

Amortization rate

3 anos

33,33%

146 284,85

848,60

146 284,85

848,60

147 133,45

(146 284,85)

848,60

Additions Balance at 06.30.2017

Computer programs

Industrial property

GROSS ASSETS:

INTANGIBLE ASSETS GENERATED INTERNALLY AND OTHER INTANGIBLE ASSETS

147 133,45

ACCUMULATED DEPRECIATIONS: Balance at 01.7.2016 Additions Balance at 06.30.2017 NET TOTAL

b) Intangible assets are broken down as follows:

INTANGIBLE ASSETS

Computer programs Industrial property TOTAL

30.06.2018 Amortization Gross Assets and losses by impairment 146 284,85 146 284,85

30.06.2017 Amortization Gross Assets and losses by impairment 146 284,85 146 284,85

848,60

147 133,45

146 284,85

147 133,45

146 284,85

NOTE 6.2. INTANGIBLE ASSETS WITH INDETERMINED USEFUL LIFE

JUNE 30, 2018 Carrying amount L.P.F.P. Brand

Justification

848,60 The exclusive use of this brand has no time limits 848,60

c) Changes in intangible assets during the years 2018 and 2017 ended June 30 are as follows:

The Liga annually reviews the estimated service lives of intangible assets that are not being amortized to verify the events and circumstances that support an indefinite useful life assess-

JUNE 30, 2018 Software

Industrial Property

ment for that asset.

TOTAL

ACTIVO BRUTO: Balance on 07-07-2017 Additions Balance on 06-30-2018

146 284,85

848,60

147 133,45 -

146 284,85

848,60

147 133,45

(146 284,85)

848,60

ACCUMULATED DEPRECIATIONS: Balance on 07-07-2017 Additions Balance on 06-30-2017 Â´ NET TOTAL

134 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

NOTE 7 - TANGIBLE ASSETS

JUNE 30, 2017

NOTE 7.1 DISCLOSURES ON TANGIBLE ASSETS

Buildings and other constructions

Investment properties

NOTE 7.1.1MEASURING BASES Tangible assets (property, plant and equipment, PP&E) are valued according to the cost model, whereby a tangible asset’s carrying cost is its cost minus any accumulated depreciation and any accumulated impairment losses.

273 287,26

2 052 647,19

40 400,00

288 618,86

130 494,98

Write-Offs or Disposals

(31 162,64)

(787,42)

2 052 647,19

40 400,00

387 163,78

2 753 498,23

(84 766,86)

(804 768,73)

(40 400,00)

(234 157,69)

(1 164 093,28)

(5 465,75)

(40 269,33)

(36 158,83)

(81 893,91)

Write-Offs or Disposals

28 300,09

Regularizations

144,33

Balance as of 06-30-2017

(90 232,61)

(845 038,06)

(40 400,00)

(241 872,10)

(1 217 542,77)

NET TOTAL

183 054,65

1 207 609,13

145 291,68

1 535 955,46

ACCUMULATED DEPRECIATIONS: Balance on 07-07-2016

change.

Additions

Depreciation for the year is calculated taking into account the following useful lives and average amortization rates:

LIFESPAN

2 654 953,31

273 287,26

thod, depreciation is constant over the useful life of the asset if its residual value does not

NOTE 7.1.3 . SERVICE LIVES AND USED DEPRECIATION RATES

TOTAL

Additions

Balance as of 06-30-2017

Liga Portugal depreciates its PP&E in accordance with the straight-line method. Under this me-

Office equipment

GROSS ASSETS Balance on 07-07-2016

Regularizations

NOTE 7.1.2 DEPRECIATION METHOD USED

Equipamento de transporte

As of June 30, 2018, for the presentation of the financial statements, the existing investment

Useful life

Amortization rate

properties were added under the heading “Property, Plant and Equipment”. During the period,

3 - 50

2% - 33,33%

Transportation equipment

25%

there were acquisitions of ‘Property, Plant and Equipment’, in the €76,897.77, of which the ac-

Administrative equipment

3 - 10

10% - 33,33%

Land and natural resources Buildings and other constructions

quisition of computer equipment under the sponsorship agreement with SAMSUNG (€73,455) is outstanding.

NOTE 7.1.4 RECONCILIATION OF THE CARRYING AMOUNT AT THE START AND END OF THE PERIOD

disposals and write-offs of certain assets that generated the corresponding plus / minus value,

JUNE 30, 2017

and their net impact is reflected in Other Expenses in the income statement.

Buildings and other constructions

Investment properties

Equipamento de transporte

Office equipment

TOTAL

GROSS ASSETS Balance on 07-07-2017

273 287,26

2 052 647,19

40 400,00

387 163,78

2 753 498,23

Additions

76 897,77

Write-Offs or Disposals

Regularizations

273 287,26

2 052 647,19

40 400,00

464 061,55

2 830 396,00

(90 232,61)

(845 038,06)

(40 400,00)

(241 872,10)

(1 217 542,77)

(5 465,75)

(40 269,33)

(45 765,01)

(91 500,09)

Write-Offs or Disposals

Regularizations

Balance on 06-30-2018

(95 698,36)

(885 307,39)

(40 400,00)

(287 637,11)

(1 309 042,86)

NET TOTAL

177 588,90

1 167 339,80

176 424,44

1 521 353,14

Balance on 06-30-2018

As of June 30, 2017, due to some of remodeling which occurred at the facilities, there were

NOTE 7.2 DEPRECIATION, IN THE RESULTS OR AS A PART OF THE COST OF OTHER ASSETS DURING THE PERIOD

DEPRECIATION FOR THE PERIOD

ACCUMULATED DEPRECIATIONS: Balance on 07-07-2017 Additions

Investment properties Buildings and other constructions

30.06.2018 Depreciation as part of Depreciation in results cost in results of other assets 5 465,75 40 269,33

TOTAL 5 465,75 40 269,33

Office equipment

45 765,01

TOTAL

91 500,09

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 135

NOTE 8 - LOAN COSTS OBTAINED

NOTE 7.3 CUMULATIVE DEPRECIATION AT THE END OF THE PERIOD

NOTE 8.1 ACCOUNTING POLICY ADOPTED ON THE LENDING COSTS OBTAINED

ACCUMULATED DEPRECIATION

Borrowing expenses are recognized as an expense in the period in which they are incurred. 30.06.2018

Investment properties Buildings and other constructions Transport equipment Office equipment TOTAL

30.06.2017

95 698,36

90 232,61

885 307,39

845 038,06

40 400,00

287 637,11

241 872,10

1 309 042,86

1 217 542,77

NOTE 7.4 RESTRICTION OF TITLE OF TANGIBLE ASSETS As of June 30, 2018, the Liga owned the following tangible assets with restrictions:

RESTRICTION OF OWNERSHIP Property, Plant and Equipment

Carrying amount

Building on Rua da Constituição

1 167 339,79

TOTAL

1 167 339,79

Description Mortgage to guarantee amounts required in tax foreclosure proceedings to the total amount of €2,756,122.55

Amount of Liabilities -

NOTE 7.5 DISCLOSURES ON INVESTMENT PROPERTY The Company initially values investment property at its cost, which includes its purchase price and any directly attributable expenses. After initial recognition, the investment properties are measured according to the cost model. Under this model, investment property is carried at cost minus any accumulated depreciation and any accumulated impairment losses. As of June 30, 2018, the carrying amount of this property does not differ significantly from its fair value.

136 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

NOTE 9 - IMPAIRMENT OF ASSETS

NOTE 9.2 CONSOLIDATED LOSSES AND ADDED REVENUES FROM IMPAIRMENT LOSSES REGISTERED

NOTE 9.1 BREAKDOWN OF MOVEMENTS ON THE RECOGNITION OF LOSSES

DURING THE PERIOD

FOR IMPAIRMENT AND REVERSALS OF IMPAIRMENT LOSSES DURING THIS PERIOD

During the period ended June 30, in 2018 and 2017, the following movements in impairment

Impairment losses and reversals, occurring in the period ended June 30, 2017 and 2016, were

losses were logged:

recognized in the income statement, by the total impact determined in the corresponding

JUNE 30, 2018

caption. The impact was calculated as follows:

Recognized Impairments

JUNE 30, 2018

Opening Balance

Use

Reinforcement

Reversal

TOTAL

Impairment of receivables: Clients

Members

Other debtors

Receivable Credits

TOTAL

Impairment losses recognized in profit or loss: Impairment of other debtors

9 162,83

Reversals of impairment losses recognized in the results: Customer Impairment TOTAL

151 677,40

9 162,83

160 840,23

936 190,24

Impairment of receivables:

(9 162,83)

Members Impairment of receivables: Other receivables TOTAL

545 864,11

1 633 731,75

9 162,83

1 642 894,58

The increase in this period of €9,162.83 is related to the tickets and merchandising products sold to this entity relating to the Final Four of the Taça CTT, whose value was not settled.

JUNE 30, 2017 Clients

Members

Other debtors

TOTAL

JUNE 30, 2017 Recognized Impairments

Impairment of Members Impairment of other debtors

491,74

175 337,19

Impairment of other debtors

Impairment of receivables:

TOTAL

175 337,19

Members

174 845,45

Use

Reinforcement

Reversal

TOTAL

Impairment of receivables: Receivable Credits

Reversals of impairment losses recognized in the results:

Opening Balance

151 677,40

1 111 035,69

491,74

(175 337,19)

936 190,24

Impairment of receivables: Other receivables TOTAL

545 864,11

1 808 577,20

491,74

(175 337,19)

1 633 731,75

The movement in the period, related to the reversal of €174,842.19, is due to the balances subject to impairment being related to the recalculation of the Liga Cup rewards of 2012-13 and 2013-14.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 137

NOTE 10 - INVESTMENTS IN SUBSIDIARIES AND PARTNERS AND OTHER INVESTMENTS

NOTE 10.3 OTHER FINANCIAL INSTRUMENTS NOTE 10.3.1 SUMMARY OF INVESTMENTS

NOTE 10.1 SUMMARY OF INVESTMENTS

OTHER FINANCIAL ASSETS

INVESTMENTS IN SUBSIDIARIES AND PARTNERS Percentage held

30.06.2018

30.06.2017

ViaCastilho – Real Estate Management, Lda

100%

365 099,50

422 695,38

SABSEG – Desporto Seguro, Lda.

30%

94 390,72

69 208,52

459 490,22

491 903,90

Fixed-term deposit not available

30.06.2017 862 384,01

Work Compensation Fund Fixed-term deposit bond

100 000,00

4 764,58

1 961,71

670 000,00

1 537 148,59

771 961,71

NOTE 10.2 INVESTMENTS IN SUBSIDIARIES AND PARTNERS

Of the amount recorded for Fixed-term Deposits, €100,000.00, deposited in Montepio bank,

NOTE 10.2.1 SUMMERIZED FINANCIAL INFORMATION

served as a bond for a lawsuit filed by the Santa Casa da Misericórdia de Lisboa and casino management companies, for breach by the Liga of their exclusive right to oversee games and

JUNE 30, 2018 Net assets ViaCastilho – Real Estate Management, Lda

407 894,28

SABSEG - Desporto Seguro, Lda.

419 958,09

Shareholders’ Profit for the equity 12-month period 365 099,50 (10 255,49) 314 635,73

83 940,67

Effect on results on 30-06-2018 (11 906,44)

gambling in Portugal. Accordingly, said deposit is captive. In the period 2017-18 two more fixed-term deposits were established with BIC, one of €431,193.34

25 182,20

and another of €331,190.67. These deposits were set up as collateral for the suspension of tax

13 275,76

enforcement proceedings relating to VAT proceedings from 2013 to January 2017. The value of the Fixed-Term Deposit Bond of € 670,000 refers to Liga Portugal’s Escrow Account

As of June 30, 2018, with regards to SABSEG, the data used in the application of the equity method refers to December 31, 2017, the date of the last-approved financial statements. With regards to Via Castilho, the application of the afore-mentioned method was based on the financial statements relating to December 31, 2018.

JUNE 30, 2017 Net assets ViaCastilho – Real Estate Management, Lda

468 553,23

SABSEG - Desporto Seguro, Lda.

865 684,29

Shareholders’ Profit for the equity 12-month period 422 695,38 2 943,06 230 695,06

37 597,25

Effect on results on 30-06-2018 11 279,18 11 279,18

As of June 30, 2017, with regards to SABSEG, the data in the application of the equity method refers to December 31, 2016, the date of the last-approved financial statements. With regards to Via Castilho, the application of the afore-mentioned method was based on financial statements relating to December 31, 2014.

138 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

with Caixa Geral de Depósitos.

NOTE 11 - REVENUE NOTE 11.1 ACCOUNTING POLICIES ADOPTED FOR IDENTIFICATION OF REVENUE INCLUDING METHODS ADOPTED TO DETERMINE THE FINISHING PHASE OF TRANSACTIONS INVOLVING THE PROVISION OF SERVICES Liga Portugal categorizes revenue according to the following criteria: a) Services rendered - logged in the income statement with reference to the stage of completion of the rendering of services by the balance sheet date. b) Interest - registered using the effective interest method. NOTE 11.2 AMOUNT OF EACH SIGNIFICANT CATEGORY OF RECOGNIZED REVENUE DURING THE PERIOD INCLUDING THE REVENUE FROM:

REVENUE 30.06.2018 Provision of services (Note 17.3) Supplementary income (Note 17.4) Interest (Note 16.3.1) TOTAL

30.06.2017 4 794 213,26

4 456 138,05

10 665 496,46

9 810 148,98

1 651,18

2 087,71

15 461 360,90

14 268 374,74

NOTE 12 - PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS NOTE 12.1 PROVISIONS The Liga considers a provision as being when, cumulatively, there is a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation can be made. Annually, an analysis of the processes under way is carried out in order to determine the need to include new situations, as well as reinforce and / or reverse the existing provisions. This analysis is carried out with the support of external consultants. During the period ended June 30, 2018, the following movements related to provisions occurred:

JUNE 30, 2018 Provisions

Opening balance

Reclassification

Increase

Closing balance

Reversal

Ongoing Legal Proceedings Taxes

970 469,77

1 078,26

Other Legal Proceedings

300 000,00

971 548,03 300 000,00

1 270 469,77

1 078,26

1 271 548,03

75 000,00

150 000,00

187 119,00

75 000,00

262 119,00

337 119,00

1 345 469,77

263 197,26

1 608 667,03

Other Provisions Restructuring Current lawsuits TOTAL

JUNE 30, 2017 Provisions Taxes Restructuring Current lawsuits TOTAL

Opening balance

Reclassification

Increase

Closing balance

Reversal

901 228,91

330 411,11

261 170,25

75 000,00

970 469,77 75 000,00

300 000,00

1 201 228,91

405 411,11

261 170,25

1 345 469,77

TAXES The provision for taxes recorded as of June 30, 2018 is derived from the Ligaâ&#x20AC;&#x2122;s best estimate with respect to future liabilities relating to legal proceedings - all subject to judicial challenge by the Liga - regarding tax inspections for 2007-08 and 2009 -10 for Corporate Income Tax (IRC) and for fiscal years 2003, 2004, 2009 and 2010 for Value Added Tax (VAT). The estimate of the provision in these specific cases was reviewed considering that the Liga joined the PERES Program in December 2016 (Note 17.1), and currently amounts to around â&#x201A;Ź1,807,944 (this figure reflects the impact on the responsibility for joining the PERES Program).

It should also be noted that the Liga, in view of the reclassifications carried out in 2017, which

cannot be foreseen. It should be noted that the legal position of the Liga is somewhat wea-

deducted a higher VAT value in relation to its associative activity, allocated a provision of

kened by situations evidenced in documents that are annexed to the process. Proceedings

€36,692 to cover this potential risk and which reports to the period from July 2016 to Decem-

in interlocutory appeals without having yet to be tried in the lower court.

ber 2016. In the period ending June 30, 2018, following the application for reimbursement related to

RESTRUCTURING

the VAT of January 2017, the Tax Authority notified the rejection of the same, having initiated

On June 30, 2017, the Liga established a provision for liabilities with an ongoing restructuring

tax inspection procedures for VAT for the periods of 2013, 2014, 2015, 2016 and January to

process, and estimated an expense of €75,000 to be spent on damages to be paid. On June

May 2017. These proceedings gave rise to inspection reports where the Tax Authority essen-

30, 2018, a provision of €75,000 was reinforced and a disciplinary procedure for dismissal for

tially does not agree with the Liga’s guidelines on associative income, with the exception of

good cause was instituted.

fines, and has proposed settlement totaling some €2,743,743 (including interest and fines). Since the grounds used by the Tax Authority in the settlement notes are substantially the

FINES

same as those used in previous years’ assessments, the Liga’s Management assisted by tax

On June 30, 2018, Liga Portugal constituted a provision referring to the fines of the 2016-17

advisors considers that there is a high probability of success so that the provision is not rein-

and 2017-18 periods in relations to clubs that appealed the application of these fines by the

forced as a result of these new processes.

Portuguese Football Federation’s Disciplinary Council. These proceedings are still pending a

Regarding reports for the periods of 2013 and 2017, an appeal was made and a bank gua-

decision of the TAD, and the Liga, if the decision is favorable to the clubs, will have to pay

rantee was provided to suspend the execution process. For the remaining periods inspec-

them back the amount of the fines. This value was estimated at €187,119.

ted, from 2014 to 2016, the Liga’s legal department with the support of tax consultants opted to appeal to the CAAD - Administrative Arbitration Center, and a bank guarantee was also

NOTE 12.2 CONTINGENT LIABILITIES

provided.

On June 30 2018, a number of actions were being brought against the Liga by third parties, for

Bearing in mind that the Liga has not been the subject of tax inspections, for the period from

which it is unlikely that the withdrawal of resources will occur or that it cannot be reliably esti-

June 2017 to June 2018, with the assumptions underlying Tax Authority liquidations, a poten-

mated. These processes are presented in the summary table below:

tial contingency for VAT is estimated of about €602,410 (includes interest and fines). It should be noted that, from July 2018, the Liga opted for the settlement of VAT on registrations and quotas based on the financial capacity that would have been required up to the date of the decision on those processes, stagnating any type of future contingency. The Liga Management considers, based on the opinion of tax consultants in this case, that this procedure does not affect the outcome of the proceedings.

CONTINGENT LIABILITIES Process Value a) Legal action filed by several casino management companies related to the sponsorship entered into with Betandwin

6 350 000,00

b) Judicial action brought by F.C. Porto, SAD, seeking compensation

7 908 499,50

c) Probability of tax execution related to the payment of the Totobola profits d) Probability of tax execution related to the first Totonegocio execution

1 784 914,82 16 952 407,41

OTHER JUDICIAL PROCEEDINGS The provision for lawsuits pending as of June 30, 2018 derives from the best estimate of the Liga regarding the liabilities to be incurred in the future related to the lawsuit filed by Altice. This action of contractual liability, proposed by Altice against the Liga, to the amount of €1,000,000, through which it requests the Liga be ordered to pay compensation plus interest remaining pending action. In view of the arguments put forward in the action and the subjectivity of the disputed question, which consists of the interpretation of an ambiguous drafting clause, it is not possible to formulate with conviction a judgment of certainty about the outcome of the action. In addition to the contested nature of the contractual clauses under discussion, the outcome

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 141

Tourism, Games and Entertainment, S.A.; Varzim-Sol - Tourism, Entertainment and Games, S.A .;

NOTE 13 - ACCOUNTING OF GOVERNMENT GRANTS AND DISCLOSING GOVERNMENT SUPPORT

Solverde - Tourist Investment Society of Costa Verde, S.A .; Sociedade Figueira Praia, S.A. and

NOTE 13.1 ACCOUNTING POLICIES ADOPTED:

I.T.I. - Sociedade de Investimentos Turísticos da Madeira. S.A. vs. Portuguese League of Profes-

Government grants are recorded at fair value when there is reasonable assurance that they

sional Football; bwin.party Services (Gibraltar) Ltd. and bwin party Digital Entertainment plc,

will be received and that the Liga will meet the conditions required for them being granted.

regarding the complaint alleging that the Liga and BWin allegedly violated the right to exploit

Non-refundable grants related to tangible and intangible assets are initially recognized in

games of fortune. The compensation originally requested amounts to EUR 27,296,816, but the

equity funds and are subsequently recognized in the profit and loss statement on a systematic

Liga and Bwin, in addition to the fine of EUR 30,000, have not yet been ordered to pay any sum;

and rational basis during the accounting periods required to balance them against related

this case gave rise to an enforceable action against the Liga and bwin in which they require

expenses, when they refer to depreciable assets. In the event that the grant relates to non-de-

payment of EUR 6,350,000 due as a penalty payment for breach of the prohibition on the ope-

preciable and intangible assets with indefinite useful lives, they are maintained in equity funds,

ration of lottery games and mutual bets in Portugal and “bwin.party” of the “betandwin.com”

unless the amount is necessary to offset any impairment loss.

a) Parties involved in the lawsuit are the Portuguese Casinos Association (“APC”); Estoril Sol III -

and “bwin.com” sites, on the basis of the alleged violation of the decision of the Porto Court of First Instance dated 16th September 2011. The execution has not yet been tried in the first

NOTE 13.2 NATURE AND EXTENSION OF GOVERNMENT GRANTS LISTED IN THE FINANCIAL STATE-

instance. The appeal is now pending before the Constitutional Court against the interlocutory

MENTS AND INDICATION OF OTHER FORMS OF GOVERNMENT SUPPORT

decision which granted execution.

On June 30, 2018 and 2017, the Liga logged the following Government grants in its

b) Futebol Clube do Porto SAD, has filed a lawsuit against the Liga and Members of its discipli-

financial statements:

nary committee, where it claims compensation of €7,908,949.50 following a disciplinary decision imposing a penalty of suspension to certain players of the SAD. Proceedings are at a stage of a prior hearing with appeal pending a decision rendered at said hearing. c) The Tax Authority is seeking from the Liga an amount of €1,784,914.82 related to the second phase of Totonegocio and concerns the following clubs: Boavista, Chaves, Maia, Estrela da

JUNE 30, 2018 Nature

Equity Funds

Statement

Description of the grant Investment grant

Non-refundable

TOTAL

456 400,02

14 963,94

456 400,02

14 963,94

Amadora and Salgueiros. This suit initially comprised 29 clubs, with the five mentioned remaining. The Liga has already filed objections to tax foreclosures and has provided a bond through voluntary mortgages, whereby tax foreclosures are suspended. d) The Liga requested the termination of the proceeding concerning the first phase of the totonegócio on the basis of the limitation period. The trial was held during the months of January and April 2017 and the allegations were presented. It now awaits judgment of the Court of First Instance with regard to the value of EUR 16 952 407.41.

142 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

JUNE 30, 2017 Nature

Equity Funds

Statement

Description of the grant Investment grant TOTAL

Non-refundable

471 363,96

14 963,94

471 363,96

14 963,94

NOTE 14 - EVENTS AFTER THE BALANCE SHEET DATE NOTE 14.1 AUTHORIZATION FOR ISSUE The financial statements were approved by the Management on August 24, 2018. However, the Members may at the General Meeting not approve the present statements and request changes. NOTE 14.2. UPDATE OF THE DISCLOSURE ABOUT THE CONDITIONS OF THE BALANCE SHEET Between the date of the balance sheet being drafted and the date of the authorization for the issuance of the financial statements, no information was received on conditions that existed at the date of the Balance Sheet, and therefore no adjustments were made to the amounts listed in the present financial statements.

NOTE 15- INCOME TAXES

NOTE 16- FINANCIAL INSTRUMENTS

NOTE 15.1. MAIN COMPONENTS OF TAX EXPENSES / INCOME

NOTE 16.1. MEASURING BASES It is the Liga’s policy to register a financial asset or liability only when it becomes a part of the

TAX EXPENSES / INCOME 30.06.2018

contractual provisions of the instrument.

30.06.2017 311,03

636,36

The Liga measures at cost minus impairment loss the financial instruments that have a defined

Deferred taxes

maturity, in which the returns are fixed amounts, with a fixed interest rate during the lifespan of

Origin and reversal of temporary differences

311,03

636,36

the instrument or a variable rate that is a typical market index (such as Euribor), or that includes

Current taxes

TOTAL

a spread on the same index and does not contain any contractual clause that could result in

NOTE 15.2. RELATIONSHIP BETWEEN EXPENSES / TAX INCOME AND ACCOUNTING INCOME

loss of nominal value and accrued interest (excluding risk cases of credit) for its holder.

In the activities subject to Corporate Income Tax (IRC), the reconciliation of the effective tax

Contracts to grant or borrow on a net basis are also measured at cost minus impairment loss.

rate is as follows:

All financial instruments traded in the net and regulated market are measured at fair value. As long as the Liga holds a financial instrument, the measurement policy will not be changed.

TAX EXPENSES / INCOME 30.06.2018 Earnings before Taxes

30.06.2017

1 232 908,19

1 296 009,69

Tax effect generated by: Non-taxable income

(982 656,90)

(977 905,09)

Commercial activity profit

Non-deductible expenses

341,55

109,85

4 272,81

4 449,34

Damages used under "Category B" Accruals / Deductions related to untaxed provisions Excess IRC estimation Application of MEP Deduction nº 7 art 53º CIRC

189,99

(255 055,63)

(322 663,79)

Other situations Taxable profit Tax rate IRC

0,00

21,5%

Autonomous Taxation

311,03

636,36

Tax on Profit over period

311,03

636,36

NOTE 16.2. FINANCIAL ASSETS AND LIABILITIES NOTE 16.2.1. FINANCIAL ASSETS MEASURED TO COST MINUS IMPAIRMENT As of June 30, 2018 and 2017, the Liga held the following financial assets measured at cost minus impairment:

FINANCIAL ASSETS AND LIABILITIES 30.06.2018 352 091,75

Credits Receivable Bad Debt

160 848,23

151 677,40

(160 848,23)

(151 677,40)

Credits Receivable

352 091,75

157 908,37

Founders / benefactors / sponsors / donors / Members / Members

945 696,66

957 257,97

Impairment of Receivables (Note 9)

Bad Debt

157 908,37

(936 190,24)

9 506,42

21 067,73

Other Current Assets (Note 17.9)

1 406 151,31

1 421 444,10

Impairment Other Current Assets (Note 9)

(545 864,11)

Impairment in Members (Note 9) Members

TOTAL

144 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

30.06.2017

Credits Receivable current account

860 287,20

875 579,99

1 221 885,37

1 054 556,09

NOTE 16.2.2. LOAN COMMITMENTS MEASURED TO COST MINUS IMPAIRMENT

NOTE 16.2.4. FINANCIAL ASSETS WITH ACKNOWLEDGED IMPAIRMENT

As of June 30, 2018 and 2017, the Liga held the following minimum loan commitments at cost

As of June 30, 2018, the Liga held the following financial assets for which impairment was ack-

minus impairment:

nowledged:

JUNE 30, 2018

LOAN COMMITMENTS 30.06.2018 Maturity Escrow Account - CGD Credit card

Non-current

30.06.2017

Current

Non-current

31/07/2018

230 000,00

250 000,00

240 000,00

61,60

119,45

230 061,60

250 000,00

240 119,45

TOTAL

512 931,98

Accumulated impairment 160 840,23

945 696,66

936 190,24

Cost

Current

Credits receivable Members Other current assets (Note 17.9)

1 406 151,31

545 864,11

TOTAL

2 864 779,95

1 642 894,58

In September 2016, the conditions of the Caixa Geral de Depósitos current with were renego-

The impairments considered on June 30, 2018 are due to objective evidence of financial dif-

tiated with a view to reducing the contracted interest rate, updating banking collateral and

ficulties of the respective debtors that caused the default in payment, and that most of them

introducing a capital payment plan in 35 monthly installments of €20,000 until July 31, 2018 and

were carried over from last year.

€150,000.00 on July 31, 2018.

NOTE 16.3. TOTAL INTEREST INCOME AND EXPENSES FOR FINANCIAL ASSETS AND LIABILITIES

NOTE 16.2.3. FINANCIAL LIABILITIES MEASURED TO COST

To calculate the amortized cost of a financial asset or a financial liability and impute interest

On June 30, 2018 and 2017, the Liga held the following financial liabilities measured at cost:

income or interest expense during the year, we used the effective interest method. Thus, according to the effective interest method, total interest income for financial assets and

FINANCIAL LIABILITIES 30.06.2018

30.06.2017

total interest expense for financial liabilities are broken down as follows.

Non-current Members

659 166,45

1 289 265,70

659 166,45

1 289 265,70

364 061,40

537 355,90

1 612 340,20

865 828,40

Current Suppliers Members Other current liabilities (Note 17.10) TOTAL

NOTE 16.3.1. INTEREST INCOME FOR FINANCIAL ASSETS

INTEREST INCOME 30.06.2018

30.06.2017

Income - Financial assets

2 162 185,37

1 886 888,35

Income from interest on sight deposits (Note 17.4)

1 749,39

2 087,71

4 138 586,97

3 290 072,65

TOTAL

1 749,39

2 087,71

4 797 753,42

4 579 338,35

The balance of Other current liabilities mainly includes amounts related to increases in expenses of €1,075,224.63 (Note 17.11) and debt to the Professional Football Players’ Union (€ 354 450.19).

NOTE 16.3.2. INTEREST EXPENSES FOR FINANCIAL LIABILITIES

INTEREST EXPENSE 30.06.2018

30.06.2017

Expenses - Financial liabilities Loans obtained

3 310,95

Factoring TOTAL

10 789,95

3 310,95

10 789,95

NOTE 16.3.3. AMOUNT IN FUNDS On June 30, 2018 and 2017, the Liga held a fund of € 853,886.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 145

NOTE 17 - OTHER INFORMATION NOTE 17.1 STATE AND OTHER PUBLIC ENTITIES Details under the “State and Other Public Entities” heading, as of June 30, 2017 and 2016, are as follows:

STATE AND OTHER PUBLIC ENTITIES 30.06.2018

30.06.2017

Active Tax on Corporate Income

192 195,29

178 897,67

Tax on Corporate Income to be recovered

36 661,23

Withholding tax on income

300,00

1 834 314,67

1 838 799,99

Value-added tax Others(*)

1 234 572,07

518 952,96

3 261 082,03

2 573 611,85

Passive Tax on Corporate Income

113 154,37

123 376,68

Value-added tax

87 770,73

68 546,94

Contributions to Social Security

71 189,94

272 115,04

191 923,62

Individual Income Tax

Others

(*) In December 2016, the Liga signed up to the Special Program for Reducing State Debt (known as PERES), and made payments amounting to €1,210,890.24.

NOTE 17.2 GUARANTEES PROVIDED As of June 30, 2018, the Liga had accepted liabilities for guarantees provided as follows:

GUARANTEES PROVIDED Beneficiary

Description

Tax Authority

Judicial challenge

Tax Authority

Tax Inspection

Value

Type

995 493,25

Bank

2 500,00

Bank

Judicial challenge

100 000,00

Bank

Tax Inspection

127 285,00

Bank

Contract Clause

10 000,00

Bank

Tax Authority

Appeal

331 190,67

Bank

Tax Authority

CAAD / Appeal

431 193,34

Bank

Santa Casa da Misericórdia de Lisboa Tax Authority Repsol Portugal

1 997 662,26

NOTE 17.4 OTHER INCOME

At the present date, the following real guarantees were provided:

The caption Other Income has the following composition in the period ended June 30, 2018

REAL GUARANTEES Beneficiary Caixa Geral de Depósitos Tax Authority

Description Current Account Execution Processes

Value 670 000,00 2 756 122,55

Type Obligation during the term of the sponsorship agreement with NOS to carry out all the financial operations of this agreement in this financial institution. Mortgage Headquarters Building

and 2017:

OTHER INCOME 30.06.2018 Sponsorships

3 426 122,55 Note (a): according to note 16.2.2, debt on June 30, 2018 amount to € 230,000.00.

NOTE 17.3. SALES AND SERVICES PROVIDED BY ACTIVITY AND GEOGRAPHICAL MARKETS

SALES AND SERVICES RENDERED BY GEOGRAPHIC MARKETS

8 486 224,47

381 546,20

330 312,94

Tv Quota

865 900,00

883 850,00

Taça CTT - Final Four

117 180,19

Postgraduate course

154 056,91

101 934,92

Prepaid discounts obtained

30.06.2017

Corrections relating to earlier periods

Sales and Services Rendered: Intern market

9 122 113,41

Printed Matter and tickets

Others

Sales and services rendered on June 30, 2018 and 2017 were distributed as follows:

30.06.2018 4 794 213,26

4 456 138,05

4 794 213,26

4 456 138,05

Interest earned Allocation of investment subsidies Others

SALES AND SERVICES PROVIDED BY ACTIVITY 30.06.2018

30.06.2017

Provision of services: Fixed Quotas

91 579,68

95 171,04

Fines and protests

1 579 425,67

1 329 488,15

Subscriptions and transfers

1 706 015,00

1 818 185,00

250 000,00

1 146 744,91

928 003,12

20 448,00

35 290,74

4 794 213,26

4 456 138,05

TV Quotas Supplementary quota (B Teams) Decree nº 315/2015 (Placard) Other services

30.06.2017

Additional income

24 699,75

7 826,65

10 665 496,46

9 810 148,98

634,33

70,40

24 384,60

155 595,73

98,21

14 963,94

21 547,61

27 518,92

10 727 125,15

10 008 297,97

NOTE 17.5 OTHER EXPENSES Other expenses have the following composition in the period ended June 30, 2018 and 2017:

OTHER EXPENSES 30.06.2018

30.06.2017

Taxes

23 562,08

28 111,63

Corrections relating to earlier periods

47 253,29

184 345,83

Levies

63 050,00

65 664,38

Fines and penalties

1 686,36

259,23

B Teams support, paragraph 2 Article 4

250 000,00

Imputation of Article 8, paragraph 4 of the Statutes

937 269,10

1 173 965,26

Others

2 586,38

40 267,42

1 325 407,21

1 742 613,75

The amount of the Imputation of article 8, paragraph 4 of the Statues reflects the imputation of net income from the Liga’s commercial activity to Clubs.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 147

NOTE 17.6 SUPPLY AND EXTERNAL SERVICES

NOTE 17.7 PERSONNEL EXPENSES

The item Supplies and external services has, in the period ended June 30, 2018 and 2017, the

The caption Personnel Expenses has the following composition in the period ended June 30,

following composition:

2018 and 2017:

PERSONNEL EXPENSES

SUPPLY AND EXTERNAL SERVICES 30.06.2018

30.06.2017

Subcontracts Entities (F.P.F., S.J.P.F., among others) Liga Cup Sponsorships Others

770 732,28

793 109,45

1 807 393,80

1 522 711,99

429 732,33

350 021,83

34 316,25

42 585,08

1 535 218,61

1 204 711,90

30.06.2018 Expenses on governing bodies Personnel pay Compensation charges

Advertising and marketing

221 681,48

84 752,91

Surveillance and Security

205 000,29

211 911,00

3 300 228,57

3 444 737,38

Conservation and repair

28 092,88

65 363,87

Others

29 347,10

20 667,75

23 664,50

22 760,94

Fees

Materials Tools and utensils of fast use Office Supplies

20 648,20

25 638,13

Others

33 122,37

10 051,79

Energy and fluids Electricity

22 068,38

18 449,99

Food & Beverage Outlets

33 929,99

33 806,17

2 830,05

991,04

501 517,28

447 096,52

381,98

42,51

638 196,24

634 981,82

Water Travel, accommodation and transport Travel and accommodation Others

1 008 667,42

439 226,96

360 973,23

22 716,87

14 943,24

Other staff costs

14 272,80

835,97

2 554 247,19

1 917 083,43

NOTE 17.8 DEFERRALS As of June 30, 2018 and 2017, the amount of deferred assets and liabilities, creditors due to accrued expenses and debtors due to income accruals is broken down as follows:

DEFERRALS 30.06.2018

30.06.2017

Active Deferrals Insurance

19 951,06

40 Years Gala/Kick Off

68 192,77

9 465,08

Enterprise Services License

56 416,63

50 957,88

Others

8 423,47

23 736,38

22 335,52

168 296,84

91 181,95

Litigation Deferrals Sponsorships Others

Other services Incomes and rents

531 663,57

1 383 108,54

Occupational accident and occupational health insurance

Specialized services Specialized Work

30.06.2017

694 922,02

6 000,00

1 200,00

7 499,03

1 200,00

13 499,03

Communication

77 539,36

62 695,21

NOTE 17.9 OTHER CURRENT ASSETS

Insurance

45 184,93

47 880,97

Litigation and NOTEry

10 276,57

20 735,39

As of June 30, 2018 and 2017, the value of other current assets is broken down as follows:

Representation expenses Cleaning, hygiene and comfort Other services

1 224,75

1 744,65

18 807,84

28 698,65

271 989,98

369 381,50

10 063 126,01

9 465 528,44

OTHER CURRENT ASSETS 30.06.2018 Suppliers - Debtor Balance Advance to suppliers

30.06.2017 -

2 479,57

2 392,37

208 574,22

343 129,79

Other debtors

1 195 184,72

1 075 834,74

Accumulated impairment - Other debtors

(545 864,11)

860 287,20

875 579,99

Accrued Income (Note 17.8)

The balance of Other Debtors, net of the respective impairments, is mainly explained by the amounts provided by Liga for the replacement of synthetic turf for natural turf, to be repaid by Clubs until the end of the 2019-20 seasonas provided for in the Competition Regulations

148 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

(€383,007.88), and with the formation of the Football Foundation. This foundation aims to intervene in the Portuguese society of Professional Football and its players, acting as an aggregator of sports people and using the competitions that Liga Portugal organizes in favor of social responsibility. The foundation is endowed by Liga Portugal with an initial fund of €250,000. NOTE 17.10 OTHER CURRENT LIABILITIESS As of June 30, 2018 and 2017, the value of the other debts payable is broken down as follows:

OTHER CURRENT LIABILITIES 30.06.2018 Personnel Other creditors Creditors for accrued expenses (Note 17.8)

30.06.2017

530,46

358,61

1 086 415,40

833 530,51

1 075 239,51

1 052 999,23

2 162 185,37

1 886 888,35

As of June 30, 2018 and 2017, the value of other current assets is broken down as follows:

OTHER CREDITORS 30.06.2018 Professional Football Players’ Union APAF CAP (LPFP)

354 450,19

30.06.2017 337 058,34

193,00

29 279,39

28 447,48

Refereeing - receipts to be settled

141 403,44

92 217,20

UEFA (Subsidy)

312 006,51

169 309,28

Guarantee Fund

124 851,85

Sports Health League

2 315,27

Bank Guarantee Collateral

50 000,00

SCML - Placard and online

57 391,27

16 605,21

Via Castilho

6 528,93

5 500,62

Amounts to regularize with employees

6 446,70

6 000,55

Others

1 548,85

1 224,71

1 086 415,40

833 530,51

NOTE 18- FINANCIAL BALANCE FUND

NOTE 17.11 DEBTORS BY INCOME AND CREDITORS BY ACCRUED EXPENSES

NOTE 18.1 MAP OF STATE OF AFFAIRS AND EVOLUTION OF THE FINANCIAL BALANCE FUND

DEBTORS BY INCREASE OF INCOME AND CREDITORS BY ACCRUED EXPENSES 30.06.2018

30.06.2017

Debtors by Accrued Income Sponsorships

16 744,41

149 480,91

Placard profit

182 160,92

193 393,32

9 668,89

255,56

208 574,22

343 129,79

Others Creditors and Accrued Expenses Remuneration to be settled

368 796,51

311 494,31

Insurance to be settled

1 956,92

Anti-doping analysis

44 452,79

Referee Courses

53 312,86

TV broadcast rights and fines (SJPF)

197 765,09

Expenses related to the Liga Cup final

106 840,96

17 760,59

27 861,67

Postgraduate

106 735,14

Lawyers

128 420,00

100 568,93

Prizes and gratuities

80 500,00

Gala/Kick off

34 096,39

VAR Technology

14 500,00

137 836,08

131 912,84

Vehicle Hire

Sponsorship and advertising expenses Others

186 594,80

76 832,86

1 075 239,51

1 052 999,23

NOTE 17.12 APPLICATION OF NET INCOME FOR THE PERIOD The Board proposes, as defined in the Statues and in view of the fact that the Liga is a private non-profit association, that the said profit is applied as follows: • The Liga’s Financial Balance Fund at €1,000,000, pursuant to Article 70, paragraph 3 of the Portuguese Professional Football League Statutes; and • Retained Earnings to the amount of €232 597.16.

NOTE 17.13. DISCLOSURES REQUIRED BY OTHER LEGAL DIPLOMAS The Entity does not have debts to the State in default, under the terms of Decree-Law no. 534/80 of November 7. In compliance with the provisions of Decree-Law No. 411/91 of October 17, we hereby inform that the Liga’s State of Affairs before Social Security has been paid up, within the legally established deadlines.

150 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

FINANCIAL BALANCE FUND 30.06.2018

30.06.2017

Previous balance

2 682 990,68

1 427 780,13

Net income - Fines Article 70 (3) (c)

1 087 990,05

1 076 803,74

146 745,66

178 406,81

Income - Article 8 (4) (a) Coverage of negative operational activity - article 70, paragraph 1 TOTAL FUND ON JUNE 30, 2018 AND 2017 Net income - Fines Article 70 (3) (c) – 17/18 Season Income - Article 8 (4) (a) - 17/18 Season TOTAL FUND ON JUNE 30, 2018 AND 2017

(3 917 726,39)

2 682 990,68

882 841,36 117 158,64 1 000 000,00

It should be noted that the statutory amendment approved in September 2017 introduced a ceiling of € 1,000,000 into the financial equilibrium fund.

8. CONSOLIDATED REPORT AND ACCOUNTS 2017-18

8.1 ANALYSIS OF CONSOLIDATED ACTIVITY IN THE PERIOD

In accordance with the legal and statutory provisions, we have included in this document in-

The main consolidated indicators are:

formation on the activity of Liga Portugal and other companies included in the consolidation perimeter in the period ended June 30, 2018, for the Members’ appreciation.

INDICATORS 30.06.2018

30.06.2017

Variação

The Portuguese Professional Football League Group comprises the Portuguese Professional Foo-

Non-current assets

3 505 000,05

2 744 053,29

760 946,76

tball League (Liga Portugal), subsidiary company ViaCastilho - Gestão Imobiliária, Unipessoal,

Current assets

6 462 382,78

5 076 134,25

1 386 248,53

Total Assets

9 967 382,83

7 820 187,54

2 147 195,29

Equity Funds

3 013 153,28

1 153 660,64

1 859 492,64

Non-Current Liabilities

2 267 833,48

2 884 735,47

(616 901,99)

Current liabilities

4 686 396,07

3 781 791,43

904 604,64

EBITDA

1 341 010,49

1 399 221,22

(58 210,73)

Operating results

1 234 690,40

1 305 978,56

(71 288,16)

Net income for the period

1 232 597,16

1 296 566,21

(63 969,05)

Lda. and associated company Sabseg Desporto Seguro, Lda., as per the ownership structure:

Portuguese Professional Football League 100%

30%

Liga

balance

pared to the previous period, decreased

sheet presents, as of June 30, 2018, a Net

slightly, including increases in both spon-

Income of €1,232,597.

sorship and expenses related to the Liga

As it is possible to see, the consolidated

with regards to Placard and Online Bets in

accounts reflect the integration of the fi-

the second quarter of 2018. It also includes

It should be noted that, for the first time, the Group is presenting consolidated financial state-

nancial statements of the ViaCastilho sub-

the amounts relating to the Football Foun-

ments in accordance with applicable legislation. The main activity of the subsidiary ViaCastilho

sidiary; therefore, the consolidated asset

dation, which is awaiting legal recognition

- Gestão Imobiliária is the management of its own property that is leased to the Liga and has

comprises the value of the property held

to start its activity.

been integrated in the financial statements by the full consolidation method. The activity of

by the subsidiary under the heading “pro-

At the date of the balance sheet, Cash,

Sabseg Desporto Seguro, Lda is insurance mediation and is included in the consolidated finan-

perty, plant and equipment” (€351,259).

cash equivalents and banks in Current As-

cial statements using the equity method.

Regarding the other items of Non-Current

sets amounted to €1,788,015, an increase

ViaCastilho owns a property located in Rua Castilho in Lisbon that is used by Liga Portugal, ac-

Assets, we can see that the main variation

of about 34% over the previous year. The

cording to a lease agreement between both companies. The value of the property represents

occurs at the level of Other Investments.

total amount of Cash and Bank Deposits

approximately 84.4% of the value of the ViaCastilho asset (€351,259).

This increase is due to the creation of two

also includes deposits under bonds to the

bank guarantees in favor of the Tax Autho-

amount of €1,537,149, and which are re-

rity (TA), in the form of a fixed-term deposit

corded in Non-Current Assets.

in the BIC bank, relating to the tax inspec-

The Equity Funds were €3,013,153, thereby

tion procedures in VAT.

achieving a strengthening of equity capi-

The caption “State and Other Public En-

tal and an improvement in the Liga’s finan-

tities” essentially reflects the value of the

cial autonomy.

requested refunds of VAT (€1,709,685),

It should be noted that the inclusion of

as well as payments made under PERES

the Net Profit for the Positive Period of

(€1,110,890).

€1,232,597 contributed to this amount, as

The balance of Other Current Assets, com-

well as the coverage of the negative re-

ViaCastilho - Gestão Imobiliária

Sabseg Desporto Seguro

Portugal’s

consolidated

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 155

8.2 FUTURE PERSPECTIVES

sults of previous years’ commercial activity

ficantly from the amounts presented in the

in the amount of €644,373, in accordance

individual report and accounts, we refer to

with n. Article 8 (5)

the analysis of the respective evolution to

The 2017-18 Season was distinguished by the

that issues of central importance to the de-

of the Statutes of the Liga.

Note 5.2 and Note 5.3 in the 6. Report and

solidity and consolidation of revenue and by

velopment of Professional Football can be

This statutory provision provides that the

Individual Accounts 2017 -18.

increases in operating efficiency.

discussed by all industry leaders;

negative balance determined in a spor-

Around €3,010,565 was distributed among

• To continue studying measures that allows

ting season is deducted from the positive

Members, both for prizes resulting from the

the reformulation of the competitions’ cur-

balances, if any, of one or more subse-

Taça CTT, and for the provision of goods and

rent competitive models, and to reinvigora-

quent sports seasons.

services for the activity of the Clubs and su-

te them;

Thus, the positive value now determined,

pport for competitions. It reversed the trend

• Execute the organization’s new manage-

resulting from the operation of the com-

of negative results obtained during the 2012-

rial model, so that the Clubs can have grea-

mercial activity, was, under statutory ter-

13, 2013-14 and 2014-15 seasons. The 2015-

ter knowledge of the Liga’s reality and be

ms, affect the coverage of accumulated

16, 2016-17 and 2017-18 seasons generated

involved in all of its decisions;

losses in previous periods.

positive results, allowing the reorganization

• Increase commercial dynamics with grea-

Non-Current Liabilities have a decrease

process of the organization’s negative finan-

ter connection to the sponsors and analysis

which is essentially explained by the de-

cial situation to begin.

of the economic and media impact of the

crease in debts with the Portuguese Foo-

From this perspective of financial stabiliza-

competitions;

tball Federation and payments made in

tion, the budget for the 2018-19 Season pro-

• Increase operational efficiency through

connection with the financing obtained

vides for total revenues of €17.0 million and

the automation of management processes

from Caixa Geral de Depósitos (settlement

expenses of €15.1 million, which means a

and budgetary control;

of the current account secured with install-

positive operating result of €1.9 million, cons-

• Systematically develop and maintain new

ments until July 2018). With regard to the

tituting a development budget and strong

technologies in competitions, in order to

amount of the Provisions, these were re-

commitment to the continuous improve-

ensure a more efficient organization and in-

valued by the Liga, with a

ment of the Liga’s economic and financial

crease the transparency and speed of infor-

at €263,197.

situation.

mation for all stakeholders;

The Members’ account in Current Liabilities

This solid financial liquidity allows us to define

• Develop a long-term Social Responsibility

has a balance of €1,612,340 (86.2% higher

a sustainability strategy of our resources and

strategy.

than in the previous period). This balance

leverage our growth, in an intelligent positio-

refers to the amounts not paid to the FPF,

ning, supported by the diversity of initiatives.

With this new economic and financial rea-

referring to the registration / transfer fees of

For this, the management, based on the

lity, Sports Clubs and Professional Football

the sports agents and to the protocol sig-

values that guide this institution, such as Ri-

can count on a stronger and more dynamic

ned with the FPF, which are included in the

gor, Professionalism, Talent and Aggrega-

Liga, capable of generating vital dynamics

current benefits plan. This caption also in-

tion, proposes:

for the sector, in Portugal and beyond.

cludes the value of the Infrastructure Fund,

• To invest in the internationalization of our

provided for in Article 8 (4) (c) of the Liga’s

brand and to move towards the penetration

Statutes, which amounts to €292,897.

of the international market, capitalizing on

Regarding the analysis of operating ac-

the talent that is in our DNA;

counts, and since they do not differ signi-

• Strengthen the Council of Presidents so

156 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

9. CONSOLIDATED FINANCIAL STATEMENTS ON JUNE 30, 2018

9.1 CONSOLIDATED BALANCE SHEET ON JUNE 30, 2018 AND 2017 CONSOLIDATED BALANCE SHEET HEADINGS

NOTES*

30.06.2018

30.06.2017

ACTIVE NON-CURRENT ASSETS Property, Plant and Equipment

1 872 612,14

Intangible assets

848,60

1 902 034,46 848,60

Financial investments - financial holdings

94 390,72

69 208,52

Financial investments - other investments

1 537 148,59

771 961,71

3 505 000,05

2 744 053,29

CURRENT ASSETS Receivable Credits

352 091,75

157 908,37

State and other public entities

3 268 780,54

2 583 537,60

Associates

5,16

9 506,42

21 067,73

Other current assets

16,17

875 691,95

890 984,74

Deferrals

168 296,84

91 290,21

Cash and bank deposits

1 788 015,28

1 331 345,60

6 462 382,78

5 076 134,25

9 967 382,83

7 820 187,54

853 886,00

TOTAL ASSETS SHAREHOLDERS' EQUITY AND LIABILITIES ENDOWMENT FUNDS Funds

Legal reserves Reservations Retained Earnings DACP

22 445,91

373 552,59

3 056 543,27

DACP

(54 022,37)

(4 680 703,46)

456 400,02

471 363,96

128 293,97

133 558,75

Adjustments / Other changes in equity funds AFT and IIA revaluation surpluses

1 780 556,12

(142 905,57)

Net income for the period

1 232 597,16

1 296 566,21

TOTAL ENDOWMENT FUNDS

3 013 153,28

1 153 660,64

1 608 667,03

1 345 469,77

659 166,45

1 289 265,70

250 000,00

PASSIVE Non-Current Liabilities Provisions

Affiliated

5,16

Financing obtained

Other debts payable

2 267 833,48

2 884 735,47

Current liabilities Suppliers

365 423,90

540 934,51

State and other public entities

272 115,04

191 923,62

Associates Financing obtained Deferrals Other Current Liabilities

5,16 16 17 16,17

1 612 340,20

865 828,40

230 061,60

240 119,45

1 200,00

13 499,03

2 205 255,33

1 929 486,42

4 686 396,07

3 781 791,43

TOTAL LIABILITIES

6 954 229,55

6 666 526,90

TOTAL ENDOWMENT FUNDS AND SHAREHOLDERS ‘EQUITY

9 967 382,83

7 820 187,54

Amounts in EUR (€) * The accompanying notes (Note 6.5) form an integral part of the Balance Sheet for the period ended June 30, 2018 and 2017.

160 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

9.2 CONSOLIDATED STATEMENT OF INCOME BY NATURE FOR THE PERIOD ENDED JUNE 30, 2018 AND 2017

9.3 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED JUNE 30, 2018 AND 2017 STATEMENT OF CASH FLOWS

CONSOLIDATED INCOME STATEMENT INCOME AND EXPENSES

NOTES*

30.06.2018

NOTES*

30.06.2017

30.06.2018

30.06.2017

OPERATIONAL ACTIVITIES Sales and services

11,17

Grants, donations and bequests to the organization

4 794 213,26

4 456 138,05

6 594,38

5 511,67

Assumed gains / losses from Associate Subsidies and shared assets

25 182,20

11 279,18

Supplies and external services

(10 052 701,05)

(9 453 250,80)

Staff costs

(2 554 247,19)

(1 917 083,43)

Impairment of receivables (losses / reversals)

(9 162,83)

174 845,45

Provisions (increases / decreases) Other income Other expenses

Customer Receipts Payments to suppliers Payments to staff Payment / receipt of income tax Other receipts / payments Cash flows from operating activities (1)

(263 197,26)

(144 240,86)

11,17

10 738 566,92

10 009 605,50

INVESTMENT ACTIVITIES

(1 344 237,94)

(1 743 583,54)

Payments relating to:

1 341 010,49

1 399 221,22

(106 320,09)

(93 242,66)

Financial investments Income before depreciation, financing expenses and taxes Expenses / reversals of depreciation and amortization

Impairment of depreciable / amortizable investments (losses / reversals)

Property, Plant and Equipment

1 234 690,40

1 305 978,56

Financial investments Interest and similar income Cash flows from investing activities (2)

Interest and similar income obtained

1 651,18

2 087,71

Similar interest and expenses incurred

(3 310,95)

(10 789,95)

1 233 030,63

1 297 276,32

(433,47)

(710,11)

(2 415 297,15)

(1 846 753,21)

2 449 686,54

1 846 004,17

178 622,18

2 598,99

(1 074 303,14)

(972 964,06)

1 554 005,58

875 637,32

(765 186,91)

(671 961,71)

(84 828,94)

(143 050,12)

1 515,24

774,18

14 400,00

10 800,00

98,21

1 832,15

(834 002,40)

(802 379,68)

(260 057,85)

(244 703,17)

(3 275,65)

(16 999,81)

(263 333,50)

(261 702,98)

456 669,68

(188 445,34)

FINANCING ACTIVITIES Receipts from: Financing obtained

Income before tax

13 000 345,27 (9 307 685,75)

Receipts from: Property, Plant and Equipment

Operating income (before financing expenses and taxes)

15 868 427,49 (11 003 443,80)

Payments relating to: Tax on the period's income

Financing obtained Interest and similar expenses

Net income for the period

1 232 597,16

1 296 566,21

Amounts in EUR (€)

Cash flows from financing activities (3) Change in cash and cash equivalents (4) = (1) + (2) + (3) Effect of exchange rate differences

Cash and cash equivalents at the beginning of the period

1 331 345,60

1 519 790,94

Cash and cash equivalents at end of period

1 788 015,28

1 331 345,60

Amounts in EUR (€)

* The accompanying notes (Note 8.5) are an integral part of the Consolidated Income Statement for the period ended June 30, 2018 and 2017.

* The accompanying notes (Note 8.5) are an integral part of the Consolidated Statement of Cash Flows for the period ended June 30, 2018 and 2017.

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 161

9.4 CONSOLIDATED STATEMENT OF ALTERATIONS IN FUNDS FOR PERIOD ENDING JUNE 30, 2018 AND 2017 ENDOWMENT FUNDS ALLOCATED TO ASSOCIATES Note Position as of 06.30.2016

# 51

# 551

# 552

# 56

Funds

Legal reserves

Other reserves

Transited results

853 886,00

22 445,91

3 056 543,27

(4 680 703,46)

1 234 735,71

61 830,50

#57 e # 59 #58 # 81 Other changes in AFT and IIA surplus Net income for the equity funds revaluation period 471 363,96 133 558,75 1 296 566,21

Total 1 153 660,64

Alterations during the period Application of net income for 2016/17 Surplus Revaluation

(1 296 566,21)

5 264,78

Loss coverage - commercial activity

(3 917 726,39)

(5 264,78)

3 917 726,39

Other changes recognized in equity funds

(2 513,08)

(14 963,94)

3 982 308,59

(14 963,94)

(17 477,02)

Application of the equity method Total changes during period

(2 682 990,68)

(5 264,78)

(1 296 566,21)

(17 477,02)

Net income for the period

1 232 597,16

Overall result

1 215 120,14

Associate Operations -

Other operations - hedging business activity losses

644 372,50

Total transactions with associates Position as of 06.30.2018

644 372,50

853 886,00

22 445,91

373 552,59

(54 022,37)

456 400,02

128 293,97

644 372,50

1 232 597,16

3 013 153,28

Amounts in EUR (€)

ENDOWMENT FUNDS ALLOCATED TO ASSOCIATES Note Posição em 30.06.2016

# 51

# 551

# 552

# 56

Funds

Legal reserves

Other reserves

Transited results

853 886,00

22 445,91

1 801 332,72

(5 650 257,95)

1 255 210,55

177 443,22

#57 e # 59 #58 # 81 Other changes in AFT and IIA surplus Net income for the equity funds revaluation period 486 327,90 137 068,60 1 432 653,77

Total (916 543,05)

Alterações no período Aplicação do resultado líquido de 2015/16 Realização excedente de revalorização Outras alterações reconhecidas nos fundos patrimoniais Total de alterações no período

(1 432 653,77)

3 509,85 -

1 255 210,55

(3 509,85)

2 513,08

(14 963,94)

183 466,15

(14 963,94)

(3 509,85)

(12 450,86) (1 432 653,77)

(12 450,86)

Resultado líquido do período

1 296 566,21

Resultado integral

1 284 115,35

Operações com associados

Outras operações - cobertura prejuízos atividade comercial Total operações com associados Position as of 06.30.2017

786 088,34

853 886,00

22 445,91

3 056 543,27

(4 680 703,46)

471 363,96

Amounts in EUR (€) * The accompanying notes (Note 8.5) form an integral part of the Consolidated Statement of Changes in Equity Funds for the period ended June 30, 2018 and 2017.

162 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

786 088,34

133 558,75

786 088,34

1 296 566,21

1 153 660,64

9.5 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF JUNE 30, 2018 The Portuguese Professional Football League Group consists of the Portuguese Professional Foo-

NOTE 2 - ACCOUNTING REFERENCE FOR THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

tball League (Liga Portugal), a subsidiary ViaCastilho. - Property Management, Unipessoal, Lda

NOTE 2.1. LEGAL DIPLOMAS

and the associate company Sabseg Sports Insurance, Lda.

These consolidated financial statements were prepared under the assumption of continuity of

Liga Portugal is a private-law association of national scope, established in 1978, which has its

operations, based on the accounting records of the companies included in the consolidation

headquarters at Rua da Constituição, 2555, 4250-173 Porto.

and in accordance with the standards of the Accounting Standardization System, regulated

The main purpose of Liga Portugal is to exercise the powers and competences legally conferred

by the following statutory instruments:

on the Portuguese Football Federation (FPF) with reference to professional soccer competitions;

• Decree-Law No. 158/2009 of July 13 (Accounting Standardization System), as amended by

the promotion and defense of the common interests of its members and the management of

Decree-Law No. 98/2015, of July 2;

matters inherent to the organization and practice of professional football and its competitions;

• Ordinance No. 218/2015, of July 23 (Code of Accounts);

organization and regulation of professional competitions held within the framework of the FPF;

• Ordinance No. 220/2015, of July 24 (Models of Consolidated Financial Statements applicable

negotiation, management and supervision of the interest and on behalf of its members of the

to entities of the non-profit sector);

commercial exploitation of professional competitions.

• Notice No. 8254/2015, of July 29 (Conceptual Framework);

The consolidated financial statements include the consolidated balance sheet, the consolida-

• Notice no. 8259/2015 of July 29 (Accounting and Financial Reporting Standards for entities in

ted income by nature statement, the consolidated statement of cash flows, the consolidated

the non - profit sector); and

statement of changes in equity funds and the consolidated appendix.

• Notice No. 8258/2015, of July 29 (Interpretative Norms).

Management understands that these consolidated financial statements genuinely and fairly

Whenever the above-listed legislation does not respond to particular aspects of transactions or

reflect the Group’s operations, as well as its financial position, performance and cash flows.

situations, they are applied in a supplementary manner and in the order indicated; the Accou-

The notes below follow the numbering defined in the Accounting Standardization System for

nting Standards and Financial Reporting (IAS) and Interpretive Standards (NI) of the Accounting

Non-profit Sector Entities (CNS ESNL), including only disclosures of Financial Reporting Accoun-

Standardization System (SNC) approved by Decree-Law No. 158/2009 of July 13, as amended

ting Standards applicable to the Group. All the amounts presented in this Annex are presented

by Decree-Law no. 98/2015 of June 2; the International Accounting Standards (IAS) adopted

in EUR (€).

under Regulation (EC) No 1606/2002 of the European Parliament and of the Council of July 19;

NOTE 1 - GROUP IDENTIFICATION

and International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), issued by the IASB, and their respective interpretations (SIC and IFRIC). NOTE 2.2 COMPARABILITY The amounts for the period ended June 30, 2017 included in the Consolidated Financial Statements for comparative purposes are presented in accordance with the model resulting from the changes introduced by the legal provisions referred to in the previous paragraph. As defined in the SNC-ESNL, the heading “Investment properties” is listed under the heading “Property, Plant and Equipment”, as can be seen in Note 7. In the period ended June 30, 2018, the Liga chose to register the value of TV quota (€865,900) under the caption “Supplementary income” (previously recorded under “provision of services”). For the financial statements to be comparable, the corresponding reclassification was made in the consolidated financial statements as of June 30, 2017

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 163

NOTE 2.3 DEROGATIONS FROM THE PROVISIONS OF THE ACCOUNTING STANDARDIZATION SYSTEM

b) Investments in associates

There were no exceptions to any provision of the Accounting Standardization System rules

Investments in associate companies (which the Group interprets as companies in which it exer-

during the period covered by these financial statements.

cises a significant influence, but which it does not control or jointly control by participating in the company’s financial and operating decisions - usually investments amounting to between 20 % to 50% of the capital of a company) are accounted for using the equity method.

NOTE 3 - MAIN ACCOUNTING POLICIES

Under the equity method, financial investments in associated companies are initially recorded at acquisition cost, which is increased or reduced by the amount corresponding to the propor-

NOTE 3.1 BASIS OF MEASUREMENT USED IN THE PREPARATION OF FINANCIAL STATEMENTS

tion of equity of those companies, reported at the date of acquisition or first application of the

The accompanying consolidated financial statements were prepared as part of ongoing

equity method. The financial investments are adjusted annually by the amount corresponding

operations, based on Liga Portugal’s books and accounting records, maintained in accor-

to the participation in the net results of associates by counterpart of expenses or income of the

dance with the SNC-ESNL in force on the date of preparation of the consolidated financial

period. In addition, the dividends of these companies are recorded as a decrease in the value

statements.

of the investment, and the proportional part in changes in shareholders’ equity is recorded as a change in the Group’s equity.

NOTE 3.1.1 CONSOLIDATION PRINCIPLES

The differences between the acquisition cost and the fair value of the associate’s identifiable

The consolidation principles adopted by the Group in the preparation of its consolidated finan-

assets and liabilities at the acquisition date, if positive, are recognized as goodwill. If these dif-

cial statements are as follows:

ferences are negative, after reconfirmation of the fair value attributed, they are recorded as gains for the period under “Other income”.

a) Investments in subsidiaries (subsidiaries)

An evaluation of the investments in associates is carried out when there are indications that the

Investments in companies in which Liga Portugal directly or indirectly holds more than 50% of

asset may be impaired, being recorded as an expense the impairment losses that are shown to

the voting rights in the General Meeting, or has the power to control its financial and operating

exist. When the impairment losses recognized in prior periods cease to exist, they are reversed.

policies, are included in the consolidated financial statements by the consolidation method

When the proportion of the Group in accumulated losses of the associate exceeds the amount

integral. Equity and net profit of these companies corresponding to the participation of third

by which the investment is registered, the investment is reported at a nil value, except when the

parties in them are presented separately in the consolidated balance sheet and in the conso-

Group has entered into commitments with the associate, recording in these cases a provision

lidated statement of profit and loss under “Non-controlling interests”.

to cover these obligations.

When losses attributable to shareholders / minority shareholders exceed the minority interest in

Unrealized income on transactions with associate companies is eliminated proportionally to the

the subsidiary’s equity, the Group absorbs this excess and any additional losses, except when

interest of the Group in the associate, against the investment in that associate. Unrealized losses

minority shareholders / partners have the obligation and are able to cover such losses. If the

are similarly eliminated, but only to the extent that the loss does not show that the transferred

subsidiary subsequently reports profits, the Group appropriates all profits until the minority share

asset is impaired.

of the losses absorbed by the Group has been recovered. The results of subsidiaries acquired or sold during the period are included in the income statement from the date of acquisition or until the date of its sale, respectively. Whenever necessary, adjustments are made to the subsidiaries’ financial statements to adjust their accounting policies to those used by the Group. Transactions, balances and dividends distributed between Group companies are eliminated in the consolidation process. In situations where the Group has, in substance, control of other entities created for a specific purpose (“Special Purpose Entities”), while it does not hold equity interests directly or indirectly in these entities, they are consolidated using the full consolidation method.

164 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

NOTE 3.1.2 INTANGIBLE ASSETS

appreciation, or both, and not for use in the production or supply of goods and services or

The Group’s intangible assets, which essentially comprise computer programs and the regis-

for administrative purposes, are recorded at cost, minus accumulated depreciation and im-

tration of trademarks, are recorded at acquisition cost, minus any impairment losses and ac-

pairment losses.

cumulated depreciation. These assets are amortized as of the time the underlying assets are completed or in a state of use, using the straight-line method, over a period of 3 years.

NOTE 3.1.4 LEASES

Intangible assets are recognized only when it is probable that future economic benefits that will

The classification of leases in financial or operational is done according to the substance and

accrue to the Liga, are controllable by the Group and can be measured reliably.

not the form of the contract. Leasing contracts, in which the Liga acts as lessee, are classi-

By deed of December 19, 1995, the Municipality of Porto yielded to the Liga, free of charge, the

fied as financial leases if substantially all the risks and advantages inherent in ownership are

portion of land on Rua da Constituição. On July 18, 2000, the Chamber ceded the said land in

transferred through them, and as operating leases, if substantially all the risks and advantages

full ownership on the condition of immediate reversal if it is given a different destination of use.

inherent to ownership.

The gains or losses arising from the sale or write-off of these assets are determined as the diffe-

According to the financial method, the cost of the asset is recorded as an asset, the corres-

rence between the sale price and the net book value at the date of sale / write-off, and are

ponding liability is recorded under liabilities, under the caption “Financing obtained”, interest

recorded at the net amount in the income statement as “Other Income” or “Other Expenses”.

included in the value of rents and the reintegration of the asset are recorded as expense in the statement of the period to which they relate.

NOTE 3.1.3 PROPERTY, PLANT AND EQUIPMENT

In leases considered to be operating, rents due are recognized as expenses in the income

The Group’s tangible fixed assets (Property, Plant and Equipment) acquired up to July 1, 2009,

statement, on a straight-line basis, during the period of the lease.

are recorded at deemed cost, which corresponds to acquisition cost, minus accumulated depreciation and impairment losses.

NOTE 3.1.5 FINANCIAL INVESTMENTS

Tangible fixed assets acquired after that date are recorded at acquisition cost, minus accumu-

Financial investments in group and associated companies are recorded under the equity

lated depreciation and impairment losses.

method, with the investments being initially accounted for at acquisition cost, which was

Depreciation is calculated, after commencement of use of the assets, by the straight-line me-

increased or reduced to the amount proportional to the equity interest of these companies,

thod, on an annual / twelfth basis, according to the following estimated useful lives:

reported at the date of acquisition or of the first application of the equity method.

USEFUL LIFE Buildings and other constructions Transport equipment Office equipment

Under the equity method, financial investments are adjusted annually by the amount corresYEARS

ponding to the participation in the net results of group companies and associates by counter-

3 - 50

part of gains or losses of the period. The holdings are also adjusted by the amount correspon-

4 3 - 10

Maintenance and repair costs that do not extend the useful life of these fixed assets are recor-

ding to the participation in other changes in the equity funds of these companies, against the item “Adjustments in financial assets”. In addition, dividends received from these companies are recorded as a decrease in the value of financial investments.

ded as expenses in the period in which they occur. Expenses with major repairs and remodeling are included in the book value of the asset whenever it is expected that it will result in additional

NOTE 3.1.6 IMPAIRMENT OF NON-CURRENT ASSETS (EXCEPT GOODWILL)

future economic benefits.

Whenever an event or change in circumstances is identified that indicates that the amount

Tangible fixed assets in progress represent assets still under construction, and are recorded at

for which the asset is registered cannot be recovered, an impairment assessment is made

acquisition cost minus any impairment losses. These assets depreciate from the moment they

with reference to the end of each period.

are in use.

Whenever the amount by which the asset is registered is greater than its recoverable amount,

The gains or losses arising from the sale or write-off of these assets are determined as the diffe-

an impairment loss is recognized as an expense under the caption “Impairment of depre-

rence between the sale price and the net book value at the date of sale / write-off, and are

ciable assets”. The recoverable amount is the highest of the net selling price and the value

recorded at the net amount in the income statement as “Other Income” or “Other Expenses”.

in use. The net selling price is the amount that would be obtained from the disposal of the

Investment properties, which correspond to real estate assets held for income or for capital

asset in a transaction between independent and knowledgeable entities, minus costs directly

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 165

attributable to the sale. Value in use is the present value of the estimated future cash flows

LOANS

that you expect to arise from the continued use of the asset and its disposal at the end of its

Loans are recorded in liabilities at cost, minus transaction costs that are directly attribu-

useful life.

table to the issuance of these liabilities. Financial charges are calculated at the effective

The recoverable amount is estimated for each asset, individually or, if it is not possible, for the

interest rate and recorded in the income statement for the period in accordance with the

cash-generating unit to which the asset belongs.

accrual scheme. The portion of the effective interest related to commissions with the issue

After recognition of an impairment loss, the amortization / depreciation charge of the asset

of loans is added to the book value of the loans if they are not settled during the period.

is adjusted in future periods to allocate the revised carrying amount of the asset, minus its

Whenever there is a compulsory right to offset assets and liabilities and the Management

residual value (if any) on a systematic basis during its life useful.

intends to liquidate on a net basis or to realize the asset to settle the liability simultaneou-

The reversal of impairment losses recognized in prior periods is recorded when it is concluded

sly, they are offset and presented in the balance sheet at their net amount.

that recognized impairment losses no longer exist or have decreased. This analysis is perfor-

SUPPLIERS AND DEBTS TO THIRD PARTIES

med whenever there is evidence that the previously recognized impairment loss has rever-

Debts to suppliers or other non-interest bearing third parties are recorded at cost.

sed. The reversal of impairment losses is recognized as an income in the income statement. However, the reversal of the impairment loss is made up to the amount that would be recog-

FINANCIAL LIABILITIES

nized (net of amortization or depreciation) if the impairment loss had not been recorded in

Financial liabilities are classified according to the contractual substance of the transac-

prior periods.

tion, regardless of the legal form they assume. A financial instrument is classified as a financial liability when there is a contractual obli-

NOTE 3.1.7 LOAN COSTS OBTAINED

gation for its liquidation to be effected through the delivery of money or other financial

Financial charges on loans are recognized as expenses under the accrual scheme.

asset, regardless of its legal form. Financial liabilities are initially recorded at cost, minus

In cases where these charges are directly attributable to the acquisition, construction or pro-

transaction costs incurred, and subsequently cost minus impairment loss.

duction of an asset whose period of time to be ready for the intended use is substantial, in which case they are capitalized up to the time when all the activities necessary to prepare

NOTE 3.1.9 CASH FLOW AND BANK DEPOSITS

the asset eligible for use or sale are complete.

The amounts listed under â&#x20AC;&#x153;Cash Flow and Bank Depositsâ&#x20AC;? correspond to cash values, bank deposits, time deposits and other treasury applications, which mature in less than three mon-

NOTE 3.1.8 FINANCIAL INSTRUMENTS

ths and can be immediately mobilized without significant risk of change in value.

THIRD PARTY DEBTS Third-party debt is recorded at cost and presented in the balance sheet, minus any im-

NOTE 3.1.10 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

pairment losses, recognized under the heading Impairment of receivables (losses / rever-

Provisions are recognized only when there is a present obligation (legal or implicit) resulting

sals), in order to reflect their net realizable value.

from a past event, when it is probable that an outflow of resources will occur and when the

Impairment losses are recorded as a result of events that indicate objectively and quanti-

amount of the obligation can be reasonably estimated. Provisions are reviewed at each

fiable that all or part of the outstanding balance will not be received. To this end, the Liga

balance sheet date and adjusted to reflect the best estimate at that date. Provisions for

takes into account market information that demonstrates that the customer is in breach

restructuring costs are recognized whenever there is a formal and detailed restructuring plan

of its responsibilities, as well as historical information on balances due and not received.

and the restructuring plan has been communicated to the parties involved.

The impairment losses recognized correspond to the difference between the carrying

Contingent liabilities are assessed by the Liga as: (i) possible obligations arising from past

amount of the balance receivable and the respective amortized cost. To date, the amor-

events and whose existence will only be confirmed by the occurrence or not of one or more

tized cost does not differ by face value.

future events, uncertain and not totally under the control of Liga Portugal; (ii) present obligations arising from past events but not recognized because it is not probable that an outflow of resources embodying economic benefits is required to settle the obligation or, if probable, the amount of the obligation cannot be measured reliably . Contingent liabilities are disclo-

166 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

sed in financial statements whenever the likelihood of a future outflow of funds is not remote. Contingent assets usually arise from unplanned events or other events that will give rise to the possibility of an influx of economic benefits to the Group. The Group does not recognize contingent assets in its financial statements but only discloses them if it considers that the economic benefits that may result for the Liga are probable. When the realization of the benefit is virtually certain, then the asset is not contingent and recognition is appropriate. NOTE 3.1.11 ECONOMIC PERIODS Expenses and income are recorded in the period to which they refer regardless of their payment or receipt, in accordance with the accrual accounting regime. The differences between the amounts received and paid and the corresponding revenues and expenses are recorded under “Other receivables” and “Other payables” or “Deferred charges”. NOTE 3.1.12 IMPOSTOS CORRENTES With regard to income taxes, these are recorded in the Liga’s income statement and include the effect of current taxes. Current income tax is calculated on the basis of taxable income, in accordance with the tax rules in force. Deferred taxes refer to temporary differences between the amounts of assets and liabilities for accounting purposes and the respective amounts for tax purposes, as well as those resulting from tax benefits obtained and from temporary differences between the tax and accounting result . The Group did not record deferred taxes. According to the legislation in force, the declarations are subject to review and correction by the Tax Authority during a period of 4 years (5 years for Social Security), except when tax losses have been granted, tax benefits have been granted or inspections, complaints or challenges are under way, in which case, depending on the circumstances, the time limits may be extended or suspended. In this way the tax returns for the years 2014 to 2017 can still be reviewed NOTE 3.1.13 GOVERNMENT GRANTS OR OTHER PUBLIC ENTITIES Subsidies assigned to non-performing loans are recorded in the balance sheet as “Other changes in equity funds” and recognized in the income statement in proportion to the reintegration of subsidized assets.

NOTE 3.1.14 EMPLOYEE BENEFITS

NOTE 3.1.17 JUDGMENTS AND ESTIMATES

The Liga has recognized the liabilities associated with employee benefits under the appli-

In preparing the financial statements, the Liga’s Management based its calculations on the

cable standard, recognizing in expenses the short-term benefits for employees who have

best knowledge and experience of past and / or current events considering certain assump-

rendered service in their accounting period and as a liability after deducting the amount

tions regarding future events.

already paid.

The most significant accounting estimates reflected in the financial statements for the periods

The Liga has established and recorded all the commitments granted and to grant its associa-

ended June 30, 2018 and 2017 include:

ted employees short-term benefits.

• Useful lives of tangible and intangible fixed assets; • Registration of provisions;

NOTE 3.1.15 INTEREST REVENUE

• Record of impairment losses.

Revenue is measured at the fair value of the consideration received or receivable. The re-

Estimates were determined based on the best information available at the date of prepa-

cognized revenue is deducted from the amount of returns, rebates and other rebates and

ration of the financial statements. However, situations may occur in subsequent periods that

does not include VAT and other taxes related to the sale.

were not predictable at the time, were not considered in these estimates. Changes to esti-

Proceeds from the sale of assets are only recognized in the income statement when (i) the

mates that occur after the date of the financial statements will be corrected prospectively.

significant risks and rewards of ownership of the assets are transferred to the buyer, (ii) conti-

For this reason and given the degree of uncertainty associated, the actual results of the tran-

nued management involvement is not maintained with a degree generally associated with

sactions in question may differ from the corresponding estimates.

(iii) the amount of revenue can be measured reliably, (iv) it is probable that the economic

Changes to these estimates that occur after the date of the financial statements will be ad-

benefits associated with the transactions flow to the entity and (v) the costs incurred or to be

justed in the income statement prospectively.

incurred in relation to the entity can be reliably measured. Sales are recognized net of taxes, discounts and other expenses related to their realization, at the fair value of the amount received or receivable. Proceeds from the provision of services include fixed contributions and variable contributions which essentially include inscriptions and fines and protests. This income is recognized in the income statement when debited to members. In the rendering of accounts, the necessary adjustments are made to this income, resulting from the application of the principle of economic periodization. The income related to sponsorship contracts (evidence financing), and the amount of the TV quota, as well as ticket and print services, are recorded under the heading Supplementary income. In the rendering of accounts, the necessary adjustments are made to this income, resulting from the application of the principle of economic periodization. NOTE 3.1.16 SUBSEQUENT EVENTS Events occurring after the balance sheet date that provide evidence or additional information about conditions that existed at the balance sheet date (“events that give rise to adjustments”) are reflected in the financial statements of the Liga. Events after the balance sheet date that are indicative of conditions that arose after the balance sheet date (“non-adjusting events”), when material, are disclosed in the notes to the financial statements.

168 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

NOTE 3.2 NOTE 3.2 OTHER RELEVANT ACCOUNTING POLICIES

NOTE 3.2.4 MAIN ASSUMPTIONS RELATING TO THE FUTURE

NOTE 3.2.1 CASH FLOWS

The accompanying financial statements were prepared on an ongoing concern basis, based

The cash flow statement is prepared in accordance with NCRF 2 using the direct method. The

on the accounting books and records of the Liga, maintained in accordance with accoun-

Liga classifies investments with maturities of less than three months and for which the risk of

ting principles generally accepted in Portugal.

change in value is insignificant, including captive amounts of fixed-term deposits, under the

Events occurring after the balance sheet date that affect the value of the assets and liabi-

heading “Cash and cash equivalents”. The statement of cash flows is classified in operating,

lities existing at the balance sheet date are considered in the preparation of the financial

financing and investment activities. Operating activities include customer receipts, payments

statements for the period.

to suppliers, payments to personnel and other related to operating activity. The cash flows

included in investing activities include, inter alia, acquisitions and disposals of investments in

NOTE 3.2.5 MAJOR SOURCES OF UNCERTAINTY

investees and receipts and payments arising from the purchase and sale of fixed assets.

This note refers to the main assumptions regarding the future, adopted in preparation of the

The cash flows covered in financing activities include, in particular, payments and receipts

accompanying financial statements, which may entail a significant risk of material adjust-

relating to loans obtained, finance lease contracts and dividend payments.

ments to the valuation of assets and liabilities of future financial periods. Accordingly, certain assumptions were used in the preparation of the financial statements,

NOTE 3.2.2 FOREIGN CURRENCY

namely, in relation to the determination of provisions and disclosure of contingent liabilities

All assets and liabilities denominated in foreign currency are translated into the working cur-

(Note 12). This assessment was made based on information obtained from the internal and

rency, using the official prices in effect on the reporting date. Favorable and unfavorable

external lawyers responsible for the cases in question.

exchange differences arising from differences between the exchange rates in force on the date of the transactions and those in effect on the date of collection, payment or balance sheet date are recorded as gains and losses in the statement of profit and loss. Exchange differences associated with receivable / payable accounts whose maturity is not defined are recorded in the income statement for the period when such accounts receivable / payable are depreciated / disposed of / settled NOTE 3.2.3 VALUATION JUDGMENTS BY THE MANAGEMENT IN THE ACCOUNTING POLICY APPLICATION PROCESS AND WHICH HAVE GREATER IMPACT ON THE AMOUNTS RECOGNIZED IN THE FINANCIAL STATEMENTS In preparing the financial statements in accordance with the NCRF-SNL, the Liga’s Management uses estimates and assumptions that affect the application of policies and reported amounts. Estimates and judgments are continuously evaluated and are based on past experience and other factors, including expectations regarding future events that are considered probable in the circumstances in which the estimates are based, or the result of information or experience acquired

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 169

NOTE 4 - CASH FLOWS

NOTE 5 - RELATED PARTIES

NOTE 4.1 BREAKDOWN OF THE INSCRIBED VALUES UNDER THE CASH FLOW AND BANK DEPOSIT

NOTE 5.1 REMUNERATION OF MANAGEMENT STAFF

HEADINGS As of June 30, 2018 and 2017, the balance of Cash and Bank Deposits was broken down as follows:

30.06.2017

Cash Flow: 773,20

2 725,48

773,20

2 725,48

Bank deposits: Fixed-Term Deposits TOTAL CASH AND BANK DEPOSITS

1 786 242,08

827 620,12

1 000,00

501 000,00

1 787 242,08

1 328 620,12

1 788 015,28

1 331 345,60

Liga Portugal maintains two fixed-term deposits totaling €770,000 and two more to a total amount of €762,384.01 that are logged under “Other Financial Investments” (Note 10.3) as they are associated with bonds provided in favor of third parties:

NOTE 5.2.1 PAYABLE TRANSACTIONS AND BALANCES During the year, the Liga presented the following transactions and balances with related entities:

JUNE 30, 2018 Transactions Nature of Related Parties

30.06.2018

30.06.2017

Ongoing legal proceedings

862 384,01

100 000,00

Financing obtained - escrow account (a)

670 000,00

4 764,58

1 961,71

1 537 148,59

771 961,71

Income

Pending balances

Expenses

Impairment losses

Assets

Impairment losses in the period D / C

Passive

Real Estate Management

639 790,79

- (1 468 710,40)

Refereeing support fund

751 135,10

612 282,78

766 956,96

(764 320,23)

43 757,94

3 125 139,08

1 558 336,92

178 739,70

(171 870,01)

466 141,71

Balance of commercial activity

644 372,50

Associated companies

36 900,00

3 876 274,18

2 810 410,49

982 596,66

(936 190,24)

(314 438,25)

46 406,42

(314 438,25)

Small spots clubs

OTHER FINANCIAL INVESTMENTS

Note (a): according to Note 16.2.2, the debt on June 30, 2018 amounted to 230,000 €

657 285,67

NOTE 5.2 TRANSACTIONS AND BALANCES BETWEEN RELATED PARTIES

Sports Companies

Fund Work Compensation

30.06.2017

844 162,63

(Total value of remuneration including the respective charges) 30.06.2018

Demand deposits

30.06.2018 Remuneration of key management personnel

CASH FLOW AND BANK DEPOSITS Cash Flow

TOTAL REMUNERATION

TOTAL NET TOTAL

Notes: 1. Values of transactions with VAT, when applicable; and 2. The Associates value in liabilities is presented in non-current liabilities (June and 2018: €659,166.45 and June 2017: €1,289,265.70) and current liabilities (June 2018: €1,612,340.20 and June 2017: €865,828.40)

JUNE 30, 2017 Transactions Nature of Related Parties Real Estate Management

Income

Pending balances

Expenses

Impairment losses

Assets

Impairment losses in the period D / C

Passive

27 451,01

502 542,33

2 123 295,58

145,00

Small spots clubs

1 736 032,80

689 723,26

764 445,23

(764 320,23)

7 930,50

Sports Companies

4 236 441,28

2 985 245,76

192 802,74

(171 870,01)

23 723,02

491,74 (175 337,19)

Refereeing support fund

Balance of commercial activity Associated companies TOTAL NET TOTAL

786 088,34

30 000,00

73 800,00

6 029 925,09

4 177 511,35

1 031 047,97

(936 190,24)

2 941 182,44

(174 845,45)

94 857,73

2 941 182,44

Notes: 1. Values of transactions with VAT, when applicable; and 2. The value of Members in liabilities is presented in non-current liabilities (June and 2017: €1,289,265.70 and June 2016: €1,977,168.96) and current liabilities (June 2017: € 865,828.40 and June 2016: €972,212.12).

| SEASON 2017-18 |ACTIVITIES AND ACCOUNTS REPORT | 171

NOTE 6 - INTANGIBLE ASSETS NOTE 6.1 DISCLOSURES FOR EACH CLASS OF INTANGIBLE ASSETS, DISTINGUISHING BETWEEN INa) Depreciation for the period is calculated taking into account the following useful lives and average amortization rates:

Computer programs Industrial property

Useful life

Amortization rate

3 year

33,33%

Balance on 06-30-2017

Amortization and impairment losses

30.06.2017 Amortization Gross assets and impairment losses 146 284,85 146 284,85

146 284,85

848,60

147 133,45

146 284,85

147 133,45

146 284,85

Software

Industrial property

146 284,85

848,60

147 133,45 -

146 284,85

848,60

147 133,45

(146 284,85)

848,60

ACCUMULATED DEPRECIATIONS: Additions Balance as of 06-30-2018 NET VALUE

147 133,45 -

146 284,85

848,60

147 133,45

(146 284,85)

848,60

NOTE 6.2 INTANGIBLE ASSETS WITH INDETERMINED LIFE

JUNE 30, 2018 Carrying amount L.P.F.P. Brand

848,60

Justification The exclusive use of this brand has no temporal limitations

848,60

The Liga annually reviews the estimated useful lives of the intangible assets that are not being assessment for that asset.

TOTAL

GROSS ASSETS:

Balance on 07-07-2017

amortized in order to verify the events and circumstances that support an indefinite useful life

JUNE 30, 2018

Balance as of 06-30-2018

848,60

Additions

c) Changes in intangible assets during the years ended June 30, 2018 and 2017 are as follows:

Additions

146 284,85

NET VALUE

30.06.2018

TOTAL

ACCUMULATED DEPRECIATIONS:

INTANGIBLE ASSETS Gross assets

Industrial property

Additions

Balance on 07-07-2016

b) Intangible assets have the following decomposition:

Balance on 07-07-2017

Balance on 07-07-2016 Balance on 06-30-2017

LIFESPAN

Industrial property

Software GROSS ASSETS:

TANGIBLE ASSETS GENERATED INTERNALLY AND OTHER INTANGIBLE ASSETS

Computer programs

NET VALUE

172 | ACTIVITIES AND ACCOUNTS REPORT | SEASON 2017-18 |

NOTE 7 - PROPERTY, PLANT AND EQUIPMENT

JUNE 30, 2017

NOTE 7.1 DISCLOSURES ON PROPERTY, PLANT AND EQUIPMENT (Tangible Fixed Assets)

Buildings and other constructions

Investment properties

NOTE 7.1.1 MEASURING BASES Tangible assets are valued according to the cost model, whereby an item of property, plant and equipment is carried at cost less any accumulated depreciation and any accumulated impairment losses.

-line method. Under this method, depreciation is constant over the useful life of the asset if its residual value does not change. NOTE 7.1.3 USEFUL LIVES AND USED DEPRECIATION RATES Depreciation for the year is calculated taking into account the following useful lives and average amortization rates:

Other AFT

TOTAL

273 287,26

2 546 647,19

40 400,00

288 618,86

11 750,00

Additions

130 494,98