MANAGEMENT
2023 Financial Report
2023.12.25
2023 Financial Report
- Significant surplus forecasted due to unutilized risk response expenses
- J.LEAGUE’s FY2023 budget had a deficit of approximately 800 million yen, due in part to the recording of official testing expenses based on the premise of COVID-19 response. In the financial results forecast for FY2023, overall expenses are expected to fall below the budget, with much of the budget allocated to official testing expenses and COVID-19 response measures at various venues becoming unutilized due to the reclassification of COVID-19 in Japan. Therefore, the overall forecast has been revised upward significantly to reflect an expected surplus of 1.9 billion yen. Although the amount of equal allocation funds has decreased when compared with FY2022 due to the review of the allocation structure, we are investing substantially in local exposure, which is positioned as one of our top priorities. Both revenue and expenses have also declined alongside the changes in the distribution channels for our video and merchandising businesses.
（Unit: Million yen）
| Account | Fiscal 2022 A |
2023 financial forecast C |
Increase / Decrease C-A |
|---|---|---|---|
| Ⅰ Unrestricted net assets | |||
| 1. Ordinary income/loss | |||
| (1)Ordinary income | |||
| Sponsorship income | 5,805 | 5,600 | ▲205 |
| Public transmission rights fee income | 19,404 | 19,402 | ▲2 |
| Other income | 6,822 | 4,904 | ▲1,918 |
| Total of ordinary income | 32,031 | 29,906 | ▲2,125 |
| (2)Ordinary expenses | |||
| ①Operating cost | 32,634 | 27,270 | ▲5,364 |
| League operating cost | 2,672 | 2,839 | 167 |
| Funds allocated to clubs | 15,168 | 11,123 | ▲4,045 |
| Expenses for measures to expand the fan base | 885 | 983 | 97 |
| Investment in local exposure strategy | 0 | 1,239 | 1,239 |
| COVID-19 response expenses | 710 | 77 | ▲633 |
| Other operating cost | 13,199 | 11,009 | ▲2,190 |
| ②Administration cost | 804 | 723 | ▲81 |
| Total of ordinary expenses | 31,438 | 27,993 | ▲3,446 |
| Non-operating activities | 34 | 0 | ▲34 |
| Total changes in unrestricted net assets | 626 | 1,913 | 1,287 |
（Unit: Million yen）
| Account | Budged 2023 B |
2023 financial forecast C |
Compared to budget C-B |
|---|---|---|---|
| Ⅰ Unrestricted net assets | |||
| 1. Ordinary income/loss | |||
| (1)Ordinary income | |||
| Sponsorship income | 5,439 | 5,600 | 161 |
| Public transmission rights fee income | 19,239 | 19,402 | 163 |
| Other income | 5,066 | 4,904 | ▲162 |
| Total of ordinary income | 29,743 | 29,906 | 163 |
| (2)Ordinary expenses | |||
| ①Operating cost | 29,522 | 27,270 | ▲2,252 |
| League operating cost | 2,759 | 2,839 | 80 |
| Funds allocated to clubs | 11,444 | 11,123 | ▲321 |
| Expenses for measures to expand the fan base | 760 | 983 | 223 |
| Investment in local exposure strategy | 1,500 | 1,239 | ▲261 |
| COVID-19 response expenses | 726 | 77 | ▲649 |
| Other operating cost | 12,333 | 11,009 | ▲1,324 |
| ②Administration cost | 978 | 723 | ▲255 |
| Total of ordinary expenses | 30,500 | 27,993 | ▲2,507 |
| Non-operating activities | 0 | 0 | 0 |
| Total changes in unrestricted net assets | ▲757 | 1,913 | 2,670 |
FY2024 Income and Expenditure Budget
- Expansion of growth investment, and new allocation system aimed at reinforcing realization of our philosophy (mission)
- J.LEAGUE’s FY2024 income and expenditure budget has been prepared with a view to expanding investment, so as to promote its growth strategy by utilizing the surplus from the previous fiscal year. The main topics related to the income and expenditure budget are as follows.
- Increase in J.LEAGUE’s operating expenses
- The operating expenses for games have increased with the increase in the number of J1 LEAGUE clubs from 18 to 20. The change in the J.LEAGUE YBC Levain CUP to include participation by all categories has resulted in an increase in the related expenditures.
- Increase in funds allocated to clubs
- The new allocation system aimed at reinforcing realization of our philosophy (mission), has been launched. These funds are provided to clubs ranked 1st to 9th in the previous year, based on their competition rankings and fan index rankings.
- Increase in expenses for measures to expand the fan base
- Investment has increased with a focus on digital advertising and the utilization of the Japan National Stadium, which had been effective in 2023.
（Unit: Million yen）
| Account | Budged 2023 A |
Budged 2024 C |
Increase / Decrease C-A |
|---|---|---|---|
| Ⅰ Unrestricted net assets | |||
| 1. Ordinary income/loss | |||
| (1)Ordinary income | |||
| Sponsorship income | 5,439 | 5,529 | 90 |
| Public transmission rights fee income | 19,239 | 20,857 | 1,618 |
| Other income | 5,066 | 4,408 | ▲657 |
| Total of ordinary income | 29,743 | 30,794 | 1,051 |
| (2)Ordinary expenses | |||
| ①Operating cost | 29,522 | 31,099 | 1,577 |
| League operating cost | 2,759 | 3,707 | 948 |
| Funds allocated to clubs | 11,444 | 12,071 | 627 |
| Expenses for measures to expand the fan base | 760 | 1,533 | 773 |
| Investment in local exposure strategy | 1,500 | 1,421 | ▲79 |
| COVID-19 response expenses | 726 | 0 | ▲726 |
| Other operating cost | 12,333 | 12,367 | 34 |
| ②Administration cost | 978 | 866 | ▲112 |
| Total of ordinary expenses | 30,500 | 31,964 | 1,464 |
| Non-operating activities | 0 | 0 | 0 |
| Total changes in unrestricted net assets | ▲757 | ▲1,171 | ▲414 |
（Unit: Million yen）
| Account | 2023 financial forecast B |
Budged 2024 C |
Increase / Decrease C-B |
|---|---|---|---|
| Ⅰ Unrestricted net assets | |||
| 1. Ordinary income/loss | |||
| (1)Ordinary income | |||
| Sponsorship income | 5,600 | 5,529 | ▲71 |
| Public transmission rights fee income | 19,402 | 20,857 | 1,455 |
| Other income | 4,904 | 4,408 | ▲496 |
| Total of ordinary income | 29,906 | 30,794 | 888 |
| (2)Ordinary expenses | |||
| ①Operating cost | 27,270 | 31,099 | 3,829 |
| League operating cost | 2,839 | 3,707 | 867 |
| Funds allocated to clubs | 11,123 | 12,071 | 948 |
| Expenses for measures to expand the fan base | 983 | 1,533 | 550 |
| Investment in local exposure strategy | 1,239 | 1,421 | 182 |
| COVID-19 response expenses | 77 | 0 | ▲77 |
| Other operating cost | 11,009 | 12,367 | 1,358 |
| ②Administration cost | 723 | 866 | 143 |
| Total of ordinary expenses | 27,993 | 31,964 | 3,972 |
| Non-operating activities | 0 | 0 | 0 |
| Total changes in unrestricted net assets | 1,913 | ▲1,171 | ▲3,084 |
