As an ongoing goal, the top men's team has set two goals: to compete for the J1 League championship and to qualify for the ACL. However, in the 2023 J1 League season, the team finished in fourth place, despite being in contention for the championship until the end of the season, and failed to qualify for either the AFC Champions League Elite (ACLE) or AFC Champions League 2 (ACL2) for the 2024/25 season.
In other domestic competitions, the team finished second in the J-League YBC Lewan Cup and in the last 16 of the Emperor's Cup.
The players and staff gave it their all in the 60 official matches of the year, the most ever for Urawa Reds, including the ACL 2022 championship that led to qualification for the Club World Cup (La Copa Mundial de Clubes de la FIFA) in the new tournament format to be held in 2025. However, we still have some issues to resolve in that we were unable to achieve our long-cherished goal of winning the J-League championship.

In terms of business income for fiscal 2023, the number of home games increased due to the ACL2022 final and the participation in ACL2023/24 following the victory in ACL2022, etc. As a result, admission fee income increased 706 million yen year-on-year, advertising fees (partner sponsorship, RBC membership fees, etc.) increased 175 million yen year-on-year, and merchandise income increased 175 million yen year-on-year. Advertising fees (partner sponsorships, RBC membership fees, etc.) increased by 175 million yen, merchandise income increased by 464 million yen, and other income, including team prize money, increased by 912 million yen.
Total operating revenue for FY2023, which reflects these figures, was 10,384 million yen, up 2,257 million yen year-on-year, exceeding the 10,000 million yen mark for the first time in the club's history.
The total operating expenses, including business operating expenses and team operating expenses, were 9,137 million yen, operating income was 367 million yen, ordinary income was 392 million yen, and net income was 305 million yen.

Ticket revenue: Record high attendance in the J1 League, including home games at Urawa Komaba Stadium

Due to the impact of the grass replacement work at Saitama Stadium, the three home games from the start of the 2023 season (two J1 League matches and one J.League YBC Levain Cup match) will be held at Urawa Komaba Stadium (hereinafter referred to as Komaba), which has a capacity of approximately 20,000 people. In addition, due to participation in the ACL 2023/24, seven home games in the J1 League will be held on weekdays and ten on weekends and holidays (two of which will be held at Komaba), which has made it very difficult to attract spectators. However, as the team continued to compete for the top spot in the J1 League and won the ACL 2022, the average attendance for J1 League matches was 30,509, of which the average attendance for matches held at Saitama Stadium was 32,236, and for matches held at Saitama Stadium on weekends and holidays, the attendance was 40,777, which is over 40,000 people, approaching the level before the COVID-19 pandemic and recording the highest attendance in the J1 League for the 23rd time in a row, following last season.
In addition to the many fans and supporters cheering us on at the stadium, the number of home games increased due to the second leg of the ACL 2022 Final and subsequent participation in the ACL 2023/24, which had a positive impact, and ticket revenue increased by 706 million yen compared to the previous period to 2,145 million yen.

Advertising revenue: Further surpassing the previous record of partner sponsorship revenue recorded in the previous fiscal year

Advertising revenue (partner sponsorship fees, RBC membership fees, etc.) was boosted by the men's top team's third ACL victory and the women's team's 2022-2023 WE League victory, as well as increased sponsorship fees from existing partners and successful efforts to acquire new partners through collaboration with affiliated companies and organizations. The number of partner companies increased by 5 compared to the previous period, and the number of RBC members increased by 48, further surpassing the previous record of partner revenue recorded in 2022.
Thanks to strong support from partners who have supported us for a long time, as well as from companies and organizations that have joined our partners and RBC (Reds Business Club) in recent years, advertising revenue increased by 175 million yen from the previous period to 4,223 million yen.

Merchandise revenue: 141.5% higher than the previous quarter, the highest sales ever recorded

In terms of merchandise revenue, positive factors included the men's top team's third ACL victory and the women's team's 2022-2023 WE League victory. In addition, while remaining centered on being in tune with the feelings of our fans and supporters, we also improved the quality of our planning, promotion, and sales, as well as strengthened collaboration with our partner companies, resulting in record sales of 1,583 million yen, up 464 million yen from the previous period.

Operating expenses: Operating expenses increased due to increased revenue from major revenue generating businesses and an increase in the number of home games played.

As a result of the increase in revenue from the above major revenue-generating businesses, business operating expenses such as ticket sales expenses, match operating expenses, and merchandise sales expenses increased. In addition, team operating expenses such as player compensation and travel expenses also increased due to the increase in the number of games. As a result, business operating expenses and team operating expenses combined came to 9,137 million yen.

Ordinary profit, net profit, retained earnings and net assets

Ordinary income was 392 million yen, and net income was 305 million yen. Although these figures were slightly lower than the previous fiscal year, we were able to secure solid profits.
In addition, retained earnings were 1,224 million yen, and together with capital of 273 million yen and capital reserve of 113 million yen, net assets were 1,610 million yen, which is roughly the same level as in fiscal 2019, before the COVID-19 pandemic.

About club initiatives

In the 2024 season, Urawa Reds will not be able to participate in the Emperor's Cup, an important tournament that is one of the three major domestic titles and leads to competition in Asia.
This fact and the circumstances that led to it must never be forgotten as long as Urawa Reds exists, and we strongly believe that it is an issue that must be continually addressed.
We will continue to run the club with the resolve that without acting based on this awareness, we will not be loved and needed by our hometown community, our partners, and our fans and supporters.

[Initiatives for 2023]

lastly

The management information for fiscal 2023 reported in this report contains many positive figures, but it goes without saying that these figures were not achieved solely through the business activities of Urawa Red Diamonds Co., Ltd.
We understand that this achievement is a reflection of the support, encouragement, and expectations of all stakeholders who support Urawa Reds, including our hometown community, partners, and fans and supporters, as well as the culmination of the efforts of our players, team staff, and club staff.

We would like to continue to run the club together with you, sharing the good times and the bad, so we appreciate your continued support.