Sporting Clube de Portugal - Futebol

Management Reports • Sep 27, 2017

INDEX

Management report
Financial statements 26
Income statement 27
Statement of financial position 28
Comprehensive income statement 29
Statement of changes in equity 29
Cash flow statement 30
Notes to the financial statements 31

Translator's Note: This report is a translation of the original issued in the Portuguese language. In the event of discrepancies the Portuguese version prevails.

MESSAGE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS

Dear Shareholders,

The financial period presented herein covers the period between 1 July 2016 and 30 June 2017, corresponding to sports season 16/17.

In the period under review, it is necessary to highlight the regress of the professional men's football team of Sporting Clube de Portugal to the group phase of UEFA Champions League, with significant, not only by the sport perspective, but also by the reputational and financial positive impact of this participation.

In European terms, the group phase of UEFA Champions League played in this period had the following opponent's for Sporting Clube de Portugal: the European Champion, Real Madrid that has renewed the title, Borussia Dortmund and Legia Warsaw. Despite of the excellent exhibitions with the Spanish and German clubs, the sports results didn't follow these exhibitions with the correspondent elimination of the European competitions at the end of this group stage.

Concerning to the Portuguese League of the sports season 16/17, at sports terms and analysis, the final place of our team fell fall short for the goals appointed, finishing at third (3rd) of the general classification. Although of this disappointing place, this classification allowed the presence for the Playoff UEFA Champions League for access for UEFA Champions League. This playoff was played in a posterior period to the present fiscal year. The draw appointed the Romanian Champion Steaua Bucharest as opponent. The first leg was played in José Alvalade and the second leg at Romania. Sporting Clube de Portugal won this payoff and achieve the UEFA Champions League Group Stage by an aggregate result of 5-1, fully reached in the second leg.

The draw for this group stage dictates our presence in D Group with other giant clubs: the Italian champion and European runner-up, Juventus; the European Champions League semifinalist, Barcelona; and the Greek champion, Olympiacos from Athens.

Regarding player transfers, concerning players sales, the period of this report, records the highest value made in the history of the SAD which, as is known, formed two FIFA Golden Balls, Figo and Cristiano Ronaldo. This results especially from João Mário, Slimani and Rúben Semedo transactions, where the added value from this three players was almost 70,000 thousand Euros. It is also important to highlight the return of the women's football to the Club, arising from an effort of inclusion and gender equality, achieving in this first season the double conquest of the Portuguese competitions: Championship and the Portuguese Cup. As result of the Championship victory, our women's senior football team won the possibility to play for the access of the UEFA Women's Champions League played in August, 2017 in Budapest. Despite the second place achieve in tournament, this result wasn't enough to go through the competition. The grassroots won their respective titles and our junior team won all the matches played.

At men's football grassroots level, the planned and sustained work that is being developed in the last years it is increasingly evident. At this matter, it is necessary to highlight the recovery of the national title of our Under-19 (junior) team after a five years interregnum; the two-time champion of our Under-17 (juvenile) team and the dispute until the last week of the Under-15 team (initiate), being runner-up of its championship.

Relatively to the season 2017/18, we welcome the decision of the Portuguese Football Federation (FPF) which determines the implementation of VaR (video referee) technology in all Portuguese League matches, meeting one of the measures most favored by our club at national and international level, as auxiliary instrument of the referees and promoter of greater accuracy and sports truth.

At global term, the revenue, in the analyzed period, including player's transactions, was 173,000 thousand Euros, the highest in our history. Focused only in players transactions revenue, the value was 93,000 thousand Euros, also a record in this line. Stand out still and after a season at negative values, the Equity in this fiscal year is 5,600 thousand Euros positive. The activity of Sporting SAD allows a net income of 30,600 thousand Euros.In terms of investment, Sporting SAD carried out the change of the football pitch of José Alvalade Stadium, Aurélio Pereira Stadium already related in the last report. It was also introduced some improvements in our Academy, with the change of the synthetic pitch, the construction of a new pitch, some shifts in the illumination system and another infrastructures improvements that will be fully implemented in the 2017/18 season.

Sporting SAD has been developing a multiple services restructuring, strengthening the structure, investing in training, infrastructures, qualification of human capital at all levels of the hierarchy, improving the work conditions and contributing to a more efficient organization. At the same time, it has been developed an effort to the dissemination and internationalization of the brand by the extension of the network of School Academies that are localized in four Continents.

The positive results are a team work effort of the different areas and professionals. Thus, I want to express our thanks to all those who, on a daily basis, continue to help us develop SPORTING SAD and enhance the Sporting Clube de Portugal name. Employees, athletes, partners and all the other stakeholders.

To all of them, our heartfelt thank-you.

Long live Sporting Clube de Portugal!

Bruno de Carvalho Chairman of the Board of Directors

Sporting Clube de Portugal - Futebol SAD Annual Report | 2016/2017 | #4

SPORTING CLUBE DE PORTUGAL – FUTEBOL, S.A.D.

Public Company Share Capital: 67,000,000 Euros Net Equity approved at the General Meeting of 30 September 2016: (24,954,000) Euros Registered Office: Estádio José de Alvalade - Rua Professor Fernando da Fonseca, Lisbon Registered with the Lisbon Commercial Registry under single Registration and Taxpayer no. 503994499

MANAGEMENT REPORT

Dear Shareholders,

In compliance with the legislation in force, we submit for your appreciation the Management Report, the Statement of Financial Position, the Income Statement, the Comprehensive Income Statement, the Statement of Changes in Equity, the Cash Flow Statement and the respective Notes to the financial statements related to financial period 2016/17, which covers the period 1 July 2016 through 30 June 2017.

The Company presents its annual financial statements in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and adopted by the European Union.

Highlights – 2016 / 2017

Sporting SAD closed the 2016/17 season with a total Revenue of 172,998 thousand Euros, the highest value in history, supported by the sustained growth of all business lines and with the two highest sports rights sales ever – João Mário sold by 40,000 thousand Euros and Slimani by 30,000 thousand Euros. These values can be raised by objectives. It's also relevant to notice the sale of the sports rights of Rúben Semedo by 14,000 thousand Euros and Sporting SAD keeps a part of a future sale of the player. This revenue allowed a positive result in this fiscal year of 30,537 thousand Euros.

• Bas Dost, acquired by 11,850 thousand Euros and considered one of the best forwards of European football, having even finished in second place for the European golden ball.
• Bruno Fernandes, acquired by 9,690 thousand Euros and considered one of the best acquisitions of the last summer transfer window, having even a termination clause of 100,000 thousand Euros. The commission associated to this operation allowed the celerity and the conditions for the club.
• Seydou Doumbia, acquired by 7,200 thousand Euros, considered one of the best African forwards at the present and very intended by a lot of European clubs in this summer window.

and Slimani by 30,000 thousand Euros. These values can be raised by objectives. It's also relevant to notice the sale of the sports rights of Rúben Semedo by 14,000 thousand Euros and Sporting SAD keeps a part of a future sale of the player. This revenue allowed a positive result in this fiscal year of 30,537 thousand Euros.
Concerning the investment in the team, Sporting SAD carried out a significant effort with the acquisition of the sports and economic rights of some players, of which we highlight:
  	European golden ball. allowed the celerity and the conditions for the club. this summer window.						Bas Dost, acquired by 11,850 thousand Euros and considered one of the best forwards of European football, having even finished in second place for the Bruno Fernandes, acquired by 9,690 thousand Euros and considered one of the best acquisitions of the last summer transfer window, having even a termination clause of 100,000 thousand Euros. The commission associated to this operation Seydou Doumbia, acquired by 7,200 thousand Euros, considered one of the best African forwards at the present and very intended by a lot of European clubs in
(thousand Euros) Player	% ec onomic	End of	Ac quisition	Subsc ription	Comissions	Solidarity	Total Acquisition
	rights	Contract	Value	Prizes		Mec hanism	Value
Bas Dost	100%	jun/20	11,000	-	300	550	11,850
Bruno Fernandes	100%	jun/22	8,500	-	850	340	9,690
Seydou Doumbia This sustained growth and the income achieved with players transactions, allowed to support the significant investment in the main squad either by the acquisition of economic and sports rights which growths to 28,999 thousand Euros, either for the growth of Staff costs.	70%	jun/20	3,500	3,000	700	-	7,200

Relatively in terms of the financial position, it's important to highlight the significant increase of the Equity at 30 June 2017, which allowed to go through a negative value of 24,954 thousand Euros to a positive value of 5,618 thousand Euros.

It's also fundamental to notice the reimbursement of the bank debt in this season, an amount greater than 10,000 thousand Euros and higher than 16,500 thousand Euros if it is considered all the reimbursements made since the financial restructuring (November 2014).

Additionality, we highlight that the Asset includes 17,100 thousand Euros resulting from the presence in European competitions that are retained because of the Doyen litigation. Sporting SAD waits for a decision at the national instances, situation considered relevant by the legal perspective. Then, Sporting SAD has all the conditions to, when necessary, to settle this responsibility that is properly provisioned in the Financial Statements. Therefore, this situation will not have any impact in the future operation profitability of Sporting SAD.

I. IMPORTANT ASPECTS OF THE COMPANY'S ACTIVITY

1. SPORTS ACTIVITY

Main Team | Sports seasons 2016/2017 and 2016/17

During season 2016/17, the following movements of athletes from the A and B squads of SPORTING SAD occurred:

In c om in g at hlet es D efin itive		I nc o ming at hlet es Tem p orary			Out goin g at hlet es D efinit ive	Ou t goin g at h letes Tem p or ary
P layer	Clu b	P lay er	Club	P layer	C lub	P layer	Clu b
André Souza	SC Corinthians	Marcelo Meli (b)	CA Boca Juniors	Edinaldo Pereira	FK Krasnodar	Carlos Mané	Vfb Stuttgart 1893
Bas Dost	VfL Wolfsburg	Joel Campbell	Arsenal FC	Islam Slimani	Leicester City FC	Ewerton Santos	FC Kaiserslautern
Beto Pimparel	Free agent	Sebastian Coates (c) Sunderland FC		João Mário EduardoFC Internazionale		Hadi Sacko (c)	Leeds United FC
Douglas Teixeira	Trabzonspor AS	Lazar Markovic (b)	Liverpool FC	João Pereira	Trabzonspor	Hernan Barcos	CA Velez Sarsfield
Elias Trindade	SC Corinthians	Leonardo Ruiz	Atlético Nacional	André Souza	Sport Recife	Jonathan Silva	CA Boca Juniors
Luc Castaignos	Eintracht Frankfurt	Bruno Paulista (b)	Bahia	Hernán Barcos	LDU Quito	Luc Castaignos	Vitesse FC
Sebastian Coates (c)	Sunderland FC			Ricardo Esgaio	SC Braga SAD	Miguel Lopes	Akhisar GS
Radosav Petrovic	Dynamo Kyiv			Hadi Sacko (c)	Leeds United FC	Simeon Slavchev	Lechia Gdansk
Ary Papel	1º de Agosto			Teófilo Gutiérrez	Júnior Barranquilla	Téofilo Gutiérrez	CA Rosario Central
Gelson Dala	1º de Agosto			Rúben Semedo	Villareal FC	Federico Ruiz	Sintrense
André Pinto	Free agent			Alberto Aquilani	Delfino Pescara SpA	Domingos Duarte	Belenenses SAD
Cristiano Piccini	Real Bétis			José Lopes	Levadiakos FC	Ryan Gauld (d)	Vitória FC
Matheus Oliveira	Estoril Praia SAD			Luis Almeida (Kikas) Leixões SC		Héldon Ramos	Rio Ave FC
Rodrigo Battaglia	SC Braga SAD			Ousmane Dramé	Moreirense FC	Iuri Medeiros	Boavista FC SAD
Bruno Fernandes	UC Sampdoria			Salim Cissé	SC Olhanense	Oriol Rosell	Belenenses SAD
Leonardo Ruiz (c)	Milionários			Zakaria Labyad	FC Utrecht	Wallyson Mallman (e) Standard Liége
Seydou Doumbia (a) AS Roma				Junya Tanaka	Vissel Kobe	Fabrice Fokobo	Famalicão
Merih Demiral	Alcanenense			Wallyson Mallman Moreirense FC		Mamadu Candé	SC Covilhã
Pedro Delgado	Inter de Milão			Elias Trindade	Atlético Mineiro	Radosav Petrovic	Rio Ave FC
Pedro Marques	Free agent			Felipe Chaby	Belenenses SAD	Ary Papel	Moreirense FC
				Guilherme Oliveira Académica		Junya Tanaka (d)	Kashiwa Reysol
						Tobias Figueiredo	Nacional
						Jefferson Nascimento SC Braga SAD
						Rafael Barbosa (d)	CF União
(a) Loan with buy option						João Palhinha (d)	Belenenses SAD
(b) Loan termination						Francisco Geraldes (d)Moreirense FC
(c) Buy option exercised						Daniel Podence (d)	Moreirense FC
(d) Return from loan - winter window						André Geraldes (d)	Vitória FC
		(e) Loan at the beggining of the season, sell in january to Moreirense F.C. with repurchase option exercised in the summer window

As for season 2015/16, the following movements occurred:

Incoming athletes (Name Club)	Dutgoing athletes (Name Club)		Internal operations
New contracts / Cessions	Temporary cessions	Definitive cessions	New contracts / Renewals	Terminations / Cessions
Teófilo Roncancio River Plate	André Geraldes Barros Belenenses	Alberto Coelho Belenenses	Tobias Figueiredo	Jorge Santos
Alberto Aguilani Free	Carlos Chaby União da Madeira	Diego Capel Genova	Mauro Riquicho	Marcelo Boeck
Bruno Silva (Paulista) EC Bahia	Heldon Ramos Rio Ave	Diego Rubio Valladolid	João Palhinha Goncalves	Diogo Salomão
Bryan Ruiz Fulham FC	Hugo Miguel Lopes Granada	Naby Sarr Charlton	Gelson Dany Batalha Martins	André Martins
Edinaldo Pereira Udinese	luri Medeiros Moreirense	Ramy Rabia Al Ahly	Francisco Geraldes	André Carrillo
João Pereira Free	João Palhinha Gonçalves Moreirense	Wilson Eduardo SC Braga	Daniel Castelo Podence
Marvin Zeegelaar Rio Ave	Luis Almeida (Kikas) Rec Huelva	Shikabala Zamalek	João Mário
Bruno César Free	Luis Ribeiro Rec Huelvi	Valentin Viola Apollon	Carlos Mané
Ezequiel Schelotto Free	Michael Pinto Rec Huelva	Fredy Montero Tianjui Teda	Islam Slimani
Amânsio Canhembe LD Maputo *	Ruben Semedo Vitória FC	Luis Ribeiro Estoril Praia	Guilherme Ramos **
Lukas Spalvis Aalborg	Simeon Slavchev Appolon Limasso	Michael Pinto Belenenses	Jefferson Moreira
Alberto Coelho Belenenses *	Wallyson Mallmann OGC Nice	Jorge Silva Leixões SC	Domingos Duarte
Sebastian Coates Sunderland *	Jonathan Silva CA Boca Juniors		Ivanildo Fernandes
Hernan Barcos Tianjui Teda	Mamadu Samba Candé MLS		Pedro Silva
Thomas Rukas UD Leiria	Luis Ribeiro Feirense		Rafael Leão **
Alan Ruiz CA Cólon	Oriol Rosell Vitória SC		Aya Diouf **
Federico Ruiz CA Cólon	Salim Cissé Vitória FC		Adrien Silva
Radosav Petrovic Dinamo Kyiv	Hadi Sacko FC Sochaux		William Carvalho
David Sualehe Free	Tanaka Reyso		Miguel Mariz Luis **
Eduardo Pinheiro Free	Zakaria Labyad Fulham FC		João Fernandes Oliveira **
Diogo Nunes Leboes	Tobias Figueiredo CD Nacional		Daniel Bragança 11
	Francisco Geraldes Moreirense		Luis Maximiano **
	Rafael Barbosa União da Madeira		Rui Patricio
	Domingos Duarte Belenenses		Ruben Semedo
			Tiago Dialó **
			Iuri Medeiros
			Ricardo Esgaio
			Bruno Fernandes **
			Gonçalo Vieira **
			Nuno Moreira **
			Diogo Brás **
			Bernardo Sousa **
			Jefferson Encada **

Corporate Bodies

On 1 October 2014, following the end of the corporate bodies' term of office, the Board of Directors of the Company was elected for the quadrennial 2014/2018, with the following composition: for the office of Chairman of the Board of Directors, Mr. Bruno Miguel Azevedo Gaspar de Carvalho, and for the office of Member of the Board of Directors, Messers Carlos Fernando Barreiros Godinho Vieira, Guilherme José Araújo da Costa Carracho Lourenço Pinheiro, Paulo Miguel Soares Antunes da Silva, Rui Pereira Caeiro and Victor Manuel da Silva Ferreira.

On 1 April 2015, Mr. Victor Manuel da Silva Ferreira resigned from his office of Member of the Board of Directors, effective as from 31 May 2015, with, to date, no substitute having been nominated or elected.

On 27 April 2016, Mr. Paulo Miguel Soares da Silva submitted, for personal and professional reasons, his resignation as Member of the Company's Board of Directors, with Mr. Nuno

Jorge Lopes Correia da Silva having been appointed, by cooptation, as Member until the end of the current term of office.

Relatively to the other Corporate Bodies, the detailed information can be confirmed on the Corporate Governance Report.

General Director of Professional Football

There were no changes during the sports season underway.

General Director of Grassroots Level (Training Level) Football

There were no changes during the sports season underway.

Main Coach

During sports season 2016/17, Coach Jorge Jesus assured the technical command of the professional football team.

The B team finalized this seson under the command of Luís Martins and his team, who, in February 2017, substituted João de Deus at the technical helm.

Liga Nos (National League)

SPORTING SAD's main team finished the first League 2016/17 in 3rd place (70 points) which granted it direct access to the playoff of the UEFA Champions League 2017/18.

Taça de Portugal (Portugal Cup)

SPORTING SAD's main team was unable to pass Quarter Finals of the Portugal Cup disputed away from home against GD Chaves.

Taça da Liga (League Cup)

SPORTING SAD disputed the group phase of the 2016/2017 League Cup – Taça CTT, in a group that included FC Vitória de Setúbal, Arouca and Varzim.

Ledman LigaPro (League of Honor)

The B Team made 14th place in the Second League.

Personal and Social Development/Training:

The concern with athletes' personal and social development/training continued to be an important aspect in the formation of these young people and in this season the following results were achieved:

· 75% overall scholastic success (n = 51) (note: the Academy has more 20 young players studying comparing with the last year);

• · 75% scholastic success of residents in terms of primary education;
• · 80 % scholastic success of residents in terms of secondary education.

At the Academy, the integrated development was promoted through the Departamento de Psico - Pedagógico (Psycho Pedagogue Department), which acts transversally with all the participants in same. Hence, during the financial period, in addition to the above mentioned skills' enhancement and scholastic motivation, were promoted a several number of internal training courses of personal development with the athletes, namely training at "Good Use of Social Networks", "Sporting Clube de Portugal Values", visits and debates to entities which finality are wealth or social (IPO, Johnson Academy), speeches carried out by our Adapted Sports Department with the presence of our Goalball athlete, Cátia Monteiro and Adapted Canoeing athlete Norberto Mourão where the motivations, resilience, overcoming and equality between all were widely explored.

It was promoted a lot of periodic meetings with the technical heads of the various levels, the liaison with the clinical department to anticipate possible risk situations and the development of internal training courses were also promoted.

Escolas Academia Sporting (EAS) (Sporting Academy Schools):

Sporting maintained 24 Schools in operation during the present season, counting on a total of 4 500 youths aged between 4 and 15.

As regards the recruitment of athletes for the grassroots levels (training levels), during season 16/17, were observed 458 athletes from our School Academies. These athletes were observed on integrated training with our young teams at the EUL (Estádio Universitário de Lisboa) Hub, at our Academy and at School Academy Sporting – Alfena. 43 training matches were played between the young competition teams of Sporting Clube de Portugal and teams from several Schools Academies Sporting (EAS). A several of young players (9) from EAS participated in different tournaments integrated with our teams.

There were 19 positive opinions (athletes to hire), being that these 19 players, 13 they are already enrolled on the competition teams of Sporting Clube de Portugal for 2017/2018 season and 6 remains with their respective EAS, realizing activities and trainings with Sporting Clube de Portugal teams.

Sporting Academy Holidays

Since the summer of 2005, Sporting Clube de Portugal realizes, at Sporting Academy, the Sporting Academy Holidays. During a week, young boys and girls from 7 years old until 16, have the opportunity to live a unique experience at the training center usually reserved to Sporting players and athletes.

The main goal is to provide a day by day experience of their idols. In addition to the main and principal activity – football trainings, they are part some other sports activities, playful and animation like: visit to José Alvalade Stadium and Sporting Museum (Mundo Sporting), nautical games, pool, cinema sessions, Super Quiz night, Thematic night, Discoteque night and karaoke, treasure hunt, room games (table football, snooker and table tennis) and footvoley.

Just like past years, the vacancies were sold out in less in a month after the program opening to the general public. 302 young kids take part of Sporting Academy Holidays, divided by the 7 weeks of the program.

Internationalization

Sporting has developed a number of dissemination activities with regard to its academy, having the following International Sporting Academy Schools (EAS) in operation - Escola Academia Sporting Toronto (Sporting Toronto Academy School) (Canada); EAS CANO Sport Academy (Equatorial Guinea); EAS Cidade da Praia and EAS Mindelo, both in Cape Green; EAS Rustenburg, EAS Nelspruit and EAS Johannesburg, all in South Africa and opening new EAS Athens (Greece), EAS Singapura, EAS Ciudad da Guatemala (Guatemala), EAS Alajuela (Costa Rica), EAS Pretória (South Africa) and EAS Norberto de Castro (Angola).

There are also cooperation protocols with 1º de Agosto and with Recreativo de Cáala, both in Angola, F91 Dudelange (Luxembourg), New England Revolution (USA), Real Cartagena and J&SM Sports Management SAS, in Colombia, European Football Academy in England, Kairat Almaty (Kazakhstan), Al-Ittihad in Egypt, Atlético Clube Goianense and International Porto Alegre, both from Brazil and Sporting Clube da Praia from Cape Green.

They have been developed three international summer camps, two in Switzerland and one in United States of America.

Sporting Training Academy

Being more than just a football Club, Sporting has defined in its strategy an important chapter on sustainability and social responsibility.

Sporting is known as a training Club and has competent people in this area. Hence, the decision was taken to develop products so as to work this area with the aim of creating a

unified offer by the various employees, thereby enhancing the Club as a training brand, not only internally but also in the community, and expanding the Sporting brand, already associated with training, to civil society. It was in this sense that we promoted the creation of the Sporting Training Academy brand. This brand aims to bring together, in an integrated manner, the entire training offer the Club has in sports terms.

The vision embraces the design, implementation and evaluation of training programs that excel through quality and differentiation at the national and international level.

This concept is in line with the Sporting brand values, given the excellence in athlete development, realized by professionals working in the Club and in the SAD. The brand develops specific products for the education, health, performance and training and management areas.

a) Sporting Summer School

Launched in 2014, under this product, marketed between the months of July and August, young aspiring coaches can reside for six days at the Academy, applying their learning to the athletes enrolled in the sports holidays - another initiative that allows young athletes to reside at the Sporting Academy for a week, dedicating themselves exclusively to football.

The first edition of the Sporting Summer School worked with one level 1 class, to test the concept, with the program covering areas such as training, physical education, performance psychology, recruitment and the clinical area, lectured for eight hours daily. The possibility of the students residing at the Academy during the course is optional. Whilst in 2014 only one level 1 class was opened, the 2015 edition had four level 1 classes (36 students). In 2016, to the level 1 course was added the offer of a level 2 course. The two courses have been certified by the Instituto Português do Desporto e da Juventude (IPDJ) (Portuguese Institute of Sport and Youth) as Continuing Education for Sports Coaches (corresponding to 8.8 units of credit for the renewal of the Professional Title of Sports Coach). During this year, 2 level 1 courses and 1 level 2 course were realized.

All this so that Sporting can assume itself not only as the only Club to have trained two Golden Ball winners, but also as the one that can launch coaches of excellence into the World.

b) Masters in Sports Management

To develop the professional sports fabric, Sporting focuses on the development of the Masters in Sports Management in partnership with ISG – Instituto Superior de Gestão (Higher School of Management). One of the pillars of this project is to seek answers and solutions so as to positively work the skills of the professional sports fabric.

This course translates a strong commitment to higher education. It is a differentiated offering in the Management area, offering organizational knowledge at the various levels,

such as at the club, team, human resources, and facilities, i.e., all areas directly linked to sports and to a sports structure.

The Masters will also be lectured at the Jose Alvalade Stadium and will include two residential days at the Sporting Academy. It will have a very practical approach and will be lectured solely by professionals with experience rooted in the sports reality.

c) Training Course for Sports Management Technical Support Professionals

Sporting is also characterized by the concerns it harbors with the various issues relating to the young people it trains. Hence, the Club grasped the school problems existing amongst athletes training in the various "leonine" sports areas and decided to act, setting up within the Sporting Training Academy, in partnership with the Instituto de Emprego e Formação Profissional (Institute of Employment and Professional Training), a learning course aimed at young athletes of the various sports areas and of the Academy, as well as for young people who may be proposed by the Sporting Foundation and by civil society itself.

Both of the Sports Management Technical Support courses (41 students) will commence in September and will permit a dual certification: 12th grade at school level and level 4 at the Sports Management Technical Support Professional level.

Given the positive evaluation of this course either by Sporting Clube de Portugal, either by IEFP, Sporting Clube de Portugal applied to be able to teach two more classes of students having a positive answer to this apply. Thereby, will start during the September month, two more classes of 25 students each one.

This course has been a significant challenge for Sporting Clube de Portugal and was a bet won. The social responsibility duty of an organization as Sporting Clube de Portugal was put into practice making possible to an almost 100 young kids to come back or continue their studies and their professional qualifications.

d) Leonine Holidays

This is a sports holiday program with a very strong component of Sporting culture promotion to children. This program was run at the Multisport facilities during the months of July, August and September. In this year, 9 weeks were organized with the presence of about 290 young people aged between 6 and 14.

Since the football sports holiday already exists, this ATL (Leisure Time Workshop) aims to divulge the other sports areas of the Club. Young people can enjoy many of the 'leonine' sports areas, such as swimming, table tennis, futsal or combat sports, amongst others. This ATL will also include visits to the Museu Mundo Sporting (Sporting-World Museum), the Stadium and various development activities (such as Sporting TV Kids, Caça ao Jubas ("Lion Mane" Hunt)).

Clinical Department

The Clinical Department is coordinated by Dr. Frederico Varandas, being its clinical director and 1st doctor of the Senior team. It is also constituted by Dr. Francisco Moreira (1st doctor of the B team), Virgílio Abreu (2nd doctor of the A team and 2nd doctor of the B team), Dr. Nuno Oliveira (doctor of the youth levels) and Dr. Pedro Pessoa: responsible for orthopedic surgery and doctor of the youth levels.

Annually, the Medical Department of SCP organizes the "Jornadas Internacionais de Medicina Desportiva do SCP" (SCP International Sports Medicine Workshops). The workshops are presided by Dr. Frederico Varandas and Dr. Pedro Pessoa.

2. FINANCIAL RESTRUCTURING

Under the financial restructuring plan contracted, and consequent recapitalization of the Company, the following operations, previously approved by the Company's General Meeting of 23 July 2013, following the prior approval thereof by the General Meeting of Sporting Clube de Portugal, of 30 June 2013, were implemented:

• Merger by incorporation of SPM in SPORTING SAD, in accordance with art. 97 no. 4 paragraph a) of the Commercial Companies Code, with the transfer of SPM's net assets, which include the extension in time of the surface rights over the José Alvalade Stadium and the Multisport Building amounting to 73 million Euros, which term expires on 4 April 2063. The merger produced accounting impacts as from 1 October 2014 and entailed an increase in the share capital of the Company of 8 million Euros, taking it up to 47 million Euros.
• Share capital increase, in kind, realized by Holdimo SA in the amount of 20 million Euros, realized through the incorporation of a credit of the same amount held by that company, and materialized through the issue of 20 million new shares with a nominal value 1 Euro each, with, consequence thereof, the Company's share capital increasing, once more, to 67 million Euros.

• Issue of securities mandatorily convertible (SMC) into shares of the Company, registered and nominative, in the amount of 80 million Euros, with a nominal value of 1 Euro each, with a 12-year period, at a subscription price of 1 Euro each. These SMCs will be convertible into ordinary shares (category B) of SPORTING SAD at a conversion price of 1 Euro each, with a conditional annual gross interest rate of 4%, due when SPORTING SAD has distributable earnings in the financial period ended prior to the annual interest payment date. The issue was executed through private placement with payment in kind, consisting of the conversion of loans held in SPORTING SAD by Novo Banco, S.A., amounting to 24 million Euros and by Banco Comercial Português, S.A., amounting to 56 million Euros.

• Acquisition of Participation Units of Sporting Portugal Fund, complying with a strategic management objective of SPORTING SAD of recovering economic rights previously disposed of by the Company in respect of the players making up the portfolio of the Sporting Portugal Fund, with SPORTING SAD acquiring 100% of the Participation Units (PUs) of that Fund, realizing to that effect a total investment of 12,650,000 Euros, it being our belief that this acquisition price will be recovered through the future sale of these economic rights.

• The General Meeting of 23 July 2013 also granted an authorization to the Board of Directors to carry out one or more capital increases of SPORTING SAD, in a total amount of 18 million Euros, to be realized in cash through private placement with (an) investor(s) of reference selected by the Company's Board of Directors, with suppression of the preemptive right of the shareholders.

The Company presents, as at 30 June 2017, a positive equity but inferior to an half of the share capital causing SPORTING SAD to be in the situation referred to in art. 35 of the Commercial Companies Code.

In this context, in compliance with the provisions of that article, the shareholders shall decide at the General Meeting as to the possibility of the:

• a) dissolution of the company;
• b) reduction of the share capital;
• c) realization of cash contributions that maintain, at least, a two-thirds coverage of the share capital; and / or
• d) taking of concrete measures aimed at maintaining, at least, a two-thirds coverage of the share capital.

Nevertheless, it is the opinion of the Board of Directors that the course charted for SPORTING SAD, with the guidelines previously announced, sustained and based on the financial restructuring project already implemented and taking into account the subsequent facts contained in the present report, will enable the SAD to create value, generate profits and overcome the situation in which it finds itself of having lost half of its share capital.

3. SUBSEQUENT EVENTS

Preparation of the 2017/18 squad

In the context of the squad preparation for sports season 2017/18, taking into account the sports objectives defined, and the need for an efficient and rational management of SPORTING SAD's professional squad, the following transactions related to athletes were undertaken:

I n c om ing ath let es D efin it ive	I n c o m in g at hletes	Tem p or ary	Ou t go in g at hlet	es D efinitive	Ou tgo ing ath let	es Tem po rar y	I nt er nal Op erat io ns
P layer C lu b	P layer	Club	P layer	C lu b	P layer	C lub	P layer Clu b
Jeremy Mathieu Free agent Marcos Acuña Racing Avellaneda	Stefan Ristovski (a) Fábio Coentrão	Rijeka FC	Ewerton Santos
				Nuremberg FC	Mama Baldé	CD Aves	Jonathan Silva Miguel Lopes
Romain Salin Guingamp FC	Pedro Paula	Real Madrid CF Fluminense FC	Marvin Zeegelaar Mamadu Candé	Watford FC North East United	Ryan Gauld Domingos Duarte	CD Aves GD Chaves	Matheus Pereira Azbe Jug Beto Pimparel
Pedro Mendes FC Moreirense			Ezequiel SchelottoBrighton FC		Matheus Pereira	GD Chaves
			Paulo Oliveira Adrien Silva	SD Eibar Leicester FC	Francisco Geraldes Leonardo Ruiz	Rio Ave FC Boavista FC
			Diogo Nunes	Boavista SAD	Luis Elói	Sintrense
					Luc Castaignos	Vitesse FC
					Simeon Slavchev Oriol Rosell	Lechia Gdansk Portimonense
					Héldon Ramos	Vitória SC
					Fabrice Fokobo Fábio Martins	Real SC Sporting Covilhã
					André Geraldes	Belenenses SAD
(a) Loan with buy option					Lukas Spalvis	Kaiserslautern
European competitions 2017/18
At the time of issuing the present report, Sporting is included in Group D of the Group
phase of the Champions League, together with Barcelona, Juventus and Olympiacos. The

European competitions 2017/18

At the time of issuing the present report, Sporting is included in Group D of the Group phase of the Champions League, together with Barcelona, Juventus and Olympiacos. The first game will take place on Greece, on 12 September.

II. ECONOMIC AND FINANCIAL ANALYSIS

In financial period 2016/17, SPORTING SAD presented a positive net income of 30,537 thousand Euros, a result substantially higher than that verified in the previous period (June 2017: negative 31,905 thousand Euros).

This variation is justified with different events, of which we highlight the growth of the revenue with the added values achieved with the sale of sports rights of players, a sustained growth in every business lines, an increase at Staff costs arising from the team investment, among other effects.

The main captions of the Income statement for the periods ended 30 June 2017 and 2016 are presented as follows:

Description	2016/17	2015/16
Total Revenue	172,998	77,306
Operational revenue excl. registration rights transactions	80,001	68,750
Revenue from players' registration rights	92,997	8,556
Rights transactions costs	(15,089)	(840)
Squad amortization and impairment losses	(18,359)	(9,332)
Operational costs	(96,926)	(78,494)
Net result for the period	30,537	-31,905

Graphically:

The results presented for season 2016/2017 confirm Sporting's assertion strategy that, having recovered from a negative period of its history, managed to increase the investment in its squad and in its academy.

In revenue terms, Sporting SAD, reaches the total amount of 173,000 thousand Euros, the highest value in history. This is a significant and sustained growth as result of the work done in the last few seasons.

The operational income excluding sports rights transactions achieved 80,000 thousand Euros, that represents an addition of 11,000 thousand Euros, justified by merchandising sales growth, ticket office and Gamebox (Season Tickets), advertising and sponsorships and others. Another relevant growth is related with UEFA competitions income, result of the presence in UEFA Champions League, which allows to get the amount needed to face Doyen litigation, given that the income related to this business line is retained until the end of the litigation process.

The amount of the capital gains with player transactions stood a record value at 93,000 thousand Euros which should be deducted the sales costs of 15,000 thousand Euros to get the added value of 78,000 thousand Euros. This amount is fundamentally related to the sale of the rights relating to João Mário, Slimani and Rúben Semedo.

1. Operational revenue and gains excluding registration rights' transactions and amortization and impairment losses of the squad

The operational revenue of SPORTING SAD evolved positively between seasons 2015/16 and 2016/17, recording an increase in excess of 11 million Euros, as follows:

Operational revenue and gains	2016/17	2015/16
UEFA participation	14,942	8,486
Other revenue and gains	11,462	11,336
TV rights	25,895	24,809
Sponsorships and advertising	11,684	9,921
Ticket office and season tickets	16,017	14,198
	80,001	68,750

Graphically:

As can be observed, this increase is explained mainly by the combined effect of (a) an increase in revenue from ticketing, (b) European competitions participation, (c) TV rights and (d) advertising and sponsorships.

2. Operational costs and losses excluding registration rights' transactions and amortization and impairment losses of the squad

As for SPORTING SAD's cost structure, financial period 2016/17 saw an increase in total expenditure incurred, associated with the above mentioned investment in the professional squad and academy. It should, however, be stressed that this does not imply any reversal in the cost containment policy, but rather a focus on a greater activity dynamic, aimed at

positioning SPORTING SAD, permanently, amongst the best Portuguese teams – a place, it must be stressed, is its by right -, which resulted in the assumption of higher costs.

Indeed, the 18,432 thousand Euros increase verified reflects, essentially, an increase in the caption Staff costs as result as the defined strategy of the strong investment in the squad. Additionally, the costs raise verified of 23% it's proportional to the operational income growth excluding sports rights transactions of 16%.

In absolute terms:

Operational costs and losses	2016/17	2015/16
Cost of merchandise sold	2,227	2,247
External supplies and services	18,120	17,342
Staff costs	63,998	48,865
Depreciation and amortization (excl. squad)	4,739	4,378
Provisions and impairment losses (excl. squad)	3,348	3,051
Other costs and losses	4,494	2,611
	96,926	78,494

Graphically:

Staff costs

In sports season 2016/17 the decision was made to invest heavily in strengthening the squad and the coaching team, anticipating a period of opportunity and of financial capacity

for this investment. Despite of the sports results were not achieved, it is considered that the success base it's created.

3. Transactions of players' registration rights and amortization and impairment of the squad

With regard to the squad, sports season 2016/17 was one of the best in Sporting SAD history. At 2015/2016 season, the transactions of player's registration rights were reduced for a strategical option and policy of selling just at the end of the summer transfer window to empower better sales and this exercise is the reflex of this strategy. Sporting SAD achieved the two highest sports rights sales ever – João Mário sold by 40,000 thousand Euros and Slimani by 30,000 thousand Euros. These values can be raised by objectives associated with the sports performance of the players. We highlight Slimani case, in which Sporting SAD has already billed an additional amount of 500 thousand Euros at 2016/2017 and in the beginning of 2017/2018 other additional amount of 500 thousand Euros.

Highlighting also the transaction of another Academy formed player, Rúben Semedo, for a value of 14,000 thousand Euros added of a 20% of a future sale, which allows the entrance of this transaction in the top 10 of history sales of Sporting SAD.

Transactions related to the squad / athletes	2015/16	2014/15
Amortization and impairment losses of registration
rights	-9 332	-10 816
Revenue from registration rights' transactions	7 716	28 002
Costs from registration rights' transactions
Gains / (Losses) with the squad	-1 616	17 186

4. Financial Position

SPORTING SAD presents, at 30 June 2017, an evolution of its financial position when compared to that of the previous year. In absolute terms:

Statement of financial position	2016/17	2015/16
Non-current assets	225,285	197,065
Current assets	91,212	27,274
Net equity	5,618	(24,954)
Non-current liabilities	120,351	142,776
Current liabilities	190,528	106,519

Graphically:

The increase in non-current assets reflects, for the most part, the increase in the value of the squad with highlight of the players Bas Dost and Bruno Fernandes acquired by, respectively, 11,850 thousand Euros and 9,690 thousand Euros (note 12).

In terms of current assets, the increase is significant – almost 64,000 thousand Euros, effect of the increase of Clients caption, derivative of the economic rights sales and the retention of UEFA income totalizing 17,100 thousand Euros at 30 June 2017.

In Equity, the impact is positive because the effect of Net Income result of 30,537 thousand Euros which raises the Equity to a positive value of 5,618 thousand Euros.

In Liabilities, the highlight goes to the increase of 25,000 thousand in Accounts Payable caption, essentially caused by the strong investment in the squad, the total bank debt reduction of 4,600 thousand Euros and the increase of current and non-current liabilities related with future assignments without recourse at the total value of 21,500 thousand Euros, respectively 16,900 thousand Euros and 4,500 thousand Euros.

The working capital worsens almost 20,000 thousand Euros, but if we consider that the bond loan value of 30,000 thousand Euros terminates at May 2018, which in the last report was recorded as non-current liabilities and in this report is recorded as current liabilities, we can conclude an improvement of 10,000 thousand Euros in Working Capital.

III. COMPANY PROSPECTS

The situation set down in this report and the results presented follow the path set by the current Board of Directors, aimed at rapidly creating conditions for the sustainability of the Company. With a significant improvement in the sports results being evident in this

financial period, and consequent financial impacts, it is foreseen that, in collaboration with all stakeholders, the Company will confirm these intentions and will be able to create the conditions that will enable it to maintain a balanced situation, seeking to recreate the sports successes of the past, whilst ensuring, always, the maintenance of positive operational accounts. Hence, the aforementioned financial restructuring plan, supported by the banking creditors and the shareholders, will permit a restructuring of the accounts whilst at the same time opening up growth prospects for the economic activities of the Company in Portugal and abroad. Therefore, we want to keep the revenue growth, grounded on a cost and investment increase base but balanced and sustained.

The future sports "wager" will always focus on an increased investment in young players with growth potential, at the Sporting Schools and at other partner clubs, national and international, maintaining always the perspective of social responsibility and the preservation of young athletes' rights, coordinating the physical growth of these with their psychic and social development. This investment justifies the acquisition of athletes with more experience to bring more capability for the squad.

Efforts will be made to increase the Company's revenue, be it through the maximization of the so-called "classic" revenue or through the creation of other activities that generate positive cash flows, such as, for example, at the level of sporting bets (which legislative framework, recently published, requires some adjustments) and via the transfer of knowhow through the SPORTING Academies, the latter not only integrating football but also the other sports areas developed by SPORTING CP.

In terms of Company expenditure, the current Board of Directors' focus is on setting limits based on estimated revenue, seeking to obtain and maintain positive net results, and creating the bases for a sustained recovery of the equity.

The Company will implement measures to enhance its own projects or those developed in partnership that increase the levels of sustainability, in terms of its social, economic and environmental pillars.

IV. TREASURY STOCK (OWN SHARES)

SPORTING SAD holds, at 30 June 2017, 20 own shares acquired via the merger with Sporting Património e Marketing.

V. SHARE PRICE QUOTATIONS OF SPORTING SAD

The evolution of the Sporting SAD share price quotation and transactions volume, from 1 July 2016 through 30 June 2017, is presented below:

VI. STATEMENTS OF THE MANAGEMENT BODY

Under the terms and for the purposes of paragraph c) of no. 1 of art. 245 of the Securities Code, the Directors of Sporting Clube de Portugal - Futebol, SAD declare that, to the best of their knowledge, the information for the financial period ended on 30 June 2017, was prepared in accordance with the applicable accounting standards, providing a true and fair view of the assets and liabilities, financial position and results of the Company. They furthermore declare that the Management Report accurately reflects the evolution of the business and the Company's performance and that it contains a description of the main risks and uncertainties faced.

VII. PROPOSAL FOR THE APPROPRIATION OF RESULTS

The Board of Directors proposes that the positive Net Result of 30,537,122.64 Euros (thirty million, five hundred and thirty-seven, one hundred and twenty-two Euros and sixty-four Cents) be transferred to Retained Earnings.

Lisbon, 7 September 2017

The Board of Directors

Chairman Bruno Miguel Azevedo Gaspar de Carvalho

Members

Carlos Fernando Barreiros Godinho Vieira Guilherme José Araújo da Costa Carracho Lourenço Pinheiro Rui Pereira Caeiro Nuno Jorge Lopes Correia da Silva

Sporting Clube de Portugal - Futebol SAD Annual Report | 2016/2017 | #26

Income statement for the period ended on 30 June 2017 and 30 June 2016

Income statement for the period ended on 30 June 2017 and 30
June 2016
		EUR'000	EUR'000
	Notes	30.Jun.17	30.Jun.16
Operating income and gains
Sales and services rendered Other operating income	2 3	61,403 18,598	56,100 12,650
Other operating income excluding transactions with players registration		80,001	68,750
Other operating costs
Cost of sales		(2,227)	(2,247)
External supplies and services	4	(18,120)	(17,342)
Payroll costs	5	(63,998)	(48,865)
Depreciation and amortization excluding players' registration Provis ion and impairment loss excluding players' registration	6	(4,739) (3,348)	(4,378) (3,051)
Other operating costs	7	(4,494)	(2,611)
Other operating costs excluding transactions with players' registration		(96,926)	(78,494)
Operational results excluding transactions with players registration		(16,925)	(9,744)
Amortization and impa irment loss on players registration	8	(18,359)	(9,332)
Income with players regis tration	9.1	92,997	8,556
Loss with pla yers registration	9.1	(15,089)	(840)
Operational results with players registration		59,549	(1,616)
Operational results (before other non current costs)		42,624	(11,360)
Other non-recurring costs	9.2	-	(14,991)
Operational results		42,624	(26,351)
Financial res ults	10	(7,427)	(5,760)
Profit before tax		35,197	(32,111)
Income tax	27	(4,660)	206
Net profit		30,537	(31,905)
	18	0.456	(0.476)
Basic earnings per share (Euros)

Balance Sheet as of 30 June 2017 and 30 June 2016
		EUR'000	EUR'000
	Notes	30.Jun.17	30.Jun.16
Non-current assets
Tangible assets	11	21,083	20,285
Intangible as sets - Pl ayers regis tration	12.1	59,544	32,070
Other intangi ble as sets	12.2	140,576	143,395
Other non current ass ets - Accounts recei vabl e	13	4,082	1,315
Total non-current ass ets		225,285	197,065
Current assets
Accounts receivable	14	56,559	11,625
Inventories		960	923
State and other publi c entities	23	-	613
Other current receivables Other current ass ets	16 17	5,790 21,597	4,707 6,082
Cash and cas h equivalents	15	6,306	3,324
Total current as sets		91,212	27,274
Total Assets		316,497	224,339
EQUITY AND LIABILITIES
Share capital	18	67,000	67,000
Share premium Marketable s ecurities mandatorily convertibl e	18 18	6,500 127,925	6,500 127,925
Reserves and retained earnings	18	(226,344)	(194,474)
Net profi t	18	30,537	(31,905)
Total Equity		5,618	(24,954)
Non current liabilities
Provisi ons Liabili ties and others pos t-empl oyment benefits	19 28	11,856 3,615	10,814 3,350
Borrowings	20	36,265	88,119
Other non current liabil iti es	21	68,615	40,493
Total non current li abilities		120,351	142,776
Current liabilities
Provisi ons Borrowings	19 20	13,414 91,106	14,991 43,936
Accounts payable	22	41,111	16,144
State and other publi c entities	23	3,044	4,202
Other current payables Other current liabil iti es	24 25	22,770 19,083	14,971 12,273
Total current liabilities		190,528	106,517
Total Liabilities		310,879	249,293
Total Equity and Liabilities		316,497	224,339

Balance Sheet as of 30 June 2017 and 30 June 2016

Statement of Comprehensive Income for the periods ended on 30 June 2017 and 30 June 2016

Statement of Comprehensive Income for the periods ended on
30 June 2017 and 30 June 2016	Notes	EUR'000 30.Jun.17	EUR'000 30.Jun.16
Net profit		30,537	(31,905)
Items subject to reversal on net i ncome:		-	-
Items subject to reversal on equi ty:
Remensurações Remeasurements	28	35	(115)
Total comprehensive income for the period		30,572	(32,021)
	Statement of Changes in Equity

for the periods ended at 30 June 2017 and 30 June 2016 Statement of Changes in Equity

					Notes	EUR'000 30.Jun.17		EUR'000 30.Jun.16
	for the periods ended at 30 June 2017 and 30 June 2016 Notes
		Share capital	Share premium	Other equity	Legal reserve	Other reserves	Retained earnings	Net profit	Total equity
Balance as of 1 July 2016		67,000	6,500	127,925	3,506	(10,721)	(187,259)	(31,904)	(24,954)
ApplicaƟon of prior year's net profit Net profit		-	- - -	- -	- -	- -	(31,904) -	31,904 30,537	- 30,537
Others (Remeasurements)	28	-	-	-	-	-	35	-	35
Balance as of 30 June 2017		67,000	6,500	127,925	3,506	(10,721)	(219,129)	30,537	5,618
Balance as of 1 July 2015		67,000	6,500	127,925	3,506	(10,744)	(206,477)	19,333	7,043 -
ApplicaƟon of prior year's net profit Net profit		- -	- -	- -	- -	- -	19,333 -	(19,333) (31,904)	- (31,904)
Other operations with shareholders Others (Remeasurements)	28	- -	- -	- -	- -	23 -	- (115)	- -	(115) -

Cash Flow Statement for the periods ended on
30 June 2017 and 30 June 2016

Cash Flow Statement for the periods ended on
30 June 2017 and 30 June 2016
	EUR'000	EUR'000
	30.Jun.17	30.Jun.16
Operating activities
Receipts from customers, UEFA and group companies Payments to suppliers	95,664 (28,011)	53,932 (16,551)
Payments to the State	(39,276)	(29,598)
Payments to personnel	(33,322)	(23,721)
Cash Flow from operating activities	(4,945)	(15,938)
Income tax received/(paid) Other receipts /(payments) related to operating activities	(442) (187)	(433) (1)
Cash Flow from operating activities (1)	(5,574)	(16,372)
Investment activities Inflows:
Borrowings	-	-
Intagible assets - players registrations	53,333	26,209
	53,333	26,209
Outflows:
Tangible assets	(1,898)	(1,176)
Intagible assets - players registrations	(24,871)	(17,774)
	(26,769)	(18,950)
Cash flow from investing activities (2)	26,564	7,259
Financing activities
Inflows:
Investment funds/parterships	-	-
Borrowings Other equity instruments	22,106 -	26,953 -
	22,106	26,953
Outflows:
Investment funds/parterships	(3,928)	-
Borrowings	(30,803)	(21,071)
Interests and similar costs	(5,383) (40,114)	(4,040) (25,111)
Cash flows from financing activities (3)	(18,008)	1,842
Change in cash and cash equivalents (4)=(1)+(2)+(3)	2,982	(7,271)
Cash and cash equivalents at the beginning of the year	3,324	10,595
Cash and cash equivalents at the end of the year	6,306	3,324

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2017 Introduction

SPORTING CLUBE DE PORTUGAL – Futebol, SAD (henceforth designated by "Sporting SAD", "SAD" or "Company"), headquartered in José de Alvalade stadium in Lisbon, was constituted by public deed on 28 October 1997, with an initial capital of Euro 34.9 million, with a call for public subscription, governed by the special legal regime established by Decree-Law No. 67/97 of 3 April.

On 30 November 2010, Sporting SAD acquired SCS – Sporting Comércio e Serviços SA equity to Sporting Clube de Portugal and Sporting SGPS. Posteriorly, a merge between SCS and Sporting SAD occurred since both societies had similar corporate purposes and mutual benefits could be generated by the combination and concentration of both companies.

On 21 November 2014 a public deed for the merge by incorporation between Sporting Patrimonio e Marketing, SA and Sporting SAD was granted. The merge followed the legal means provided by point a), paragraph 4 of Article 97 of the Portuguese Companies Code - mergers by incorporation - and therefore the assets of Sporting Patrimonio e Marketing SA (merged company) were transferred to Sporting SAD (acquiring company), with the consequent extinction of the first, which led to an increase in share capital of the company by an amount of Euro 8 million.

The Company's social object is the participation in professional football competitions, promotion and organization of sports events as well as the promotion and development of activities related to professionalized football. Sporting SAD securities (shares) are listed on Euronext Lisbon.

Head Office Estádio José de Alvalade - Rua Professor Fernando da Fonseca - Lisboa Share Capital Euro 67.000.000 (67 million of shares with a nominal value of 1 Euro) T.I.N. 503 994 499

The detail of shareholders of the company is disclosed in note 18.

This Financial Statements were approved by the Board of Directors on 7 September 2017.

It is the Board of Directors conviction that to the best of their knowledge, the information contained in this report was prepared in accordance with the applicable reporting framework give a true and fair view of the assets and liabilities, financial position and results of the Company.

FINANCIAL RESTRUCTURING OCURRED IN THE PERIOD Signing of the financial restructuring agreement

On 14 November 2014 a Financial Restructuring Framework Agreement was signed between Sporting SAD, Sporting Clube de Portugal (SCP), Sporting SGPS, Sporting Património e Marketing, SA (SPM) as well as Banco Comercial Português SA and Novo Banco SA.

The Framework Agreement comprised a set of measures and operations which included, among others: (i) renegotiation of terms and conditions of the existing bank loans by hiring new credit lines with more favorable terms for the SCP Group; (ii) repayment of inter-group balances, including the debt of the SCP to Sporting SAD; (iii) capital increase of Sporting SAD for debt conversion of SAD to Holdimo Participações e Investimentos SA and; (iv) new cash entries to be made by foreign investors, as well as the issuance of new marketable securities mandatorily convertible in shares of Sporting SAD by Banks debt conversion.

On 28 November 2014, the new credit lines facility agreements of Sporting SAD and SCP were signed as well as the financial lease of the Academy, which included the terms and conditions of the restructured debt.

Merge of SPM in Sporting SAD

On 21 November 2014, the deed of SPM (incorporated society) with Sporting SAD (acquiring company) in the form of merger was performed, pursuant to point a), paragraph 4 of Article 97 of the Portuguese Companies Code, to transfer the assets of SPM, which included the extension of the surface rights of the José Alvalade stadium and the multisport building worth Euro 73 million, whose term expires on 4 April 2063. The merger had accounting impacts from 1 October 2014, onwards. That merger resulted in an increase in share capital of the Company in the amount of Euro 8 million, which rose to Euro 47 million.

It should be noted that SPM had as social object the development, construction, management and operation of the new stadium, including all operations related to the management and administration of the interior and exterior of the stadium and its facilities, recreational areas incorporated into the new stadium, commercial activity in general and marketing, marketing of brands and image rights, by any means or media and the organization of events of all kinds, namely, cultural, sports and music. By merging these activities and the substantial resources required for its implementation were transferred to the sphere of Sporting SAD.

Increase of share capital by Holdimo SA

On 21 November 2014, was also granted a public deed of capital increase in cash, amounting to Euro 20 million, realized by incorporating a credit of the equal amount held by Holdimo society - Participações e Investimentos SA, subscribed by the issuance of

twenty million new shares with a nominal value of Euro 1 each, and as a result, the Company's capital was again increased to Euro 67 million.

Issuance of convertible bonds

On 16 December 2014, the Company issued marketable securities mandatorily convertible into shares of the Company (convertible bonds), amounting to Euro 80 million, with a nominal value of Euro 1 each, with a term of 12 years, at subscription price of Euro 1 each.

The former will be convertible into common shares (category B) of Sporting SAD with a conversion price of Euro 1 each, with gross annual interest conditional rate of 4% due when there are distributable earnings by Sporting SAD in the financial year ended prior to the date payment of annual interest.

The issuance was carried out through private subscription with cash payments consisting of the conversion of credits held on the Sporting SAD by Novo Banco, SA, amounting to Euro 24 million and Banco Comercial Português, SA, amounting to Euro 56 million.

On 8 January 2016, by deliberation of the marketable securities mandatorily convertible holders in an general assembly, and regarding the issuance named "VALORES SPORTING 2010" a modification of the following terms and conditions of bonds issued on 14th January of 2011, with a nominal value of 1 Euro, totaling Euro 55 million was made as follows:

• Change of maturity date of the issuance, being the due date of marketable securities mandatorily convertible on 26 December 2026, Nevertheless, the assumptions of early due date, in the cases provided for in 14.5.5 paragraph of the respective prospectus still apply.
• Change in the interest payment terms, as the marketable securities mandatorily convertible grant the right to receive interest conditioned on gross and fixed nominal annual rate of 4% (four per cent) which will be due whenever there will be distributable earnings by Sporting SAD in the financial year ended prior to the date of payment of annual interest.

Acquisition of participating Units of Sporting Portugal Fund

On 23 February 2015, following the Framework Agreement and considering the strategic goal of Sporting SAD to regain the economic rights on players' registrations, that were previously alienated by the Society and which composed the Sporting Portugal Fund portfolio, Sporting SAD has acquired 100% of the Fund's participation Units, representing a total investment of Euro 12,650,000. The board of directors considers that the amount paid on this acquisition will be fully recovered with the future sale of the economic rights.

The Fund was liquidated on 1 June 2015, and terminated on 5 June 2015, with the consequent transfer of existing economic rights in the assets of the respective portfolio for Sporting SAD, as the sole participant of the Fund.

Other planned operations

It should also be noted that under the financial restructuring plan of the Company, during the General Meeting held on 23 July 2013, and after the approval by the General Meeting of Sporting Clube de Portugal on 30 June 2013, on which was approved the Board of Directors to carry out one or more Sporting SAD's capital increases totaling Euro 18 million, to be made by new cash entries through private placement by the Board of Directors of the Company, with suppression of the preferential right of shareholders with the issuance of Euro 18 million new ordinary and nominative shares with a nominal value of Euro 1 each and the subscription price of Euro 1 each.

Finally, as part of the Financial restructuring agreement signed on 14 November 2014 between SCP Group and the banks (Millenniumbcp and Novo Banco), Sporting SAD is expected to issue new MSMC in a total amount of € 55,000,000, under the similar terms and conditions to the "VALORES SPORTING 2014", to be subscribed by the banks. The Board of Directors of the Company considers that this operation proves to be of great importance as it has contributed to the improvement of Sporting SAD's equity and is therefore analyzing and structuring the transaction, together with its legal and tax advisors.

1 SUMMARY OF THE MOST SIGNIFICANT ACCOUNTING POLICIES

The most significant accounting policies applied in the preparation of the financial statements are described below. The accounting policies were applied consistently during the years presented.

1.1 Basis of preparation

The financial statements presented report to the period ended on 30 June 2017. The financial statements have been prepared in accordance with the International Financial Reporting Standards adopted by the European Union ("IFRS"), formerly referred to as International Accounting Standards ("IAS") issued by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") or the former Standing Interpretations Committee ("SIC"), in force at the time of such financial statements preparation.

Under Regulation No. 11/2005 issued by the CMVM, Sporting SAD from 1 July 2007 (reference date of the first financial year after 31 December 2006) presents its financial statements in accordance with IFRS.

The financial statements are expressed in thousands of Euro, rounded to the nearest thousand.

These financial statements were prepared in accordance with the historical cost principle. Sporting SAD does not record any asset or liability at fair value.

The preparation of the financial statements requires usage of estimates and significant judgments when applying accounting policies of the Company. Main assertions, involving a higher degree of judgment or complexity, or the most significant assumptions and estimates for the preparation of these financial statements, are disclosed in Note 1.29.

The financial statements have been prepared on a going concern basis, which is subject to compliance with the financial restructuring plan contracted on 14 November 2014, with the main donors, Banco Comercial Português and Novo Banco.

It is the Board of Directors of Sporting SAD firm conviction that the current financial restructuring is based upon feasible and acceptable economic and financial assumptions, and so the continuity of the Company's operations is ensured, taking into account that the measures already provided for the restructuring allowed the Company to increase its equity and simultaneously provide the Management with the necessary financial resources for business and operations.

The objective of the Board of Directors of Sporting SAD is to continuously develop the necessary diligences in order to improve, with the necessary sustainability, the economic and financial performance achieved this year.

1.2 Financial Statements comparability

The amounts shown in the financial statements for the year ended on 30 June 2017 are entirely comparable with the figures for the year ended on 30 June 2016.

1.3 New standards, changes and interpretations of existing standards.

	1.3 New standards, changes and interpretations of existing standards.
Description 1 . Standards that bec ome effective on or after January 1	Modific ation , 20 1 8, already endorsed by the EU	Effec tive Date
· IFRS 9 – Financial Instruments	Nova norma para o tratamento contabilístico de instrumentos financeiros	1 january 2018
· IFRS 15 – Revenue from contracts with customers	Reconhecimento do rédito relacionado com a entrega de ativos e prestação de serviços, pela aplicação o método das 5 etapas.	1 january 2018
2 . Standards (new and c 2 .1 Standards	hanges) and interpretations that bec ome effective on or after 1 January 20 1 7 , not yet endorsed by the EU
· IAS 7 – Statement of cash flows	Reconciliation of changes in financing liabilities with cash flows from financing activities.	1 january 2017
	Recording of deferred tax assets on assets measured at fair value, the impact of
· IAS 12 – Income es	deductible temporary differences in the estimate of future taxable income and the impact of the restrictions on the ability to recover deferred tax asset	1 january 2017
· IAS 40 – Investment property	Clarification that evidence of change of use is required to effect the transfer of assets to	1 january 2018
	and from the investment property category
· IFRS 2 – Share-based payment	Measurement of financially settled share-based payment plans, accounting for changes, and classification of share-based payment plans as settled in equity, when the employer	1 january 2018
	is required to withhold tax. Temporary exemption from the application of IFRS 9 for insurers for the years beginning
· IFRS 4 – Insurance contracts (application of	before 1 January 2021.
IFRS 4 with IFRS 9)	Specific regime for the assets under IFRS 4 that qualify as financial assets at fair value through profit and loss in IFRS 9 and as financial assets at amortized cost in IAS 39, being	1 january 2018
	allowed to classify the measurement difference in Other comprehensive income
· Changes at IFRS 15 – Revenue from contracts	Identification of performance obligations, recognition of PI license revenue, review of indicators for the classification of the main versus agent relationship, and new regimes	1 january 2018
with customers	for the simplification of the transition.
· IFRS 16 - Leases	New lease definition. New accounting of lease contracts for lessees. There are no changes	1 january 2019
	to the booking of rentals by lessors.
· IFRS 17 – Insurance Contracts	New accounting for insurance contracts, reinsurance contracts and investment contracts	1 january 2021
	with discretionary participation characteristics.
· Improvements to standards 2014 - 2016	Clarifications: IFRS 1, IFRS 12 and IAS 28	1 january 2017/ 1 january 2018
2 .2 - Interpretations
	Exchange rate to be applied when consideration is received or paid in advance	1 january 2018
· IFRIC 22 – Foreign currency transactions and	Clarification on the application of the principles of recognition and measurement of IAS	1 january 2019
advance consideration · IFRIC 23 – Uncertainly over income tax treatments	12 when there is uncertainty about the tax treatment of a transaction

· IFRIC 22 – Foreign currency transactions and advance consideration
· IFRIC 23 – Uncertainly over income tax treatments	Clarification on the application of the principles of recognition and measurement of IAS 12 when there is uncertainty about the tax treatment of a transaction	1 january 2019

Up to the date of issuance of this report, Sporting SAD had not yet concluded the estimation of the effects of changes arising from the adoption of these standards, for which it decided not to adopt them on an earlier basis. However, no material effect is expected in the financial statements as a result of their adoption.

1.4 Tangible Assets

Tangible assets are measured at acquisition cost deducted from depreciation and impairment losses. The acquisition cost includes all the expenditures immediately incurred to the acquisition of current goods.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits will flow to the Company and the respective cost can be reliably measured. All other repairs and maintenance costs, other than the planned maintenance, are charged to the income statement in the financial period in which they are incurred. Depreciation is calculated over the acquisition cost, using the straight line method, as from the date the asset is available for use, using the rates that best reflect the estimated useful life for each group of assets, as follows: Useful life Buildings and other constructions 8-40 Bas ic equipment 4-8 Transportation equipment 7 Administrative equipment 2-8 Other tangible ass ets 5-8 The residual values of the assets and their respective useful lives are reviewed and adjusted whenever necessary as of the reporting date. If the book value of the asset is higher than the asset's realizable value, then it is written down to the estimated recoverable amount through the recognition of impairment losses (Notes 6 and 11).

Gains or losses arising from the derecognition or disposal of tangible assets are calculated as the difference between the proceeds received on disposal and the asset's book value, and are recognized in the income statement as other operating income or costs.

Sporting SAD performs impairment analysis whenever there are signs that the net book value of the assets is greater than the net realizable value, an impairment loss is recognized whenever the net book value exceeds the recoverable amount. The impairment losses are recognized as period costs.

The recoverable amount is determined by the greater amount between the sales net price and the value in use, being this one calculated as the actual value of the future cash flows estimated to be obtained from the continued useful and from the disposal amount in the end of its useful life.

1.5 Intangible Assets

Squad

The squad value included on intangible assets is booked at acquisition cost less accumulated amortization and impairment losses. The intangible assets are only recognized if it is likely that they will result in future economic benefits for Sporting SAD, are controlled by the Company and can be measured reasonably.

This accounting caption contains the incurred costs with the acquisition, registration and economic rights of professional players as well as other expenses connected, such as the intermediation commissions' basis and signature prizes, net from the accumulated depreciation and impairment losses. As such, the cost amount of acquisition incorporates the holder entity reimbursement amount and other intermediate costs on the transaction.

When the reimbursements related with the sports rights acquisition of players generates an obligation that is dependent of future factors not fully under the Company control, particularly when the payments are subordinate to player work contract maintenance, those future obligations are not considered on the initial acquisition value, and subsequently, on the liability, being recognized in period results according with the service line.

The sports rights of players are subject to amortizations on a monthly basis, on a straight line method over the period of the contracts, in accordance with Law No. 103/97 of 13 September.

The expenses incurred with the renewal / extension of sports employment contracts with players are also recorded under this caption and a new net book value is calculated, which is amortized according to the new period of employment.

At the time of actual sale of the players' rights, the gains and losses from the sale are recognized in the income statement. In situations where Sporting SAD continues to hold a certain percentage of economic rights in the future is disclosed as contingent assets.

Situations where Sporting SAD owns less than 100% of the economic rights while maintaining all the sports right, means that Sporting SAD concluded with third an association agreement of economic interests which constitutes an investment partnership, resulting in the proportional sharing of the results related to the future transaction of these rights, remaining as intangible assets in the Statement of Financial Position of Sporting SAD.

In situations where Sporting SAD has players transferred temporarily to other entities, these players are part of the value of the squad, since there is no actual sale. Thus, the expenses incurred on the acquisition of athlete passes which are temporarily transferred to third party clubs remain an intangible asset in the Statement of Financial Position of Sporting SAD, maintaining the amortization criteria for as long as the contract is in force.

Sporting SAD performs impairment tests annually and also when there are indications that its assets have a net book value exceeding the estimated realizable value, and therefore an impairment loss is recognized when the net value of the asset exceeds its recoverable amount. These impairment losses are recognized in the income statement.

Others

Intangible assets are only recognized when they are identifiable, controllable and can be reasonably measured and when it is likely that they will generate future economic benefits for the Company.

Intangible assets are recorded at cost less depreciation and impairment losses, by the straight line method. The useful lives and depreciation method are reviewed annually. The effect of changes in these estimates is recognized prospectively in the income statement.

The intangible assets include mostly the surface rights of the José Alvalade stadium and multisport building, whose term ends on 4 April 2063. It will be amortized over the duration of the term.

Sporting SAD performs impairment tests annually and also when there are indications that its assets have a net book value exceeding the estimated realizable value, and therefore an impairment loss is recognized when the net value of the asset exceeds its recoverable amount. These impairment losses are recognized in the income statement.

For the purpose of conducting impairment tests of intangible assets, the former are associated with the lowest cash-generating unit to which it belongs (stadium).

1.6 Leases

Tangible fixed assets acquired under financial leasing contracts and the corresponding liabilities are recorded using the financial method.

According to this method the cost of the asset is recorded in tangible fixed assets, the corresponding liability is recorded in Interest-bearing liabilities heading, the interest included in the lease installments and depreciation of the assets, calculated as described in Note 1.4, is recorded as an expense in the income statement for the year to which they relate.

Leases in which a significant portion of the risks and associated rewards of ownership are retained by the tenant are classified as operating leases. Payments made under operating leases, net of any incentives received from the lessor, are recorded in the income statement during the lease term.

1.7 Granted Loans and other non-current receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in the market. They arise when the Company provides money, goods or services directly to a debtor with no intention of trading the receivable.

They are included in current assets, except when dealing with assets with maturities greater than 12 months after the date of financial position. These are classified as noncurrent assets.

Loans and receivables are measured initially at fair value and subsequently at amortized cost.

Impairment losses are recorded when there is objective evidence that the Company will not receive the amounts due according to the original terms of receivables. To this end, the Company takes into consideration market information showing:

• If the counterparty presents significant financial difficulties;
• If there are significant delays in payments by the counterparty;
• If it is probable that the debtor will go into liquidation.

Any impairment losses are recognized as an expense in "Impairment losses on receivables", reflecting their expected net realizable value.

1.8 Impairment of non-current assets, excluding goodwill

Impairment tests are made whenever events or changes in circumstances indicate that the carrying amount of the asset recorded may be greater than its recoverable amount. When the recoverable amount of an asset is less than the amount for which an impairment loss is recorded it is recognized in the income statement.

The recoverable amount is the higher between the net selling price and value in use. Net selling price is the amount obtainable from the sale of an asset in a transaction between knowledgeable parties, less its disposal costs. The value in use of an asset is the present value of estimated future cash flows arising from its continued use until the end of its useful life. The recoverable amount is estimated for each individual asset.

When there are indications that impairment losses recorded in prior years have been reversed or reduced a reassessment of the situations that gave rise to the impairment record is performed. The reversal of the impairment is recorded in the income statement and is made up to the amount that would be recognized, net of amortization, if the impairment loss had not been recorded in previous periods.

1.9 Trade and other current receivables

The balances from customers and other current receivables are recorded at nominal value less impairment losses necessary to place them at their expected net realizable value.

Financial assets are derecognized when the rights to receive cash flows from the assets expire or transferred to other parties, such as all the risks and rewards of ownership. The transference of the right to receive cash flows from the assets (e.g.: factoring) only gives

way to its write-off in the case where the credit risk and default are transferred to a third party. Otherwise the amount received for the transfer is treated as borrowings.

Impairment losses are recorded when there is objective evidence that the Company will not receive the amounts due according to the original terms of receivables. To this end, the Company takes into consideration market information showing:

• If the counterparty presents significant financial difficulties;
• If there are significant delays in payments by the counterparty;
• If it is probable that the debtor will go into liquidation.

The amounts receivable that are represented by discounted bills not yet due at the balance sheet date are recognized in the financial position until the date of receipt.

1.10 Inventories

Inventories are valued at the lower between the cost and net realizable value. Inventories are initially recognized at cost, which includes all costs incurred and commercial discounts obtained in the purchase process until the entry into storage. For the purposes of valuation of warehouse outlets, the Company uses the weighted average cost.

1.11 Cash and Cash Equivalents

The cash and cash equivalents includes the amounts registered in balances with maturity of less than three months and also the cash and deposits in credit institutions, whose values are considered in the statement of cash flows.

The cash and cash equivalents includes cash, bank deposits and other short-term investments with original maturities of 3 months which can be mobilized immediately without any significant risk of fluctuations in value.

1.12 Equity

Common shares are classified as equity. The costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, to the amount received from the issue.

Expenses directly attributable to the issue of new shares or options for the acquisition of a business are included in the acquisition cost as part of the purchase price.

1.13 Financial liabilities

Financial liabilities are initially recognized at fair value, net of transaction costs incurred and subsequently stated at amortized cost. Any differences between the proceeds (net of transaction costs) and redemption value are recognized in the income statement over the debt period, using the method of effective interest rate.

Any differences between the estimated refunds at baseline and reimbursements actually paid over the duration of financing implies the revaluation of amortized cost using the present value calculation of estimated future repayments at the original effective interest rate. The corresponding adjustment is recognized in earnings.

Financial liabilities are classified as current liabilities unless the Company has an unconditional right to defer the settlement of the liability for at least 12 months after the date of financial reporting.

1.14 Financial costs on loans

Financial charges related to loans, are generally recognized as financial costs, in accordance with the accrual basis.

Financial charges on loans directly related to the acquisition, construction (if the construction period exceeds one year) or production of fixed assets are capitalized as part of the cost of the asset.

Capitalization of these charges begins after the start of preparation for construction or development of the asset and is suspended after its utilization begins or when the execution of the project is suspended or substantially complete.

1.15 Compound financial instruments

Financial instruments other than derivatives that contain a liability component and an equity component are classified as compound financial instruments.

The mandatorily convertible securities fall within the definition of compound financial instruments given their mandatory conversion into the Company's equity instruments at maturity.

For these instruments to be considered as compound financial instruments, the number of shares to be issued upon conversion is determined on the date of issue and do not vary with changes in their fair value.

The liability component of a compound financial instrument is recognized initially at the present value of the future interest payments, discounted at the market interest rate applicable to similar liabilities that do not have a conversion option. The equity component is recognized initially as the difference between the current value of the compound financial instrument and the present value of the liability component. Transaction costs directly attributable to the issuance are allocated to the liability and equity components in proportion to their initial balance values.

Subsequently, the liability component of a compound financial instrument is measured at amortized cost, recognizing the interest cost on results through the effective interest rate method. The equity component value is not re-evaluated after initial recognition except on conversion events or maturity of the instruments.

To measure the financial liability component, the obligation to pay interests or delivery of cash does not need to occur in a certain form; it may be contingent on the occurrence or non-occurrence of future events (or result of uncertain circumstances) that are out of control of the issuer and the subscriber – the existence of a contingent obligation.

There are 3 exceptions for an event of circumstance not controlled by the issuer not to meet the definition of a contingent obligation event, as stated by IAS 32.

• When the event is "not genuine" according to the definition of IAS 32.
• When the issuer only has to fulfill the obligation at the time of liquidation of the company;
• The instrument has a put option or creates an obligation on liquidation;

A contingent obligation is not genuine if the obligation of the delivery of cash or other financial asset only occurs as a result of an event extremely rare, unusual or a low probability of occurrence, in this case the contingent obligation is not considered for purposes of the financial instrument classification, ie to assess whether there is characteristic of debt or equity.

1.16 Trade and other payables

Suppliers and other creditors are classified according to their maturity is less than 12 months from the date of the balance sheet in current liabilities or non-current, respectively.

Supplier's balances and other payables are initially recorded at fair value and subsequently measured at amortized cost.

1.17 Provisions

Provisions are recognized when the Company has a legal, contractual or constructive obligation as a result of past events, it is likely that an outflow and / or surrender of resources will be made in order to settle the obligation; and that a reliable estimate of the obligation's amount can be calculated.

Provisions are measured at the present value of expenses that are expected to incur to comply with the obligations of Sporting SAD. If applicable, the effect of temporal adjustment of the obligation is recognized in the income statement.

Provisions are not recognized for future operating losses. Provisions are reviewed at the reporting date and adjusted to reflect the best estimate at that date.

1.18 Revenue recognition and accrual

Sporting SAD records its income and expenses, as they are generated, in accordance with the accrual basis, regardless of when they are received or paid.

The differences between the amounts received and paid and the corresponding income and expenses are recorded under "Other current assets" and "Other current liabilities".

The revenue from sponsorship, advertising, broadcasting rights for football games and concession areas is recognized according to the duration of the respective contracts.

The income from the ticket office is recognized as revenue at the time the games are held. Revenues from the sale of season tickets are recognized throughout the sports season.

Revenues and game premiums are recognized by Sporting SAD in income in the period in which they are performed.

Fixed bonuses obtained from the right to participate in European football competitions are recognized in the year in which the participation in these competitions occurs.

Results from the alienation of sports rights of players are recorded in the income statement as gains on transactions of players' sports rights by the total amount of transaction net of the book value at the date of the sale and other expenses incurred, including spending on intermediary services, charged responsibilities with the solidarity mechanism, among others. Where relevant, it is considered while determining the transaction value, the effect of the financial discount of related non-current receivables. The recognition of revenue is made in the period in which it is considered that the risks and benefits of sports rights of professional players substantially transferred.

When risks and benefits are not significantly transferred, the financial flows resulting from the conclusion of these contracts with partners / investment funds are recorded in liabilities.

At the time of sale of a player's registration, the values to deliver to the fund from the sale to a third party, correspond to the proportional part of the economic rights transferred to the fund, and if applicable, net of amounts paid by the fund for the cost of sale. These costs are recorded on "gains on transactions of players 'sports rights" in situations where it is distinct from the liability recorded at the date of sale.

Gains arising from the compensation received from the transfer of players to third parties are recognized with their contractual commitment within the period to which the transfer relates.

Gains associated to the solidarity mechanism by which the entity that formed the player is entitled to compensation in the event of subsequent transfer of players registration, are recognized at the time that Sporting SAD becomes entitled to receive such compensation.

Financial gains such as interests are recognized in accordance with accrual basis, considering the amount receivable and the effective interest rate over the period to the maturity.

1.19 Financial results

Net financing costs include interest paid on loans, interest received from financial applications, dividends received, gains and losses from foreign exchange differences, gains and losses on financial instruments and changes in fair value of the hedged risk and effects of differences on the fair value of debts if applicable.

Interest payable is recognized in accordance with the accrual basis, considering the effective interest rate. Interest on financial leases is recognized as an expense over the leasing period, in order to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

1.20 Transactions expressed in foreign currency

The functional currency of the Company is the Euro, since this represents faithfully the economic effects of transactions, events and conditions.

The transactions that are expressed in foreign currency are translated into Euro based on exchange rates in force on the date on which they are carried out.

On the financial reporting date, monetary assets and liabilities expressed in foreign currencies are translated into the functional currency at the exchange rate prevailing on that date, and exchange differences arising on translation are recognized as income.

The non-monetary assets or liabilities denominated in foreign currency, recorded at historical cost are translated using the exchange rate of the transaction date.

1.21 Income Tax

The income tax includes current and deferred taxes. The current income tax is determined based on the net profit, adjusted in accordance with tax legislation in force at the reporting date.

Deferred tax is calculated based on the responsibility of the statement of financial position, on temporary differences between the carrying amounts of assets and liabilities and the respective tax base. It is used the tax rate expected to be in force during the period in which the temporary differences will reverse to determine the deferred tax's amount.

Deferred tax assets are recognized when there is reasonable assurance that there will be future profits that will allow Sporting SAD to recover these amounts. Deferred tax assets are reviewed periodically and decreased in value whenever it is unlikely that they can be used.

Deferred taxes are recorded as expense or income for the year, unless they result from amounts recorded directly in equity, in which case the deferred tax is also recorded in equity.

1.22 Responsabilities for retirement pension supplements

As provided for in the Collective Labor Agreement of Administrative Workers from Football and / or SAD's clubs represented by the Portuguese Professional Football League, workers who retire are entitled to a pension supplement, plus the remuneration of pension paid by Social Security, that make up to a maximum of 90% of the remuneration earned by the employee at the date of retirement, depending on the number of years of service.

The pension supplement will be updated annually in proportion to the remuneration of the respective category.

With the creation of the Business Group of Sporting Clube de Portugal, this incorporates Sporting SAD; employees moving from the club to this group remained covered by the contract, for which Sporting SAD took also the responsibilities from those workers from that date on.

These responsibilities constitute a defined benefit plan, since they guarantee the employees covered a fixed supplementary pension, in addition to the pension that they will be granted by Social Security.

This liability is provisioned in the financial statements in accordance with IAS 19 being the calculation of this responsibility carried out by a specialized and independent entity in accordance with the projected unit credit method.

The liability thus determined is shown in the statement of financial position under "Liabilities for post-employment benefits" in non-current liabilities.

The Company records the re-measurements directly in the statement of comprehensive income, in particular those resulting from changes in demographic and financial assumptions and experience gains in respect of differences between actual and estimated data.

Gains and losses generated by a limitation or settlement of a plan of defined benefit pensions are recognized in the income statement when the cut or settlement occurs. A curtailment occurs when there is a material reduction in the number of employees.

1.23 Contingent Assets and Liabilities

Contingent assets are possible assets that arise from past events and whose existence will only be confirmed by the occurrence of one or more uncertain future events not wholly on the control of Sporting SAD.

Contingent assets are not recorded in the financial statements, are disclosed in the notes when it is likely that those future economic benefits will occur.

Contingent liabilities are defined by the group when:

• A possible obligation arising from past events and whose existence will only be confirmed by the occurrence of one or more uncertain future events not wholly within the entity's control; or,
• A present obligation arising from past events but it is not recognized because it is not likely that an outflow of resources embodying economic benefits required settling the obligation or because the amount of the obligation cannot be reliably measured.

Contingent liabilities are not recognized in the financial statements. These are disclosed in the notes when its likeliness of occurrence is low or imprecise.

1.24 Earnings per share

The earnings per share result from the operation of dividing the net profit attributable to shareholders by the outstanding number of ordinary shares. Therefore, treasury shares are excluded from the calculation of earnings per share.

For the calculation of diluted earnings per share, the weighted average number of common shares outstanding is adjusted to reflect the effect of all dilutive potential ordinary shares, such as those arising from convertible debt. The dilution effect translates into a reduction in earnings per share resulting from the assumption that convertible instruments are converted and therefore the number of shares increases.

1.25 Operating Segments

Sporting SAD has decided not to present information by operating segments due to the fact that it has not identified more than one business in their activities, in accordance with the requirements of IFRS 8.

1.26 Subsequent Events

Events occurring after the date of the statement of financial position, which provide additional information about conditions that existed at the reporting date, are considered when preparing the financial statements for the year.

Events occurring after the date of the statement of financial position, which may provide information on conditions that arise after the reporting date, are disclosed, if material, in the notes to the financial statements.

1.27 Statement of Cash Flows

The statement of cash flows is prepared in accordance with the direct method. The Company classifies the cash and cash equivalents with maturity of less than three months, and for which the risk of change in value is negligible. In the consolidated statement of cash flows, cash and cash equivalents this accounting caption also includes, where applicable, bank overdrafts, taking into account their nature on a more or less permanent basis and which are reflected in the Statement of Financial Position as a liability.

The statement of cash flows comprises operating, investing and financing activities.

Operating activities include cash received from customers and payments to suppliers, staff and other related operational activities.

Cash flows from investing activities include the acquisitions and disposals of investments in subsidiaries and receipts and payments arising from the purchase and sale of intangible and tangible assets.

Financing activities include, essentially, payments and receipts relating to loans, leasing contracts and partnership / investment funds of economic players.

1.28 Other non-recurring expenses

According to the established in IAS 1, the "Other non-recurring expenses" reflects unusual costs that should be reported separately from the usual captions of costs, taking into account their nature and magnitude in the context of the company's financial statements.

1.29 Critical Accounting estimates and judgements in applying accounting policies

IFRS establishes a set of accounting treatments and requires the Board of Directors to apply judgment and make estimates that affect the amounts of income, expenses, assets, liabilities and disclosures at the reporting date.

These estimates are determined by the judgments of the Board, based on: (i) the best information and knowledge of present events and in some cases reports of independent experts and (ii) the actions which the Company believes that will be able to develop in the future. However, on the date of completion of operations, the results may differ from these estimates.

The results of the alternatives analyzed below are presented only for a better understanding of the financial statements and are not intended to suggest that other alternatives or estimates would be more appropriate.

Impairment of intangible assets - Squad

The impairment of intangible assets is analyzed when there are facts or circumstances which indicate that their net amount is not recoverable.

As previously mentioned, Sporting SAD conducts a periodic review of the valuation of their squad in order to validate the existence of possible impairment losses.

The process of analyzing a possible impairment of athlete's registration is subject to estimates and assumptions that involve a number of variables such as temporary transfer of the player to other clubs, age, the number of games they have not played, injury, punishment, termination contracts of work sports, among others.

Impairment of intangible assets - surface rights Stadium

Sporting SAD tests annually for impairment purposes, the surface rights that is recorded on the statement of financial position in accordance with the accounting policy described above. The recoverable amount of the cash generating unit (Stadium) is determined based on the calculation of value in use. These calculations require the use of estimates.

Estimating the value in use involves a high degree of judgment by the Board of Directors, regarding the determination of expected cash flows and discount rates.

Useful lives of tangible fixed assets

The determination of the useful lives of tangible assets as well as the determination of the residual value and depreciation method to be applied is essential to determine the amount of depreciation to be recognized in the income statement for each year.

These parameters are defined according to the best judgment of the Board of Directors for the assets and businesses in question, taking into consideration the international practices adopted by other SAD's / clubs.

Pension supplements and other employee benefits

The determination of liabilities for pensions and other employee benefits requires the use of assumptions and estimates, including the use of actuarial projections, discount rates, growth of pensions and wages and other factors that could impact the costs and responsibilities of post-employment benefits.

Amortized cost of financing obtained

The calculation of the amortized cost of loans obtained by the Company, including those which are related to the financial restructuring under the agreement of November 2014, in addition to reimbursement with defined maturity, considers an estimate of anticipated debt repayments resulting from revenues from participation in European competitions and sales of players, as well as cash sweep mechanisms in the event that at the end of each year there is an excess of cash flow compared to the initial estimates, provided for in the business plan for the period elapsing between the years of 2014/2015 and 2021/2022.

Credit Risk

Impairment losses related to credit risk are based on the assessment by the Board of Directors on the probability of recovery of accounts receivable balances, aging of balances, debt cancellation and other factors.

The impairment loss assessment process is subject to numerous estimates and judgments, and there are certain circumstances and facts that may change the estimate of impairment losses of receivables when compared to the assumptions considered.

Provisions

Estimates made by the Board of Directors for the establishment of recognized provisions and disclosure of contingent liabilities are based on the best information available at the date of approval of the financial statements, including the opinion of the Legal Department of the Company and external lawyers with whom Sporting SAD works.

Income Tax

The determination of the total amount of taxes on profits requires certain interpretations and estimates. There are many transactions and calculations for which the determination of the final amount of tax payable is uncertain during the ordinary course of business.

The Tax Authorities are entitled to review the calculation of the taxable amount paid by the Company for a period of four years except when there are tax losses, tax benefits were granted, or ongoing inspections, complaints or disputes exists, in which case depending on the circumstances, the deadlines are extended or suspended.

2. SALES AND SERVICES RENDERED

Thus, there may be corrections to the tax base, resulting mainly from differences in the
interpretation of tax legislation. However, it is the opinion of the Board that there will be
no significant corrections to the income tax recorded in the financial statements.
2. SALES AND SERVICES RENDERED
The balance of sales and services rendered is analyzed as follows:
	Euros'000	Euros'000
Sales and services rendered	30.Jun.17	30.Jun.16
Merchandising	3,937	3,255
Sales	3,937	3,255
TV rights Ticket office and ticket season	25,895 16,017	24,809 14,198
Sponsorship and publicity	11,684	9,921
Others	3,871	3,917
Services rendered	57,467	52,845
Total	61,403	56,100
The services with related parties amount to Euro 2,541 thousand as of 30 June 2017 (30
June 2016: Euro 2,680 thousand). See Note 26.
The TV rights revenues were as follows at 30 June 2017 and 2016:
	Euros'000	Euros'000
TV rights	30.Jun.17	30.Jun.16
Transmission contract of TV rights with PPTV, SA	23,075	23,000
Market pool - Champions league	2,820	1,085
Market pool - Europa league	0	724
Total	25,895	24,809
The increase in the value of television rights stems mainly from the value of the Market
Pool (TV rights) of UEFA Champions League.
The amounts recorded under sponsorship and advertising consist mainly of the main

TV rights

The amounts recorded under sponsorship and advertising consist mainly of the main sponsors of Sporting, technical sponsorship equipment and sweatshirts.

Revenues from ticket and season tickets sales are as follows on 30 June 2017 and 30 June 2016:

Ticket office and ticket season	Euros'000	Euros'000
	30.Jun.17	30.Jun.16
Ticket season (gamebox)	5,628	4,535
Nacional league ticket office	2,295	2,536
UEFA ticket office	1,179	725
Portugal cup ticket office	113	297
Particular games ticket office	278	201
Cup league	95	36
Cabins	4,230	3,893
Business seats	1,009	710
Lion seats	651	648
Founding members	472	472
Others	67	145
Total	16,017	14,198
Regarding the revenue from the ticket office, there is an increase of Euro 1,800 thousand
compared to June 2016, mainly due to the sale of Gamebox and group games of UEFA
Champions League.
3. OTHER OPERATING INCOME
The accounting caption "Other operating income" is as follows:
	Euros'000	Euros'000
		30.Jun.16
Other operating income
	30.Jun.17
European competition participation	14,942	8,486
National competition participation	63	33
Particular competition participation	-	1,250
Player loans	2,355	727
Operating subs idies	204	-
Others	1,034	2,154
	18,598	12,650

3. OTHER OPERATING INCOME

Regarding the revenue from the ticket office, there is an increase of Euro 1,800 thousand compared to June 2016, mainly due to the sale of Gamebox and group games of UEFA Champions League. 3. OTHER OPERATING INCOME
The accounting caption "Other operating income" is as follows:
Other operating income	Euros'000 30.Jun.17	Euros'000 30.Jun.16
European competition participation	14,942	8,486
National competition participation	63	33
Particular competition participation	-	1,250
Player loans	2,355	727
Operating subs idies	204	-
Others	1,034	2,154
	18,598	12,650
The detail of the caption of the income of participation in European competitions is as follows: European league participation	Euros'000 30.Jun.17	Euros'000 30.Jun.16
Group phase participation - Champions league	12,700	-
Group phase participation - Europe leage	-	2,400
Participation in the group stage - Champions league	-	3,000
Premium participation - Champions League	1,500	-
Premium participation - Europe league	-	1,450
Moving to subs equent rounds - Europe league	-	500

	The accounting caption "Other operating income" is as follows:
Other operating income
The detail of the caption of the income of participation in European competitions is as follows:
European league participation	Euros'000	Euros'000
	30.Jun.17	30.Jun.16
Group phase participation - Champions league	12,700	-
Group phase participation - Europe leage	-	2,400
Participation in the group stage - Champions league	-	3,000
Premium participation - Champions League	1,500	-
Premium participation - Europe league	-	1,450
Moving to subs equent rounds - Europe league Other premiums	- 742	500 1,136

4. EXTERNAL SUPPLIES AND SERVICES

The variation in the caption "Particular competition participations" is mainly due to the pre season of 2015/2016 in South Africa. The player loans correspond to income from temporary lending from Sporting SAD's players to other clubs, namely Carlos Mané, Teo Gutierrez, Ewerton Santos, Hadi Sacko, Oriol Rossel and Tobias Figueiredo (June 2016: Labyad, Wallyson, Jonathan Silva). In the year ended 30 June 2017, the caption "Other income" includes amounts related to sports training, contribution in travel, royalties, sports betting profits (Placard), amongst others. 4. EXTERNAL SUPPLIES AND SERVICES The breakdown of external supplies and services is as follows:
External supplies and services	Euros'000 30.Jun.17	Euros'000 30.Jun.16
Subcontracts	6,227	5,751
Travel and accommodation games organization	1,447	1,915
Comissions	2,090	1,626
Fees	1,183	1,114
Specialized services	2,417	2,291
Sports equipment	667	639
Fuel	530	544
Advertising and publicity	1,244	1,279
Rents and leasing	444	334
Conservação e reparação	342	212
Ins urance Other costs	584	506
	946 Total 18,120	1,131 17,342
Subcontracts breakdown as follows:
Subcontracts	Euros'000 30.Jun.17	Euros'000 30.Jun.16
Sponsorship and publicity (Note 26)	341	472
Maintenance and games assistance	615	454
Surveillance	566	534
Cleaning	304	278
Meals	1,271	1,325
Games assistance	1,189	1,102
Electricity	895	778
Others	1,047	809
	Total 6,227	5,751

	Euros'000
	534
	278
	1,325
	1,102
	778
6,227	809 5,751
	Euros'000 566 304 1,271 1,189 895 1,047

The increase in "Subcontracts" is mainly due to maintenance of the stadium and games assistance.
The balance of external supplies and services includes transactions with related parties
amounting to Euro 1,270 thousand (June 2016: Euro 1,282 thousand) as further described
in Note 26.
The increase in "Travel and accommodation games organization" is related to expenses
arising from games made internationally.
The comissions are as follows for the years ended June 30, 2017 and 2016:
	Euros'000	Euros'000
Comissions	30.Jun.17	30.Jun.16
Players acquisitions	192	607
Employment contracts renewal	979	222
Players tranfer	610	218
Technical staff contracting	0	140
Games organization Other comissions	0 309	75 364
Total	2,090	1,626
It should be noted that whenever the expenses related to the acquisition of sports rights
of professional football players and renewal of employments contracts generate an
obligation which is dependent on future conditions, namely when there are payments
dependent on the continuation of the employment contract with the player, such future
obligations are not considered in the original purchase price and consequently in the
related liability and recognized in earnings in the cadence of service. The commitments
arising from these agreements are disclosed in Note 29.
During the years ended June 30, 2017 and 2016, the costs on fees for statutory auditing
services, auditing and tax advice of the current Statutory Auditor of SAD were as follows:
Legal fees of Statutory Auditor	Euros'000	Euros'000
Legal certification services	30.Jun.17 99	30.Jun.16 99
Limited review assurance services	13	13
Financial assurance services - UEFA licensing	-	3
Tax advisory services	-	12

obligation which is dependent on future conditions, namely when there are payments dependent on the continuation of the employment contract with the player, such future obligations are not considered in the original purchase price and consequently in the related liability and recognized in earnings in the cadence of service. The commitments During the years ended June 30, 2017 and 2016, the costs on fees for statutory auditing services, auditing and tax advice of the current Statutory Auditor of SAD were as follows:
Euros'000	Euros'000
30.Jun.17	30.Jun.16
99	99
13	13
-	3
-	12
19 8	19 -
	It should be noted that whenever the expenses related to the acquisition of sports rights of professional football players and renewal of employments contracts generate an

5. PAYROLL COSTS

monitoring, as well as on the determination of cash flow within the scope of the Framework Agreement between the Company and the banking entities.
The other services are related to the consulting provided in the area of sustainability and translations of financial information.
5. PAYROLL COSTS
Payroll costs are as follows:
Payroll costs	Euros'000 30.Jun.17	Euros'000 30.Jun.16
Remuneration of statutory board members	392	410
Wages and salaries	51,799	39,945
Compensation	1,126	243
Social security costs	5,262	3,874
Post-employment benefits (Note 28)
	360	278
Insurance	4,834	3,832
Others	226	283
Total	63,998	48,865
Remuneration of statutory Board members item includes the remuneration of the Administration Council. Members from Fiscal Council as well as General Assembly Council belonging to Sporting SAD are unpaid. In the year ended 30 June 2017, bonus were also paid to statutory board members of Sporting SAD in the amount of Euro 143 thousand.
The accounting item "Salaries and wages" presents the following detail by functions:		30.Jun.16
Wages and salaries	30.Jun.17
Squad and coaching staff	48,384	37,165
Others	3,415	2,780

Wages and salaries	30.Jun.17	30.Jun.16
Squad and coaching staff	48.384	37,165
Others	3.415	2,780
Total	51,799	39,945

The item "Wages and salaries" includes variable remuneration related to awards of athletes and technical team for the collective performance as well as individual performance bonuses, included in some labor contracts, determined in accordance to the number of participations as starting line-up position in the various competitions. The bonuses amount to Euro 880 thousand on 30 June 2017 (June 2016: Euro 2,467 thousand).

The variations that occurred in the items of remunerations and insurance charges arose primarily from the increase in the value of the squad and coaching staff.
The item "Compensation" reflects the expenses incurred on the termination of employment contracts with players and other employees of the SAD. During the periods ended on 30 June 2017 and 30 June 2016, the average number of employees working for the Company is details as follows:
Average number of employees	30.Jun.17	30.Jun.16
Players	103	98
Coachs Others	19 146	17 125

6. PROVISIONS AND IMPAIRMENT LOSSES (EXCLUDING SQUAD)

During the periods ended on 30 June 2017 and 30 June 2016, the average number of employees working for the Company is details as follows:
6. PROVISIONS AND IMPAIRMENT LOSSES (EXCLUDING SQUAD) Provisions and impairment losses (excluding players' registration) breaks down as follows:
	Euros'000		Euros'000
Provision and impairment loss excluding players' registration	30.Jun.17		30.Jun.16
Accounts receivable impairment (Note 14)		1,553	314
Other accounts receivable impairment (Note 16)		-	-
Inventories impairment		29	(83)
Other provisions (Note 19)		1,765	2,820
	Total	3,348	3,051

7. OTHER EXPENSES AND LOSSES

	Euros'000	Euros'000
Other operating costs	30.Jun.17	30.Jun.16
Fees charged for player loans	2,171	-
Contributions	266	270
Indirect taxes	289	293
Fines and penalties	195	213
Market research	456	391
Exchange rate differences	-	15
Image rights	438	914
Others	679	515
	4,494	2,611
Total
Fees charged for player loans refer to expenses that arise from temporary loans from other
clubs to Sporting SAD, namely the players Joel Campbell, Lazar Markovic, Sebastian Coates
and Marcelo Meli.
8. AMORTIZATIONS AND IMPAIRMENT LOSSES IN SQUAD
During the periods ended 30 June 2017 and 30 June 2016, the accounting caption
depreciation and impairment losses squad is detailed as follows:
Amortization and impairment loss on	Euros'000	Euros'000
players' registration	30.Jun.17	30.Jun.16
Amortization charges for the year - Professi onal football (Note 12)	13,046	8,157
Impa irment loss - Professional footba ll (Note 12)	5,314	1,175
Total	18,359	9,332
Impairment losses of the squad consider the net book value of sports rights of players as
of 30 June 2017, whose recoverability seems uncertain taking into account the factors
disclosed in note 1.5 1.29 and/or the loss of which was confirmed by the occurrence of
termination of the sports labor contract between the date of report and the date of

8. AMORTIZATIONS AND IMPAIRMENT LOSSES IN SQUAD

Amortization and impairment loss on
players' registration

Impairment losses of the squad consider the net book value of sports rights of players as of 30 June 2017, whose recoverability seems uncertain taking into account the factors disclosed in note 1.5 1.29 and/or the loss of which was confirmed by the occurrence of termination of the sports labor contract between the date of report and the date of approval of these financial statements.

On 30 June 2017, there were impairment losses relating to 9 players (30 June 2016: 4 players).

9. OTHER OPERATING INCOME/(EXPENSES)WITH PLAYER REGISTRATION TRANSACTIONS

9.1 OPERATING INCOME AND EXPENSES WITH PLAYER REGISTRATION TRANSACTIONS

The income and expenses with players' registration of transactions are as follows (see Note 12):

Other operating income/(expenses) with players'				Euros'000		Euros'000
	registration transaction			30.Jun.17		30.Jun.16
Income with players' registration transaction
Sales of sports rights Solidarity mechanism/training compensation					92,738 258	8,472 84
Others						-
			Total		92,997	8,556
Expenses with players's registration ransaction
Percentage of economic rights / capital gains				(13,243)		(300)
Comissions Others					(1,789) (57)	(525) (15)
			Total		(15,089)	(840)
Other operating income/(expenses) with players' registration
transaction					77,908	7,716
The amount of the sale of sport rights is deducted from the net book value of each player at the date of sale.
On the 30 June 2017, the sale of sports rights is detailed as follows:
30 June 2017	% Economic rights sold	Sales date	Acquiring entity	Euros'000 Sale Value	Euros'000 Gain/Loss associated to the sale	Euros'000 Net book value	Euros'000 Gain/Loss
Cedric Soares Isl am Slimani	100% 100%	ago-16 ago-16	Inter de Milão Leicester City FC	40,000 (a) 30,500 (b)	(8,880) (4,000)	187 120	30,933 26,380
Ruben Semedo Edinaldo Perei ra	100% 100%	jun-17 ago-16	Villarreal Krasnodar	14,000 4,500	(1,400) (360)	265 2,195	12,335 1,945
Hadi Sacko Teófil o Gutiérrez	100% 70%	jun-17 jun-17 - -	Leeds United Clube Desportivo Popular Junior Galatasaray	2,000 (c) 1,825 1,438 (d)	(264) 18 -	530 1,458 -	1,206 385 1,438
	- -	- -	F.C.Porto Southampton	935 (e) 500 (f)	- -	- -	935 500
Bruma João Mouti nho Cedric Soares				95,698	(14,887)	4,755 Solidarity mechanism	76,056 258
						Others Total	1,594 77,908

	Expenses with players's registration ransaction
Other operating income/(expenses) with players' registration transaction
The amount of the sale of sport rights is deducted from the net book value of each player at the date of sale. On the 30 June 2017, the sale of sports rights is detailed as follows:
				Sale Value	Gain/Loss associated to the sale	Net book value	Gain/Loss
Cedric Soares	100%	ago-16	Inter de Milão	40,000 (a)	(8,880)	187	30,933
Isl am Slimani Ruben Semedo	100% 100%	ago-16 jun-17	Leicester City FC Villarreal	30,500 (b) 14,000	(4,000) (1,400)	120 265	26,380 12,335
Edinaldo Perei ra	100%	ago-16	Krasnodar	4,500	(360)	2,195	1,945
Hadi Sacko Teófil o Gutiérrez	100% 70%	jun-17 jun-17	Leeds United Clube Desportivo Popular Junior	2,000 (c) 1,825	(264) 18	530 1,458	1,206 385
		- -	Galatasaray	1,438 (d)	-	-	1,438
Bruma	- -	- -	F.C.Porto Southampton	935 (e) 500 (f)	- -	- -	935 500
João Mouti nho				95,698	(14,887)	4,755	76,056
Cedric Soares
						Solidarity mechanism	258
						Others	1,594

(b) The selling price of the player Islam Slimani includes an expense in the amount of Euros 4,000 thousand related to the capital gain performed by third parties. The selling price also includes, at this date, Euros 500 thousand, which result from the completion of one of the individual performance objectives;

(c) The selling value of the player Hadi Sacko results from the purchase option exercised by Leeds United under the temporary lending contract;

(d) The value of the player Bruma relates to a minimum conditionality foreseen in the sale contract, a percentage of the capital gain and to the solidarity mechanism resulting from the transfer of the player from Galatasaray to RB Leipzig;

(e) Amount received in court case's won by Sporting SAD related to the percentage of the capital gain on the sale of player João Moutinho from FC Porto to Monaco; (f) The value of the player Cedric Soares in the amount of Euros 500 thousand is related to the individual sport performance that was conditioned to the date of the sale and was materialized during the season. Euros'000 Euros'000 Euros'000 Euros'000 % Economic rights sold 30 June 2016 Sales date Acquiring entity Gain/Loss associated to the sale Net book value Sale Value Gain/Loss 100% jan-16Tianjin Teda Football Club 5,000 (306) 1,251 3,443 Fredy Montero 100% jan-16 Apollon Football - (a) 2,577 - 2,577 Valentin Viola Na by Sarr 100% jul-15 Charlton Athletic 1,999 (b) (495) 838 666 Shika bala 100% ago-15 Zamalek 570 (57) 123 390 7,569 1,719 2,212 7,076 Solidarity mechanism 84 Others 556 Total 7,716 a) The amount shown as income is associated to the sale of the the player Valetim Viola arose from the reversal debt agreement to the Fund, which was the holder of the economic
rights of the player (Euros: 2,577 thousand).

b) The amount shown as expenses associated with the sale of the player Naby Sarr arises mainly from 15% of economic rights held by the previous club and from the intermediation commissions associated with this transaction.

The above identified sales do not include variable values of contingent sales upon compliance with certain conditions relating to sports performance, individually and collectively, the players and the buyer club, as well as the % of gains from future transfers - see Note 32.

The expenses associated with player transfers include, where applicable, brokerage commissions and spending on solidarity mechanism made by the Sporting SAD where the value is deducted by the destination club as well as a share of economic rights or capital gains owned by other entities. It should be noted that the calculated values of expenses and / or income associated with the sale also take into consideration the following factors:

Deduction of proportional funds to deliver to third parties arising from the sale, also considering the liability recorded at each reporting date, in the context of sharing economic interest contracts, as well as the effect of a financial update, where appropriate, taking into account the plans of stipulated receipt;

Amounts established on the termination agreement with players and intermediary agents.

9.2 NON-RECURRING COSTS

Following the framework described in Note 19 relating to the litigation with Doyen, it was recognized as of 30 June 2016, an expense in the amount of Euros 14,991 thousand since it reflects a non-recurring situation and taking into account its magnitude in the context of these financial statements.

The amount is detailed as follows:

• Euros 13,041 thousand for the compensation set by the Court of Arbitration of Sport, including associated interests, estimated by Sporting SAD as of June 30, 2016.
• Euros 1,500 thousand for the amount paid to Doyen on August 2014, relative to 35% of the economic rights of the player Zakaria Labyad, which was deducted from the amount described above. In the year ended on 30 June 2015 this payment embodied a reduction to the previously liability, already recorded, and therefore with no impact on the results for this year.
• Euros 450 thousand relating to the exercice of the put option occurred on January 2016 by Doyen, regarding the player Zakaria Labyad.

10. FINANCIAL RESULTS

Euros'000 30.Jun.17 (3,250) (753) - (2,182) (525)	Euros'000 30.Jun.16 (2,963) - (425) (2,560) (563)
The financial results for the periods ended on 30 June 2017 and 30 June 2016 breakdown
Euros 450 thousand relating to the exercice of the put option occurred on January
Euros 1,500 thousand for the amount paid to Doyen on August 2014, relative to 35% of the economic rights of the player Zakaria Labyad, which was deducted from the amount described above. In the year ended on 30 June 2015 this payment embodied a reduction to the previously liability, already recorded, and
Euros 13,041 thousand for the compensation set by the Court of Arbitration of Sport, including associated interests, estimated by Sporting SAD as of June 30,

Financial discount of non currents assets and liabilities

In the years under review and after the initial determination of the fair value of the financing obtained, this accounting caption includes mainly the following situations: (i) an initial calculation of the fair value of the loans obtained; (Ii) subsequent application of the effective interest rate to the amortized cost of the loans obtained; (Iii) amendment of estimated repayments of loans obtained at amortized cost (iv) financial restatement of non-current liabilities related to signing bonuses to be paid to players, payables to third parties for the acquisition of players and even other contractual amounts payable to suppliers and (v) updating the non-current receivables. Euros'000 Euros'000 30.Jun.17 30.Jun.16 Book value 32,730 30,249 Accumulated depreciation and impairment loss (11,646) (9,964) Total 21,083 20,285

11. TANGIBLE ASSETS

Tangible assets

11. TANGIBLE ASSETS
Tangible assets caption on 30 June 2017 and 30 June 2016 is presented as follows:
Tangible assets
	Total		21,083	20,285
30 June 2017	Euros'000 30.Jun.16	Euros'000 Increases	Euros'000 Asset sales	Euros'000 30.Jun.17
Book value
Lands	1,379	-	-	1,379
Bui ldings a nd other cons tructions	23,058	2,097	-	25,155
Bas ic equipment	2,044	15	-	2,059
Trans portation equipment Admi ni stra tive equipment	364 1,997	- 121	- -	364 2,118
Other tangible ass ets	1,200	207	-	1,407
Investments in progres s	208	40	-	248
	30,249	2,481	-	32,730
Accumulated depreciations and impairment losses
Bui ldings a nd other cons tructions	(5,279)	(1,287)	-	(6,566)
Bas ic equipment Trans portation equipment	(1,596) (364)	(191) -	- -	(1,787) (364)
Admi ni stra tive equipment	(1,844)	(92)	-	(1,936)
Other tangible ass ets	(881) (9,964)	(113) (1,682)	- -	(994) (11,646)

	Euros'000	Euros'000	Euros'000	Euros'000
30 June 2016	30.Jun.15	Increases	Alienações	30.Jun.16
Book value
Lands	1,379	-	-	1,379
Bui ldings a nd other cons tructi ons	22,299	759	-	23,057
Bas ic equipment	1,990	54	-	2,044
Trans portation equipment	364	-	-	364
Admi ni stra tive equipment	1,908	88	-	1,997
Other tangible ass ets	1,133	67	-	1,201
Investments in progres s	-	208	-	208
	29,072	1,176	-	30,249
Accumulated depreciations and impairment losses Bui ldings a nd other cons tructi ons	(4,348)	(932)	-	(5,279)
Bas ic equipment	(1,388)	(208)	-	(1,597)
Trans portation equipment Admi ni stra tive equipment	(364) (1,738)	- (106)	- -	(364) (1,844)
Other tangible ass ets	(783)	(97)	-	(880)
	(8,620)	(1,344)	-	(9,964)
Net Book Value	20,452	(167)	-	20,285

Accumulated depreciations and impairment losses
investment (Note 20). The detail is presented as follows: Academy		Euros'000	Euros'000
		30.Jun.17	30.Jun.16
Book value
Lands		1,379		1,379
Buildings and other constructions		23,329		21,877
		24,708		23,256
Accumulated depreciations
Lands		-		-
Buildings and other constructions		5,883		4,875
		5,883		4,875
	Net Book Value	18,825		18,381
Sporting's Academy was given as collateral for bank loans of Sporting SAD.
Depreciation costs of tangible fixed assets are recorded under "Depreciation excluding
depreciation of the squad."

12. INTANGIBLE ASSETS

12.1 SQUAD VALUE

	The football squad caption comprises the players on which the Sporting SAD holds the respective rights of sports registration.
	The caption on 30 June 2017 and 30 June 2016 is presented as follows:
		Squad value
						Total	59,544			32,070
	During the period ended 30 June 2017 and 30 June 2016, movements in intangible asset item - squad value, as well as depreciation and impairment losses were as follows: 30 June 2017		Euros'000 30.Jun.16		Euros'000 Increases	Euros'000 Asset sales	Euros'000 Regularizations		Euros'000 Impairment	Euros'000 30.Jun.17
Book value			48,580		54,509	(14,198)	and disposals (4,532)		-	84,359
Accumul	ated depreciati on and impai rment loss		(16,510)		(13,046)	5,529	4,526		(5,314)	(24,814)
		Total	32,070		41,464	(8,669)		(6)	(5,314)	59,545
			Euros'000		Euros'000	Euros'000	Euros'000		Euros'000	Euros'000
	30 June 2016		30.Jun.15		Increases	Asset sales	Regularizations		Impairment	30.Jun.16
Book value			39,189		25,510	(14,566)	and disposals (1,553)		-	48,580
	Accumulated depreciation and impairment los	s	(19,875)		(8,157)	11,333	1,364		(1,175)	(16,510)
		Total	19,314		17,353	(3,233)	(189)		(1,175)	32,070
follows:	The main additions that occurred during the year ended on 30 June 2017 breakdown is as
	Player	% Economic rights		Acquisition	Seller	Contract	Total acquisition		Other	Total Acquisition
Ba s Dos t		100%	(a )	date a go-16	VfL Wolfsburg	deadline Jun-20	amount	11,000	responsabilities 850	amount 11,850
Bruno Fernandes Seydou Doumbi a		100% 70%	(b) (c)	jun-17 jun-17	U.C. Sampdoria AS Roma	Jun-22 Jun-20		8,500 3,500	1,190 3,700	9,690 7,200
Sebas tia n Coa tes		100%		fev-17	Sunderland	Jun-22		4,480	493	4,973
Rodri go Ba tta glia Cri stiano Piccini		80% 100%		jun-17 jun-17	S.C.Braga Real Betis	Jun-22 Jun-22		4,200 2,872	300 345	4,500 3,217
Eli as Tri ndade Luc Ca staignos		50% 0.8		a go-16 a go-16	Corinthia Eintracht Fra	ns Jun-18 nkfurt Jun-19		2,500 2,500	375 225	2,875 2,725
Ma theus Oliveira André Souza		100% 50%		jun-17 a go-16	Estoril Praia Corinthia	Jun-22 ns Jun-19		2,000 1,000	150 210	2,150 1,210
Douglas Teixeira		100%		a go-16	Trabzons	por Jun-19		1,000	150	1,150
								43,552	7,988 Others	51,540 2,969
									Total	54,509
(a)	Acquisition value includes Euros 1 million related to individual performance, conditioned to the date
	of purchase, which materialized during the sports season;
(b)	The other charges related to the acquisition of player Bruno Fernandes relate to a commission of 850
	thousand euros and the value of solidarity mechanism in the amount of 340 thousand euros;
(c)	Player Seydou Doumbia was hired from AS Roma through a temporary lending contract of Euros 500

	30 June 2016
follows:
Eli as Tri ndade Luc Ca staignos		50% 0.8	a go-16 a go-16	Corinthia ns Eintracht Fra nkfurt	Jun-18 Jun-19	2,500 375 2,500 225	2,875 2,725
Ma theus Oliveira		100%	jun-17	Estoril Praia	Jun-22	2,000 150	2,150
André Souza		50%	a go-16	Corinthia ns	Jun-19	1,000 210	1,210
Douglas Teixeira		100%	a go-16	Trabzons por	Jun-19	1,000 150	1,150
						43,552 7,988	51,540
						Others	2,969
						Total	54,509
(a)	Acquisition value includes Euros 1 million related to individual performance, conditioned to the date
	of purchase, which materialized during the sports season;
(b)	The other charges related to the acquisition of player Bruno Fernandes relate to a commission of 850
	thousand euros and the value of solidarity mechanism in the amount of 340 thousand euros;
(c)	Player Seydou Doumbia was hired from AS Roma through a temporary lending contract of Euros 500
	thousand with a call option of Euros 3 000 thousand. Taking into consideration the nature of the

• (a) Acquisition value includes Euros 1 million related to individual performance, conditioned to the date of purchase, which materialized during the sports season;
• (b) The other charges related to the acquisition of player Bruno Fernandes relate to a commission of 850 thousand euros and the value of solidarity mechanism in the amount of 340 thousand euros;
• (c) Player Seydou Doumbia was hired from AS Roma through a temporary lending contract of Euros 500 thousand with a call option of Euros 3 000 thousand. Taking into consideration the nature of the purchase option, a definitive lending of Euros 3,500 thousand was considered). In addition, the other

charges correspond to amounts related to the commission of Euros 700 thousand and to the
subscription bonus of Euros 3 million paid through the course of two sports seasons.
The main additions that occurred during the period ended on 30 June 2016 may be broken
down as follows:
			Acquisition		Contract	Total acquisition	Other	Total Acquisition
Player	% Economic rights		date	Seller	deadline	amount	responsabilities	amount
Alan Ruiz	100%	(a)	abr-16	Club Atlético Colón	Jun-20	4,844	3,200	8,044
Teófilo Gutierrez Edinaldo Pereira	90% 100%	(a) (a)	jul-15 jul-15	C.A.River Plate Udinese Calcio SPA	Jun-18 Jun-19	3,400 3,000	538 10	3,938 3,010
Lucas Spalvis	100%	(a)	fev-16	Aalborg Boldspilklub	Jun-21	1,614	125	1,739
Bryan Ruiz Bruno Cés ar	100% 100%	(a) (a)	jul-15 nov-15	Fulham F.C -	Jun-18 Jun-20	1,200 -	120 1,300	1,320 1,300
Adrien Silva	-		-	-	Jun-21	-	1,224	1,224
Alberto Aquilani	100%	(a)	ago-15	-	Jun-17	-	1,000	1,000
Radosav Petrović Marvin Zeegelar	100% 100%	(a) (a)	jun-16 out-15	Dínamo de Kiev Rio Ave F.C	Jun-21 Jun-20	1,000 300	- 390	1,000 690
						15,358	7,907	23,265
							Others	2,245
							Total	25,510
(a) Players' acquisitions (b) Renewals of employments contracts

The acquisitions above do not include variable purchase values contingent upon compliance with certain conditions relating to sports, individual and collective performance, the players and the Sporting and / or % of capital gains from future transfers - see Note 32.

"Other expenses" refer to the expenses related to the acquisition of economic rights of the players, namely expenses with intermediation services, signing bonuses, solidarity mechanisms, federal taxes and other charges.

Expenses related to the acquisition of registration rights of professional football players are included in the initial acquisition cost whenever they are not dependent on future conditions that are not fully under the control of SAD, in particular where the payments are dependent on the maintenance of the employment contract with the player.

Consequently when the related payments are dependent with the prolongation of the employment contract with the player such future obligations are not considered in the original purchase price and, consequently, in the related liability, and recognized in earnings in the cadence of service. The commitments arising from these agreements are disclosed in Note 29.

The disposals of sporting and economic rights of players during the years ended on 30 June 2016 and 2015 are detailed in Note 9.

The accounting net amount of players as of 30 June 2017 and 30 June 2016 are grouped as follows:

	30.Jun.17		30.Jun.16
	Number of Euros'000	Number of	Euros'000
	players Total amount	players	Total amount
Players net book value		7,724 28	6,856
Less than Euro 1 000 000	26
Between Euro 1 000 000 and Euro 2 000 000	3	4,042 9	12,221
More than Euro 2 000 000	8	47,778 3	12,993

			June 2017		June 2016
		End of	% Economic	End of
Player name		contract	rights	contract	% Economic rights
André Pinto	a)	2021	100%	-	-
Adrien Silva	a)	2020	100%	2020	100%
Alan Ruiz		2021	100%	2020	100%
Alberto Aquilani		-	-	2017	100%
Azbe Jug		2020	100%	2020	100%
Bas Dost		2020	100%	-	-
Bruno César		2020	100%	2020	100%
Bruno Fernandes		2022	100%	-	-
Bryan Ruiz Carlos Mané		2018 2020	100% 100%	2018 2020	100% 100%
Cristiano Piccini		2022	100%	-	-
Daniel Podence		2021	100%	2021	100%
Douglas Teixeira		2019	100%	-	-
Edinaldo Pereira		-	-	2019	100%
Ewerton Santos		2019	100%	2019	100%
Ezequiel Schelotto	a)	2019	100%	2019	100%
Gelson Dala	a)	2019	50%	-	-
Gelson Martins		2022	100%	2021	100%
Heldon Ramos		2019	100%	2019	100%
Islam Slimani Iuri Medeiros		- 2022	- 100%	2020 2022	100% 100%
Jefferson		2020	80%	2020	80%
João Palhinha		2021	100%	2021	100%
João Mário		-	-	2020	75%
João Pereira		-	-	2017	100%
Jonathan Silva		2019	100%	2019	100%
Junya Tanaka		-	-	2019	100%
Luc Castaignos		2019	80%	-	-
Lukas Spalvis	a)	2018	100%	2018	100%
Marvin Zeegelaar		2020	100%	2020	100%
Mattheus Oliveira Matheus Pereira		2022 2020	100% 100%	- 2020	- 100%
Oriol Rossel		2019	100%	2019	100%
Paulo Oliveira		2019	90%	2019	90%
Radosav Petrovic	a)	2021	100%	2020	100%
Ricardo Esgaio		-	-	2022	100%
Rodrigo Battaglia		2022	80%	-	-
Rúben Semedo		-	-	2022	100%
Rui Patricio		2022	100%	2022	100%
Ryan Gauld		2020	80%	2020	80%
Sebastián Coates Seydou Doumbia		2022 2020	100% 70%	- -	- -
Simeon Slavchev		2019	85%	2019	85%
Teófilo Roncancio		-	-	2018	90%
Tobias Figueiredo		2021	100%	2021	50%
Wallyson Mallmann		2021	70%	2021	70%
		2020	100%	2020	100%

Partnership and Investment Agreements

Quality Football Ireland (QFIL)

The percentage of economic rights considers the sharing economic interests with third parties resulting from future sales, including clubs, sports agents or the players themselves. In addition, for some players, Sporting SAD has contingent liabilities to the value associated with a future transfer regarding the percentage of capital gains – see Note 32.
Partnership and Investment Agreements
	Quality Football Ireland (QFIL)
Under the partnership established with the "Quality Football Ireland Limited Funds"," Quality Football Ireland III Limited" and "Quality Football Fund Ireland Limited", there are assigned percentages of the economic rights held by the Company at the date of 30 June 2017 and 30 June 2016, as follows: Player	30.Jun.17	30.Jun.16	Price paid by the Fund
Carlos Chaby	-	50%	-
Cris tian Ponde João Mário (Note 9)	25% -	25% 25%	100 -

In August 2016, in fulfillment of a strategic management objective of the Company in recovering the economic rights related to its players, Sporting SAD acquired from the QFIL Fund all the percentages of economic rights that this fund held with respect to players Carlos Chaby and Tobias Figueiredo, corresponding to 50% of each of the players, having made an overall investment of Euros 2 million. With these acquisitions, Sporting SAD now holds the full value (100%) of the economic rights of those players. Euros'000 Euros'000 30.Jun.17 30.Jun.16 Book value 209,950 209,714 Accumulated amortization and impairment los ses (69,375) (66,319) Total 140,575 143,395

12.2 OTHER INTANGIBLE ASSETS

The caption as of 30 June 2017 and 30 June 2016 is presented as follows:

Other intangible assets

During the period ended on 30 June 2017 and 30 June 2016, the movement in the accounting caption "Other intangible assets" and "Accumulated depreciation and impairment losses", were as follows:

	Euros'000	Euros'000	Euros'000	Euros'000
30 June 2017	30.Jun.16	Increase	Assets Sales	30.Jun.17
Book value
Surface rights	208,892	-	-	208,892
Software	496	132	-	628
Other intangible assets	23	-	-	23
Investment in progress	303	104	-	407
	209,714	236	-	209,950
Accumulated amortization and impairment losses
Surface rights	(65,808)	(3,027)	-	(68,835)
Software	(488)	(29)	-	(517)
Other intangible assets	(23)	-	-	(23)
	(66,319)	(3,056)	-	(69,375)
Net Book Value	143,395	(2,820)	-	140,575
30 June 2016	Euros'000	Euros'000	Euros'000	Euros'000
	30.Jun.15	Merge	Increase	30.Jun.16
Book value
Surface rights	208,892	-	-	208,892
Software	487	9	-	496
Other intangible assets	23	-	-	23
Investment in progress	133	170	-	303
	209,535	179	-	209,714
Accumulated amortization and impairment losses
Surface rights	(62,781)	(3,027)	-	(65,808)
Software	(481)	(7)	-	(488)
Other intangible assets	(23)	-	-	(23)
	(63,285)	(3,034)	-	(66,319)
Net Book Value	146,250	(2,855)	-	143,395
The "Other intangible assets" corresponds to the transfer of surface rights (on the José
Alvalade stadium and the multisport building), by Sporting Clube de Portugal to the SPM.
This transfer took place on 2006 with a term of 25 years for the initial amount of Euro
163,894 thousand and SPM became responsible for the stadium's maintenance,

The "Other intangible assets" corresponds to the transfer of surface rights (on the José Alvalade stadium and the multisport building), by Sporting Clube de Portugal to the SPM. This transfer took place on 2006 with a term of 25 years for the initial amount of Euro 163,894 thousand and SPM became responsible for the stadium's maintenance, management and operations. During the current period also occurred the extension of their rights in the amount of Euro 73 million, whose term expires on April 2063.

The surface rights were incorporated in the statement of financial position of Sporting SAD under the merge between Sporting SAD and SPM – See Introductory Note.

On 30 June 2017, Sporting SAD has calculated the recoverable amount of the stadium's surface rights, by determining the usage value allocated to the cash generating unit (stadium), according to the method of discounted cash flows considering a discount rate (WACC) of 7,6% (30 June 2016, 8,6%). The calculations are based on historical performance and business development expectations of operating the stadium with the current structure, and used an estimate of cash flows until the end of the period of duty (year 2063).

In the scope of this test, the revenue from the operation of the stadium was considered, with the current structure, such as tickets (boxes, business seats, lion seats and ordinary

tickets) but also revenue from advertising and sponsorships. The CAGR (Compound Annual Growth Rate) of revenue considered in the impairment test amounted to 2,82% (30 June 2016: 2,3%).

13. OTHER NON-CURRENT ASSETS

On 30 June 2017 and 30 June 2016, "Other non-current assets" caption account detail is as follows: Other non-current assets - Accounts receivable Other accounts receivable Other non-current assets Total The amounts receivable from sales of players with maturity exceeding one year detailed by client is as follows:	Euros'000 30.Jun.17 3,619 463 4,082	Euros'000 30.Jun.16
		1,315 - 1,315
13. OTHER NON-CURRENT ASSETS
On 30 June 2017, the test was computed with an increase of 0.5% in the WACC used. It led to a decrease in the valuation of Euro 12,443 thousand. However the recoverable amount of the stadium's surface rights' value is still higher than the net book value of the asset, and so no impairment loss was identified.
As a result of the calculations, no impairment loss was identified.
Regarding to expenses considered in the scope of the test, all the expenses such as the management expenses, costs of operation and of maintenance, were also assumed to have an increase in line with inflation for the projection period of 2% (30 June 2016: 2%). The test also included capex maintenance and replacement costs.
2016: 2,3%).

13. OTHER NON-CURRENT ASSETS
On 30 June 2017 and 30 June 2016, "Other non-current assets" caption account detail is as follows:
Other non-current assets - Accounts receivable
Total The amounts receivable from sales of players with maturity exceeding one year detailed by	4,082	1,315
client is as follows:
Other accounts receivable	Euros'000 30.Jun.17	Euros'000 30.Jun.16
Sport Clube Corinthians Paulista	-	1,000
Real Valladolid de Futbol, SAD	-	400
Sport Club do Recife	300	-
Villarreal C.F. SAD	3,500	-
Financial Discount	(181)	(85)

14. ACCOUNTS RECEIVABLE

Euros'000 Euros'000 Accounts receivable 30.Jun.17 30.Jun.16 Current accounts receivable 56,559 11,685 Doubtful accounts receivable 16,147 14,359 Clients impairment losses (16,147) (14,419) 56,559 11,625 Total

14. ACCOUNTS RECEIVABLE On 30 June 2017 and 30 June 2016 the accounts receivable detail is as described on the
following table:
Accounts receivable
Total	56,559	11,625
The breakdown of this caption by the principal balances receivable from current business
activities and players sales are detailed in the following table:
Current accounts receivable	Euros'000 30.Jun.17	Euros'000 30.Jun.16
Player sales and solidarity mechanism
F.C. Internazionale Milano S.p.A.	20,000	-
Leicester City Football Club Limited	10,000	-
Villarreal C.F. SAD	8,500	-
Leeds United Football Club Limited	1,929	-
Club Deportivo Popular Junior F.C.S.A.	1,825	-
Clube Atlético Mineiro	1,500	-
Sport Clube Corinthians Paulista	1,000	1,000
Sport Club do Recife	800	-
AS Monaco FC, SA	250	-
Os Belenenses- Soc. Desportiva de Futebol, SAD	217	64
Moreirense Futebol Clube - Futebol, SAD	200	-
Club Atletico Rosario Central	150	-
Zamalek Sporting Club	-	448
Kashiwa Reysol	-	69
Vitoria Sport Clube, Futebol, SAD	-	62
Southampton Football Club Limited	13	125
Nice	-	100
Others	66	-
Current commercial activities
PPTV, SA	4,636	5,044
	630	472
	4,843	4,241
S. P. Gis - Plan. e Gestão de Estacionamento, S.A.
Others Total	56,559	11,625

The following table presents the detail of caption "Cash and cash equivalents" as of 30 June 2017 and 30 June 2016: Cash and cash equivalents Cas h Short term bank deposits		Euros'000 30.Jun.17	673 2,517	14,419 Euros'000 30.Jun.16 161 251
15. CASH AND CASH EQUIVALENTS
Total 14,478 740	(195)	(426)	(178)
30.Jun.15 Increases (Note 6) Clients impairment losses 14,478 740	Merge (195)	Decrease (Note 6) (426)	Exchange Diff. (178)	30.Jun.16 14,419
30.June.2016 Euros'000 Euros'000	Euros'000	Euros'000	Euros'000	Euros'000
Total 14,478 1,883		- (330)	174	16,147
30.June.2017 Euros'000 Euros'000 30.Jun.16 Increases (Note 6) Clients impairment losses 14,419 1,883	Euros'000 Uses	Euros'000 Decrease (Note 6) (330) -	Euros'000 Exchange Diff. 174	Euros'000 30.Jun.17 16,147

15. CASH AND CASH EQUIVALENTS

Cash and cash equivalents
Short term bank deposits - restricted	3,116	2,912

16. OTHER CURRENT RECEIVABLES

Cash and cash equivalents
Short term bank deposits - restricted		2,912 3,116
The restricted short term bank accounts are a consequence of the financial restructuring and refers to the constitution of the reserve account This account aims the settlement of bank debt, interest, repurchase of MSMC's and the constitution of a reserve account.
In July 2017, the value of the reserve account was increased by Euros 2,000 thousand
resulting from the Framework Agreement regarding the participation of Sporting SAD in the UEFA Champions League in the current season.
16. OTHER CURRENT RECEIVABLES
As 30 June 2017 and 30 June 2016 the detail of other current receivables is presented as follows:
Other current receivables	Euros'000 30.Jun.17	Euros'000 30.Jun.16
Supplier advances	59	172
Related parties (Note 26)	4,786	4,672
	913	-
Bonds
Others Other debtors impairment losses	467 (435)	298 (435)

17. OTHER CURRENT ASSETS

On the year ended on 30 June 2017 and 2016, there were no movements in the balance of impairment losses from other debtors.
17. OTHER CURRENT ASSETS
On 30 June 2017 and 30 June 2016, caption "Other current assets" decomposes as follows:
Other current assets	Euros'000	Euros'000
	30.Jun.17	30.Jun.16
Accrued Income Sponsorship and publi city	-	69
Solidari ty mechanis m	313	1,125
Sports rights sales	1,125	636
European Competitions	17,108	1,687
European Premium 2016 (Nota 3)	-	784
Cabins	774	648
Related parties (Note 26)	414	423
Others	179	50
Total	19,912	5,422
Accrued expenses
Market research	280	226
Players Transfers Others	- 1,404	250 184
Total	1,684	660
Total	21,597	6,082

The amount recorded in the European competitions income accrued caption includes the amounts retained by UEFA relating to the participation in European competitions of the 2015/2016 and 2016/2017, resulting from court cases in progress with Doyen (Note 19).

18. EQUITY

On 30 June 2017 and 30 June 2016, the equity caption breaks down as follows:

Equity	Euros'000	Euros'000
	30.Jun.17	30.Jun.16
Share capital	67,000	67,000
Share premium	6,500	6,500
Reserves	(7,215)	(7,215)
Marketable securities mandatorily convertible	127,925	127,925
Retained earnings	(219,129)	(187,259)
Net profit Total	30,537 5,618	(31,905) (24,954)

Share Capital and Shares' Premium

SPORTING CLUBE DE PORTUGAL – Futebol, SAD, was constituted by public deed on 28 October 1997 with an initial capital of Euro 34.9 million, with a call for public subscription, governed by the special legal regime established by Decree-Law No. 67/97 of 3 April.

On the 31 July 2001, the equity amount increased to Euro 54.9 million by public deed.

This increase on the equity amount was made by converting Sporting Clube de Portugal and Sporting-SGPS's debt to equity. The partial amounts were Euro 3.05 million and Euro 16.95 million respectively.

Also, on this public deed from July 2001, the equity was converted from Escudos to Euro. This conversion was made applying the standard method, converting the shares net book value from Escudo 1000 to Euro 4.99. This operation has rounded each share to the nearest Euro cent and it has led to a consequent increase in capital of Euro 22.230 thousand (Escudo 4,456,980) against retained earnings. The equity conversion process has ended on the 11 October 2001.

On 2 September 2002 were listed on the Second Market 4 million shares corresponding to the capital increase mentioned above.

By public deed held on 30 June 2004 equity amount was reduced from Euro 54.9 million to Euro 22 million. This reduction amounted to Euro 32.9 million and was destined to cover the losses recorded in prior years proportionally, by reducing the nominal value of shares from Euro 4.99 to Euro 2.

By public deed signed on the 31 March 2005 equity amount has increased from Euro 22 million to Euro 42 million. This increase in the capital amount was undertaken by issuance of 10 million new registered shares with a nominal value of Euro 2 and a premium of Euro 0.65 each, generating a prize pool of shares amounting to Euro 6.5 million.

On 2 December 2010, there was a General Meeting on which a capital reduction was approved from Euro 42 million to Euro 21 million, represented by 21,000,000 shares with a nominal value of Euro 1 each.

Through public deed held on 17 January 2011, equity amount was increased from Euro 21 million to Euro 39 million through the issue of 18 million new ordinary shares, with a nominal value of Euro 1 each. Sporting Clube de Portugal subscribed almost all of the shares.

On 21 November 2014, public deed of the merge between SPM (Society Incorporated) and Sporting SAD (acquiring company) was held, pursuant to point a), paragraph 4 of Article 97 of the Portuguese Companies Code. The merge resulted in an increase in equity of the Company in the amount of Euro 8 million, which consequently increased to Euro 47 million.

On the 21 November 2014 was decided by public deed to have a new increase of capital amounting to Euro 20 million, by incorporating a debt amount held by Holdimo society - Participações e Investimentos SA, subscribed by the issue of twenty million new shares. Each share had a nominal value of Euro 1, and as a result, the Company's equity has increased to Euro 67 million.

Shareholders Shares No % Capital Shares No % Capital Sporting Clube de Portugal 17,864,177 27% 17,864,177 27% Sporting, SGPS 24,962,270 37% 24,962,270 37% Holdimo - Participações e investimentos, S.A 20,000,000 30% 20,000,000 30% Olivedesportos SGPS, S.A. 2,134,770 3% 2,134,770 3% Treasury shares 20 0% 20 0% Dispersed capital 2,038,763 3% 2,038,763 3% Total 67,000,000 100% 67,000,000 100% 30 June 2017 30 June 2016 Share category Shares No % Shares No % Category A 17,864,177 26.66 17,864,177 26.66 Category B 49,135,823 73.34 49,135,823 73.34 Total 67,000,000 100.00 67,000,000 100.00

On 30 June 2017 and 30 June 2016, Sporting SAD capital main shareholders are detailed as follows:

As defined by the Articles of Association, the Social capital consists of class A and B shares. Its detail as of 30 June 2017 and 30 June 2016 is as follows:

30 June 2017	30 June 2016

Sporting Clube de Portugal owns all of class A shares. The company Bylaws provide for special rights attached to the class A shares held by founding club, Sporting Clube de Portugal. These rights arise directly from the legal regime applicable to sports companies. See the Corporate Governance report for more detailed information on their special rights.

The class B shares represent ordinary shares with no special rights.

Marketable securities mandatorily convertible

Marketable securities mandatorily convertible
On 30 June 2017 and 30 June 2016, the convertible securities details as follows:
	Euros'000	Euros'000
MSMC	30.Jun.17	30.Jun.16
MSMC emiss ion January 2011	47,925	47,925
MSMC emiss ion December 2014	80,000	80,000
Total	127,925	127,925
On 14 January 2011 a public subscription offer regarding the emission of Euro 55 million of convertible securities was finalized, with the nominal value of Euro 1. The emission above

On 8 January 2016, by deliberation of the marketable securities mandatorily convertible holders in an general assembly, and regarding the issuance named "VALORES SPORTING 2010" a modification of the following terms and conditions of bonds issued on 14th January of 2011, with a nominal value of 1 Euro, totaling Euro 55 million was made as follows:

• Change of maturity date of the issuance, being the due date of marketable securities mandatorily convertible on 26 December 2026, Nevertheless, the assumptions of early due date, in the cases provided for in 14.5.5 paragraph of the respective prospectus still apply.
• Change in the interest payment terms, as the marketable securities mandatorily convertible grant the right to receive interest conditioned on gross and fixed nominal annual rate of 4% (four per cent) which will be due whenever there will be distributable earnings by Sporting SAD in the financial year ended prior to the date of payment of annual interest.

As described in the accounting policy 1.15 the liability component of this emission, on 30 June 2017 and 2016, is Euro 0. The equity component of this issue is Euros 47,925 thousand in both years.

On 16 December 2014 a public subscription offer regarding the emission of Euro 80 million of convertible securities was finalized, with the nominal value of Euro 1. The emission above was totally subscribed with a maturity date 12 years.

The issuance of Euro 80 million of convertible bonds was subscribed by converting banks debt from Novo Banco SA and Banco Comercial Portugues SA amounting to Euro 56 million into convertible bonds. The shareholder Sporting Clube de Portugal has a purchase option on Euro 44 million of nominal value of this convertible bonds, and it may be exercised during the period of the option exercise.

Reserves

The convertible bonds will be converted into common shares (class B shares) of Sporting
SAD at a conversion price of Euro 1 each, with a conditional nominal annual interest rate
of 4% due only when there are distributable earnings by Sporting SAD in the financial year
ended prior to the date of payment of annual interest. Hence, the capital component of
this issue amounted to Euro 80 million of convertible bonds.
Reserves
On 30 June 2017 and 30 June 2015, the detail of the reserves is presented as follows:
	Euros'000	Euros'000
Reserves	30.Jun.17	30.Jun.16
Legal reserve	3,506	3,506
Merger reserve	(11,423)	(11,423)
Others reserves Total	702 (7,215)	702 (7,215)

On 30 November 2010, Sporting SAD acquired the Sporting Clube de Portugal and Sporting SGPS, the entire share capital of SCS - Sporting Comércio e Serviços, SA society. It was later performed the merger of SCS, SA in Sporting SAD, given that both companies have similar social objects and that there are mutual benefits in the combination and concentration of their activities.

On 21 November 2014 a merge by incorporation of the SPM into Sporting SAD occurred, in accordance with point a), paragraph 4 of Article 97 of the Portuguese Companies Code, which resulted in a Merger reserve of Euro 1,587 thousand calculated as follows:

Resultados acumulados

The retained earnings correspond to the net results of previous years transferred to equity, according to the decisions made at Sporting SAD General Meetings. Additionally, this item records the changes resulting from the application of the International Financial Reporting Standards and the value of re-measurements related to post-employment benefits. Earnings per Share

Earnings per share for the periods ended 30 June 2017 and 30 June 2016 is presented as follows:

Earnings per share
Net profit (Euros'000)		30.Jun.17 30,537	30.Jun.16 (31,905)
Weighted average number of shares Potencial weighted average number of shares		67,000,000 135,000,000	67,000,000 135,000,000
	Basic Earnings per Share (Euro)	0.456	(0.476)
	Diluted Earnings per Share (Euro)	0.151	(0.158)
The dilution of the earnings arises from the existence of convertible bonds in shares of Sporting SAD.
19. PROVISIONS
Non-Current Provisions
During the periods ended on 30 June 2017 and 30 June 2016 the following movements occurred in provisions for risks and charges:
	Euros'000 Euros'000 30.Jun.16 Increase	Euros'000 Euros'000 Transfers Decrease	Euros'000 Utilization	Euros'000 30.Jun.17
30 June 2017			(2,886)	6,252
Provision for court cases in progress Provision for tax cases in progess Total	8,773 2,154 2,040 4,773 10,813 6,927	(1,400) (389) 0 (793) (1,400) (1,182)	(416) (3,302)
30 June 2016	Euros'000 Euros'000 30.Jun.15 Increase	Euros'000 Decrease	Euros'000 Utilization	5,604 11,856 Euros'000 30.Jun.16

19. PROVISIONS

Non-Current Provisions

The dilution of the earnings arises from the existence of convertible bonds in shares of Sporting SAD.
19. PROVISIONS
Non-Current Provisions
During the periods ended on 30 June 2017 and 30 June 2016 the following movements
occurred in provisions for risks and charges:
30 June 2017	Euros'000 30.Jun.16	Euros'000 Increase	Euros'000 Transfers	Euros'000 Decrease	Euros'000 Utilization	Euros'000 30.Jun.17
Provision for court cases in progress	8,773	2,154	(1,400)	(389)	(2,886)	6,252
Provision for tax cases in progess Total	2,040 10,813	4,773 6,927	0 (1,400)	(793) (1,182)	(416) (3,302)	5,604 11,856
30 June 2016	Euros'000	Euros'000	Euros'000		Euros'000	Euros'000
	30.Jun.15	Increase	Decrease		Utilization	30.Jun.16
Provision for court cases in progress Provision for tax cases in progess	6,447 2,040	3,070 -		(250) -	(540) -	8,773 2,040

The amount booked in "Provision for tax cases in progress" results from tax cases in progress and a conservative evaluation provision made by the Company with reference to the date of the Financial Statements.

Current Provisions

During the year ended on 30 June 2017, the following movements occurred:

30 June 17

The movement of the current provisions during the half year ended 31 December 2015 resulted in a recorded loss that arose from litigation with Doyen (Note 10). The use of the provision refers to the amount delivered in April 2017 by the Swiss Court (Office des Poursuites de Nyon) to Doyen. This provision also includes the amount of Euros 1,950 thousand refers to player Zakaria Labyad. Euros'000 Euros'000 Euros'000 Euros'000 Euros'000 30.Jun.16 Increase Decrease Utilization 30.Jun.17 Provision for court cases in progress 14,991 715 - (2,292) 13,414

On August of 2012, Sporting SAD celebrated with Doyen two contracts designated ERPA (Economic Rights Participation Agreement) relative to players Marcos Rojo and Zakaria Labyad. On 14 August 2014, subject to the nullity of contracts with Doyen related to players Marcos Rojo and Zakaria Labyad, Sporting SAD proceeded to the its resolution with just cause accusing the fund of violating repeatedly and intentionally their obligations of noninterference with the internal life in SAD, not to force the transfer of players, and confidentiality, Sporting SAD also defends the nullity of contracts for violating the law and morality.

Both Sporting SAD, as Doyen have established lawsuits in the Court of Arbitration for Sport (TAS / CAS), that by a judgement delivered on 21 December 2015, decided the validity of the ERPA for the players Marcos Rojo and Zakaria Labyad and therefore sentenced Sporting SAD to pay the amount of Euro 12,013,990 plus interests. It is also conferred to Doyen the right to receive 75% of the amount that Sporting SAD will be earn in virtue of their right to 20% of up to Euro 23,000,000 in a future sale of the player Marcos Rojo by Manchester United.

Sporting SAD has brought to the Swiss Supreme Court an action requesting the annulment of the decision described above that confirmed the TAS decision by sentence on 13 December of 2016. Doyen has started to perform its executive diligences in Switzerland, which are running on its terms that led to the withhold of credits of Sporting SAD by UEFA. UEFA retained the sum of Euros 19,400,435 subject to a Swiss court order, of which Euros 2,292,435 was released by the Court to Doyen in April 2017. As early as August 2017, it was returned to Sporting SAD the amount of Euros 2,820,703.60 that had been withheld in excess. The revenues of the Champions League, with reference to the edition 2017/18 are not pawned.

Doyen required, to Tribunal da Relação de Lisboa, the reconnaissance of the TAS/CAS sentence. Sporting SAD has argued that this action decision is against public order since (i) Sporting is deemed to pay interest to usuary (ii) it includes contracts that violate the fundamental rights of the players; (iii) it includes contracts that violate the rules of EU rights and workers circulation freedom regarding this last point. Sporting required the court to suspend the instance so that several questions ccould be placed to UE justice court. The court accepted UEFA and FIFA constitution as Sporting's assistants on process. Up to this the court has not pronounce any decision.

20. FINANCIAL LIABILITIES

Another executive proceeding concerning the exercise of the put-option of player Zakarya Labyad and legal costs arising from the arbitration award made by TAS / CAS, in the amount of CHF 2,146 .610,00, with Sporting SAD having deduced opposition to the attachment and the Court granted. A reasoned decision is awaited.
20. FINANCIAL LIABILITIES
On 30 June 2017 and 30 June 2016 the financial liabilities presented the following detail:
	Euros'000	Euros'000
Financial liabilities	30.Jun.17	30.Jun.16
Non-Current
Bank loans	24,444	35,424
Bond loans	-	30,000
Factoring	3,765	15,000
Leasings	8,124	8,432
Interests and loan charges	(68)	(737)
	36,265	88,119
Current
Bond loans	30,000	-
	12,682	7,653
Bank loans	612	606
Leasings		14,736
Factoring	26,190
Bank overdraft	22,538	22,133
Interests and loan charges	(916)	(1,192)
	91,106	43,936
Total	127,371	132,055

On May 2015, a bond loan was fully subscribed, with a demand of 157% exceeding the supply, with buying proposals from 4,241 investors. This Bank loan was denominated "Empréstimo Obrigacionista Sporting SAD 2015-2018" and amounted to Euro 30 million. The Bond coupon is 6.25% with semi-annual interests, and its maturity is on 25 May 2018. The demand for these bonds was 2.57 times above the number of bonds issued.

The Bank loans and Leasing's amount as of 30 June 2017 result from the finance restructuring plan signed on November 2014 by Sporting Group with the banks Millennium BCP SA and Novo Banco SA. This restructuring has contemplated a substantial modification of the terms and conditions of the existing bank loans at that date, as defined in the Framework Agreement of the restructuring plan and the financing agreements.

As consequence of the debt restructuring process, not only the financial liability was disregarded from the accounts but also the commissions incurred. Additionally, a new financial liability arose.

At baseline, the recognition of the new financial liability was calculated at fair value, net of transaction costs incurred. The recognition was based on existing market rates on that date and a capital repayment plan along the maturity under contract. It also included an estimate of anticipated debt repayments resulting from: (i) part of allocation mechanisms in revenues from any participation in European competitions; (ii) sales of players; (iii) cash sweep mechanisms in the event of having an excess of cash flow at the end of the year as compared to the initial estimates. Those estimates were provided in the business plan for the period elapsing between the financial years 2014/2015 and 2021/2022.

compared to the initial estimates. Those estimates were provided in the business plan for	sweep mechanisms in the event of having an excess of cash flow at the end of the year as	in revenues from any participation in European competitions; (ii) sales of players; (iii) cash
the period elapsing between the financial years 2014/2015 and 2021/2022.
The balance between the book value and the nominal value was recorded in the income statement. The gains recorded in year ended on 30 June related to the bank debt associated with the financial restructuring of November 2014 amounted to Euro 13,194 thousand (Note 10)
In the current period, the expenses recorded resulting from the application of amortized cost method related to the bank debt associated with the financial restructuring of November 2014 amounted to Euro 3,587 thousand (Note 10).
The bank liabilities by recourse factoring agreements are due mainly to the assignment of future receivables to the bank Millennium BCP SA and Novo Banco SA. The detail of the assigned revenue is presented as follows:
	Euros'000	Euros'000
Factoring	30.Jun.17	30.Jun.16
Television rights - Actual season	3,530	-
	26,425	29,736
Television rights - Future seasons
Other income Total	- 29,955	- 29,736

	30.June.17		30.June.16
Bank loans	Nominal	Amortized	Nominal	Amortized
	Value	cost	Value	cost
Bank loans
BCP/Novo Banco	40,614	37,133	49,848	43,077
BCP/Novo Banco - Bank overdraft	22,538 63,152	22,538 59,671	22,133 71,982	22,133 65,210
Other Financing BCP/Novo Banco - Factoring	29,955	29,106	29,736	28,492
BCP/Novo Banco - Bond loan	30,000	29,857	30,000	29,315
BCP/Novo Banco - Leasing	11,894	8,736	12,499	9,037
	71,849	67,700	72,235	66,845
Total	135,001	127,370	144,217	132,055
Interest Debt
The main contractual terms of the financing agreements as of 30 June 2017, including the
interest rate and maturity, is presented as follows:
Bank loans	Euros'000		Interest rate	Maturity
BANK FINANCING	30.Jun.17
Non-Current
Bank loans
	27,932	Untill	3M Euribor + 1%	Jun-22
BCP/Novo Banco

Interest Debt

Bank loans
Other Financing
Interest Debt
The main contractual terms of the financing agreements as of 30 June 2017, including the
interest rate and maturity, is presented as follows:
	Euros'000
Bank loans	30.Jun.17		Interest rate	Maturity
BANK FINANCING
Non-Current
Bank loans
BCP/Novo Banco	27,932	Untill	3M Euribor + 1%	Jun-22
Other loans:
BCP/Novo Banco - Factoring	3,765	Average tax of 3.25%		Jun-18
	31,697
Current
Bank loans
BCP/Novo Banco	12,682	Untill	3M Euribor + 1%	Jun-18
BCP/Novo Banco - Bank overdraft	22,538		Average tax of 3.5%	-
Other loans:
BCP/Novo Banco - Bond loan	30,000		6.25%	Mai-18
BCP/Novo Banco - Factoring	26,190		Average tax of 3.25%	Jun-18
	91,410
Total	123,107
It should be noted that in the above table amounts all values are nominate values.
Leasing

Leasing

Sporting SAD records in its caption account "Tangible fixed assets", assets acquired under finance lease arrangements, including the Academy (Note 11). The main contractual terms of the leases at the date of 30 June 2017 are as follows:

		Euros'000 Interest rate
Leasings	30.Jun.17		Maturity
Non-Current
BCP/Novo Ba nco - Leas ing		11,283	3M Euribor + 1%	Nov-34
		11,283
Current
BCP/Novo Ba nco - Leas ing		612	3M Euribor + 1%	Jun-18
		612
Total		11,894
On 30 June 2017, the detail of the future plan payments of principal and interest, in nominal
terms, is presented as follows:
		Repayments	Interests	Capital
		Euros'000	Euros'000	Euros'000
Leasing future payments		728	116	612
		3,636	487	3,148
Less than 1 year			326	3,310
Between 1 and 5 years
Between 5 and 10 years		3,636
More than 10 years		4,994	170	4,824
	Total	12,994	1,099	11,894
Financial Covenants
The financing agreements provided a set of general obligations for action, omission and

Leasing future payments	Repayments Euros'000	Interests Euros'000	Capital Euros'000

Financial Covenants

The financing agreements provided a set of general obligations for action, omission and obligation to provide information to banks and anticipated mandatory payment clauses on its financial credits. In case of default by Sporting S.A.D. of the obligations under the financing agreements the banks have the option of declaring overdue financial credits in advance. Moreover the banks may also exercise purchase options of convertible debts by Sporting Club de Portugal by the deadlines laid down in the conditions of issue.

It is also important to notice that Sporting SAD agreed with the banks under the aforementioned financial restructuring plan, a business plan for the period elapsing between the financial years 2014/2015 and 2021/2022, from which result allocation of the revenues with possible participation in European competitions and sales of players to early repayment of debt and also cash sweep in the event of excess of cash at the end of the year against amounts estimated on budget. It is considered business plan failure by the banks if the negative deviations from the free cash flow before debt service are below 5% of it. Notwithstanding the aforementioned conditions, Sporting SAD administration considers that from this set of obligations do not result material restrictions to normal operational and financial management of the company.

Credit Collateral

Credit collaterals are disclosed in Note 29.

21. OTHER NON CURRENT LIABILITIES

On 30 of June, 2017 and 2016, the balance of other non-current liabilities is detailed as
follows:
				Euros'000		Euros'000
Other non-current liabilities				30.Jun.17		30.Jun.16
Accounts payable				9,080		2,524
Other personnel operations				1,429		-
Accrued income - Tickets				6,093		6,647
Accrued income - Special places and cabins				8,363		9,838
Accrued income - Advertising and promotion				13,099		14,435
Lending of future credits				16,990		-
Accrued income - Others				908		990
Other non-current payables - Association in participation				12,652		6,060
			Total	68,615		40,494
The item "Accrued income" refers to amounts received that are to be recognized in income
after the respective service is provided.
The caption "Lending of future credits" is derived from the non-current amount related to
the anticipation of non-recourse income from the television rights contract.
On 30 June, 2017 and 2016, the maturity of other non-current creditors, financial discount
object was as follows:
	> 1 year and	> 2 years and < 3 years	> 3 years and < 4 years	> 4 years and < 5 years	> 5 years and < 6 years	Total
Other Non-Current Payables (Nominal Value)	< 2 years			37	-	9,623
Accounts pa yable	7,862	1,112	612
Other opera tions with personel Association in participation	1,500 4,126	- 2,626	- 2,626	- 1,547	- -	1,500 10,925
Total 30.Jun.17	13,488	3,738	3,238	1,584	-	22,048
Other Non-Current Payables	> 1 year and	> 2 years and <	> 3 years and <	> 4 years	> 5 years
(Nominal Value)	< 2 years	3 years	4 years	and < 5 years	and < 6 years	Total

The item "Accrued income" refers to amounts received that are to be recognized in income after the respective service is provided. The caption "Lending of future credits" is derived from the non-current amount related to the anticipation of non-recourse income from the television rights contract. On 30 June, 2017 and 2016, the maturity of other non-current creditors, financial discount object was as follows:
Other Non-Current Payables (Nominal Value)	> 1 year and < 2 years	> 2 years and < 3 years	> 3 years and < 4 years	> 4 years and < 5 years	> 5 years and < 6 years	Total
Accounts pa yable	7,862	1,112	612	37	-	9,623
Other opera tions with personel	1,500	-	-	-	-	1,500
Association in participation Total 30.Jun.17	4,126 13,488	2,626 3,738	2,626 3,238	1,547 1,584	- -	10,925 22,048
Other Non-Current Payables (Nominal Value)	> 1 year and < 2 years	> 2 years and < 3 years	> 3 years and < 4 years	> 4 years and < 5 years	> 5 years and < 6 years	Total
Accounts pa yable	1,874	574	112	112	37	2,710

The caption "Non-current Payables" regards mainly the acquisition of sports and economic rights to football clubs and third parties, brokerage commissions, market prospection and player's image rights. The breakdown of this item by the main balances payable is detailed as follows:

	Euros'000	Euros'000
Non-Current accounts payable	30.Jun.17	30.Jun.16
Amount to be paid by acquisition of players - Club
U.C. Sampdoria, S.p.A.	4,000	-
A.S.Roma S.p.A	2,500	-
Real Betis Balompié, SAD	615	-
Sporting Clube De Braga - Futebol SAD Club Atl etico River Plate	500 463	- 1,225
Udinese Calcio S.P.A.	-	1,000
Sub-Total	8,078	2,225
Amount to be paid by acquisition of players - Other Suppliers
Gondry Financial Services Limited	330	430
SBASS Ltd	43	55
Buttonpath Limited	350	-
Positionumber, Uni.,Lda.	400	-
Football Capital	173	-
Universal Management, SA	250	-
Sub-Total	1,546	485
Financial Discount	(543)	(185)
Total	9,080	2,525
"Other non-current payables - Association in participation" is detailed as follows on 30 June
2017 and 2016 is as follows:
Other Non-Current Payables - Association in	Euros'000	Euros'000
Participation	30.Jun.17	30.Jun.16
Quality Football Ireland Ltd	12,652	6,060
Total	12,652	6,060
22. ACCOUNTS PAYABLE
On 30 June, 2017 and 2016 the detail of the main balances of suppliers is presented as

Other Non-Current Payables - Association in
Participation

22. ACCOUNTS PAYABLE

Euros'000 30.Jun.17 - 950	Euros'000 30.Jun.16
	1,614 1,000
-	1,000
1,598	800
4,480	250
-	246
-	200
-	60
6,000	-
2,144	-
3,606	-
	-
	-
	-
	-
	-
	5,170
	700
	700
	500
1,354	400
350	350
300	300
272	272
116	107
899	-
468	-
	-
	-
	-
	-
	7,645
	10,974
	16,144
	950 4,500 2,000 1,004 215 27,447 - 200 - 400 250 200 173 8,682 13,664 41,111 The main outstanding amounts presented basically refer to the acquisition of sports and economic rights and image rights of players, interchange fees, amongst others.

23. STATE AND OTHER PUBLIC ENTITIES

The balances with the state and other public entities detail is as follows:

	Euros'000		Euros'000
	30.Jun.17		30.Jun.16
State and other public entities	Debit Balance	Credit Balance	Debit Balance	Credit Balance
IRC	-	314	613	-
IRS	-	1,783	-	1,443
VAT	-	323	-	2,287
Social security	-	624	-	471
Total	-	3,044	613	4,202
24. OTHER CURRENT PAYABLES
On 30 June, 2017 and 2016, the balance of other current payables is detailed as follows:
			Euros'000	Euros'000
				30.Jun.16
Other current payables		30.Jun.17		2,246
Pers onnel operations			1,793
Related parties (Note 26)			14,993	4,667
Other current payables - Ass	ociation in participation		4,607	7,290
Other current payables			1,376	768
	Total		22,770	14,971
The item "Personnel operations" refers to signing bonuses payable to players with maturity
of less than one year.

24. OTHER CURRENT PAYABLES

24. OTHER CURRENT PAYABLES
On 30 June, 2017 and 2016, the balance of other current payables is detailed as follows:
Other current payables
of less than one year. The item "Other current payables - Association in participation" is detailed as follows:
Other current payables - Association in participation	Euros'000 30.Jun.17	Euros'000 30.Jun.16
Quality Football Ireland Ltd	4,607	7,290
Total	4,607	7,290
25. OTHER CURRENT LIABILIITES
On 30 June 2017 and 2016, the item "Other current liabilities" breaks down as follows:

Other current payables - Association in participation

25. OTHER CURRENT LIABILIITES

	Euros'000	Euros'000
Other current liabilities	30.Jun.17	30.Jun.16
Accrued Expenses
Salaries to be paid	568	491
Compensation	578	683
Remunerations	3,239	2,612
Interest to be paid	-	232
Prizes to be paid	625	838
Related Parties (Note 26)
Solidarity mechanisms	40 965	415 106
Others	3,166	2,642
Sub-total Deferred Income	9,181	8,019
Season tickets
Special seats and cabins	1,950	737
	1,803	1,856
Sponsorship and publicity	1,336	1,336
Lending of future receivables (note 21)	4,500
Release of players	-	119
Others	312	206
Sub-total	9,902	4,254
Total	19,083	12,273
Accrued Expenses

Accrued Expenses

The balance of prizes to be paid essentially refers to awards for players goals.

The balance of other accrued expenses essentially correspond to commitments with suppliers that are not yet reflected in the current account for services provided before financial reporting date.

Deferred revenue

The other deferred income refers to amounts received which are only to be recognized in income when the respective service is provided.

26. RELATED PARTIES

All the companies that belong to the Sporting Group were considered as related entities.

Related parties balances

Hence Holdimo SA is now a shareholder of Sporting SAD, holding a percentage of 29.85% of the share capital; the entity was also assessed as a related party, as well as its major shareholder.
In the identification of related parties for the purposes of financial reporting, they were assessed as related parties also members of the Board of Directors and other corporate bodies. See Note 5.
The Company regularly enters into transactions and contracts with related parties, in particular with companies owned by the Group of Sporting. The terms and conditions practiced between Sporting SAD and its related parties are substantially identical to the terms normally contracted between independent entities in comparable operations.
Balances and transactions with entities related to 30 June 2017 and 2016 are as follows:
Related parties balances
Related parties balances					Euros'000 30.Jun.2017
	SCP	SGPS	MM	SCP C&P	Group SCP - Others	Holdimo	Total
Current Assets Accounts receivable (Note 14)	-	-	-	-	-	-	-
Other current assets (Note 17) Other debtors (Note 16)	223 -	- 4,463	- 263	189 -	2 60	- -	414 4,786
Total	223	4,463	263	189	62	-	5,200
Current Liabilities
Other current liabilities (Note 25) Other current payables (Note 24)	40 4,953	- -	- -	- 10,040	- -	- -	40 14,993
Total	4,993	-	-	10,040	-	-	15,033
Related parties balances					Euros'000
	SCP	SGPS	MM	SCP C&P	30.Jun.2016 Group SCP - Others	Holdimo	Total
Current Assets
Accounts receivable (Note 14) Other current assets (Note 17)	- 369	- -	- 2	- 42	- 10	- -	- 423
Other debtors (Note 16)	-	4,362	246	35	29	-	4,672
Total	369	4,362	248	77	39	-	5,095
	35	-	-	380	-	-	415
Current Liabilities Other current liabilities (Note 24)				-	-	-	4,667
Other current payables (Note 23) Total	4,667 4,702	- -	- -	380	-	-	5,082

Related Parties Transactions

Related Parties Transactions
Related parties transactions					Euros'000
					30.Jun.2017
Operating Expenses (Note 4)	SCP	SGPS	MM	SCP C&P	Group SCP - Others	Holdimo	Total
Rents	50	-	-	-	-	-	50
Sponsorship and advertising	176	-	-	165	-	-	341
Royalties	-	-	-	-	-	-	-
Shared costs	76	-	-	-	-	-	76
Press office	-	-	-	-	-	-	-
Public relations	75	-	-	-	-	-	75
Operations/maintenance	728	-	-	- -	-	-	728
Total	1,105	-	-	165	-	-	1,270
Services and Revenues (Note 2)
Sponsorship and advertising	561	-	-	-	-	-	561
Royalties	-	-	38	147	-	-	186
Cabins	270	-	-	-	-	44	270
Shared costs	1,364	-	71	90	-	-	1,525
Total	2,194	-	110	237	-	44	2,541
Related parties transactions					Euros'000
					30.Jun.2016
	SCP	SGPS	MM	SCP C&P	Group SCP - Others	Holdimo	Total
Operating Expenses (Note 4)
Rents	-	-	-	-	-	-	-
Sponsorship and advertising	257	-	-	215	-	-	472
Royalties Shared costs	- 214	- -	- -	- -	- -	- -	- 214
Press office	-	-	-	-	-	-	-
Public relations	75	-	-	-	-	-	75
Operations/maintenance	522	-	-	- -	-	-	522
Total	1,067	-	-	215	-	-	1,282
Services and Revenues (Note 2)
Sponsorship and advertising	751	-	-	-	-	-	751
Royalties	-	-	38	42	-	-	80
Cabins	209	-	-	-	-	44	253
Season tickets	-	-	-	-	-	-	-
Shared costs	1,496	-	-	90	10	-	1,596
Total	2,456	-	38	132	10	44	2,680
Financial income and gains (Note 10)
Interests	-	-	-	-	-	-	-
Total	-	-	-	-	-	-	-
Legend:
SCP (Sporting Clube de Portugal) SPM (Sporting Património e Marketing, SA)

Legend:

SCP (Sporting Clube de Portugal) SPM (Sporting Património e Marketing, SA) MM (Sporting Multimédia, SA) SCP C&P (Sporting - Comunicação e Plataformas, SA) SGPS (Sporting, SGPS)

External supplies and services

Sponsorships and advertising - sponsorship contracts and customers celebrated advertising sometimes contain counterparts for the SCP and the SCP C&P. These companies deducts the Sporting SAD the contractually defined counterparts.

Shared costs - In the exercise of its activity Sporting SAD uses the shared support services made available by the structure of related parties, being charged monthly costs.

Sales and services rendered

Sponsorships and advertising – it was established in some contracts for advertising and sponsorship, that Sporting SAD is entitled to a portion of these, so it charges SPM and the SCP by their values.

Royalties – During the year ended on 30 June 2015, Sporting SAD and Sporting C&P celebrated an agreement associated with the exploitation of Sporting TV.

Shared costs – In the exercice of its activity, Sporting SAD charges to other companies of the Group Sporting various services of shared services charged monthly, including the grant of use to SCP.

Other creditors

The balance of Euros 10,040 thousand with Sporting Comunicação e Plataformas is essentially related to the transfer of future credits of Sporting TV revenues made and received by Sporting SAD.

27. INCOME TAX

Sporting SAD is subject to Income Tax according Corporate Income Tax Code at the standard rate of 23%, increased by 1.5% on taxable income by applying a local corporate tax (Derrama), resulting in an aggregate tax rate of 24, 5%.

This rate is increased in (i) 3% on the portion of taxable income of each company exceeding Euro 1,500,000 up to Euro 7,500,000, (ii) 5% on the portion of taxable income exceeding Euro 7,500,000 up to Euro 35,000,000 and (iii) 7% on the portion of taxable income exceeding Euro 35 million. The tax base, to which the above tax rate is applied, is calculated by adding the amounts not-deductible for tax purposes, and the subtraction of the nontaxable amounts, to the net income. These differences between the accounting and tax results may be temporary or permanent.

Under Article 88 of the Corporate Income Tax Code, the Company is subject to autonomous taxation on a number of charges at the rates provided for in that article.

According to the law, tax returns of the Company are subject to review and correction by the tax authorities for a period of four years (five years for Social Security), except when tax losses exist, tax benefits have been granted, tax inspections are in due course or claims in progress exist, in which case the deadlines are extended or suspended.

On 30 June 2017 and 30 June 2016, the breakdown of the amount of income tax for the
year recognized in the financial statements is as follows:
	Euros'000 30.Jun.16
	118
	-
	-
77	(324)
Total 4,660	(206)
Current tax for the year is mainly due to the collection calculated after deduction of
Euros'000	Euros'000
30.Jun.17	30.Jun.16
	(32,111)
22.5%	22.5%
	The Board of Directors believes that any corrections resulting from reviews / inspections by the tax authorities of these tax returns will not have a significant effect on the financial Euros'000 30.Jun.17 602 - 3,981 2012/2013 tax losses as well as the autonomous taxation. The reconciliation of the effective tax rate for the periods ended on 30 June 2017 and 30 35,197

Income tax
Current tax for the year is mainly due to the collection calculated after deduction of 2012/2013 tax losses as well as the autonomous taxation. The reconciliation of the effective tax rate for the periods ended on 30 June 2017 and 30 June 2016 is as follows:
Effective tax rate reconciliation	Euros'000 30.Jun.17	Euros'000 30.Jun.16
Profit before tax	35,197	(32,111)
Nominal tax rate	22.5%	22.5%
	7,919	(7,225)
Permanent differences	(2,000)	-
Use of tax loss es without deffered tax	(5,544)	-
Reportable exercise tax losses without Deffered tax		7,225
Provis ion / reversal for current tax	3,981
Adjustments in prior years / impairments Autonomous taxation	77 226	(324) 118
Income tax for the period	4,660	(206)

Tax losses without deferred tax assets

Under the Portuguese legislation, tax losses generated before 2009, from 2010 to 2011, 2012 and 2013 and from 2014 are carried forward for a period of six, four, five and twelve

years, respectively, after their occurrence and may be deducted from taxable profits
generated in that period, up to 75% of taxable income on 2013 and 70% of taxable income
in future years.
On 30 June 2017, tax losses that Sporting SAD considers as unlikely to deduct on the future
taxable income are not a deferred tax assets subject. The detail of deferred tax assets per year is as follows:
	Euros'000	Euros'000	Euros'000	Euros'000
Fiscal Year	Tax losses	Usable	Amounts to	Tax losses to	Expiry date
	generated	amounts	be used	recover
2013/14	(5,255)	-	(5,255)	(5,255)	30-jun-18
2015/16 Total	(15,324) (20,579)	- -	(15,324) (20,579)	(15,324) (20,579)	30-jun-28
The estimates included in business plans, adjusted for their tax impact of the clearance of
the tax base of corporate income tax, do not support the recoverability of these tax losses.
Thus, the Board of Directors of Sporting SAD decided to avoid any recording of deferred
tax assets of this nature. For the same reason, there is no recognition of any other deferred

28. POST RETIREMENT BENEFITS

	Tax losses generated	Usable amounts	Amounts to be used
the tax base of corporate income tax, do not support the recoverability of these tax losses. Thus, the Board of Directors of Sporting SAD decided to avoid any recording of deferred tax assets of this nature. For the same reason, there is no recognition of any other deferred tax assets. It should be noted further that there are no deferred tax liabilities in the financial
statements. 28. POST RETIREMENT BENEFITS The main actuarial assumptions used while preparing the studies are the following: Actuarial assumptions		30.Jun.17		30.Jun.16
Wage growth rate		2.00%		2.00%
Pension growth rate Tecnical interest rate		2.00% 2.00%		2.00% 2.00%
Employee rotation rate		0.00%		0.00%
Male mortality table		TV 88/90		TV 88/90
Female mortality table		TV 88/90		TV 88/90
Disability table		EKV 80		EKV 80
Normal age of retirement		66		66

30.Jun.17	30.Jun.16
5	5
76	75
146	123
43	44
12	13
	30.Jun.16
	722 2,628
	3,350
	The variations in the caption "Post-retirement responsibilities" balance on 30 June 2017
30.Jun.16	30.Jun.15
	The responsibilities were determined by actuarial valuations reported at 30 June 2017 and 2016, prepared by an independent entity using the projected unit credit method. On 30 June 2017 and 2016, the value of responsibilities detailed by beneficiaries retired or 30.Jun.17 680 2,934 3,615

Responsabilities recognised at balance sheet	30.Jun.17	30.Jun.16
Pensioners	680	722
Assets	2.934	2,628
Total	3.615	3,350

3,615	3,350
The variations in the caption "Post-retirement responsibilities" balance on 30 June 2017
30.Jun.16	30.Jun.15
3,350	3,034
294	204
66	75
(35)	115
(61)	(77)
	The responsibilities were determined by actuarial valuations reported at 30 June 2017 and 2016, prepared by an independent entity using the projected unit credit method. On 30 June 2017 and 2016, the value of responsibilities detailed by beneficiaries retired or

The loss of Euro 115 thousand on 30 June 2016 is due mainly to the reduction in the discount rate on 30 June 2016 (2%) as compared to 30 June 2015 (2.5%).

The expenses incurred with pensions are recorded in payroll costs heading account on June 2017 and 2016 (Note 5) and are detailed as follows:

Retirement benefits expenses	30.Jun.17	30.Jun.16
Current service expenses	294	204
Interest expenses	66	75
Total	360	279
29. COLLATERAL AND OTHER COMMITMENTS
Debt collateral

29. COLLATERAL AND OTHER COMMITMENTS

Debt collateral

Under the financial restructuring and corporate resolution by the General Meeting of the Company held on 23 July 2013 and implemented in the last quarter of 2014 were renegotiated the terms and conditions of existing bank loans by contracting new financing lines.

Sporting SAD constitutes jointly and severally liable, together with Sporting Clube de Portugal and Sporting SGPS for compliance with loan agreements with banks. Thus, as already defined in the financing contracts of December 2008, in the event of default or breach of the obligations of companies in Sporting Group, in which the Sporting SAD is borrower and guarantee - in particular the obligations of repayment of principal and / or interest payments - Sporting SAD can be compelled to comply with the obligations of those entities to Sporting Group with their creditors.

Sporting SAD. Has celebrated on 28 November 2014, together with Sporting and Sporting SGPS a constitution of guarantees and pledge of collateral, under which were Sporting SAD, Sporting and Sporting SGPS, provided to Novo Banco SA and Millennium BCP SA a diverse set of guarantees for the safety of the good payment of the guaranteed obligations. Thus, Sporting SAD can be compelled to comply with the obligations assumed by Sporting and Sporting SGPS. It should also highlight the following guarantees provided by the Sporting SAD:

Second mortgage on the Sporting SAD's surface right over held by society under the fractions "A" and "B" from the urban building situated on the street Dr. Fernando da Fonseca, in Lisboa,Lumiar, described on CRP of Lisbon nº 2440, which correspond, respectively, to the Football Stadium José de Alvalade and to the Multisport building;

Constitution of first pledge over the credits of the group Sporting;

Constitution of pledge of first degree on revenue arising from the sponsorship rights of exploration, Television Rights and on claims resulting from any Material Contracts;

• Constitution of fledge over bank accounts;
• Commitment of pledging the equipment
• Assignment guaranteed scope of all present and future claims that are or will hold in respect of insurance;
• Assignment of guaranteed over sales of players' registration rights;

Regarding the first mortgage identified above, it should be noted that the surface rights aforementioned were already encumbered, since 23 August 2005, through voluntary mortgage granted in favor of the same banks, to guarantee the maximum amount of Euro 145.6 million. Euros'000 Euros'000 30.Jun.17 30.Jun.16 Total 793 1,367

On 30 June 2017 and 30 June 2016, there are bank guarantees, amounting to Euro 793 thousand, to the following entities:

Regarding the first mortgage identified above, it should be noted that the surface rights
aforementioned were already encumbered, since 23 August 2005, through voluntary
mortgage granted in favor of the same banks, to guarantee the maximum amount of Euro
On 30 June 2017 and 30 June 2016, there are bank guarantees, amounting to Euro 793
	Euros'000	Euros'000
Bank guarantees	30.Jun.17	30.Jun.16
DGCI	793	1,358
Repsol	-	9
Total	793	1,367
There are players' registration rights held by Sporting SAD for which commitments with

Commitments and Obligations

There are players' registration rights held by Sporting SAD for which commitments with third parties have been established, including clubs, sports agents or the players themselves, to apportion the value of future earnings or sales that may be obtained from the sale of their pass. Image rights 490 240 - - - ⁷³⁰ Brokerage commission for the players transfers 1,486 1,329 934 639 479 4,867 Upgrading commission of labour contracts 979 979 657 569 30 3,213

Within the celebration of sports employment contracts with players and coaches, there are also financial commitments related to their sports performances during the next seasons.

In addition to these commitments in the preceding paragraphs, as of 30 June 2017, the gross assumed payment commitments, with players image rights are detailed as follows:

Commitments	Jun-18	Jun-19	Jun-20	Jun-21	Jun-22	Total

30. FINANCIAL ASSETS AND LIABILITIES

Financial instruments by category

Reconciliation of financial nature of the balance sheet items to the various categories of assets and liabilities, provided by IAS 39 – "Financial Instruments: Recognition and Measurement" are detailed as follows:

30.Jun.17 (Euros'000)	Loans and other receivables	Other Financial liabilities	Non Financial Liabilities /Assets	Total
Assets
Other non-current assets - Clients	3,619	-	-	3,619
Other non-current assets Clients	463 56,559	- -	- -	463 56,559
Cas h and Ca sh equivalents	5,790	-	-	5,790
Other debtors	19,912	-	1,684	21,597
Other current ass ets	6,306	-	-	6,306
Total Assets	92,649	-	1,684	94,334
Liabilities
Borrowings	-	127,371	-	127,371
Other non-current lia bilities	-	23,162	45,453	68,615
Accounts Payable	-	41,111	-	41,111
Other credors Other current liabilities	- -	22,770 9,181	- 9,902	22,770 19,083
Total Liabilities	-	223,595	55,355	278,950
	Loans and other	Other Financial	Non Financial
30.Jun.16 (Euros'000)	receivables	liabilities	Liabilities /Assets	Total
Assets Other non-current a ssets - Clients	1,315	-	-	1,315
Clients	11,625	-	-	11,625
Cash and Ca sh equivalents	3,324	-	-	3,324
Other debtors	4,707	-	-	4,707
Other current ass ets	5,422	-	660	6,082
Total Assets	26,393	-	660	27,053
Liabilities
Borrowings	-	132,055	-	132,055
Other non-current liabilities	-	8,584	31,909	40,493
Accounts Payable	-	16,144	-	16,144
Other credors Other current liabilities	- -	14,971 8,018	- 4,254	14,971 12,272
Total Liabilities	-	179,772	36,163	215,935
Fair Value
Sporting SAD has not registered, currently, any assets or liabilities at fair value.

Fair Value

The difference between the book value and the fair value of financial assets and liabilities, non-current, existing in the statement of financial position of Sporting Clube de Portugal - Futebol, SAD that are not recognized at fair value, is presented as follows:

The fair value determined was computed based on valuation techniques from direct market observable inputs, such as the method of discounted cash flows. Future cash flows were discounted based on the designated interest rate curve "Euro Swap", plus the spread attributable to Sporting SAD for liabilities, or spread risk attributable to the counterparties, for assets.

31. RISK MANAGEMENT

The activities of Sporting Clube de Portugal - Futebol, SAD expose the Company to various risks that may have a significant effect on results, cash flows and financial position, among others. These main risks are: market risk (currency risk, risk rate interest and price risk), credit risk and liquidity risk.

Sporting SAD maintains a risk management program focused on the analysis of financial markets and seeks to minimize potential adverse effects on its financial performance.

Risk management is conducted in accordance with the approved policies by the Board of Directors, which assesses and covers financial risks in close cooperation with the Financial Management and the operating units of Sporting SAD. The Board of Directors provides principles for risk management for the group in general and policies covering specific areas, such as the risk of interest rate, liquidity risk and credit risk.

As aforementioned on 14 November 2014 the Framework of the Financial Restructuring Agreement was signed as disclosed in the Introductory Note.

Interest rate risk

Sporting, SAD is exposed to the risk of interest rate on overdraft and loans. Financing obtained at variable interest rates expose Sporting SAD to the risk of variability of cash flows for the change in market rates. Financing obtained at fixed interest rates expose the Sporting SAD to the risk of changes in the fair value of these instruments by the change in market rates. Financing obtained at variable interest rates adds to the contractually defined spread.

The Company has not been following any interest rate hedging policy. Its operations are hired based on their activity financing needs.

At the date of this report, Sporting Clube de Portugal - Futebol, SAD has the following financial liabilities with exposure to interest rate:

				Euros'000		Euros'000
Financial liabilities				30.Jun.17		30.Jun.16
Fixed interest rate
Bank loans				15,268		18,980
Bond emis sion Factoring				30,000 29,955		30,000 29,736
				75,223		78,716
Floating interest rate
Bank loans				21,856		24,096
Bank overdraft				22,538		22,133
Leasings				8,736		9,038
				53,130		55,267
Total				128,353		133,983
Interes ts and loan charges				-984		-1,929
Financial Liabilities (nota 20)				127,370		132,054
More detailed information on financial assets and liabilities exposed to risk of interest rate
depending on maturity (if fixed rate) or date of reattachment of the respective interest rate (in the case of variable interest rate) is shown on the following table:
Euros'000					More than 5 years
30.Jun.17	1 month	1-3 months	3-12 months	1-5 years		Total
Liabilities Financial l iabili ties	15,800	26,387	49,800	26,620	8,764	127,371
Total	15,800	26,387	49,800	26,620	8,764	127,371
Euros'000					More than 5 years
30.Jun.16	1 month	1-3 months	3-12 months	1-5 years		Total
Liabilities
		48,105	12,861	44,315	17,736	132,055
Financial l iabili ties Total	9,038 9,038	48,105	12,861	44,315	17,736	132,055

	More detailed information on financial assets and liabilities exposed to risk of interest rate
depending on maturity (if fixed rate) or date of reattachment of the respective interest rate (in the case of variable interest rate) is shown on the following table: Euros'000
Liabilities Financial l iabili ties	15,800	26,387	49,800	26,620	8,764	127,371
Total	15,800	26,387	49,800	26,620	8,764	127,371
Euros'000	1 month	1-3 months	3-12 months	1-5 years	More than 5 years	Total
30.Jun.16
Liabilities Financial l iabili ties	9,038	48,105	12,861	44,315	17,736	132,055

Sporting, SAD uses sensitivity analysis technique that calculates the changes estimated in its own results and equity in the hypothetic case of an immediate increase or decrease in market interest rates, with all other variables constant. This analysis is for illustrative purposes only, as normally market rates rarely change in isolation from the other market variables.

The sensitivity analysis is based on the assumption that changes in market interest rates affect income or interest expense of financial instruments subject to variable rates.

table:		The analysis of the impact on income before taxes of exercise due to the change in the rates for four scenarios of changes in interest rate curves is presented in the following
		30.Jun.17
Increase of 1%	Increase of	Decrease of 1%	Decrease of
in the interest	0,5% in the	in the interest	0,5% in the
rate	interest rate	rate	interest rate
Euros'000 531	Euros'000 266	Euros'000 (531)	Euros'000 (266)
		30.Jun.16
		Decrease of 1%	Decrease of
Increase of 1%	Increase of
in the interest	0,5% in the	in the interest	0,5% in the
rate	interest rate	rate	interest rate
Euros'000	Euros'000	Euros'000	Euros'000
553	276	(553)	(276)
Credit Risk

Credit Risk

		30.Jun.16
Increase of 1% in the interest rate	Increase of 0,5% in the interest rate	Decrease of 1% in the interest rate	Decrease of 0,5% in the interest rate
Credit Risk
considered necessary.		The Company evaluates the risk of recovery of outstanding balances through the analysis of financial condition and other relevant analysis, recording impairment losses that are
		On 30 June 2017 and 30 June 2016, the accounts receivable balances, current and non
outstanding amounts:		current, presented the following aging structure, considering reference to maturity of
	Eur'000		30.Jun.17	30.Jun.16
Not in default			52,493	3,266
0 - 30 days			2,502	5,299
31 - 60 days			319	353
61 - 90 days			158	132
91 - 120 days			595	108
121 - 150 days			313	660
More than 150 days			19,945	17,456
		Total	76,325	27,274
Impairment		Balance Custumers	(16,147) 60,178	(14,419) 12,855

The following table presents an analysis of the credit quality of accounts receivable past
Balances due without impairment	Euros'000	Euros'000
registration	30.Jun.17	30.Jun.16
Less than 3 months	2,937	592
More than 3 months	4,748	3,975
Total	7,685	4,567
due but for which it was not recognized any impairment:
The following table presents the quality of the credit risk regarding the positions of Sporting
SAD, on 30 June 2017 and 2016, facing financial assets (Cash and cash equivalents) which
counterparties are financial institutions.

The following table presents an analysis of the credit quality of accounts receivable past
due but for which it was not recognized any impairment:
Balances due without impairment
registration
The following table presents the quality of the credit risk regarding the positions of Sporting
SAD, on 30 June 2017 and 2016, facing financial assets (Cash and cash equivalents) which
counterparties are financial institutions.
Euros'000	30.Jun.17	30.Jun.16
B+	-	1,912
B	11	251
BB-	1,909	-
C Total	3,713 5,633	1,000 3,163

The segregation presented above is the result of the worsening of global economic conditions and in particular the situation of Portuguese economy, which caused a general downgrade on the ratings of the Portuguese financial institutions. The maximum exposure to credit risk on 30 June 2017 and 30 June 2016, is summarized as follows:
Euros'000	30.Jun.17	30.Jun.16
Other non current assets	4,082	1,315
Accounts receivable	56,559	11,625
Cas h and cas h equivalents	5,790	4,707
Other debtors	19,912	5,422
Other current assets	6,306	3,324

Liquidity Risk

The risk management of the Company's liquidity is performed on the basis of commitments entered into with its debtors and creditors, trying to match the cash flows in order to avoid working capital needs.

The liquidity of the contracted and interest-bearing financial liabilities will lead to the
following undiscounted cash flows, computed with actual interest rates, based on the
remaining period to the contractual maturity:
			More than 5
Euros'000	Until 1 year	1-5 yers	years	Total
30.Jun.17
Bank loans	92,022	34,845	8,134	135,001
Other non-current liabilities	-	24,848	-	24,848
Accounts payable	41,111	-	-	41,111
	22,770	-	-	22,770
Other paya bles
Other current li abilities	9,181	-	-	9,181
Total	165,083	59,693	8,134	232,911
30.Jun.16
Bank loans	47,197	63,526	31,108	141,831
Other non-current liabilities	-	8,547	37	8,584
Accounts payable	16,144	-	-	16,144
Other paya bles	14,971	-	-	14,971
Other current li abilities	8,018	-	-	8,018
Total	86,330	72,073	31,145	189,548
Foreign Exchange Risk

Foreign Exchange Risk

Foreign currency balances at 30 June 2017 are not significant and do not represent any risk of exchange rate exposure.

Sports Risk

The sports risk is the risk that derives from possible changes in transaction prices of intangible assets, in particular acquisition and disposal of players' registrations, can influence the results and the Company's equity.

Under this sports risk, variations include the trends of the players' registrations transfer market, namely the demand and supply of players with a specific set of qualities for past sports results, the existence of serious injury or other conditions that result in the devaluation of athletes, as well as other factors that may determine the advance untying from players with the Society.

To overcome these risks, the Company hires scouts and scouting services, technical and qualified medical team, betting on a sports policy based on the complementarity of athletes

trained in Sporting's academies but also with other athletes of recognized national and international value.

Sporting SAD continuously monitors UEFA's fair play with the aim of ensuring its presence in European competitions and consequent economic returns. At this date, no relevant risks are perceived in this area.

32. CONTINGENT ASSETS AND LIABILITIES

Contingencies arising from the sale and purchase of players' registrations

From transactions of purchase and sale of economic rights of players as well as renovations of sports labor contract, there are contingent amounts payables to third parties, including clubs, sports agents, players or partners / investment funds, which depend on future transactions and / or future sports performances.

Additionally, whether Sporting SAD has, or not, 100% of the economic rights of the players, there are also contingent amounts payable to the former clubs of players who depend on future transactions and / or future sports performances. On 30 June 2017, the most significant contingent liabilities associated with these situations are the following:

• Miguel Lopes: 5 million payable at the very least, in case of a sale at any price;
• Oriol Rossel: 10% of future profit on a sale;
• Jonathan Silva: 20% of future profit above 4.025M USD;
• Azbe Jug: payable amount dependente on a future sale of the player above Euro 3M;
• Bryan Ruiz: 10% of future profit (variable amounts to pay in a future sale of the player above 1.2MEuro);
• Marvin Zeegelar: payable variable amounts up to the limit of 0.3MEuro;
• Ezequiel Schelloto: payable variable amounts in a future sale of the player up to the limit of 1.05MEuro
• Matheus Pereira: 10% of future profit above de 0.3MEuro;
• Alan Ruiz: 10% in a future sale of the player above 20MUSD and payable variable amounts in a future sale up to the limit of 2.75MEuro
• Petrovic: 10% of payable variable amount for the individual performance of first team up to the limit of 0.5MEuro;
• Rui Patrício: payable variable amounts in a future sale up to the limit f 1.5MEuro;
• Adrien: payable variable amounts in a future sale up to the limit of 4MEuro;
• William Carvalho: payable variable amounts in case on continuing position of the player in the squad until September 2018 up to the limit of 0.5MEuro;
• Bas Dost: payable variable amounts for the individual performance of first team up to the limit of 2MEuro;

• Luc Castaignos payable variable amounts for the individual performance of first team up to the limit of 0.5MEuro;

• Bruno Fernandes: 10% of future profit and payable variable amounts for the individual performance of first team up to the limit of 0.5MEuro;

• Cristiano Piccini: 15% of future profit and payable variable amounts for the individual performance of first team up to the limit of 0.2MEuro;
• Mattheus Oliveira: 20% of future profit;
• Leonardo Ruiz: 20% of future profit deducted from the expenses related to the sale.

Arising from the sale transactions of economic rights of players, there are contingent receivables from football clubs that depend on the future individual or collective performance, as well as percentages on the future transfer of securities or capital gains or profits of those sales.

On the 30th June, 2017, the most significant contingent assets associated with these situations are the following:

• Santiago Arias: 15% of future profit upon sale;
• Leonardo Jardim: a variable amount dependent on Monaco's performance;
• Matias Fernandez: a variable amount dependent on his performance in Fiorentina;
• Marcos Rojo: 20% upon future sale above Euro 23 million;
• Maurício Nascimento: 20% of future profit upon sale;
• Cedric Soares: 15% of future profit and a variable amount dependent on his performance up to a limit of Euro 1 million;
• Enoh: 20% dos direitos económicos de uma transferência futura e valores variáveis a receber pela performance do Lokeren;
• Ramy Rabia: 15% of the economic rights above 1MEuro
• Mahmoud Fadlallah "Shikabala": 15% of future profit;
• Wilson Eduardo: 45% of economic rights of a future transfer;
• Fredy Montero: 20% of economic rights of a future transfer;
• Viola: 25% of economic rights of a future transfer deducted from expenses related to the sale;
• Labyad: 25% of economic rights of a future transfer deducted from expenses related to the sale;
• Aquilani: 30% of economic rights of a future transfer;
• Cissé: 25% of economic rights of a future transfer;
• Ousmane Dramé: 50% of economic rights of a future transfer;
• Edinaldo Pereira: 20% of economic rights of a future transfer;
• João Mário: a variable amount dependent on Inter's performance up to the amount of 5 million;
• Islam Slimani: a variable amount dependent on Leicester's performance up to the amount of 5 million;
• Elias: 30% of economic rights of a future transfer and a variable amount dependent on Atlético Mineiro's performance up to the amount of 1 million;

• Teófilo Gutierrez: 30% of economic rights of a future transfer;

• Rúben Semedo: 20% of economic rights of a future transfer;

• Ricardo Esgaio: 30% of economic rights of a future transfer;
• Hadi Sacko: 20% of future profit and a variable amount dependent on Leeds United's performance up to the amount of 1 million;

Contingencies arising from lawsuits

On the 30 June 2017, there are lawsuits against Sporting SAD and brought by Sporting SAD against third parties.

About the actions brought against the Company it is the conviction of the Board that the outcome of these proceedings will not result in significant impacts, which could affect the financial statements of 30 June 2017 considering the assumptions and background of legal proceedings, the opinions of the Sporting SAD's legal consultants and the other circumstances surrounding the process.

The most significant contingencies of Sporting SAD are detailed as follows:

Lawsuit for damages - Rodriguez

Sporting SAD brought a liability action against Luiz Godinho Lopes, Luis Vieira Duque, Jose Filipe de Mello and Castro Guedes and Carlos Manuel Rodrigues de Freitas, in which it claims payment of the amount of Euro 1,224,626.89 to indemnity basis, for acts involving the conclusion of the contract with the player Alberto Junior Rodriguez Valdelomar.

The defendants dispute the payment of this amount; additionally the defendants requested the joinder of this action the procedures referred to in the following points; 1st defendant claims payment of the sum of Euro 500,000 to indemnity title and the 3rd and 4th defendants requested the condemnation of SAD in fines for litigation in bad-faith and payment of compensation fixed by the Court in favor of the defendants; by order dated 14 May 2015 the Court dismissed the joinder of actions; first defendant appealed against that decision; SAD counter-claimed and ruled for maintaining the decision under appeal; by judgment dated 19 June 2016 the Court held that it lacked jurisdiction to hear the dispute materially; SAD required the proceedings to go to the first Chamber of Commerce of Central Instance of Lisbon what was deferred on 25 September 2015. The action is extremely complex and tackles unusual legal issues, with unpredictable outcome.

Lawsuit for damages - Ismailov

Sporting SAD brought liability action against Luiz Filipe Fernandes David Godinho Lopes, Luis José Vieira Duque, Jose Filipe de Mello and Castro Guedes and Carlos Manuel Rodrigues de Freitas, in which it claims the payment of the compensatory amount of Euro 2,292,088.70, for acts involving the conclusion of the contract with the player Marat Ismailov; the defendants dispute the payment of this amount; additionally the first defendant claims payment of the sum of Euro 500,000 the indemnity claim, an order of

SAD in fines for litigation in bad faith and the 2, 3 and 4 defendants require the condemnation of SAD in fines for litigation in bad faith and the payment of compensation fixed by the Court in favor of the defendants; the third defendant requested also the intervention of Companhia de Seguros Tranquilidade, SA and the joinder with the procedure specified in the following section. On 18 November 2015, a judgment was passed that judged the Civil Court materially incompetent to hear the case, and Sporting SAD requested the referral of the case to the competent Court, which was distributed to the Lisbon Commercial Court - Judge 2). The action is extremely complex and deals with legal issues little dealt with by jurisprudence and doctrine, and is unpredictable.

Lawsuit for damages- Jeffren

Sporting SAD brought liability action against Luiz Filipe Fernandes David Godinho Lopes, Luis José Vieira Duque, Jose Filipe de Mello and Castro Guedes and Carlos Manuel Rodrigues de Freitas, in which claims payment of the compensatory amount of € 4,103,357.52 for acts involving the conclusion of the contract with the player Jeffren; the defendants dispute the payment of this amount; additionally the 1st defendant claims payment of the sum of € 500,000.00 to indemnity title and the 3rd and 4th defendants require the condemnation of SAD in fines for litigation in bad faith and payment of compensation fixed by the Court in favor of the defendants; the 3rd defendant requested also the intervention of Companhia de Seguros Tranquilidade, SA to have transferred his civil liability arising from the exercise of his activity as a non-executive director of SAD up to € 250,000.00; cited to challenge the Companhia de Seguros Tranquilidade, SA ruled arguing that the 3rd defendant must be acquitted of the application.

By judgment dated 10.11.2015 the Court held that it lacked jurisdiction to hear the dispute materially; SAD required the transfer of these proceedings to the 1st Chamber of Commerce of Central Instance of Lisbon, which took place in January 2016.

This court considered the cost as inexistent but still Sponrting SAD required the reimbursement of Euro 17.136 and appealed for the decision that took place in 20.01.2016. In this action Sporting SAD claimed the replacement of the decision by other that disregards the creation of an account, the discriminatory notes and the reimbursement of the deposits provided.

By court decision in 31 May 2016 this appeal was considered precedent in what regards the deposits made by Sporting SAD but improcedent regarding the need for an account creation.

The court action is extremely complex and its outcome is unpredictable.

Civil Lawsuit for damages- Previous Board of Directors of Sporting SAD

Sporting SAD brought a liability action against the previous board of directors headed by Luís Godinho Lopes and José Eduardo Bettencourt, due to management negative results,

and for which claims an imputable loss of 73.6M€ for contractual responsibilities, violation of legal duties and contractual obligations as company's directors.

Sporting SAD, awaits the sentence regarding the partial withdrawal of the lawsuit against the board of directors headed by José Eduardo Bettencourt and required the reduction of action value to 31.6M€, resulting from the loss imputable to Management period of Luís Godinho Lopes.

The lawsuit is vested on goodwill, containing arguments that allows to support Sporting SAD position.

33. SUBSEQUENT EVENTS

Season 2017/18

The changes in squad after June 30, 2017 were as follows:

New Players: (purchases and cessions): Marcos Acuña, Jerome Mathieu, Romain Salin, Stefan Ristovski, Pedro Mendes, Fábio Coentrão and Pedro Paula .

Exits: (loans and sales): Adrien Silva, Marvin Zeegelaar, Ezequiel Schelotto, Paulo Oliveira, Ewerton Santos, Diogo Nunes, Mamadu Candé, Beto Pimparel, Azbe Jug, Miguel Lopes, Mama Baldé, Ryan Gauld, Domingos Duarte, Matheus Pereira, Francisco Geraldes, Leonardo Ruiz, Luc Castaignos, Simeon Slavchev, Oriol Rosell, Héldon Ramos, Fabrice Fokobo, Lukas Spalvis and André Geraldes.

Withholding of revenue by UEFA

In August 2017, the Swiss court (Office des Poursuites de Nyon) responsible for withholding UEFA revenue from the Doyen case released the retained amount of Euros 2,821 thousand, supporting Sporting SAD on the complaint on UEFA's excessive withheld revenue.

34. NOTE ADDED FOR TRANSLATION

This is a free translation from the original report issued in Portuguese. In the event of any discrepancy, the Portuguese version prevails.

Sporting Clube de Portugal - Futebol SAD Annual Report | 2016/2017 | #107

Key Audit Matter	Summary of the Audit Approach
Recoverability of the Stadium surface right Disclosures related to financial investments are presented in notes 1.5, 1.29 and 12.2 to the financial statements.	The audit procedures we developed included, among others, assessing the adequacy of the impairment model used by Management and the embodied calculations, assessing the reasonableness of the assumptions used as well as the comparability of future cash flows with
The surface right over the Stadium "José Alvalade" and the building "Multidesportivo",	the historical data of the Entity.
that was granted to the Entity until April 2063 by Sporting Clube de Portugal, booked as intangible assets in the financial statements of Sporting SAD on 30 June 2017, amounts to	We have used our specialists to assist us in validating the assumptions and methodologies used in the annual impairment test.
Euro 140 million, and is allocated to the cash generating unit (CGU) related to the Stadium.	We inquired the Management about the adequacy of the most sensitive assumptions in determining the value in use, namely the
Given the amounts involved, the complexity of the recoverability valuation model and the level of judgment associated, which are	evolution of revenues and expenses, EBITDA margin and discount rate. We have assessed the discount rate by using comparable
embodied in the assumptions used for the impairment test, this issue was considered to be a relevant matter for the purposes of our	information available in the market. We have also performed sensitivity analyses for the main assumptions in order to determine the
audit. In order to determine the value in use, the Management needs to makes use of several estimates and assumptions that are based on economic and market forecasts, in particular	level of variations which, individually or in aggregate, could lead to impairment losses in the surface right.
with regard to the projection of future cash flows and discount rates to be used.	We have also reviewed the adequacy of the related disclosures, namely those involving the estimates and assumptions with higher sensitivity to the calculation of the value in use,
	based on the applicable accounting standards and in what we considered relevant

Key Audit Matter	Summary of the Audit Approach
Valuation of the football squad Disclosures related to the squad are presented in notes 1.5, 1.29, 8, 12.1, 32 and 33 to the financial statements. As at 30 June 2017, intangible assets related to the player registrations recognized in the financial statements of Sporting SAD amounts to Euro 60 million, having an impairment loss of Euro 5.3 million been recognized in the current year. The amounts involved, the complexity of the acquisition contracts related to player registrations and the level of judgment associated with the impairment evaluation, justify that the initial recognition and the subsequent measurement was considered to be a relevant matter for the purposes of our audit.	The audit procedures we developed included, among others, understanding and evaluating the controls established by the Entity regarding the valuation of player registrations, the analysis of the players acquisition contracts and the adequacy of its recognition, the performance of tests of details regarding the subsequent measurement of players registration, in accordance with the respective contracts and the players performance, as well as assessing the reasonableness of the assumptions used on the valuation of the player registrations recoverable amount. We also verify the adequacy of the disclosures presented in the financial statements related to the intangible assets - player registrations, as well as the contingent assets and liabilities related, based on the applicable accounting standards and in what we considered relevant.
Borrowings measurement Disclosures related to borrowings are presented in notes 1.13, 1.14, 1.29, 10, 20 and 31 to the financial statements. As at 30 June 2017, the amount booked as borrowings in the financial statements of Sporting SAD amounts to Euro 127 million, which result from the financial restructuring plan contracted in November 2014 with the financing banks. The initial recognition of this new financial liability was carried out at its fair value, based on existing market rates on that date and on a capital repayment plan over the whole maturity, under the terms of the agreement.	The audit procedures we developed included, among others, analysing the reasonableness of the assumptions used as well as the calculations incorporated for the determination of the amount recognized in the financial statements, in accordance with IAS 39 – Financial Instruments: measurement and recognition. We have used our specialists to assist us in analysing the assumptions, methodologies and re-execution of the calculations embodied on the borrowings measurement. We inquired the Management about the adequacy and consistency of the assumptions used, namely the estimate and timing of the anticipated reimbursements related to the financial debt.
Given the amounts involved and the degree of judgment embodied in measuring the borrowings related to the financial restructuring, which require the definition of estimates and assumptions by the Management, namely about determining the	We have also obtained the external confirmation from the financing banks involved for the purposes of analysing the nominal value of the respective borrowings.

Key Audit Matter	Summary of the Audit Approach
mechanisms intending to allocate part of the revenue with potential participation in European competitions and sales of players, as well as from cash sweep mechanisms established at the end of each year, this issue was considered to be a relevant matter for the purposes of our audit.	We also verified the adequacy of the disclosures presented in the financial statements, based on the applicable accounting standards and in what we considered relevant.

Sporting Clube de Portugal - Futebol SAD Annual Report | 2016/2017 | #114