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7 ways football clubs generate revenue

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TV deals

Clubs earn revenue from countries who want to buy the right to broadcast live games from a particular league. For example, broadcast stations like BT Sports, Super Sports and Sky Sports are some of the media sports company that buy TV rights. This TV rights deal could last for some years depending on the agreement which run for three years or more. Buying TV rights means giving media companies access to broadcast live games on TV and radio stations. in February 2015 both Sky Sports and BT Sport agreed a record £5.1 billion venture to show live games between 2016 and 2019 (a 70% increase in revenues from UK broadcasting rights). 95% of the money being paid for TV rights goes directly to the clubs.

Transfers

Football clubs also make money for the sale of players to other clubs. When a football clubs wish to sell their best players they make it difficult for other clubs to get such players on the cheap and so such club who is willing to do business will end paying a lot of money buy the player, take Neymar for example who was sold to PSG at $263 million dollars which makes him the most expensive player in world football. Also clubs do sell their players cheap when they have nothing to offer the club or when players contracts is about to expire.

Sponsorships

Big corporations around the world sign deals with clubs to advertise their company, this is why you different brands on different clubs jerseys like Calsberger, Standard Chartered, Chevrolet, AIG and many more. Where a club have several sponsorship deals they find other means to advertise the products and services of the company such as making appearances in the club’s TV advertisements or displaying it on their billboard. A club like Manchester United made a 10 year deal with Adidas which was in the region of £75 million in 2014, this was touted as the second largest sponsorship agreement in football. It also one of the reason why Manchester United is considered the richest club in the Premier League.

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Ticket Sales

When football clubs are playing at home they sell match tickets which adds to their revenue. Clubs such as Arsenal, Atletico Madrid, Lyon and Liverpool have all either move to a bigger stadium or increase their stadium capacity.

This is done in order to accommodate more people coming to football stadiums to watch games thus increasing ticket sales and revenue.

Merchandise

Football clubs have their store where they sell various goods related to the clubs like jerseys, scarves, hats, jackets and badges. They make money by selling it to their fans which normally happen in home games.

New ownerships

Clubs get more money when the new owner buys the club from the previous owner and thus injecting substantial amount of money into the club which will then make the club to be able to buy new players. Over the past decades, there have been millionaire and billionaires who have changed the fortunes of some clubs in the Premier League, moving them from an average club to a world renowned club. The well known examples are Sheikh Mansour who bought Manchester City for £210 million in August 2008, Malcolm Glazer who took over Manchester United for £790 million in January 2005 and Roman Abramovich who bought Chelsea fc for £140 million in August 2003.

Prize Money


Football clubs get prize money for winning competitions, gaining promotion to the top division, qualifying for continental competition like the UEFA Champions League and Europa League or even finishing as runners up. The prize money for the various European competition are;

  • The Champions League winning team is awarded €15 million but the runner-up is awarded €10.5 million
  • Europa League winners are awarded €6.5 million and the runners-up are awarded €3.5 million.
  • The base fee for the Champions League group stage is €12 million but for the Europa League it’s €2.6 million.
  • The winner of the championship playoffs in England will be awarded £170 million as well as promotion to the English Premier League.
  • The winners of the F.A Cup get £1.8 million while the runner up get £900,000
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