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How do football clubs generate revenue these days

Monday Jun 17, 2019


 There is no doubt that football is the largest sports worldwide. 


 As a global sport, football has become a big business with and, through different avenues, can see football clubs driving millions going on billions of pounds in business each year (The Guardian: link). While there are traditional routes to revenue within a football club, there is growing alternatives to bring more money to a club.

 

 Match Day Revenue

 While streaming and social allow accessible media coverage of football events, fans still flock to see their teams for their seasonal fixtures. This traditional form of income of match day ticket sales is still lucrative for football clubs today. Depending on the teams' position in the league, tickets can pack a hefty price. For some clubs, a season ticket is like gold dust and are a heavy but crucial investment for lifelong fans willing to pay the extra money to support their team (TalkSport.com link).

 Matchday revenue is more than just the tickets. It also includes the revenue made from the food and drinks sold in the stands as well as more now the money made from hiring out private viewing boxes, offering executive lounges and catering services for the high-paying customers to experience the match in a more luxurious environment. 

 Television Play Money 

 If you can’t score a ticket to see your team, you are sure to be watching it on the TV. While TV is seen to be a dying media, for football it is still thriving with the last World Cup’s viewing being evidence for this (Fifa.com: link). Networks like the BBC and ITV get a pay-out from viewings but so to the clubs. For example, Manchester City earned over £52.5 million alone for just the TV coverage of the Champions League 2015-16 (Guardian: link). There is still money to be made for football clubs from Tv viewing.

 Investors 

 Turning to investors has seen Manchester City partnering with Abu Dhabi United Group and Newcastle with Sports Direct International. Having these investors can allow clubs to invest in more expensive players to hopefully increase subsequent revenue from views, tickets and winnings.

 

 While investors can kickstart revenue for a club, it isn’t a long-term solution. The club shouldn’t rely on these investments and should still explore the other streams to ensure the football club’s longevity.

 Sponsorship

 Nike, Adidas as well as Coca Cola and Barclays are just some big-name sponsors of football. This not only benefits these brands through advertising but can offer revenue to the football clubs. These types of sponsorships are playing more of an important role in football club revenue today.

 In more recent years, there has been a surge in the sponsoring of football clubs from gambling and casino companies and offering revenue to these football clubs and seems fitting as football and gambling tend to go hand-in-hand. The relationship between these gambling companies and football teams has been criticised (The Guardian: link) but with teams like Crystal Palace working with Gamble Aware, it can ensure sponsorships like these aren’t damaging. The sponsorships are on the rise to allow revenue in both male football as well as, with increased success, women's football to allow football clubs to increase revenue (The Guardian: link). 

 Football club revenue can waver but with more than one stream of income to football clubs and still a dying love of the sport from fans, revenue is still being made for football clubs these days in more ways than one. 

  

 References:

 https://www.theguardian.com/football/2018/jun/06/premier-league-finances-club-guide-2016-17

 https://talksport.com/football/416275/premier-league-season-ticket-cost-price/

 https://www.fifa.com/worldcup/news/more-than-half-the-world-watched-record-breaking-2018-world-cup

 https://www.theguardian.com/football/2016/oct/18/manchester-city-record-income-2015-16-season

 https://www.theguardian.com/football/2018/jul/30/campaigners-concerned-championship-efl-clubs-sponsored-betting

 https://www.theguardian.com/football/2019/mar/21/crowds-sponsors-womens-football-wsl-barclays
  

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26/11/2019 19:45:00 Hednesford Town A
30/11/2019 15:00:00 Lowestoft Town H
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