HOW DO FOOTBALL CLUBS MAKE MONEY ?
Many lovers of the beautiful game of football still can’t wrap their heads around how clubs afford to pay their players and staffs those outrageous amounts we see on T.V and read on the news. I myself — a big football fan- have always wondered how clubs support themselves financially with those amounts they pay week-in week-out, till i did a little research myself and i now understand these football clubs make enough money to pay players double the amount,twice a week. How? I’ll explain.
Broadcasting Rights
Domestic and Foreign Broadcasting stations bid for rights to broadcast live matches to millions of football fans who are ever eager to watch. For example, In the United Kingdom, Sky Sports and BT Sports own rights to cover the Premier League, a right they acquired for 5 Billion Pounds in a deal that will run for 4 years (2015–2019) .This money will be shared among clubs, equally. That will amount to roughly 81 million pounds per club and thats only considering deals from the U.K alone.
Away from england, 20 Broadcasters hold rights to cover the Premier league in China alone, and there are over 100 broadcasters who hold rights to show the P.L worldwide. They all pay shitloads of cash to cover these matches. Now do the Maths.
Match Day Revenue.
When a football team play at home (in their own stadium) they sell tickets to every individual that enters the stadium on match day. The size of a football clubs stadium and the ticket price determines how much the club make on match day. In the premier league each team play 19 times on home soil. Now you know why clubs want to build bigger stadiums or expand the sitting capacity of existing ones.
Manchester United’s home ground — Old Trafford is the biggest stadium in the league, with a capacity of 74,994. Arsenal Football club sell the most expensive match day ticket — 95.5 per head.
Sponsorship
Brands pay huge amount of money for clubs to advertise them. For example Chevrolet pays Manchester United roughly 50 million pounds per year to have their logo and name on the United Jersey, Adidas pays United another 75 million pounds per year to sponsor the kits. And thats just two sponsors of many a club can have globally.
Merchandise
Football Clubs make money from selling kits and other club merchandise to fans around the world. It is common to find shops that sell Jerseys around stadiums, or even club owned stores that sell club Merchandise.
Transfers
Selling players to other clubs is another source of income for football clubs. Small clubs who have a pool of amazing young talents can make massive profits by selling them off to bigger clubs at head-bursting price prices. Some football clubs include sell-on clauses in such deals, which creates an avenue for parent clubs to make money when the player is sold again.
Prize Money
Clubs enter different competitions at the beginning of a football season, in England’s top flight league, clubs play the domestic Premier League, then the F.A Cup and another domestic cup competition. and if such club is part of the Top 4 of the previous season they qualify for another competition — UEFA Champions League. If they finish two spots behind the top 4 they qualify for the Europa League. Each competition comes withs its own prize money. The higher you finish on the League table the bigger your prize money. The more competitions you win the more your prize money.
I’ve started saving money, i definitely have to buy and own a football club.
