In today’s business-oriented world, it is very imperative to ask: How do Football Clubs make or earn money?
It is an especially curious situation when we consider the mammoth wages professional footballers command these days.
Actually, there are some dilligent processes that should be followed to generate massive revenue. Getting richer will depend on how well a Club harness all available options.
So, to put the matter to bed, we’ll highlight below how football clubs earn money.
Revenue from Match Day Tickets
Match day revenue comes in the form of money from ticket sales at home games. Individual fans who come into the stadium to watch a game will pay a stipulated fee to obtain a match ticket.
The more tickets sold, the higher the revenue; this explains why most clubs make plans for stadium expansion. The size of the stadium determines the number of tickets available for sale per match day.
In the English Premier League, for example, Manchester United have the biggest home stadium among league clubs. Old Trafford has a total capacity of 75,731. Most leagues consist of about 20 teams per time, and that guarantees each club will have 19 home games.
So, to put it straight, selling match tickets is one of the most straightforward ways Football Clubs make money.
Football Clubs usually have a sports shop within the home stadium where club fans can buy all branded paraphernalia. Items like club jerseys, training kits, flags, and much more are usually on offer, all branded with the club’s colors.
It is normal to also find these shops at locations outside the stadium premises as part of the sales strategy.
Merchandise sales contributes significantly to a club’s total revenue and it is an important way Football Clubs make money.
Various brands (local and international) will want lucrative sponsorship deals with football clubs.
In return, the club advertises the brand as often as possible while then get financial support over an agreed period of time.
It is also important to note that some sponsorships could could non-moneytary.
In January 2020, Chelsea struck a shirt sponsorship deal with UK telecommunications firm Three. The deal comes with financial benefits but also ensures 5G-enabled network at Stamford Bridge for the foreseeable future.
Clubs can have as many sponsors as possible; Shirt sponsors, training kit sponsors, team transport sponsors, etc. All of these are significant ways Football Clubs make money.
Player sales are common and effective ways football clubs make money.
Some clubs in Europe are masters of making the most of player transfers. Borussia Dortmund in Germany, AS Monaco in France, and Benfica in Portugal are just a few mentions.
When negotiating player transfers, some clubs include a sell-on clause. This clause guarantees the parent club will get some more money if the player moves again. Other clauses include total player appearances or goals scored for the new club. If the conditions are right, the selling club will receive stipulated payments.
There’s also the option of sending players out on-loan for a fee. Lots of clubs use this as a means of minimizing the total wage bill per time.
Competitions Prize Money
The desire of every Football Club, management and fans alike, is to win trophies. Entering tournaments and registering in leagues is a must for any proper club. But asides from the glory and satisfaction of winning trophies, how football clubs make money off these competitions is important too.
Liverpool FC made a whooping £174.6M after winning the English Premier League 2019/2020 season. Teams who finish lower in a league will receive lower cash amounts but this may be different in cup competitions. The expectations differ based on the status of the competitions.
TV Broadcasting Rights
In various leagues around the globe, domestic and foreign Broadcasting stations make bids for broadcasting rights. These broadcasting rights do not come cheap. If granted the rights to be a broadcaster to a particular league, the station gains immensely from the patronage.
Broadcasting Rights profits go to the clubs in the league. They sometimes share equally but in the Spanish La Liga, for example, they do not share equally. Real Madrid and Barcelona take a large portion while others share the rest.
Fans who watch from home or viewing centers will hook up to the broadcasting Station with the rights.
In the end, Football Clubs earn money from the sponsorship while the broadcasting station offers viewers the opportunity to watch their beloved club. It’s a win-win for all parties involved.
The above-mentioned strategies are the most prominent ways Football Clubs make money. However, they are not the only ways.
Nonetheless, we would like to hear from you. Share whatever thoughts you have on how Football Clubs make money in the comment box.
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