How Do Football Clubs Make Money?
Football has evolved over the years from being just a recreational activity to a huge money-spinner. Soccer is big business these days, and every, stakeholder whether players, coaches, administrators, or even football clubs themselves, are keen to get a slice of the cake. Speaking particularly about modern football clubs, the game has become quite profitable for them, with different streams of revenue now available to be exploited. How exactly, though, clubs make money? The answer to this includes:
1. Ticket Sales
Every football match is always played in a stadium. It is compulsory for every fan or spectator to buy a ticket before gaining access into a stadium to watch a game. The prices of tickets vary depending on seating arrangements. Tickets vary from season ticket holders, VIP tickets, or corporate tickets. Clubs are able to generate revenue from the number of tickets sold. For instance, if a club is able to guarantee that at least an appreciable number of spectators can come to the stadiums every week, then a good amount of money will definitely be made.
2. Sale of Jerseys/Merchandise
Another avenue through which clubs make money is the sale of jerseys and club merchandise like scarves, flags, commemorative mugs, etc. Since every fan usually identifies with one club or the other is expected that they would buy a jersey to show off their allegiances. Clubs have been reported to have made huge amounts of money from jerseys, especially when fans buy jerseys of popular players on their books. Real Madrid FC and Juventus FC, for example, saw huge spikes in sales of their jersey when Cristiano Ronaldo joined them. Same for FC Barcelona who has made good money from the popularity of Lionel Messi reflected in jersey sales.
3. Prize Money
Apart from the glory of winning a trophy, football clubs also participate primarily to make money. In most if not all football competitions, prize money is usually awarded to the winner of that competition e.g UEFA Champions League, League competitions, etc. In other instances, even just qualifying for a tournament guarantees the club a certain amount of money. For example, the English Premier League gives promoted teams a certain amount for successfully making it into the EPL.
4. Sale of Assets
These include players on the books of various clubs and physical assets like stadiums etc. Smaller clubs usually benefit from this because they are able to sell promising players in their employ for huge amounts of money to bigger clubs. A good example is French club, Lille, whose sales of Victor Osimhen and Pepe to OSC Napoli and Arsenal FC, respectively have greatly boosted their revenues.
5. Broadcast Rights
Clubs also make a lot of money from rights sold to broadcast outfits. These media companies pay the various bodies organizing these different competitions for the right to show these matches on television. Sometimes clubs make their own separate arrangements with these media companies that air their games. For instance, the El Clasico match between Spanish rivals Barcelona and Real Madrid enjoys its own special revenue stream that goes direct to both clubs.
Clubs also usually sign sponsorship deals with different companies that guarantee them certain amounts of money. Many football clubs have lucrative shirt sponsorship deals worth millions of dollars.
- Stadium tours/Museums
- Pre-season tours
- Renting out stadiums