How Do Football Leagues Make Money?
There are a plethora of football league competitions all over the world. They tend to differ in terms of the level of competition, format, and financial ability. The more popular league competitions in the world, like the English Premier League and Spanish La Liga attract loads of followership and huge monetary in-flows. These leagues are able to generate revenue from various sources, but here are a few specific ways football leagues are able to make money.
This involves the football league selling exclusive rights to television or broadcast stations to televise live matches played in the league. A football league like the EPL has a large following, and can negotiate lucrative contracts because of the potential millions or billions of viewers that advertisers can reach via these broadcast outfits. Buying the exclusive rights of competitions like the La Liga or German Bundesliga is an intense financial commitment due to the status of the league and the level of talent on display.
The sale of exclusive broadcast rights of the Premier League to Sky TV, a satellite TV outfit in the early 1990s completely changed the landscape of the English football league. Due to the huge amount of money that was being made from the TV rights deals, the Premier League was able to redistribute some money to the clubs. This led to better wages, facilities, the influx of foreign talent, and even more followership of the game from international viewers. La Liga distributes billions of TV right money to it’s club each year.
At the beginning of every soccer season, clubs are usually mandated to pay a registration fee for participation in the league competition. The football league is cognizant of the number of clubs that will be involved every year, so they have an idea of how much to expect from club registration.
There are hundreds of players involved in the league year in the league but before they can be cleared to play, they will have to register with the league governing body. This is another assured means of getting money into the coffers of the football league because of the volume of players that will have to be registered.
Sponsorship Deals and Commercial Partnerships
Football leagues across the world tend to attract various forms of sponsorship. In England for example Barclays bank is the title sponsor of the EPL. Other companies who don’t want to be title sponsors can also get involved in other opportunities within the ecosystem of the league to advertise their goods and services. Many football clubs also make money through commercial partnerships, and shirt sponsorship deals.