Finance

Have You Ever Wondered How Clubs Make Their Money? Here’s how

Have You Ever Wondered How Clubs Make Their Money? Here’s how

Maintaining a football club is no small business. Football clubs are very costly to maintain, in terms of the cost to pay the players and staff, maintaining the club’s stadium, buying a player from another club, and other expenses. We hear of how much millions of euro or pounds players are paid per week. How do clubs manage to foot this bills.

A club must have multiple streams of income in order to meet it’s financial demands. In this post, I’ll show you how clubs earn their money

Covering Rights

Various broadcast houses pay a lot inorder to cover live matches. Broadcasting stations from within and outside a country sign a deal with a club to and pay them fsome amount of money to cover their matches. For example, in UK, Sky sports and BT sports paid premier league £5 billion to cover their matches for four years (2015-2019) . Premier league then distributed the money among it’s clubs and each clubs get around £80 million. This is just money from broadcasters in England alone. Many broadcasting stations all over the world show live premier league matches and they pay for this. You do the maths and see how much clubs will earn just for going live.

Ticket Sales on the match day

Clubs ralways look forward to the day of a match because they rake in alot on that day. Taking Manchester United as an example. Man United’s Old Trafford stadium has a sitting capacity of 75,643. Fans buy tickets per match or if it’s a season, they’ll buy the tickets for the season. If the tickets cost £50 per person, for that match, they’ll rake in £3.8 million for that match. In 2013-2014 season, Man United raked in £191 million. Just from the sales of tickets. Though it’s not everything that is their profit. They have to pay the police, and other teams of people who helped to make the match a success. But the profit at the end would nearly reach £100 million. This is just from tickets sales alone.

Hiring their stadium to private bodies

Clubs rent out their stadiums to companies for meetings or events whenever they are not playing. Clubs allow their fans to use their stadium for for weddings. They even allow them to take photos on the pitch. For example, getting married in Etihad stadium cost £100 per person that would be expected to attend. This covers all the time that would be spent in the stadium. Clubs also allow people play on their pitch for money. E.g. in 2016, it cost £1,500 to place on Norwich city’s stadium. Clubs also rent out their stadiums for concerts. For example in 2011, Stadium of light, owned by Sunderland brought in £2 million from concerts.

Selling players

Smaller clubs that have good players sell their players for huge sums of money to bigger clubs. Also, the parent clubs include deals that will make them still make money on their sold players.

Sponsorship

Big brands pay clubs money per year to have their logos on the club’s jerseys. For example, Chevrolet pays Man United £30 million on its jersey.

Naming

Big brands who wish that their names should be used as stadium names pay the club that owns the stadium. In 2004, Emirates Airlines agrees a deal worth £100 million with Arsenal – that their stadium would be named after the airline for fifteen years and that they would also be the club’s shirt sponsor for eight years. Arsenal raked in around £6 million per year alone for the naming of their stadium after Emirates

stadium Tours

Top clubs like Liverpool, Chelsea, Man United that have stadiums offer their stadiums to be toured in exchange for money. Example, Goodison park stadium in Liverpool offers £12 for adults and £6 for kids to tour the stadium.

Competitions

Different clubs participate in different competitions at the beginning of a season. Each competition comes withs its own monetary prize.

The higher club finishes on the League table the higher the money they earn. The more competitions they win the more they earn.

So.. this is a brief description of how clubs make their money. You see that there’s money in football. Buying a premier league club will fetch you a lot. Hope you now have an idea of how clubs make their money.


Dominic Nwodo

One Of The Best Content Creator/Blogger In Nigeria. ?DM Me For Business 08109211747

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