Check how football clubs will still be making money in this lockdown
Football is a multimillion business for it's clubs owners and stakeholders. Every clubs benefits from the game due to diverse sources of income.From play-on-the-pitch days through to image rights and the loaning out of stadiums for filming, there are countless ways in which a football team can earn money if they’re clever in what they’re doing.
Due to the ongoing pandemic, Covid-19 which affected almost every sector in all countries globally. There have been financial breakdowns and decrease for many clubs. Below are standing sources of income in Which club still rely on:
(1) TELEVISION MONEY
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Football is known to be the most populous sport on the planet. There are over a billion audience watching football games, mostly the beloved FIFA world cup.
Football clubs are paid for audience to watch their respective games from home. As an example of what we’re talking about here, Manchester City earned over £76 million from their Champions League exploits in the 2015-2016 season. That’s a fair old whack of money all on its own, but what makes it even more noteworthy is that around £42 million of that was from their TV coverage. They reached the semi-final, of course, so there was a decent amount of screen time for them. Had they been knocked out earlier they’d have earned less, but you’re still talking in the region of £20 million plus from TV alone. So when people say TV revenue is the number one money earner for football clubs they’re really not telling porkies.
(2) PRIZE MONEY
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All clubs in a particular league are paid from the first to the last position.
As is the case with TV money, the prize money further down the league is less impressive than in the top-flight. That is the case for the sport around the world, of course, not just in England. It goes without saying that the team that finished 10th in the Bundesliga 2 wouldn’t have earned as much money as the tenth placed team from the German Bundesliga. Likewise a team in League Two in the UK doesn’t earn as much for their league finish as a Championship team. That’s where the competitive nature of the sport comes into play. Equally it is worth pointing out that a competition such as the League Cup isn’t as lucrative as its FA equivalent, with winners of that trophy earning about a tenth of the winners of the FA Cup.
When all is said and done, football is a competitive industry. A club can finish just above the relegation zone and make a fair amount of money from TV coverage, but they’ll earn less than the teams above them. Why? Because for each place up in the league table you finish you earn more money. In the top-flight, for example, each position you finish higher up the table is worth £1.9 million to the football club. As the Premier League drew to a close in the 2016-2017 season, Watford could have finished anywhere between eighth and seventeenth depending on their result and the results around them. That would have been a difference of £17.1 million from the best position to the worst.
(3) TRANFER OF PLAYERS
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It is no doubt the amount of profit a club can make from the sale of a player they initially bought at a lower fee.
One of the ways that smaller clubs can ensure a decent return on their investment is by adding a sell-on fee into the contract when the player moves to a bigger side. Staying with Liverpool for a second, they sold Raheem Sterling to Manchester City in 2015 for around £49 million. Not a terrible amount for a talented but inconsistent young player. It was Queens Park Rangers who were the sly beneficiaries of the deal, though, having negotiated a 20% sell-on fee with Liverpool when the Reds bought him from the London club years before. That meant that the Merseysiders only actually got about £39 million for him, with QPR taking roughly £10 million of the price.
(4)COMMERCIAL ACTIVITIES
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This source of income is the most diverse. It is often divided into sponsorship and marketing. Football clubs have lucrative sponsorship and advertising contracts, but in addition to that, they also sell football merchandise online or through their own stores. Don’t underestimate the power of the sold t-shirt. Sometimes, owing to the popular surname on the back, a club can beat off the cost of expensive player’s transfer in a few weeks. Of course, this option works mostly for top clubs.In general, Barcelona received the biggest sponsorship pie this year – almost 200 million pounds. At the same time, the lion’s share of this amount was obtained only through two major deals – with Nike on the part of the football kits and with Rakuten as the main global sponsor. Now hold on tight to your seat, according to the recently signed kit supplier deal, Nike will pay Barcelona 100 million per season over the next 10 seasons.
Not far behind, Real, Manchester United, Bayern Munich and Liverpool are on the top five list in terms of highest sponsorship incomes.
There are other means not even listed.
Content created and supplied by: Fashy123 (via Opera News )
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