Deals, titles and sponsorship contracts… How do football clubs make their financial profits? | sport

From year to year, soccer’s relationship with the economy grows stronger, and the effects of money and investment pillars are evident in the most popular sport in the world, the game that has turned into a vast field of physical activity, fun, beauty, and excitement as much as economics, investment, planning and financial gain.

The reports published annually by specialized study offices in economics and sports on the profits of football clubs do not appear to be just a revision of imaginary numbers with the aim of attracting the attention of followers, but in fact they reflect what those clubs outside do the green rectangle to develop their profits and double their financial income.

According to the latest report prepared by the international office “Deloitte”, which specializes in accounting and economics, last March, on the income of the major football clubs in the world for the year 2021, the English club Manchester City came out on top. the list of the most profitable clubs, with more than 680 million euros in one year.

As for the ranking of the most expensive football clubs in the world, Real Madrid has retained the first place for the year 2022 with a value of $5.1 billion, according to a report published by the international magazine “Forbes”.

Diverse sources, one purpose

Football followers often ask questions about the sources from which the clubs’ income and profits come to cover the high expenses in running the affairs of those clubs. Profits extend beyond just the crown of titles to other sources that make the difference in financial weight between one club and another.

In general, the profits of football clubs, according to the status of each of them, are distributed to the following sources:

TV broadcast revenue

The fact that Manchester United came fifth in the ranking of the clubs with the highest income in Europe in 2021 was a clear indication that football funding sources exceed results and titles. English Premier League clubs.

In the 2020-2021 season, the 20 Premier League clubs received more than 3.5 billion euros in income from television broadcasts of matches, a very large difference from what the Spanish La Liga clubs, whose income from broadcast rights more amounted to two billion euros. , obtained.

Manchester United got around 165 million euros from broadcasting rights, while Norwich City, at the bottom of the Premier League standings, got around 115 million euros.

These figures clearly reveal the status of television broadcasting contracts, as they have become the main source of funding for football clubs, attracting more and more television channels and pushing them to spend large sums of money to broadcast high-level competitions.

Sponsorship contracts

Large commercial companies have often tried to promote and advertise their products through the shirts of major football clubs, and the club usually contracts with a large company that puts its logo and name on the front of the players’ shirts for the most part of the sponsorship contract, and sponsorship contracts may include the allocation of a small part of The shirt is for another company or group of companies according to the terms and details of the contract.

Sponsorship contracts also include training jerseys, uniforms for players or the walls of training centers and advertising boards inside the stadium, as well as background boards displayed when press conferences are organized.

Manchester United and Real Madrid of Spain signed the two most expensive sponsorship contracts in 2021, with each receiving more than 70 million euros per year, while Paris Saint-Germain came third with more than 60 million euros per year, noting that sponsorship contracts are usually long. Term up to 4, 5 or even 10 years.

Titles and participation in competitions

Titles are among the ancient sources of financing football clubs and ensuring their profits. Competition for titles aims to obtain valuable financial prizes according to the results of those clubs, especially since the various competitions organized by local federations or football associations in major European countries, or continental and international competitions for clubs such as UEFA Champions League, Europe League, UEFA Super Cup and Club World Cup; This has always provided huge financial gains for clubs.

The European Champions League title is one of the most important titles supporting club profits (Getty Images)

In the 2021-2022 season, Real Madrid received $22.69 million after winning the European Champions League, while runner-up Liverpool received $17.9 million for reaching the final, while the semi-final clubs each received $14 million and got 4 clubs. has the competition of a quarter. The final is 12 million dollars, according to reports published by the European Football Association (UEFA).

Additional winnings are added to these financial prizes according to the results of each team. For example, the champion gets an additional 15 million euros if he wins his six matches in the group stage, in addition to other funds from the television broadcasting rights for this competition.

players sold

The sale of players is the main source of financial income for clubs, as many European clubs have become specialized in training players and selling them to big clubs at fantastic prices.

Among the clubs that benefited the most from this strategy were Ajax Amsterdam, PSV, Dutchmen, Borussia Dortmund and others.

And in the summer of 2021, press reports revealed that Borussia Dortmund made a profit of 766 million euros from the sale of players during 5 seasons after signing them with very limited deals, such as Jadon Sancho, Ciro Immobile, Christian Pulisic, Elkay Gundogan, Osman Dembele, and the last of them, the Norwegian Erling Haaland, who moved to Manchester City, England.

Ticket and subscription revenue

Football clubs get a lot of financial income from the sale of tickets for friendly and official matches, and the impact of ticket income appeared during the Corona pandemic when teams were forced to play matches in empty stadiums, which greatly affected club budgets.

And in the 2018-2019 season, that is, before the rise of the Corona virus, the two giants of the Spanish League, Barcelona and Real Madrid, were the clubs in the world that benefited the most from the profit of ticket sales, with more than 120 million euros for the first and 108 million euros for the second, according to various press reports.

Clubs also benefit from annual subscription sales, which provide a stable financial belt for clubs.

Sales of club products in official stores

Football has become more than ever a field for investment and trade, and the biggest clubs in the world are working to open official shops and stores in which products that carry the official brand of the club, such as shirts, balls, clothes, shoes , bags and gifts in various forms, are displayed.

France’s Paris Saint-Germain hit record revenue from Lionel Messi shirt sales (Reuters)

The clubs get a lot of money from these stores. In the summer of 2020, after the Argentine star Lionel Messi moved to Paris Saint-Germain, more than 832,000 Messi shirts were sold in just 24 hours after they were officially offered.

Followers on social media

Clubs’ income from their accounts on communication platforms is some of the recent income, and it mainly comes from the number of followers on social platforms such as Facebook, Twitter and Instagram.

And the big clubs are racing to gather the largest number of followers to increase their profits, and various media reports have revealed that Real Madrid and Barcelona of Spain are on the throne of the most followed football clubs on social platforms with around 260 million followers, following. by Italian Juventus with almost 150 million followers around the world. .

Leave a Comment