Erling Haaland, contracted with Manchester City, is earning around £375,000-a-week which means, he earns around £195,000,00 a year.
Without a doubt, there’s no sport more popular than football. Every club has a superstar, who scores goals, makes vicious tackles, and wins matches for their respective teams.
However, if every club had one superstar, giving them such luxurious contracts, it would make sense. But by signing multiple top players, with each getting a multi-million-dollar contract, how do football clubs don’t go bankrupt?
Moreover, clubs like Real Madrid, Manchester United, Barcelona, Liverpool, and others are worth more than £1B.
So, as fans, it makes us think that even after paying millions to players in wages and transfers, how do football clubs manage to stay afloat?
To answer that, we’re going to discuss some ways how a lot of money is being injected into football clubs. Moreover, with these methods, football clubs sign more players, improve their infrastructure, and may win more trophies.
Without further ado, let’s get started.
- Broadcasting Revenue
- Matchday Revenue and Merchandise
- Prize Money
- Transfer Market
- Sponsorship:
- Bottom Line
Broadcasting Revenue:
The broadcasting revenue of any sport is directly related to the people who watch it. So naturally, the broadcasting revenue in football is one of those mediums that pay highly to the football clubs.
Usually, it’s the leagues such as EPL, La Liga, or Bundesliga, that do a contract with the broadcasters. Broadcasters, depending upon the league’s popularity among the people, pay it a very handsome amount.
Moving on, receiving the money from broadcasters, the league’s management distributes them among the division’s teams.
Teams, based on their performance in the last season get a specific amount from the league as revenue.
Moreover, another factor that determines the pay cheque from the broadcasters is the team’s popularity and history. Some teams, rich in history with a decorated trophy cabinet have some rival football clubs.
For that reason, a match among them becomes an anticipated one So, keeping in mind that such matches among the rivals increase the league’s popularity, rival clubs may get a lot more from the broadcasters.
Matchday Revenue and Merchandise:
Fans, be it matchdays or not, they’re the club’s biggest support. However, when talking about matchdays, clubs generate a lot of revenue from the tickets.
With time, most clubs have introduced match tickets and season tickets. By providing exclusive discounts on season tickets, clubs are getting the most out of the matchday revenue.
Apart from that, clubs also earn via food stalls, picture and activity booths, and recreational areas built inside the stadium. Either these things are club-owned, or the club charges rent from these stalls.
Another channel of revenue is the club’s merchandise that all fans want. And when the merchandise is signed by their favorite players, most fans would pay a ridiculous amount to get them.
More often than not, whenever a club signs a top performer, their shirts are sold in a matter of hours. So, among fans, merchandise holds great value and for clubs, it’s a great source to increase their income.
Plus, are you following EPL’s exciting title race? Like always, it is coming down to the wire, with Arsenal, Man City, and Liverpool competing for the title. However, if you’re missing out on all the action, tune into any live stream with Spectrum’s internet.
Providing a quality internet connection, you can live-stream the match, that too in HD quality, without any lag or buffer.
To avail their services, visit Spectrum’s website. Spanish customers can connect to Spectrum servicio al cliente for Spanish customer support.
Prize Money:
For football clubs, reaching the top-flight division is important.
Why?
Because once they reach the highest division, there is little chance of ending up in loss, even after losing the league.
How?
Clubs get prize money, depending on what position they finished in the league. However, unlike normal prizes that are for first, second, or third positions, every club gets paid in a league, depending upon their finished position.
Apart from leagues, small clubs can benefit a lot from successful cup campaigns. Participating in cup competitions, clubs can earn a fair share of money by clearing different rounds.
Transfer Market:
This probably, is the sole reason that an exceptional amount of money is now involved in football.
A transfer market is more or less like a traditional market. Every club brings players they don’t need or players who don’t want to play for their club anymore. On the other hand, clubs that may need to strengthen their squads may join the transfer market too.
Clubs, selling their players, set a base price. Usually, the player’s skills, abilities, age, and individual awards determine a player’s transfer market price.
Moreover, most clubs manipulate the transfer prices by spreading out the speculations and rumors in the market. Furthermore, if two or more clubs are interested in a player, it automatically skyrockets the player’s price.
This way, a lot can be achieved financially with the transfer market.
Sponsorship:
Recognizing the sport’s following around the world, brands see an opportunity to sponsor the football clubs.
Usually, for brands, from kits and stadium naming rights to medical facilities and training pitches, they’re up for sponsoring everything that can be sponsored.
However, kits, even more so, home kits are the most precious to sponsor for the brands. Simply because it’s the home kit, worn at every home match by the home team.
On the kit, every spot from front to sleeves to shorts and back, is valuable. It’s the league that decides how many spots they are willing to allow for sponsorship. But as many as they allow, these spots are sponsored by the brands in no time.
Bottom Line:
Football clubs are one of the biggest financial entities, without being directly involved in any business activity. Moreover, with a lot of talent in the footballing world, the money follows football everywhere. As for fans, what else do we need other than breathtaking matchdays week in and week out?
Passionate content writer and savvy blog publisher, Aamir crafts compelling stories and insightful articles that captivate and inform. With a knack for blending creativity and strategy, they bring fresh perspectives to every piece. Dive into their world of words and discover content that resonates.
