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People have a lot of inquiries regarding soccer teams. How do soccer clubs make money? How do they utilize it? We will learn about those topics in this post.
Do Soccer Clubs Make Money?
Many people do not know how soccer clubs make money. The primary source of their revenue is from TV rights and matchday income. Soccer teams receive a large sum of money for the games that are televised. For instance, English Premier League receives about $120 million per game from Sky Sports and BT Sport. In addition, each club earns millions of dollars from ticket sales, corporate hospitality, and merchandise sales on matchdays. Other sources of revenue for soccer clubs include sponsorships, merchandising, and advertising deals.
TV rights are the biggest source of revenue for soccer clubs. In England, the Premier League sells its TV rights to Sky Sports and BT Sport for about $120 million per game. This is a significant increase from the previous deal, which was worth about $75 million per game.
Income From Ticket Sales
Matchday income is another important source of revenue for soccer clubs. This includes ticket sales, corporate hospitality, and merchandise sales on matchdays. For example, Arsenal earned about £100 million from matchday income in 2018. This was about 11% of their total revenue for that year. Manchester United’s home ground Old Trafford is the biggest stadium in the league, with a capacity of 74,994. Arsenal Football club sells the most expensive match day ticket, with prices ranging from £97 to £126.
Sponsorship deals are another way that soccer clubs make money. These deals can be worth millions of dollars per year. For example, Manchester United has a $559 million sponsorship deal with Chevrolet. This is the biggest sponsorship deal in soccer history.
Finally, soccer clubs make money from the sale of players. When a club sells a player, they receive a transfer fee. This fee can be worth millions of dollars. For example, Manchester United sold Cristiano Ronaldo to Real Madrid for $94 million in 2009. You might want to ask, Who is the most expensive player that has been sold in history? Neymar was sold from Barcelona to Paris Saint-Germain for $222 million in 2017.
Other Sources of Revenue
Soccer clubs also generate revenue from sponsorships, merchandising, and advertising deals. For instance, Manchester United has a sponsorship deal with Adidas worth about $75 million per year. In addition, clubs earn money from TV rights and matchday income.
Merchandise Of Soccer Clubs
One of the most popular items among soccer fans is jerseys. Soccer clubs generate a significant amount of revenue from the sale of jerseys and other merchandise. For example, Manchester United sold about $128 million worth of merchandise in 2018. This was about 14% of their total revenue for that year. Examples of this merchandise are jerseys of their favourite players, mugs, keychains, and even bedding sets.
Soccer clubs also earn money from advertising deals. For instance, Chelsea has a deal with Yokohama Tire worth about $40 million per year. In addition, clubs earn money from TV rights and matchday income. Here are a list of advertising deals for some well-known soccer clubs:
- Barcelona: $40 million/year from Rakuten
- Bayern Munich: $48.72 million/year from Allianz
- Manchester United: $47 million/year from Chevrolet
- Real Madrid: $52.23 million/year from Emirates Airlines
As you can see, there are many ways for soccer clubs to generate revenue. The three main sources of income for soccer clubs are sponsorships, merchandising, and advertising deals. In addition, clubs earn money from TV rights and matchday income. With all of this revenue, it’s no wonder that soccer clubs are some of the most valuable businesses in the world.
Income from prize money is another important source of revenue for soccer clubs. This includes money earned from winning competitions, such as the Champions League and the Premier League. Here are the top 10 clubs that earned a lot from prize money in 2018:
- Real Madrid – $85.29 million
- Barcelona – $79.49 million
- Bayern Munich – $70.86 million
- Liverpool – $64.23 million
- Manchester City – $54.48 million
- Chelsea – $52.06 million
- Paris Saint-Germain -$46.17 million
- Juventus – $43.09 million
- Tottenham Hotspur – $42.76 million
- Atlético Madrid – $40.19 million
As you can see, prize money is a significant source of income for soccer clubs. This is especially true for the top clubs in the world, who earn millions of dollars from winning competitions.
How do Soccer Clubs Spend Their Money?
Now that we know how soccer clubs make money, let’s look at what they spend their money on. The main expenses for soccer clubs are player salaries and transfer fees, stadium maintenance, and other operating expenses.
- Stadium Maintenance – Another significant expense for soccer clubs is maintaining their stadiums. Stadiums need to be updated and repaired regularly. Additionally, they need to be cleaned and staffed on matchdays. For example, Arsenal spends about £20 million per year on stadium maintenance.
- Player Salaries and Transfer Fees – One of the biggest expenses for soccer clubs is player salaries and transfer fees. For example, Manchester United spent about £560 million on player wages in 2018. This was about 61% of their total revenue for that year. In addition, many clubs spend millions of dollars on transfer fees to sign new players. For instance, Neymar’s transfer from Barcelona to Paris Saint-Germain cost about $263 million.
- Other Operating Expenses – Soccer clubs have other operating expenses, such as travel and training costs. They also need to pay their staff, including coaches, medical personnel, and administrators. In addition, they need to pay for marketing and promotional activities.
The question “do soccer clubs make money?” can be answered in a variety of ways, as you can see. Soccer teams mostly make money via sponsorships, merchandise, and advertising agreements. In addition, clubs profit from matchday revenue and TV rights. It makes sense that soccer clubs are among the most valuable companies in the world with all of this income.