Football Revenue Streams.

 

Football has been a growing sport over time and, as a result, has attracted viewership and investors. Football clubs are not just about football teams, but there is so much behind the investment made to flourish football's business world. This attracts sponsorships from various companies outside the football world and comes in exchange for their companies being advertised on football teams' jerseys, stadiums, and websites.

Take a look at the latest sponsorship deal that has seen Manchester United secure a new shirt sponsor (Team Viewer) who will be replacing Chevrolet on the club’s jersey on a five-year contract. The sponsorship deal is worth £47 million per year and which is down £17 million from the £64 million deal that Manchester United was receiving from their previous sponsors. This is just one of the many sponsorships that are in the football business world. The bigger the team in terms of structure and performance, the more they will attract lucrative sponsorship deals. These sponsorships are revenue streams for the football clubs and act as focal points to the football club's financial dealings.

Ticket sales are another source of revenue for clubs where huge crowds pay to watch live matches. An average Premier league ticket costs £32 (kshs 4704) in the 2019/20 season. Burnley's Turf moor is held at least stadium capacity with a 22546 capacity, with the largest capacity being Manchester United's Old Trafford with 76212 capacity. You can therefore imagine how much money these clubs make in regards to ticket sales. COVID-19 has come with its misfortunes, and one of the spectators is not being allowed into games and has dealt the club's financial blows.

Media Revenue is, however, the most significant channel through which football clubs earn their revenues. Media broadcasting deals, commercial and matchday revenue channel vast chunks of money into the football clubs' bank accounts. With the current 2020/21 campaign, the Premier League is currently generating 3.7 billion euros from broadcasting, 1.35 billion euros from commercials, and 350 million euros from matchday revenue. These figures will increase, especially with no spectators, most of the football fans viewing the matches from home. The sale of TV right to major broadcasters has seen clubs earn revenue.

The club owners money is also a source of club revenue as some of the world wealthiest people decide to invest their money into these football clubs. Some even go ahead and buy these clubs an example being Chelsea Football Club which was bought by Russian billionaire Roman Abramovich at £140 million and Manchester City that was also bought by Sheikh Mansour at £210 million. These two clubs have grown into being two of the best premier league clubs winning titles in England and across Europe. They have also improved in their financial stability and have increasingly boosted major revenues.