How do football teams make money?

Image by Megan Rexazin from Pixabay

The main sources of income for clubs, federations, and football competitions are three: the sale of audiovisual rights, income from commercial management, and finally, income from ticket and season ticket sales. Correct management must maximise the income from these three concepts. In the following article, we will explain each of them in detail.

1. Audiovisual rights

The sale of audiovisual rights is the authorisation of the owner (team, competition, federation) in favour of the media. However, according to My Money Cottage, you need a TV licence to be able to watch what you like best.

These revenues are the most relevant for most teams and federations, as they represent more than a third of their income. Due to the growth of audiences and audiovisual platforms, these revenues are increasing.

2. Commercial revenues

These derive from sponsorship deals, merchandising, tours and museums. Teams that achieve positive sporting results generate higher commercial revenues because sponsors are willing to shell out more money for successful teams. They will also want to upgrade their contracts at the end of each season to remain linked to institutions that generate a high level of exposure and brand recall. One of the sectors that bet the most on team sponsorships is bookmakers. Until now, you had to make the journey from home to the betting shop, but that time has come to an end. Providers such as SBO connect users with the best odds from the various bookmakers. Furthermore, by betting online you can benefit from the best bonuses available on the market and also place live bets from anywhere on your mobile phone.

It is important for sports properties to have an ample inventory of advertising media (billboards, official apparel, training wear, etc.) to offer to potential sponsors. Sports managers must have the vision to create a business with national and international companies that want to develop new markets.

3. Ticket and season ticket revenues (Matchday)

Before TV broadcasting, clubs were totally dependent on revenues from ticket and season ticket sales even using external websites like FootballTicketNet. The economic strength of the clubs was purely linked to the box office. Now, with the professionalisation of football, sports managers have implemented new concepts linked to improving the consumer (fan) experience in stadiums.

Therefore, going to a sporting event is now more than just enjoying the match. It is a spectacle where experiences comparable to those of a theatre, a concert, or a live show excite children and adults.

• Creating experiences

The challenge for sports managers lies in creating a show in parallel to the match, where people can interact and feel part of it. For this, the infrastructure and service offered are vital. The stadium must have all the necessary components for this experience to be positive and result in full stadiums, regardless of whom the team is playing. “Go to the stadium to enjoy” is the phrase that sums it all up.

That is why it is important to develop catering areas, official team shops, and other services, in order to increase consumption inside the stadiums.

• Boxes and VIP areas

Contrastingly, sports managers have increased the number of VIP seats and boxes in stadiums in order to increase revenue from ticket sales. These areas with higher ticket prices due to their location, comfort, and catering services, are targeted at companies so that they can build, maintain and enhance their corporate relationships.

• Player sales

Finally, we cannot omit the revenue from player sales. Although this item is not included in Deloitte’s reports (Football Money League), it is relevant for most teams that have a business model linked to the training and recruitment of players.

To generate this extra revenue, it is essential to have a sporting director who manages a youth football development project. They must recruit young players with the potential to adapt to the team. This work results in the development of a team’s most important asset: its players!

In conclusion, in order to achieve sporting success, it is necessary to build a competitive squad, which requires a high budget. Therefore, institutions must maximise their revenues. This is a long-term job that requires a clear understanding of the club’s objectives and where it competes. Success is the consequence of correct sport management because in sports things do not come by chance, they come by correct planning and execution. This is a virtuous circle.

*This is a collaborative post.