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How Football Clubs Generate Money: It’s Not Just About TV, Merch And Matchday

hand putting money into a football money boxFrom TV revenue to ticket sales and from licensing to merchandise revenue. There are numerous ways in which clubs make money. With novel strategies constantly emerging as clubs try to further increase their income. After all, more revenue means a higher budget to spend on players in a bid for on-field success while adhering to financial regulations.

So, where exactly does the revenue come from? Which trends are visible in the football market? And what novel approaches have clubs taken to balance the books?

Revenue: continuous growth and major differences

chart growth of big five league clubs aggregate revenue in billion 96-97 to 2022-23

During the 2022/23 season, the 96 clubs in the Big Five European leagues generated €19.6 billion in aggregate revenue.1 Which is 7.8 times as much as the €2.5 billion in revenue generated across those leagues during the 1996/97 season. An immense growth that is expected to continue with aggregate revenue projected to approach €20.7 billion in 2024/25.

Yet, there are major differences between leagues and clubs. During the 2022/23 season, Premier League clubs generated almost €7.0 billion in revenue, which accounted for 36 percent of the total revenue generated across the Big Five leagues. While the 18 Bundesliga clubs generated the second most revenue with €3.8 billion (20 percent).

Differences in revenue generated by clubs across the Big Five leagues1

League 2022/23 revenue Percentage of Big Five total
Premier League €6.967 billion 36%
Bundesliga €3.835 billion 20%
La Liga €3.535 billion 18%
Serie A €2.856 billion 15%
Ligue 1 €2.378 billion 12%
Big Five leagues €19.571 billion

Within leagues the differences are present as well. In the Premier League, the so-called Top Six generates the bulk of the income. In 2022/23, they generated 35 percent more than the other 14 clubs combined. Arsenal, the sixth highest revenue generating club, generated £464 million. Which was 86 percent more than the £250 million generated by seventh ranked Newcastle United. While the difference between the highest (Manchester City, £718 million) and lowest (Bournemouth, £141 million) revenue generating clubs amounted to £577 million.

Major revenue sources

chart how much do broadcasting commercial and matchday sources contribute to club revenue for big five leagues 2022-23

Generally, clubs derive their revenue from three major sources: matchdays, broadcasting and commerce. With broadcasting rights sales often generating the most. In the 2022/23 season, 47 percent of total aggregate revenue in the Big Five leagues came from TV revenue. Clubs in the Italian (54 percent), English (53 percent), and Spanish (50 percent) topflight even generated half or more of their income from this.

Bundesliga (40 percent) and Ligue 1 (30 percent) clubs derived relatively less from broadcasting. Instead, they generated most of their revenue from commercial activities. For Ligue 1 clubs this was over €1.415 billion, which made up around 60 percent of the clubs’ total revenue. Sponsorship generated €678 million in revenue, while other commercial activities generated €737 million. Bundesliga clubs made €1.775 billion in commercial revenue, including over €1.125 billion from sponsorship.

Premier League clubs generated €2.254 billion in commercial revenue, which made up around 33 percent of their total revenue. It was also 126 percent more than the €997 million they generated in matchday revenue (most amongst Big Five league clubs). Spanish and German topflight clubs generated far less matchday revenue with €539 million and €536 respectively (second and third most). Despite the differences, matchday’s contributing share to overall revenue was similar with 14 or 15 percent for all leagues except for Ligue 1 (11 percent).

Top Six less dependent on hard to influence broadcasting revenue

chart how much do broadcasting commercial and matchday sources contribute to club revenue for top 8 highest revenue generating premier league clubs in 2022-23

The Premier League Top Six earns relatively less from TV revenue and more from commercial (sponsorship) sources compared to the other Premier League teams. Despite generating more broadcasting revenue than non-Top Six clubs. During the 2022/23 season, Manchester City and Liverpool had the highest broadcasting revenue with €344 million (£299.4 million2) and €282 million (£241.6 million3) respectively.4 While the seventh highest revenue generating club, Newcastle United, earned €190 million. €30 million less than sixth ranked Arsenal.

Clubs have little influence over how much TV revenue they earn, apart from their on-field performance. With TV revenue distributed based on merit and live coverage facility fees (i.e. higher ranked teams have more live coverage). City, for example, earned over £50 million more in 2022/23 than the season prior.2 Which was mostly driven by them winning the treble. Winning the Champions League generated £113.9 million in revenue from UEFA broadcasting. The season prior they reached the semifinals and earned £90.5 million from UEFA. The domestic championship campaign increased other broadcasting revenue as well. As did the commencement of an improved new broadcasting cycle.

Manchester City’s broadcasting revenue and performance2

Season Broadcasting revenue Performance
UEFA All other Champions League Premier League
2021/22 £90.5 million £158.6 million Semifinal Champions
2022/23 £113.9 million £185.6 million Champion Champions

For Liverpool this new cycled helped limit the club’s reduction in TV revenue compared to the previous season. As the club had a far less successful Champions League (last 16 vs final) and Premier League (5th vs 2nd) campaign than the season prior.

Differences in contribution of revenue sources

Besides TV revenue, Manchester City also earned the most amongst the Top Six from commercial activities (£341.4 million2). It accounted for 48 percent of their total revenue. It was almost £40 million more than Manchester United (£302.9 million5, second most) and more than double that of Arsenal (£169.3 million6, ranked sixth).

City’s high commercial revenue offsets their limited income from matchdays. With £71.9 million (10 percent of total revenue) they earned the least amongst the Top Six in 2022/23.

Manchester United earned £136.4 million in matchday revenue5, accounting for 21 percent of their total income. Which ranked them first and can be explained by Old Trafford having the highest capacity (74,310). While Spurs earned almost £20 million less from matchdays, it also accounted for 21 percent of their total revenue.

Diversifying revenue streams to tap into growth potential

These differences show opportunities for clubs to increase revenue. Where the growth in broadcast revenue, traditionally the main revenue contributor, has slightly slowed down recently, other revenue sources have potential to be tapped into. Furthermore, by diversifying revenue streams and seeking more control over its growth, clubs will have ‘a greater degree of financial stability in times of rapid change and evolution’.1

Something which is desired, especially after the COVID-19 pandemic showed the football market’s fragility. Growing revenue will also allow clubs to spend more on players while complying with financial regulations.

Investing in multi-purpose stadiums

everton bramley moore dock stadium under construction viewed from river mersey

James T M Towill / Victoria Tower and construction of the new Everton Stadium

Recently, clubs seem to have focused more on stadium investments and brand monetisation to increase and diversify revenue.1 The construction of brand-new or redevelopment of stadiums require major investments, but by enhancing the stadiums’ quality and capacity more income can be generated. The potential of stadiums as year-round entertainment venues has led many clubs to invest in and aim for multi-purpose stadiums.

In the Premier League alone, a handful of clubs have invested, or are about to, in their infrastructure. Fulham, for example, developed the Riverside Stand. The new stand has increased capacity with 8,000 to 28,500. In addition, it offers fans, residents, and visitors, amenities to enjoy year-round. Including bars, restaurants, conference and event areas, a hotel and a health club with rooftop pool.

Aston Villa, Crystal Palace, Manchester City and Liverpool are other clubs who have recently redeveloped their stadiums (or are about to). Everton is in the final stages of constructing a brand-new stadium at Bramley-Moore Dock. While Manchester United’s new shareholder is also driving the club towards a replacement for Old Trafford.

Spurs’ new stadium has increased matchday revenue

chart change in tottenham hotspur match day revenue white hart lane vs tottenham stadium

More high-end spaces, features, and amenities allow clubs to generate more revenue from their stadium beyond just matchdays through live events, stadium tours, and food and beverage services. During the 2022/23 season, for example, Tottenham Hotspur’s new stadium (2019, 62,850 capacity) has hosted major events beyond football matches.7 Including a World heavyweight Championship boxing event, two NFL games, two rugby matches and nine music concerts.

The final £1 billion construction cost far exceeded the initial £400 million budget, but the new stadium has had a positive effect on the clubs’ revenue streams. In their final two seasons (2015/16 and 2016/17) at White Hart Lane (36,284 capacity) the club generated €55 million and €57 million in matchday revenue.8 This has increased to €125 million and €135 million respectively at their new stadium post COVID-19.4

Experiences beyond matchday

dare skywalk tottenham stadium

In addition to the live events, the club organises various stadium tours.9 There are general tours, accompanied by a guide or a club legend. While matchday tours give fans exclusive access to the team areas hours before kick-off, like the changing room, tunnel, and media mixed zone. A technical tour of almost four hours allows visitors to go below the retracting football pitch and into the matchday studios.

Visitors can also join The Dare Skywalk, where they go on top of the stadium roof and glass walkway 46.8 meters above the pitch. They also get a chance to descend of the stadium’s edge.

Due to a F1 Drive collaboration with the Formula 1, the Tottenham Hotspur Stadium offers all kinds of events (including live screenings) around races. While the venue has a 500-meter Go Karting track.

Tottenham Hotspur Stadium experiences9

Experience Price What is it?
Stadium tour From £20 Tour around the stadium.
Matchday tour From £40 Tour around the changing rooms, tunnel and media mixed rooms hours before kick-off.
Technical tour From £120 Tour focussing on stadium’s technical features, including going below the retracting football pitch and into the matchday studios.
Legends tour From £60 Stadium tour accompanied by a Spurs legend.
Heritage tour From £8 Showcasing the club’s unique history and local area. Proceeds go to the Foundation.
Proposal packages From £295 Possibility to propose within the stadium.
Birthday parties £35 per child Possibility to host a birthday party at the venue.
The Dare Skywalk From £40 Walk on stadium roof and glass walkway 46.8 meters above the pitch.
The Dare Skywalk Edge From £46 42 meters descent off the stadium.
F1 Drive From £35 Go Karting on a 500-meter track and various events around Formula 1 events (like live screenings).

Unique and new amenities

goal line bar tottenham stadium

Clubs aim to increase stadium revenue through offering such experiences, but also by having visitors spend more per visit (or matchday). Without increasing prices, this could be achieved by offering more, varied, and unique amenities.

Something the Spurs have aimed for at their new stadium, with amongst others the Goal Line Bar. Which is the largest stadium bar in Europe and offers in-house brewed beer. The microbrewery inside the stadium is a partnership with Beavertown Brewery that allows fans to enjoy the local brewery’s range of craft beers and a beer created in collaboration with the club and its fans. In addition, fans can visit a taproom during home matches.

There is also plenty of varied food on offer throughout the stadium on matchdays. With the club constantly trying to update and expand this to cater to fans’ demand and tastes. For the 2024/25 season, they have launched the “Feature Grill” which cycles through different cuisines throughout the season. While the Seoul Birdie food outlet located in the marketplace is a collaboration with American Korean TV chef, Judy Joo. All unique amenities to improve the fan experience and eventually increase revenue.

Real’s megastore essential to their strategy

real madrid merchandice in real madrid megastoreLike Spurs, Real Madrid has invested in their stadium to create a multi-purpose venue. The €1.17 billion redevelopment of the Bernabéu has not only added a retractable roof, underground greenhouse and increased capacity by 3,000 (to close to 85,000). It has also improved many features and amenities beyond the pitch. Allowing for year-round opportunities that will positively affect future revenue.

Amongst them is Real’s stadium tour (from €35) that covers 4,250 square metres (currently limited due to renovations) and includes a visit to their museum. Which is the most profitable museum in Madrid. In 2019, it had 1.3 million visits,10 coming only second to art museum Prado. After the latest renovations, around 5,000 to 6,000 people are said to visit the museum daily. With revenue possibly reaching €20 million per year from the tour alone.

By copying IKEA’s all-phases strategy and ending the tour at the official store, the club tries to further increase fan spending. The 2,800-meter flagship megastore offers an immersive digital experience with more than 40 metres of LED screens and two tunnels to entice fans to spend more on merchandise. On average people spend between €100 and 150 per store visit. After a new jersey goes on sale, the store reportedly generates between €400,000 and €500,000 per day.10

Fan experiences to increase revenue and brand value

Other novel and unique experiences to generate revenue and meet fans’ desires and demands, are for example the opportunities Tottenham offers for birthday parties and proposal packages (from £295) at their stadium.

While at the Camp Nou couples can get married for anywhere between €1600 and €13,500. A service the has been offered since a few years, to generate additional revenue as the club struggled financially. For the same reason they allowed fans to play at Camp Nou for an hour for €300 per person in June 2022. With friends and family able to watch for €30. Before their recent financial challenges, they already had innovative strategies to earn revenue from their stadium. Such as opening a pitch side pop-up restaurant in 2014.

They are all initiatives and fan experiences that could increase brand value, in addition to revenue. Just as Fulham opening a boutique hotel at Craven Cottage or raising money for charity by organising a sleepout at their stadium. Something Manchester United has done as well. While Arsenal had young fans camp out on their turf.

Brand monetisation

chart top 10 highest estimated value of stadium naming rights 2018-19 premier league clubs

Apart from stadium investments and unique experiences and amenities, clubs also try to diversify and increase revenue through brand monetisation. With the market more than willing to pay substantial amounts to utilise or be associated with major football clubs.

By changing their strategy, clubs can earn more from sponsorship. For example, by dividing sponsorship packages into regions or by selling the stadium naming rights.

In 2011, Manchester City renegotiated their stadium lease to gain control over the stadium naming rights. They then agreed on an estimated £350 million 10-year deal with Etihad Airways, which included multiple properties (e.g. jersey, stadium name). In 2019, the stadium naming rights were reportedly worth £21.9 million per year.11

Barcelona’s four-year deal with Spotify also includes multiple properties: front-of-jersey and training jersey sponsorship and Camp Nou naming rights. With the latter reportedly adding €5 million per year to the deal.

There is a missed opportunity here for many clubs, as relatively few stadiums have a title sponsor. Research by Duff & Phelps showed that only 30 percent (six out of 20) of the Premier League teams had a stadium naming rights deal in place during the 2018/19 season. While that was over 80 percent for NFL stadiums.11 Clubs missed out on £98 million in potential stadium naming rights value, with the estimated value of such deals reaching £142 million in the first quarter of 2019. Old Trafford’s naming rights were calculated to be worth £26.75 million per year. While the naming rights to Spurs’ new stadium could have generated £17.5 million at the time.

Licensing and merchandise

Clubs with strong brands also monetise their brands through merchandising, either by outsourcing or keeping it in-house. PSG is a club that has outsourced much of their merchandising to Fanatics, the global leader in licensed sports merchandising. The two expanded and extended their partnership in 2020, by announcing a ten-year e-commerce, manufacturing and licensing deal. While PSG has kept ownership over its brand and development, it has expanded the choice, experience and availability for fans. Estimations suggest the deal could have tripled the club’s e-commerce business to €50 million per year by now.

Barcelona opts for in-house in recent years, after taking over Barça Licensing and Merchandising in 2016. However, in 2022, their financial situation caused them to look for partners who could buy 49 percent of the business branch.12 Despite stakeholders’ approvement and talks with companies like Fanatics and Investidustrial, there is no deal yet. For now, the club holds off on expanding their retail business of 13 stores and four franchise locations.

Generally, Barcelona is one of the best and most active in monetising their brand. In 2023, they were recognised as the Best Sports License Property. They have agreed partnership with multiple brands and products. Such as Lego toys, Memorabilia Icons and Etnia sunglasses. In October 2023, they also announced an entertainment experiences partnership with PortAventura World. Together they will design an analyse themed attractions at the future Espai Barça and develop leisure zones and theme parks around the world.

Rival Real Madrid also has a themed resort. Real Madrid World is part of Dubai Parks and Resorts and divided into three zones: Celebration Plaza, Champions Avenue, and Stars Avenue. Strategically, there is also a Real Madrid store included to generate even more revenue.

In-house products

Sponsorships, partnership and licensing allow for shared costs and synergies, but revenue generated must be shared as well. That is why some clubs prefer to produce merchandise in-house. Barcelona for example has their own streetwear line which already makes up 30 percent of sales in physical stores. With turnover increasing by 54 percent and e-commerce by 47 percent.12

In December 2023, AS Roma also launched their first streetwear collection designed and produced in-house. After earlier collaborations with external partners, like Adidas and Nowhere FC, for special (streetwear) collections.

In-house production is not limited to just merchandise. La Liga club Las Palmas, for example, expanded their business ventures beyond football by launching Pío Pío beer in the summer of 2024. Launching three varieties, the club focuses on the product being 100 percent local. With the club president noting how this was lost when a previous beer partner was taken over by a multinational company. He also underlined how clubs can no longer be managed based on match results alone and that Las Palmas needs to be turned ‘into a major enterprise capable of generating resources.’

Commercial growth easiest to influence

These are just a few of the strategies clubs use to increase revenue. With commercial revenue probably having the most growth potential and the easiest to be influenced by clubs. Arsenal reported commercial revenue of £169.3 million in 2022/23. A 19 percent increase compared to the season prior (£141.7 million). Which the club attributed to ‘a new commercial strategy delivering particularly strong results from its retail operations’.6

Liverpool’s commercial revenue increased by 10 percent to £272.5 million in 2022/23 (2021/22: £246.7 million). Caused by a strong growth in sponsorship and pre-season revenue.3 The latter is controversial. Although clubs’ revenue grows due to pre-season (and now even post-season) tours, the calendar gets more congested. Contributing to the fierce debate about players’ health versus commercial interests.

In-house content creation to connect with global fanbase

manchester city studios

Clubs can tap into a worldwide fanbase. Knowing the ins and outs of those fans is thereby essential for clubs to monetise their brands. Content creation, which is then distributed through online channels, has become central to clubs’ strategy to connect with those fans and generate revenue.

During the 2021/22 season, Manchester City opened their own in-house production hub, City Studios. Located at the heart of the club’s grounds, it produces content for its on-demand video platform City+, social channels and external parties. During the 2022/23 season, the club’s cameras followed the team during the historic treble winning campaign. It then sold the documentary Together: Treble Winners, to Netflix for a seven-sum figure.

In 2019, Barcelona created Barca Studios, an in-house division for the creation, production and distribution of its audiovisual content for the club’s channels (Barça TV channel, social media and streaming platform Barça TV). It also aims to create new formats for other global operators that could generate revenue. When the club faced major financial difficulties in 2022, they sold 49 percent of the company. With Orpheus Media and Socios.com both taking a 24.5 percent stake for €103 million in a business venture that was still unprofitable at that point.

Financial manoeuvres to comply with regulations

It resulted in an economic lever that made the club comply with La Liga’s financial regulations and allowed them to register new signings. It also led to debate whether the club put off their financial troubles to the future. And whether this and several of their other economic levers and tricks should be allowed or are sound governance.

Just as controversy arose when Chelsea sold two of their hotels for £76.5 million to a sister company in April 2024. It reduced their losses to £89.9 million, making the club seemingly compliant with the league’s profitability and sustainability rules. Something they were close to breaching, after spending over £1 billion on signings since Clearlake Capital and Todd Boehly took over.

These are financial manoeuvres and loopholes that allow clubs to have higher revenue and thus spend more while still complying with financial regulations. However, is it right or truly needed? Because there are enough commercial and matchday opportunities for clubs, especially those with high quality brands, to further increase their revenue. Pair that with not overspending and sound financial governance, and on-field success could be achieved in a financially healthy manner.

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