It’s a big misconception to take football clubs just as sports teams whose sole purpose is to play and go home.
Football clubs earn their whole revenue via play. Every player makes a career out of sports, and so do clubs. How so?
It wouldn’t be wrong to call Football clubs as businesses or a more accurate word for them is ‘community institutions’ that not only earn a huge revenue through matches but earn respect, and popularity, at last creating a huge influence on football enthusiasts all across the globe.
how do football clubs benefit?
6 Ultimate Financial and Economic Benefits Of Football
Revenue Streams (Win-Win Situation)
Football clubs don’t live through paychecks, instead, they have multiple revenue streams through which they get benefits. Want to know those revenue sources? Jump in.
1) Earning Through TV Broadcasting
Television channels earn through broadcasting the live matches, but first, they pay the leagues in order to get permission to broadcast the match. So, a football match is a win-win situation for both; TV channels and League organizers.
The revenue is not in a few thousand or millions, it’s in Billions. Hard to trust? Here’s a real example; For just a single season (2018/29).
The Premier League earned a whopping amount of $3 billion just by allowing TV channels to broadcast the matches. As per some resources, the earned amount exceeds $3 billion.
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2) Matchday Income
Clubs earn per game. Fans come, they see, enjoy, and spend. The money spent by fans is then rotated towards the clubs. For example, football clubs get a revenue part from every ticket sold.
Not just through tickets but through food and merchandise sales too. The larger the stadium is, the more the revenue will be. It’s not just about the stadium but more about fan following.
Imagine Manchester United’s match at Old Trafford. Wooh! We can already listen to the crowd’s excitement through hooting, and so is the revenue.
3) Sponsorship and Advertising
Brands know how football matches earn the whole world’s attention with every coming match. So they pay clubs to not just show their logos on jerseys but on banners and all other apparent material.
That’s why you see those boring ads and logos everywhere you look around the stadium.
For the visual promotion of these logos and big names, brands pay the clubs annually as per the budget and decided contract.
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4) Merchandising
Clubs not only show their tactical moves via plays but also know how to earn money from fans’ desperation.
As the die-hard fans always show desperation to get the attention of their favourite players, clubs take that advantage and offer them branded and signature jerseys and scarves.
To get those apparel items first-hand, fans even pay huge sums of money, as a result, clubs earn the benefits.
5) Tourism Boosts
We can expect anything from true fans. Instead of watching matches live on television networks, they prefer watching in person at the stadium, never mind the hustle of visiting a new country, visa processes, and whatnot.
In that whole process, one sector gets a huge boost. Tourism, you guessed it right.
Through increased tourism, not only clubs generate revenue but all other components including hotels, restaurants, and all intimidating attractions earn a huge revenue.
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6) More Jobs
Football clubs strive hard to boost the game efficiency resulting in hyped matches, increased revenue, and in return more job openings for skilled individuals.
More employment opportunities are generated; from stadium staff to all the nearby local attractions.
So, how do football clubs benefit?
As we can clearly see, football clubs don’t just generate revenue on their own but benefit all the other industries (including broadcasting channels and advertisers) and local communities too.
So it’s a win-win situation for all, from players to organizers and all the people involved in it.