How does a football team make money? Paying wages to so many players, where does the money come from
How does a football team make money? To pay wages to so many players, where does the money come from? First of all, it is the team owner, just like the Arab consortium in Manchester City. If the owner has money, he will naturally have more money to give to the club! Of course, it’s impossible to do as much as you want, the boss still wants to make money! Then there are the sponsors, there are all kinds of them, the underwear may be sponsored, and there is also the logo on the jersey. The more famous the team is, the more sponsorship fees will be! For example, Manchester United, the logo on the front of their jersey sold for 150 million! Then there are league winning bonuses and cup bonuses, so why do every team want to go to the Champions League? If you participate, you can get broadcast fees! If you win, you’ll get a bonus! So the broadcast fee is also an income for the team! There are also jersey sales. If a team has a star, just selling his jersey is a huge sum! Cristiano Ronaldo of Real Madrid, his jersey sold tens of thousands of pieces in a few days, and I can’t write down the tickets! Hope to adopt!
How do football teams make money? In European and American countries where professional football is developed, clubs’ income generally comes from tickets, membership fees, TV broadcast fees, advertising, sponsorship fees, product sales and franchising, and transfer fees. , issuing stocks, lottery tickets and operating tertiary industry and other channels. Among European football clubs, tickets are the most basic and stable source of income, accounting for an average of 38% of total revenue, followed by television broadcast fees, accounting for 29%, and other commercial development accounts for 33%. While attaching great importance to the exploration of traditional funding sources (such as increasing emphasis on box office value and home field operations)
At the same time, the issuance of shares, restructuring and listing and the sale of television broadcast rights are currently the two most important aspects of foreign football clubs. Great financing means.
Brand-based profit model
Promote the club's brand to other industrial fields, a typical example is Manchester United. Through the expansion of business scope, business revenue has always been among the best among major clubs. Manchester United's involvement is no longer limited to football-related areas, nor is it just the sale of club jerseys and souvenirs. Its business has expanded to financial services such as savings and mortgage loans, home insurance, car insurance, and travel insurance. field.
Idol-type profit model
Use huge amounts of money to recruit green superstars, thereby owning the star's image rights. While selling products of idol players, they also extract a large amount of funds from advertising, and also Can attract sponsors, Real Madrid Club has created a miracle in football. Real Madrid strongly promotes idol stars: from Raul, Figo, Zidane, Carlos and Ronaldo, to Beckham, Cristiano Ronaldo, and Bale, each of them is worth tens of millions of dollars, but the club can make money just by selling their jerseys. Recover costs. For example, in 2000, the Frenchman Zidane was introduced for a sky-high price of US$67.5 million, and the club's jersey collection alone reached US$85.2 million that season.
Financing-based profit model
Raising funds through the stock market and collectively selling television broadcast rights are currently the two major methods of financing foreign football clubs. The Bundesliga team, which has always been known for its prudent financial system, has begun a new exploration of the club's business model. After Dortmund's shares were listed, Bayern is actively leading a new "sponsor financing business model." Bayern Munich and Adidas will sign an agreement. Adidas will invest US$69.5 million and hold 10% of the shares of Bayern Munich AG. The cooperation period will be 35 years. In addition, the sponsorship contract with Bayern was extended, which means that it will also bring 20 million marks in revenue to Bayern every year.
Sales-based profit model
The Ajax club, known as the "Green Arsenal", is famous in world football for being good at cultivating young players and selling potential players to The huge transfer fees earned by wealthy teams are an important source of income for the clubs. Similarly, there are small and medium-sized clubs such as Atalanta, Perugia and Chievo in Serie A. The profit models of foreign football clubs have their own characteristics, each with advantages and disadvantages.
How do football clubs make money? The main income of football clubs is tickets and TV broadcast rights, while big clubs like Real Madrid and Manchester United also have Champions League bonuses and sponsors’ investment, which can be obtained by winning the Champions League championship. 30 million euros, like Chelsea’s sponsor contract of 90 million for 5 years. In short, football clubs are still very profitable.
How do domestic football clubs make money? Corporate sponsorship fees, advertising fees, ticket sharing, naming fees and player sales.
What do football clubs do to make money in their business model? Football is basically investment. There are so many players, it is difficult to make a profit. The only way is to rely on the trading of players after their value increases. More importantly, relying on the news value of the named team can improve the visibility of the brand and promote the visibility of other products and services under the corporate brand, thereby bringing economic and social benefits. Like Evergrande, many people who like football will be psychologically inclined. In order to buy other products of Evergrande, such as house financing water, etc., it has driven a series of business development.
How do Chinese football clubs make money? The vast majority of football clubs lose money, but investors will obtain benefits in other places, such as making connections, advertising benefits, policy convenience, etc...
Whether football clubs make money or not, football clubs that want to achieve results will definitely make money. Money, a lot of commercial sponsorship, ticket sales, broadcast rights, the commercial value of stars, but mid- and lower-tier clubs with mediocre results and no stars must have good management and control player salary costs and game costs in order to be profitable.
How does a football team make money? Add to the above. Generally speaking, the main source of income for clubs is from television broadcasts, which accounts for a large part. Secondly, there is ticket revenue, advertising sponsorship, team-related souvenirs, and player sales. In the Premier League, there are also a lot of championship bonuses. For example, if you win the Super League championship, the Football Association will reward the championship team with 15 million euros, as well as FA Cup bonuses. League Cup bonuses, Champions League bonuses.
How do Chinese football clubs make money? Corporate sponsorship fees, advertising fees, ticket sharing, naming fees and player sales.
Why are most professional football clubs unable to make a profit? First of all, most investors who invest in professional football clubs value football. The advertising effect brought by the market is not directly using the club to make money. So of course what they do is not to make the club profitable.
Secondly, running a club is expensive, and teams that want to achieve good results will invest even more. The club's source of funds, excluding investors' money and some clubs' unique membership fees, is only advertising, tickets, broadcast fees, profits from selling players and game bonuses. Generally, these funds are not enough compared to expenses. So objectively speaking, it is difficult for the club to make a profit.
There is another interesting phenomenon. Rich teams perform well and earn more, but their expenses are higher; there are also some small clubs that make some money by selling players, but their results are often not good, their other income is not good, and their total income can only sustain their youth training. development or team infrastructure (I most admire Southampton, the Eredivisie, and the Portuguese Super League). The richest clubs with good youth training are the most nourishing, such as Barcelona at the peak and Real Madrid in the past two years, but there will always be a day when it is spent. In this regard, the best clubs in the Bundesliga (youth training finance) and the Premier League (viewing dividend system) bring huge benefits to investors in their main businesses. In order to maximize this benefit, investors will do their best to squeeze the club's profits and make full use of every resource.