How Do Football Clubs Earn Money?

It’s no secret that the football industry is one of the richest in the world of sports.

The European market alone is believed to be worth almost €30 billion and clubs like Manchester City or Real Madrid can turn over more than $760 billion annually. 

But this begs the question, where does the money come from? There are countless revenue streams that football teams take advantage of throughout a season and we’re going to delve into some of the most important ones. For many clubs, this is essential for keeping them afloat and avoiding financial struggles that could lead to their expulsion from the football league.

TV Rights

First and foremost, television right is the biggest reason for clubs at the top of the football pyramid getting money. The latest Sky and TNT Sports deal to televise over 275 live matches over four seasons is worth a whopping £6.7 billion. 

The Premier League clubs will each see a large amount enter their bank accounts as a result of this deal, which makes it the richest league in the world.

Advertising

Advertising is a huge part of football and the exposure that the teams get means companies will pay huge fees to get their brands anywhere in sight. The attire, boards around the ground and hydration sponsors are all popular ways companies get their names into the game to boost their popularity.

Merchandise

Having fans buy merchandise from the club store is another way the club makes money. For example, clubs like Liverpool sell their brand new home kit alongside branded household goods and smaller items like keyrings. 

The manufacturers do take a large chunk of the profits made but the club themselves should still make a substantial amount that can support the operations on and off the pitch.

Football Transfers

You may have seen some of the eye-watering figures that clubs have spent to get a player from another team. These sums can be enough to bankroll the entire club for many years. However, if a top player is bought then the club needs to replace them, which means a large amount of the transfer figure will be reinvested into new talent.

To put into perspective how much money can be made from transfers, here are the biggest deals in history: 

• Neymar Jr – Barcelona to PSG – €222 million 

• Kylian Mbappe – Monaco to PSG – €145 million (rising by up to €35 million)

• Joao Felix – Benfica to Atletico Madrid – €126 million 

• Enzo Fernandez – Benfica to Chelsea – €121 million

This list of revenue streams only scrapes the surface of the many ways football teams make their money and profits are only going to increase as the sport continues to grow in popularity.