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Main story: A comparison of football club’s finances across the world, and the impact for fans

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Money in Football (credit: pixabay.com)

The finance of football around the world continues to grow and we regularly see mind-boggling sums of money bounded around when people talk about player transfers,  club takeovers and TV money.

The 2017 Deloitte Football Money League clearly shows the significant advantage that the Premier League TV money deal has given club’s revenue, but figures also show that revenues have grown right across European football as well. Prices of tickets, food and merchandise continue to be high despite the game being the richest it has ever been.

(All pictures labelled for non-commercial use)

Combined revenues for the top 20 teams in the report climbed from £6.63bn to a record £7.4bn. There was a record equalling 8 Premier League clubs in the top 20 of the list with Leicester City climbing to 20th after their Premier League title triumph and Manchester United regained top spot in the world due to their return to Champions League football and growth in commercial revenue. As the report says, there could be a record number of English clubs in the top 30 of the league from the current 2016/2017 season onwards as the £8bn global TV deal kicks in to boost revenues even further.
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Despite these figures, fans in England seem to be continually losing out in terms of the cost watching football; both live and on television. Not only has the cost of all watching all football on English television hit £1,000 for a viewer per year (see my blog post on the cost of football to TV viewers), but matchday costs continue to be high in comparison to other countries. For example, the cheapest season ticket at the Emirates stadium to watch Arsenal for this season is £1,014, and prices climb up to a massive £2,013. In comparison, the cheapest season ticket at Bundesliga giants Bayern Munich is just £120.89, and even lower in Spain where Barcelona charge just £113.93 (figures from BBC on London Evening standard report)

Of course, these prices in Europe hike up into the thousands for more exclusive seats for the season, but the fact that these prices are available in other countries and cater for all fans is something that the English game should learn from. This lower ticket prices in the Bundesliga are highlighted by matchday revenues shown in the Deloitte report. For example, Borussia Dortmund generated £45.7m on matchdays last season, but Liverpool generated £56.8m in the Premier League. This is despite Dortmund having a stadium with a capacity of 80,000, and Liverpool with just 45,000; proving much higher prices in England.

Some progress has been made this season with the Premier League bringing in a price cap of £30 for away fans tickets, and the Football Supporters federation campaign for the prices to be cut even further to £20. They argue that football is becoming unaffordable for many fans who therefore do not get to see matches. They are correct, and if clubs started taking into account their own wealth, fans wealth, player wages and club revenues, football would see an increase in fans due to less people being priced out of watching.

Here is a slideshow of the most valuable clubs in the world (according to the Forbes football rich list, all pictures labelled for non-commercial use):

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Southampton FC posts financial results

Southampton FC has published its financial results for year the ending June 2016. The figures contained are an example of the positive financial state of the Premier League for clubs and the type of figures involved in everyday running of a top flight football club. In this current season, the new global TV deal means that clubs now get an equal share of £8bn that the rights were sold for.

A profit of £4.9m, coupled with debts not increasing, mean that the club have made a positive move into the new era of Premier League TV money. An increase in turnover to £124.3m and increase of Commercial and Matchday revenues to £31.1m also strengthened the clubs position.

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Cost of TV Football still high for fans despite new levels of wealth

The levels of TV money injected into Football in the UK just keep rising, and whilst teams experience new levels of wealth to feed into transfer fees and wages, the common fan is still feeling the impact on their bank balance. Nick Harris (Sporting Intelligence) shows that it would cost a staggering £1,000 per year if you wanted to watch all of the football that’s available on English television.

With the emergence of BT as a competitor for Sky in recent years, this has led to a hike in the bidding for rights. BT have agreed a three year, £1.182bn deal until 2021 to gain all of the rights to the Champions League and Europa League matches and highlights.

Credit: @sportingintel

Top 10 highest paid footballers in the world

Here is a list of the highest paid footballers in world football (figures from the Mirror). The list includes many of the world’s best players at the top clubs, such as Lionel Messi, Cristiano Ronaldo and Neymar. The emergence of the Chinese Super League has meant huge sums of money being offered to players to play in the country. These include Italian Graziano Pelle, Brazilians Hulk and Oscar, and Argentinian Carlos Tevez on an eye-watering £615,000 per week.

(All pictures labelled for non-commercial use)

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