The economics of football: How clubs are dealing with financial challenges
The economics of football: How clubs are dealing with financial challenges
Funding for professional football is quite complex and works differently to amateur competitions, which are often dependent on membership fees and public funding. In the Czech Republic, for example, they are largely subsidized by the FAČR (Football Association of the Czech Republic). On the other hand, private financing prevails for professional football clubs. Of course, they have income from tickets, but that would not be enough to cover all their expenses. So they have to look for other sources, of which there are many, and we will now introduce them in more detail.
Advertising takes many forms in football
Football clubs are mainly financed by the sale of advertising rights, sponsorship or other commercial activities , including merchandising. But we must not forget the support of bookmakers, which in the Czech Republic alone amounts to billions. And a relatively high share is also made up of so-called transfer fees for the sale of players or rewards for participation in international competitions.
Broadcasting rights
The rights to broadcast individual matches of domestic or European leagues are usually bought by commercial companies , which will offer higher sums for them than public television. And there are often situations where teams that have sold the rights to different televisions play against each other. So it is decided who is on the home field.
According to statistics, the British Premier League is the most popular , followed by Spain's La Liga, Germany's Bundesliga, Italy's Serie 1 and France's Ligue 1 . In short, these five competitions have the upper hand in terms of performance, and thus they have gained a privileged position and several times higher revenues than other European leagues, including the Czech one. but even in our country, broadcasting each season costs more than 100 million crowns.
Sponsors not only from the field of sports
In football, it is possible to sponsor individual clubs or sports matches , but also entire competitions . And this applies to companies from the sports industry as well as to everyone else. Typically, of course, football players are dressed by manufacturers of sports clothing , but for example food, beverage brands, etc., can be presented at stadiums or in catering , for which it is just another way of promotion.
The general sponsor has the main say , but the vast majority of football clubs also offer companies other forms of partnership . It is a big prestige for clothing brands to be able to dress players. Sometimes they cooperate in the form of barter, i.e. by producing jerseys , football boots or accessories in exchange for a presentation. For the mentioned five most popular competitions, this option is still valid.
Other commercial activities
One of the ways football clubs make money is merchandising , i.e. the sale of jerseys and other advertising items. And in general, the bigger the club, the higher the income these activities will provide. The same category also includes the sale of licenses or, for example, the possibility of tours of the stadium and excursions to the club museum.
How about selling and buying players?
When we look at football transfers 2024, we see amounts worth tens of millions of euros for the most famous names . But it is necessary to realize that the fees for their purchase are similarly high . Therefore, only the difference between income and expenses is counted in earnings. However, the sums representing football salaries and transfers of the best players tend to be truly astronomical. Only a handful of elite clubs can afford them. Others try to nurture their own talents, which they will later sell.
