How Do Soccer Clubs Make Money

Topics: La Liga, Real Madrid C.F., Manchester United F.C. Pages: 1 (305 words) Published: September 3, 2013
its different for different finance is very delicate...for instance as u have mentioned the teams...Chelsea and manu works with owners...the owners invest money in the club hoping for return from the ticket sales and sponsorship..the main income for football clubs are TV broadcasting rights deal, jersey sponsors, ticket sales,merchandise sales [like jerseys] and prize money...participation in tournaments like champions league is very profitable, teams get extra 30mn for each stage they progress in CL after the group stage..Chelsea works in a losing budget, that is their owner invest more than wat he gets from the club and so is the case with manu...the financial stability of the club lies with the economical situation of the owner...

on the other hand the spanish clubs runs in a different way ...clubs like REAL MADRID and barcelona are owned by socios, or fan clubs...the club generate money, and the money made by the club is spend in the club ... no member can invest or take money from the club..of them Real madrid has a very good financial model , who recently surpasses 400mn net revenue which is record for any sports firm and on course for surpassing 500mn next season...their income is from the sources mentioned above [sponsorship, tv deals,gate revenue etc]..Real madrid also have another way of making money from players, that is by image rights..when they sign players they insert a clause to receive a certain % of money from the deals tht players sign...for instance when ronaldo signed an improved deal with nike, real madrid too pocketed a decent share of money coz of the image rights...clubs like Real madrid holds image rights of players, and that serves as media publicity for both parties Source(s):

deloitte money league
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