Premier League clubs are some of the richest in the world. But where does all that money come from? In this article, we’ll take a look at the various ways that Premier League clubs generate revenue and how they spend it.
How do clubs make money?
The Premier League is one of the most popular and lucrative football leagues in the world. But how do its clubs make money?
Broadcasting is the biggest source of income for Premier League clubs. The league has sold the rights to its games to Sky Sports and BT Sport for a record £5.136 billion over three years. That’s an increase of 70% on the previous deal.
Each club gets an equal share of this pot, which is currently worth around £100 million a year. This will rise to £120 million a year from 2019/20 when the new TV deal starts.
Premier League clubs also receive a share of the international TV rights sale. These are sold by the league as a whole, rather than individually by clubs. In 2016/17, this was worth £58 million to each club.
The amount of money each club gets from sponsorship and other commercial activities varies widely. The biggest earners are Manchester United, who made £275 million from commercial activities in 2016/17. By contrast, bottom club Sunderland made just £37 million from commercial activities in the same period.
How much do they make?
Premier League clubs make a lot of money, but how much exactly? In this blog post, we’ll take a look at how these clubs generate their revenue and how much they bring in each year.
The Premier League is the richest football league in the world, and its clubs are among the wealthiest sports teams globally. In the 2018/19 season, the average revenue of a Premier League club was £361 million (about $455 million). The top-earning club, Manchester United, generated £627 million (about $790 million) in that same season.
So where does all this money come from? The main sources of revenue for Premier League clubs are TV rights, commercial activities, and matchday income.
TV rights are by far the biggest source of income for these clubs. In the 2018/19 season, domestic TV rights brought in £2.5 billion (about $3.2 billion) for the Premier League as a whole. International TV rights generated an additional £3 billion (about $3.8 billion). The vast majority of this money is evenly distributed among the 20 clubs, with each club receiving around £130 million (about $164 million) from TV rights per season.
Where does the money come from?
The Premier League is the richest soccer league in the world, and its clubs are some of the most valuable sports franchises in the world. But where does all that money come from?
Broadcasting rights are the biggest source of revenue for Premier League clubs. The most recent three-year domestic TV deal is worth £5.136 billion (about $6.6 billion), or about £1.7 billion per year. That’s more than double the previous TV deal, which was worth £2.3 billion over three years.
Premier League clubs also earn a lot of money from sponsorships. The most recent figures show that the 20 Premier League clubs took in a combined total of £323 million from sponsorships in the 2015-16 season. The biggest sponsorships deals belong to Manchester United, who have deals with Adidas, Chevrolet, and Aon worth a combined total of about £47 million per year.
Another big source of revenue for Premier League clubs is matchday income, which includes things like ticket sales and corporate hospitality packages. The most recent figures show that matchday income made up an average of 27% of total revenue for Premier League clubs in the 2015-16 season.
How do they spend the money?
Premier League clubs are some of the richest in the world, and they have a lot of money to spend. But how do they actually spend their money?
There are a few different ways that Premier League clubs can spend their money. One way is on player salaries. The average salary for a Premier League player is around £50,000 per week, but some players earn much more than that. For example, Manchester United’s Alexis Sanchez is reportedly earning £350,000 per week.
Another way that Premier League clubs can spend their money is on transfer fees. When a club buys a player from another club, they have to pay a transfer fee. This can be anything from a few million pounds to hundreds of millions of pounds. For example, last year Liverpool paid £75 million to Southampton for defender Virgil van Dijk.
Finally, Premier League clubs also have to pay for things like stadium upkeep, staff salaries and other running costs. All of this means that Premier League clubs have to be very careful with their money so that they don’t run into financial trouble.
What is the financial fair play rule?
In order to ensure that all clubs in the Premier League are financially stable, there is a rule in place called financial fair play. This rule essentially states that clubs can only spend what they earn, and cannot get into debt in order to finance their activities. This ensures that all clubs are on a level playing field when it comes to their finances, and prevents any one club from getting an unfair advantage.
Conclusion
It is evident that Premier League clubs make most of their money from broadcasting rights and commercial sponsorships. While matchday revenue and player sales are also significant sources of income, they pale in comparison to the amounts generated by TV deals and sponsorship contracts. With the current global economic climate, it is likely that these two sources of income will become even more important for Premier League clubs in the years to come.