Beyond The Game:Inside The Football Business

byGersianto Bagusputra

€300 million

more than 3000 BMW 750i

up to 7 Gulfstream V Private Jet

sure... right?

life-time supply for the rest of your life

Why ?

The answer is simple...

The FANS

The FANS are the CUSTOMERS of any sport

Football Audience in numbers

103

200

3

millions total attendance across europe in 20121

millions viewers watching the all-german 2013 Champions League final worldwide across-devices2

percent of average growth in attendance in 20121

Interisti in numbers

✦ The 2nd most-supported team in italy with 7 millions fanbase

✦ The largest season ticket holders for 2012/2013 season

✦ 15% growth in season ticket sales for 2013/2014 season

So, What generates all the money in

football ?

What ?

There are 3 sources of income in Football business:

Gate receipts Broadcasting Merchandising

1. Gate Receipts

✦ Stadium revenue is the “heart” for any football club✦ Average of 90% stadium capacity utilization for UEFA Champions

League 1 ✦ However, stadium revenue has decreased 2.7% in domestic

competition during the last year2

2. TV/Broadcasting Rights

✦ One-time income (in massive amount, of course)✦ Broadcast revenue is directly affected by “market pool” in each

country✦ 6.9% growth in Broadcasting revenue during the last year

3. Merchandising

✦ Used to be classified as “other income”✦ Usually used as a parameter of popularity

Revenue proportion of Football Clubs in europe

Top 5 european leagues revenue breakdown (2007-2011)

0

25

50

75

100

Stadium Broadcast Commercial

24%

52%

24%

47%

30%

23%

30%

45%

25%

27%

60%

13%

29%

58%

13%

How ?

So, How to make the money coming?

1. Stadium Ownership and Investment

Stadium plays an important part for any football club

This fact limits the revenue that a club can gain

from gate receipts

53%

23%

24%

OwnedState-ownedOther Party

However, 76% of clubs

competing in UEFA

Champions League do not

own their own stadium1

Owning your own stadium can make a significant impact to a club’s revenue stream

✦ Arsenal is the only club within the top-5 ranked Delloite’s Football

Money Club in which matchday income contributed the most to

their revenue (€103 million)✦ Average attendance of 60,025 (97% utilization)

20%

39%

41%

Matchday Broadcasting Commercial

2. Create a Global Brand

✦ Football is a universal language✦ European football is growing in popularity worldwide✦ Nearly 1 billion non-domestic followers in total

Becoming a Global Brand will help a club maximise their merchandising revenue

31%

36%

33%

Matchday Broadcasting Commercial

Man Utd’s revenue proportion

“What kind of a healthy business is it that waits for a white knight on a horse with lots of money

to throw around and then jump off his horse and run away the next day?”

- Gianni Infantino -

UEFA General Secretary

THANK YOU