Internal And External Factors That Affect The Core Revenues Of Clubs

The main objectives are being documented in UEFA’s 2014 ‘Club Licensing and Financial Fair Play Regulations’ handbook (refer to Appendix). The break-even rule will prevent clubs from spending more than what they could earn. Clubs have to adhere to aggregate

Futbol Club Barcelona known as Barcelona and referred by fans as "Barça", is a professional Soccer club, based in Barcelona, Catalonia, Spain founded in 1899 by a group of Swiss, English and Catalan footballers. It is the second most valuable sports team on the globe just after Real Madrid FC. It also has largest fan base among all sports teams on all major social networks. Barca is worth $3.2 billion, and the world's second-richest football club in terms of revenue, with an annual turnover of $613 million.( "The World's 50 Most Valuable Sports Teams 2014". Forbes.com ; "Deloitte Football Money League 2013". Deloitte UK. Retrieved 30 January 2013).

The main objectives are being documented in UEFA’s 2014 ‘Club Licensing and Financial Fair Play Regulations’ handbook (refer to Appendix). The break-even rule will prevent clubs from spending more than what they could earn. Clubs have to adhere to aggregate break-even deficit of less than EUR 5 m.

The Financial Fair Play draws attention to the reported losses made in European football over the past fifteen years. As football started to grow at an exponential rate, the losses started to mount also. As far back as the early 2000s, several clubs football clubs went bankrupt and faced administration while dealing with huge substantial losses. Prior to the season before the financial fair play was introduced, it was noted that 12 out of the 20 clubs reported an overall loss. This led to the Premier League pre-tax losses reaching an all-time unwanted record of £445 million in 2009/10 and a debt around £3.1 billion in 2008/2009 (Deloitte, 2011). The profitability of the league and its clubs in relation to the Financial Fair Play is determined by the profit and loss accounts (relevant income minus relevant expenses) which aligns with UEFA’s requirement for clubs to break even and improve their profitability. Another two objectives of the regulations mentioned previously also relate to profitability; which are:

Yes, soccer can be lucrative sport especially when one becomes a professional player. But the bottom line of this sport is the camaraderie shared in this game. As guardians of

Entrance fees are also a big part of a clubs income, although they are only collected once for every new member they will together add up to a large sum of money.

This seems to be a fairly easy question, with the answer being services. Marketing departments in general are more concerned with providing experiences that will make the consumer want to come back for more of said experiences (thereby increasing the ticket revenue) and everything that is done by marketing departments at sporting events is indicative of that. For instance, one can use the example of giving away a limited number of shirts to people who attend the game (which we did multiple times at ECU). The shirts aren’t given away just for the sake of it; they are given away to put a cherry on top on the consumers visit so to speak. They, and any other promotional materials, are given with the intention of making people’s game day experience more memorable in a positive manner. In doing so, you positively reinforce the customers decision to attend said athletic event and hopefully increase the likelihood that they will attend more in the

Author background information: Jeremy Gregg is a 3 times TED X speaker dealing with entrepreneurial ventures.

All the money that athletes are receiving are partially thanks to us because we buy things like tickets to games and we buy fan wear and we watch them on tv. The five biggest domestic tv deals in soccer would be the English Premier League with an average of about $2.60 bil for a period of 2017 to 2019. Then the Italian Serie A has an average about $1.08 bil for a period of 2016 to 2018. Then we have the Spanish La Liga, the French Ligue 1 and the German Bundesliga with about an average $972 mil for a period of 2017 to 2019, $789 mil for a period of 2017 to 2020 and $690 mil for a period of 2014 to 2017. In 2004, Arsenal signed a deal with Emirates Airline to name their new stadium at Ashburton Grove the Emirates Stadium. Emirates paid Arsenal £100 million for 15 years of naming rights on the stadium and 8 years on the jersey. Arsenal was thrilled with the deal, claiming it would then make the two deal sponsorship would be by far the biggest deal ever undertaken in English football. So there given so much money

“Many soccer sponsorship are like short-lived marriages without a court-ship, ultimately ending in an often acrimonious divorce. This is bound up in the power of the clubs, aware of their appeal, dictating terms of their sponsors”

This means that the stadium would need an upgrade for more seats and ultimately a bigger car park due to the stadium being next to a main road. The players and managers would also demand a pay rise due to having to spend so much time away from work with training and also travelling to other states in order to play other teams. Transfer money would also be needed if they wished to invest in a couple of good players to carry them to the top flight, all of this would add up leading to a big demand of money for all the smaller clubs,

Tottenham is part of a stable industry where the demand is inelastic due to enormous fan following and is the number one sport followed all over the U.K. People either go to stadiums or watch the matches on the television.

Collectively, two out of the six clubs had experienced an increase in profitability, whether it was a reduction in losses when comparing both periods or an increase in profits. This meant that the clubs’ relevant turnovers exceeded their expenses. For example, only Chelsea and Tottenham both recorded improvements in their profitability with Chelsea having the highest loss reduction percentage of 70%.; whereas the other four clubs did not improve their profitability over this period. Although Arsenal maintained profits throughout the “FFP2” period averaging £22.1 million a year, it still managed to gain a decrease in profits. These results may seem befuddling as Arsenal were the only club not to make any losses during the 10-year period. Overall, the results show that although the Premier league increased its profitability, the collective sampled club’s results differed. The losses in the “FFP1” period collectively totalled £371 million; whereas the losses in the “FFP2” period collectively totalled £461 million. For there to be an improvement of profitability, the cumulative losses in “FFP1” must be greater than the cumulative losses in the “FFP2” period. This suggests profitability decreased after the introduction of Financial Fair Play. However, the story differs with individual clubs as they all reacted differently.

Based on Figure 7, there three leading clubs in terms of revenue share a lot of similarities in their revenue streams. The only major difference that can explain the reason why Real Madrid and Barcelona are always at the top is that two clubs are owned by their supporters and not stakeholders, hence, are not subject to the strict regulations of the stock market. This means that the clubs are not affected by takeover threats or debt levels something that is crucial for public companies.

British football is definitely one of the most hit sports in the world. Besides, the highly competitive structures of football competitions in Britain, including promotions, inter club transfers and ownership transfers has allowed its fan base around the world to keep growing. Its charm has attracted not only football followers around the world, but also the local and international buyers. More importantly, English football clubs are still very good in making money out of the game. According to a report from Deloitte 's sports business group, English football clubs have earned combined revenue of 2.98 billion Euros (Choudhury, 2016). The popularity of British Football clubs is very large, as well as the whole football culture in the