The English Premier League (EPL) is one of the most popular and lucrative football leagues in the world. It boasts some of the biggest clubs, with a global fan base, and generates enormous amounts of revenue every year. In this article, we will explore how EPL clubs make money.
Broadcasting is the largest revenue stream for EPL clubs, accounting for around 50% of their total revenue. The league is broadcasted in over 190 countries, and the broadcasting rights are sold for billions of pounds. The EPL has a centralized system where broadcasting revenue is divided equally among the 20 clubs. For the 2021-22 season, the broadcasting revenue is expected to be around £2.2 billion.
Commercial revenue includes sponsorship, advertising, and merchandising. EPL clubs have a global fan base, and this makes them an attractive proposition for sponsors. Many EPL clubs have shirt sponsorship deals worth millions of pounds with some of the biggest brands in the world. For instance, Manchester United has a shirt sponsorship deal with Chevrolet worth £64 million per year, while Chelsea has a deal with Yokohama Rubber worth £40 million per year. Clubs also make money from advertising within their stadiums, such as pitch-side advertising boards and LED screens.
Another significant revenue stream is merchandising. EPL clubs sell a wide range of merchandise, including shirts, hats, scarves, and other accessories. The clubs have official merchandise stores, and they also sell merchandise through online stores. The revenue from merchandise sales can be significant, with some clubs making tens of millions of pounds every year.
Matchday Revenue Matchday revenue includes income from ticket sales, hospitality, and food and beverage sales. The EPL clubs have some of the largest stadiums in the world, and this makes matchday revenue a significant revenue stream. For example, Manchester United’s Old Trafford has a capacity of over 75,000, and Arsenal’s Emirates Stadium can hold over 60,000 fans.
Ticket prices vary from club to club, with some clubs charging as much as £100 for a single match ticket. Hospitality packages are also available, which include food, drinks, and access to exclusive areas in the stadium. The revenue from hospitality packages can be significant, with some clubs making millions of pounds every year.
Transfer revenue is the money earned from selling players. EPL clubs invest heavily in player transfers, and this can be a significant revenue stream when a club sells a player for a large transfer fee. For example, in 2018, Liverpool sold Philippe Coutinho to Barcelona for a fee of £142 million, which made it the largest transfer fee ever received by an English club.
EPL clubs also make money from loaning out players to other clubs. When a club loans out a player, they often receive a loan fee, and the receiving club is also responsible for paying the player’s wages during the loan period.
Prize Money EPL clubs also earn prize money based on their performance in the league. The total prize money for the 2021-22 season is expected to be around £200 million. The champions of the league receive the most prize money, followed by the teams that finish in second, third, and fourth place. There is also prize money for teams that finish in the lower half of the table, with the team that finishes in 20th place receiving the least amount of prize money.
Conclusion In conclusion, EPL clubs make money from various revenue streams, including broadcasting, commercials, matchday, transfer, and prize money. The league’s popularity and global reach make it an attractive proposition for sponsors, while the large stadiums and passionate fans provide a significant source of matchday revenue. Transfer revenue can be a significant revenue