How to make money out of kicking a ball around

Great insight into how a professional football club generates revenue from Manchester United’s latest financial press release.  Albeit that Man U may not be typical, as it is one the world’s most successful clubs and has just won the Premier League.  In the first three months of 2013 only 37% of its total revenue (£34 million) derived from matchday ticket sales.  Slightly more (£36 million) came from ‘commercial sales’, and the balance of £21.7 million came from broadcasting revenues.

One way of thinking about this is that viewing the actual matches, either in person or via some form of media, is still the most important driver of income (61% of the total).  So playing ‘good’ football and winning matches is fundamental to the financial performance of this club.   And even some of the ‘commercial’ revenue is directly related to this, as it is made up of sponsorship revenue (£21.0 million); retail, merchandising, apparel and product licensing (£9.2 million); and new media and mobile (£5.8 million).  And, of course, sponsorship and new media will also be strongly influenced by on pitch events.

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This entry was posted in Chap 01 Introduction, Sector: Entertainment & Sport and tagged . Bookmark the permalink.

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