Beyond The Beautiful Game: Inside The Football Business

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An Insight of what makes the sheikhs and billionaires across the world want to own a football club

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Beyond The Beautiful Game: Inside The Football Business

  1. 1. Beyond The Game: Inside The Football Business by Gersianto Bagusputra
  2. 2. €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
  3. 3. Why ?
  4. 4. The answer is simple...
  5. 5. The FANS
  6. 6. The FANS are the CUSTOMERS of any sport
  7. 7. 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
  8. 8. 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
  9. 9. So, What generates all the money in football ? What ?
  10. 10. There are 3 sources of income in Football business: Gate receipts Broadcasting Merchandising
  11. 11. 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
  12. 12. 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
  13. 13. 3. Merchandising ✦ Used to be classified as “other income” ✦ Usually used as a parameter of popularity
  14. 14. 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%
  15. 15. How ? So, How to make the money coming?
  16. 16. 1. Stadium Ownership and Investment
  17. 17. 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% Owned State-owned Other Party However, 76% of clubs competing in UEFA Champions League do not own their own stadium1
  18. 18. 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
  19. 19. 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
  20. 20. Becoming a Global Brand will help a club maximise their merchandising revenue 31% 36% 33% Matchday Broadcasting Commercial Man Utd’s revenue proportion
  21. 21. “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
  22. 22. THANK YOU

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