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P2E Research Project –
Football Industry
Siddharth Ravishankar
                         1
Agenda




         2
Introduction




               3
Why football industry ?




                          4
Literature Review

• Football in the New Media Age - Raymond Boyle and Richard Haynes

•   The book talks about
     Relationship between football and the media
     New dimension to the way football was mapped
     Easy accessibility of viewership
     Player image rights
     Globalization of the game
     Role of Internet



                                                                     5
History




                                                                                                6
Source: Fédération Internationale de Football Association (FIFA) - FIFA.com . From FIFA.com :
http://www.fifa.com/classicfootball/history/game/historygame1.ht
Demographics

         Football – The Sport                         Football – The Corporate World




          Male /
        Female 18-                                                            12%
          28 yrs



                                                           88%
                              Male, 16-34
                                  yrs                                                        7


Source: King, M. (2010). Football Business - UK - November 2010. London: Mintel Group Ltd.
Industry Leaders




                   8
Industry Financials

  • Fédération Internationale de Football Association (FIFA)

  • FIFA has 209 member states, more than the UN !!

  • Responsible for major international tournaments

  • Revenue in 2011 was $ 1.070 Billion

  • Approximately 75% of the revenue is spent back into the game

  • Reserve balance of $ 1.29 Billion




                                                                                                9
Source: Fédération Internationale de Football Association (FIFA) - FIFA.com . From FIFA.com :
http://www.fifa.com
Industry Financials

     Major Sources of Revenue                       Major Sources of Expenses
       ★ TV Broadcasting Rights                        ★ Event Related Expenses
       ★ Marketing Rights                              ★ Development Related Expenses




                                                                                                10
Source: Fédération Internationale de Football Association (FIFA) - FIFA.com . From FIFA.com :
http://www.fifa.com
Recent Trends

• Globalization of football – South Africa 2010, Russia 2018, Qatar 2022

• Football clubs setting up their own media companies

• Impact of celebrity athletes on the popularity of football

• Reduction of expatriate players

• Merging of sports and entertainment




                                                                           11
Potential Pitfalls

• Football to remain just a sport

• Football gets richer, but the fans pay for it

• The sustainability of the football industry
    – Challenges of club ownership

    – Funding

    – Existing regulatory rules

• Gulf in class between the teams

• Development of the game
                                                  12
References

• Milligan, A. (2004). Brand it Like Beckham: The story of how Brand
  Beckham was built. Cyan Books
• Plunkett Research®, Ltd. (n.d.). From Introduction to the Sports
  Industry : http://www.plunkettresearch.com/sports-recreation-
  leisure-market-research/industry-trends
• Fédération Internationale de Football Association (FIFA) - FIFA.com .
  (n.d.). Fédération Internationale de Football Association (FIFA) -
  FIFA.com . From FIFA.com : http://www.fifa.com
• Roberts, D. (2012). The Changing Football series - The UK football
  industry: A parallel universe. UK. From
  http://www.olswang.com/articles/2012/02/dave-roberts-football-
  video1
                                                                          13
Thank Y u !!
               14

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Research Project - Football Industry

  • 1. P2E Research Project – Football Industry Siddharth Ravishankar 1
  • 2. Agenda 2
  • 5. Literature Review • Football in the New Media Age - Raymond Boyle and Richard Haynes • The book talks about  Relationship between football and the media  New dimension to the way football was mapped  Easy accessibility of viewership  Player image rights  Globalization of the game  Role of Internet 5
  • 6. History 6 Source: Fédération Internationale de Football Association (FIFA) - FIFA.com . From FIFA.com : http://www.fifa.com/classicfootball/history/game/historygame1.ht
  • 7. Demographics Football – The Sport Football – The Corporate World Male / Female 18- 12% 28 yrs 88% Male, 16-34 yrs 7 Source: King, M. (2010). Football Business - UK - November 2010. London: Mintel Group Ltd.
  • 9. Industry Financials • Fédération Internationale de Football Association (FIFA) • FIFA has 209 member states, more than the UN !! • Responsible for major international tournaments • Revenue in 2011 was $ 1.070 Billion • Approximately 75% of the revenue is spent back into the game • Reserve balance of $ 1.29 Billion 9 Source: Fédération Internationale de Football Association (FIFA) - FIFA.com . From FIFA.com : http://www.fifa.com
  • 10. Industry Financials Major Sources of Revenue Major Sources of Expenses ★ TV Broadcasting Rights ★ Event Related Expenses ★ Marketing Rights ★ Development Related Expenses 10 Source: Fédération Internationale de Football Association (FIFA) - FIFA.com . From FIFA.com : http://www.fifa.com
  • 11. Recent Trends • Globalization of football – South Africa 2010, Russia 2018, Qatar 2022 • Football clubs setting up their own media companies • Impact of celebrity athletes on the popularity of football • Reduction of expatriate players • Merging of sports and entertainment 11
  • 12. Potential Pitfalls • Football to remain just a sport • Football gets richer, but the fans pay for it • The sustainability of the football industry – Challenges of club ownership – Funding – Existing regulatory rules • Gulf in class between the teams • Development of the game 12
  • 13. References • Milligan, A. (2004). Brand it Like Beckham: The story of how Brand Beckham was built. Cyan Books • Plunkett Research®, Ltd. (n.d.). From Introduction to the Sports Industry : http://www.plunkettresearch.com/sports-recreation- leisure-market-research/industry-trends • Fédération Internationale de Football Association (FIFA) - FIFA.com . (n.d.). Fédération Internationale de Football Association (FIFA) - FIFA.com . From FIFA.com : http://www.fifa.com • Roberts, D. (2012). The Changing Football series - The UK football industry: A parallel universe. UK. From http://www.olswang.com/articles/2012/02/dave-roberts-football- video1 13
  • 14. Thank Y u !! 14