How football clubs earn money?

There are numerous football clubs in the world, some are very successful and others are striving to survive in their respective competitive leagues while others are the reality of a “grace to grass” story. The survival status of every football club depends on a wide range of factors such as effective management, impeccable facilities and financial stability among other factors. It is therefore extremely important for any soccer club to formulate clear channels of acquiring money for efficient existence of the club.

Here are some of the ways of how football clubs earn money;

Match tickets:

Many clubs have passionate fans who will always watch their games whenever they are playing. They have therefore established a system of ensuring that the fans pay to watch the games. The gate collections is one of the top sources of clubs’ revenue since the amount that is collected is normally substantial in one way or the other depending on the fans turnout. This means that the club that has numerous fans can collect enough money to sustain its operations depending on the cost of each ticket and fans attendance.

Sale of merchandise:

This is another way of how football clubs earn money. There are several products that clubs sell to their ardent supporters which consequently generate money for the club. Some of the club’s merchandise that football clubs normally sell to the fans includes team jerseys, jackets, wrist bands and scarves among others. Since the enthusiastic fans normally like to be associated with their particular club, they will purchase the merchandise and wear them especially during matches to demonstrate their love to the club when they are supporting it.

Corporate sponsorship:

There are many corporate bodies that offer sponsorship to various football clubs. This is viewed to be mutual in various ways such as the corporate social responsibility where that business unit or organization gives back to the society. On the other hand, it is seen as a way of marketing the products or services of that company to reach a wide range of potential clients targeted from football lovers. Either way, it is a certain way of how football clubs earn money to sustain their existence.

Broadcasting rights:

There are numerous television companies that normally want to air the matches live to the audience. These TV companies have to negotiate with the club’s management and agree on the amount of money that they will pay to the club. This therefore ensures that the club earns some considerable amount of money to allow the television stations to televise their matches.

Player transfers:

This has become the latest lucrative trend that various football clubs have embarked on to earn money. Some clubs normally scout for raw talent and nurture the talent. After the player has fully developed and his potential achieved, other clubs will come in need of his services. However, this come at a cost and the particular club will have to pay an agreed transfer fee so as to acquire the services of that particular player. When the club that discovered and nurtured the talent sells the player, it will definitely make money since it will sell that player or players at relatively higher rates.