For football clubs, the unique thing about commercial revenue stream is that it is completely in the club’s control to grow and spread, unlike broadcast or ticketing revenue stream which is either third-party dependent or has a limiting factor
Commercial revenue can be further broken down into two sections, revenue from sponsorships and revenue from retail, merchandising, licensing etc. For all intents and purposes, it’s usually clubbed to present a consolidated picture
The natural question that immediately pops up is how are the big five leagues faring in this segment. In this post we will be evaluating the commercial revenue growth for the big five leagues
The Aggregate Picture
Global sports sponsorship market, in 2023, has been estimated to range anywhere between $55bn – $75bn, according to various research agencies. This estimate refers only to the sponsorship related revenues not counting the non-sponsorship commercial income which, when added, would easily take the total revenue figure upwards of $100bn / €92bn globally
In this, the aggregate commercial revenue of 710+ top tier European football clubs, according to UEFA European Club Investment & Finance Landscape Report, are estimated to be upwards of €8.5bn in 2023, approximately 9.2% of the total sports sponsorship market
It is understandable that the largest chunk, that is €7.55bn or 89% of this total is aggregated by the big five leagues. The brand strength of the individual clubs comprising the big five leagues can be gauged from the fact that their aggregate commercial revenue has grown by 38% since 2019/20 in contrast with the combined European top tier leagues whose revenue in the same period grew by 27%
Commercial Revenue by Leagues
The brand power of English Premier League clubs proves itself here again with the league’s 30% share in the total commercial revenue generated by the big five leagues in 2022/23. Bundesliga clubs follow with 23% share
- Premier League clubs: €2.25bn; 30% share
- Bundesliga clubs: €1.77bn; 23%
- Ligue 1 clubs: €1.41bn; 19%
- LALIGA clubs: €1.22bn; 16%
- Serie A clubs: €890mn; 12%
Interestingly, the non-sponsorship commercial income for Ligue 1 clubs were seen to be more than their sponsorship income. This could imply a strong retail & merchandise push by the clubs, particularly PSG
Growth of Individual Leagues
It is very interesting to see the way individual leagues have grown in terms of commercial revenue in the last four years. The fastest growing league since 2019/20, believe it or not, is the French Ligue 1 whose combined club commercial revenue has grown by a huge 92%!
Even more interesting is the fact that their non-sponsorship commercial income, growing by a whopping 178%, is the primary reason for this growth. A similar situation can be seen for German Bundesliga whose non-sponsorship commercial income grew by 39%, higher than the sponsorship income which grew by 31%
Another counter argument could be that the revenue base on 2019/20 for Ligue 1 itself was low and therefore, it translates into a higher growth by percentage points. Similarly, the English Premier League’s 19/20 base was high enough to show a lower percentage point growth
Conclusion
The growth in commercial revenue for the big five leagues is a testament to their consistent marketability and fan-retention strength. As the leagues grow and continue to increase their global presence, undoubtedly, the commercial revenue will continue to grow.
As mentioned, this revenue stream is completely under a club’s control with their innovation capacity being the only limiting factor.
We expect to see a continued growth
