Over 28 billion. Football market on the rise

The English Premier League continues to hold its privileged position as the richest football league in the world. The elite group of 20 English clubs consistently generates the highest revenues among all national leagues, outpacing the second-richest competition — the German Bundesliga — by as much as 72 percent. This is according to the latest annual review by the consultancy firm Deloitte. Overall, the European football market grew by 11 percent compared to last year, reaching a total of 28.4 billion euros.

Last year’s World Cup in Russia contributed both directly and indirectly to the overall growth and larger financial volume in the European football landscape. Significant sums of money will continue to flow from UEFA into the accounts of top English clubs in the near future, making it highly unlikely that England will lose its leading position. The reason? Strong performances by English clubs in European competitions.

“Premier League club revenues rose to 5.4 billion euros thanks to increased payouts from UEFA, as five English teams qualified for the Champions League for the first time in the 2017/18 season,” states Deloitte’s accompanying press release.

A perfect example of the sporting and financial synergy in top English teams can be seen in the now-concluded season. Both of Europe’s most prestigious competitions — the UEFA Champions League and Europa League — featured all-English finals. On Wednesday, Chelsea celebrated victory in the Europa League by beating London rivals Arsenal 4–1 in distant Baku. For English football as a whole, however, it would have been more beneficial had Arsenal won, as that victory would have earned them a spot in next season’s Champions League. That would have made them the fifth English team to qualify. Instead, the spot went to the French club Olympique Lyon, since Chelsea had already secured its place earlier.

Tomorrow night, the highly popular Champions League will conclude with its final match, where two Premier League sides — Liverpool FC and Tottenham Hotspur — will face off. Hundreds of millions of viewers around the world are expected to tune in. “Live football broadcasts remain one of the most sought-after forms of entertainment for fans and broadcasters alike, as well as a dominant topic on social media. We expect further growth,” said Dan Jones, partner and head of Deloitte’s sports group.

Every year, more money flows through European football. Revenues have been growing for 18 consecutive years. While English football plays a dominant role, other leagues experienced sharper growth in the most recently evaluated season. For instance, the German Bundesliga became the second-richest league, overtaking Spain’s La Liga. The reasons include both broadcasting income and ticket sales, as German clubs have the highest average stadium attendance.

“Germany overtook Spain thanks to a new four-year broadcasting deal. We expect the Bundesliga to hold onto second place in the next annual review. However, La Liga could overtake it again in the 2019/20 season,” Dan Jones added. In terms of TV rights, however, the Premier League is untouchable, and a change at the top seems far off. On-field success and glory remain the perfect complement to a club’s overall financial puzzle.

The football agent Jozef Tokos agrees. “Trophies and victories in high-profile matches always give a final push to a club’s financial success. And when the last four teams left in European competitions are all from England, you can bet the total money involved is significant,” Tokos commented for the Economic Daily regarding the current European football scene.