Undeniably, the football sector of the sports industry is one of the most lucrative sectors in the world, which is mostly due to the popularity of the game and its wide global audience. Among all football leagues, the English premier league is the most profitable generating about £2.46 billion for it’s 20 member clubs. The league also generates about £1.3 billion worth annually to the British government as national insurance and income tax.
Where does the money comes from?
The English premier league gets its money from multiple streams, ranging from domestic broadcast revenues of about £6.53 million per game, and numerous other international broadcast revenues, likewise about £1 billion is being earned from international broadcast for the period of 3 years cycle.
Being watched live by about 12 million people per game, and a total audience of about 5 billion across 212 countries per season, the English premier league generates huge money through commercials. Other sources of income include the facility fees and sponsorship.
How is the money shared?
The £2.46 billion dollars earned for the member clubs is being shared to them partly on equality and partly based on merit and number of broadcasts.
Bulky part of the earning is divided equally among all the English premier league clubs, while the remaining is shared based on merit and fan base sizes of the clubs-gotten from number of broadcasts per game. The breakdown according to Express goes below.
- Equal Share: half of the money, that’s 50% of the total, is being shared equally among the participating clubs. In the 2018/2019 season, each of the 20 clubs was given £34 million as equal share.
- Facility Fees: this constitutes a quarter of the premier league money and is divided among the participating clubs based on the number of broadcasts per game in the United Kingdom, the clubs with higher fans would have higher number of broadcasts hence the highest earnings. In this category, earning is based on number of fans that watch games not number of winnings.
- Merit Payment: this is paid based on which club wins, constituting a quarter of the total earnings, it is shared to the clubs with most wins, it is what differs the winners from the others on monetary rewards.
- Commercial Revenues: the total amount of money earned through commercials in the league is being shared equally among the 20 clubs also. In the 2018/2019 session, each club got £5 million from commercial revenues.
- International Broadcasting Rights: the money generated from international broadcast is also shared equally among all the league clubs, £43 million was paid to each club for international broadcast.
Apart from the above monetary gains by the clubs (and their members), there’s also great number of tourists estimated to about 900000 in 2012 that goes into Britain to watch the premier league games. These tourists and their activities add up to the British economy.
Although the exact worth of the English premier league might not be directly stated, it’s worth is above questioning when the income it generates for the clubs and the British government is put into consideration.
The statistics used are from the 2018/2019 season.