Premier League teams are some of the richest football clubs in the world. They are able to make revenue in a lot of different ways. Let me explain exactly how they do this.
How do Premier League teams make revenue? Premier League teams make revenue through broadcasting, sponsorship and matchday revenue. They also make revenue through player and merchandise sales.
Premier League teams make revenue in a number of different ways. The main way that teams make revenue is through broadcasting. In the 2021/22 season, Premier League teams split around £3.1 Billion in broadcasting revenue. This is the main way that teams make their money.
This is because the Premier League has broadcasting deals with countries all over the world. These deals bring the league a huge amount of money and this is the main way that the Premier League teams make money.
Sponsorships
The Premier League having TV deals around the world means they get a huge amount of eyes on them which means companies see a great opportunity to sponsor the teams. This tends to be the second biggest source of revenue for Premier League teams, with this figure being around £1.6 billion across the last few seasons.
Premier League teams have many different sponsors who can sponsor anything from the player shirts to stadium names. Each Premier League team will usually have a few different sponsors on the shirts and some even have their stadiums named after sponsors.
Sponsors can spend their money on all sorts of things for clubs. Sponsors also like to sponsor the teams that are doing the best because they usually get on TV the most. So top six teams tend to make the most money from sponsorships as they are on TV the most.
Matchday revenue
Matchday revenue is the third biggest source of revenue for Premier League teams. Ticket sales make up the majority of this, with Premier League teams having some of the most expensive tickets in football. They are able to bring in a lot of money through season tickets, matchday tickets and hospitality.
But ticket sales are not the only thing contributing to the Matchday revenue. Once inside the ground, teams also make a lot of money by selling food and drinks at the games. This brings Premier League teams a lot of money as the food and drink can be pretty expensive in Premier League stadiums.
They are able to make so much money from matchday revenue because Premier League stadiums are so large. Some stadiums see more than 60,000 fans per game. The guaranteed 19 home league games a team gets is massive revenue for the clubs and it was the revenue the teams missed out on during the Covid-19 pandemic.
Premier League teams are also able to charge more money depending on the importance of the game. Teams at the top end of the table can charge more for matchday tickets than
Player transfers
Premier League teams can also make a lot of money through selling players. In the past, we have seen Premier League teams make hundreds of millions by selling players. Guys like Coutinho, Gareth Bale and Cristiano Ronaldo have all sold for huge fees from the Premier League.
This brings in a large amount of money for teams and is something that we often see from teams lower down in the league. Teams like Brighton and Leicester have made huge profits on players in the past. They are able to bring these guys in for very little and then make profits on them when they sell them in the future.
It is a great way for Premier League teams to make revenue, especially those who are very good at developing young talent. When you compare it to other forms of revenue, it is not a huge contributor because often those resources go out again on player transfers.
Merchandising
If you go on to the club’s website you can see that Premier League teams sell a huge amount of merchandise. This can be anything from mugs, scarves, hats or shirts. Shirt sales are a huge revenue source for Premier League teams as fans want to get their favourite players on the shirt.
This brings in a huge amount of money for Premier League teams and it is why they have new shirts with new designs every season. Merchandising often comes under commercial revenue which is what helps make commercial revenue such a big source of income for Premier League teams.
Do teams in the Premier League get the same amount of money from TV revenue?
The Premier League brings in billions from TV revenue and it cannot be easy to split up that money. Many people wonder about exactly how that money is split between the teams and whether it is split evenly.
Each Premier League team does not get the same amount of money from TV revenue, despite many people thinking they do. Premier League teams distribute the income from foreign broadcasters equally. This is because many foreign broadcasters have rights to all the Premier League games which is not the case in the UK.
However, the broadcast money from the UK is not distributed evenly between the teams. This figure depends on how many games a team has shown on TV. It means that the bigger teams tend to get more money from TV revenue because more of their games are shown on UK broadcasting.
50% of the TV money from the UK is distributed evenly between the teams, but the other half depends on the number of matches a team has shown on TV as well as where the team finishes in the league.
League finish position dictates what is called merit payments. The payments are on a sliding scale with the team who finishes top of the league getting the most money and the team at the bottom of the table getting the least amount of money.
The fee given to teams based on the number of games played on British TV is called the facility fee.