A Project on Study of European Football with Focus on Club Revenues

SUBMITTED BY: Neeraj Nahar Roll No.020102011 Batch: 2009-2011

PREAMBLE
Football is the most popular game in the world In Europe, Football has evolved as a big business Growing football nations like India look up to European football club models to imitate their success

OBJECTIVES OF THE PROJECT

To identify major sources of revenue and expenditure of European Football Clubs To examine revenue trends of the clubs To rank the clubs on the basis of total revenue generation during recent years

METHODOLOGY
Major research is based on secondary data especially annual reports and financial disclosures published by the respective clubs Categorization of revenue streams :
Matchday Broadcasting Commercial

Various trend analysis tools like Charts, Venn Diagrams and Pivot tables have been used for the purpose of Analysis

SAMPLE PLAN
Sample Size:10 Clubs Samples have been on the basis of on-field performance at UEFA Champions league 200910

LIST OF CLUBS
Bayern Munich Real Madrid FC Barcelona Manchester United Chelsea AC Milan Arsenal Internazionale Olympique Lyonnais VFB Stuttgart

LIMITATIONS
Limited data available for the purpose of study. Hence it does not depict the exact picture of European Soccer Revenue, though it gives directive ideas.

ANALYSIS AND FINDINGS

MAJOR EXPENSES

 Country specific Revenue Trends observed :

British clubs now want bigger and more complex arenas to earn more money. Therefore, are enlarging stadium capacity and earns larger share from match day revenue

 The Italians, with fewer spectators attending the matches, increase their focus on sponsoring contracts

German clubs tend to follow the British trend but also believe that the virtual international audience will follow, if the clubs can deliver on the pitch

CONCLUSION
Best Financial Model :
Even revenue streams from all the three sources

Key Revenue Driver :

Good on-field performance

RECOMMENDATIONS
Clubs should not overly depend on any one revenue stream. A balanced mix of all streams is necessary for revenue optimization. Brand consciousness on the part of the clubs is a driving factor which attracts maximum commercial revenue. Consistent on-field performance is the ultimate key to success. No Club can sustain in the long run, if they fail to keep up with viewers expectations in terms of winning the games. Thus, all the clubs should focus more on improving their on-field performance.