Football clubs generate revenue in different ways. Real Madrid has become the first football club in the world to surpass €1 billion in revenue in a single season. In doing so, the club has left Manchester City and Paris Saint-Germain approximately €200 million behind. In an interview with BNR Nieuwsradio, Thomas Peeters, Associate Professor at Erasmus School of Economics, highlights three crucial factors contributing to such a high turnover.
T-shirts, tickets, and television can be considered a holy trilogy when it comes to revenue in football. Strong branding through merchandise can reduce financial dependence on sporting performance. Peeters draws a comparison with Manchester United, which has not been at the absolute top for several seasons but still remains one of Europe's highest-earning clubs.
It must also be noted that Real Madrid has performed exceptionally well this year. Combined with favourable TV contracts, this has significantly strengthened the Spanish club’s position. According to Peeters, Dutch top-tier clubs are immediately at a disadvantage due to far less lucrative TV contracts. At present, Dutch clubs are nowhere near the European elite. Peeters believes that bridging this gap would require drastic measures, with European-regulated TV contracts being the most obvious solution. However, the question remains whether there is enough willingness to implement such a system.
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You can read the article from BNR Nieuwradio, 23 January 2025, here.
