European football to generate $30 billion - TVBEurope

European football to generate $30 billion

Deloitte Global has predicted that the European football market could generate $30 billion (£21 billion) in revenues in 2016/2017
Author:
Publish date:
TMT

Deloitte Global has predicted that the European football market could generate $30 billion (£21 billion) in revenues in 2016/2017.

The figure would be an $8 billion (£5.6 billion) increase on 2011/2012 – a compound annual growth rate of seven per cent.

Most of this growth would be created by the top five leagues - England’s Premier League, France’s Ligue 1, the German Bundesliga, Italy’s Serie A and La Liga in Spain - whose share of revenues continue to rise.

The leagues are expected to generate approximately $17 billion (58 per cent) of total revenues in 2016/17.

Broadcast rights are forever on the rise, with the latest English Premier League (EPL) rights deal generating an average of $2.6 billion for the next three seasons from 2016/17 – a 71 per cent increase on the previous deal. Meanwhile, La Liga will earn approximately $1.1 billion per season.

The UK is now regarded as a mature pay-TV market for football, with 65 per cent of TV homes subscribing.

International rights fees have also been on the up. In the 2016/17 season, it is anticipated that the EPL will generate over $1.5 billion from overseas broadcast rights, a 40 per cent increase on the previous rights cycle. La Liga receives less than half this amount, but maintains the second-highest broadcast revenues from non-domestic markets of any sports league.

Clubs are reaping the rewards from heavy investment in venues and facilities over the last 20 years, with league attendance averages over 95 per cent of stadium capacity.

The financial implications of such lucrative broadcast and sponsorship deals are clear, with Premier League clubs returning collective pre-tax profits in 2013/14 for the first time since 1998/99.

Related