May 6th 2014
page 9
SPORTONOMICS
M
Football: A rich man’s Hobby
any people believe that
economics is all about the big
bank bonuses or how the government runs the nation. However, it’s actually used in almost every aspect of life, even
football. With the world’s top
20 clubs hitting a total revenue
of £4.6 bn last year, money in
football has truly hit ridiculous
levels and players’ wages are
going with it.
The top revenue clubs , according to Deloitte Football Money
League report, are Real Madrid, FC Barcelona and Bayern
Munich earning £444.7 m,
£413.6 m and £369.6 m respectively. The top British
clubs remain ManU, Man
City and Chelsea , bringing in
a whopping £894.2 m between
them. BT Sport and Sky have
pledged £3bn over the next 3
years for broadcasting rights
which, along with advertising
revenue, provide the main
forms of income for clubs. Yet,
even with such extraordinary
sums of money, these clubs still
run huge deficits. Making what
should be a profitable business
into a rich man’s hobby.
This can be largely put down to
the humongous growth in
transfer prices and players’
wages in recent years, as the
sources below show;
Source: rippedoffbritons
This fails to demonstrate how
some clubs (cough cough, Man
City) run wage to turnover
ratios of up to 10 ܔ