The Deloitte Money League 2015 is now out.
Arsenal now are ahead of Chelsea in terms of turnover. This is due to increased income from commercial deals, which is surprising since Chelsea won two trophies (League and League Cup) over our FA Cup so surely had more prize and TV monies to accrue.
Nonetheless, it shows that our club is in a healthy financial position, and in Gazidis’ credit* is being run in a way to maximise revenues.
However, what makes up the turnover of a club like Arsenal? Or similarly large world or British club?
Well there are several factors:
- Gate receipts/matchday income, such as ticket sales, merchandise, food/beverages, programmes/magazines, etc. In the 70s and 80s and prior, matchday income was the major source of revenues for most clubs. There wasn’t much televised football, and the BBC/ITV’s deal with the Football League as it was then weren’t very lucrative (vis a vis today). However, with Sky/BT Sport monies, sponsorship and prize money, matchday income whilst important is not as overarching as it once was.
- TV money. The Sky/BT Sport deal is a major factor here, evidently. And as we are challenging for the league, and in an average season are on Sky/BT Sport a lot, plus the Champions League/FA Cup, then we accrue a lot of this form of revenue.
- Prize monies. The Premier League pays prize monies per league placing, though winning trophies provides this also.
- Sponsorship. not just shirt sponsorship (Emirates), but shirt maker sponsorship (,i.e. Puma), stadium name sponsorship, etc.
- Corporate dining/tickets. Our Woolwich Suite, and the central tier, and perfectly geared towards this. If anything, this is why our matchday income is so high, as it’s not just burgers, soft drinks, replica shirts, and scarves being sold.
So how do we continue to maximise revenues?
Well from the foreign markets, and of course winning things, since this will get more revenues compared to our top four trophy for this season. 😉