By Carlos Díaz García, Riestra Canek issues
Football is one of the most popular sports around the world, moving crowds, create idols and fosters a culture sports
But seen from a Given the business model and practice mercadológica is it that sport is a profitable activity for any sports organization?, or seen from a marketer, "teams really represent brands that in turn represent feelings and shelter? Is it the marketing that generates the best revenue for any club or football style is pure and the "beautiful game"?
The following is an analysis of the situation of different football teams, both sporting and economically speaking, to give us an idea of \u200b\u200bwhat strategies have been implemented to form a financial institution and brand through a solid soccer team.
Where's the money?
We note that within the organization of a football team is affected by several factors which may cause revenues. Among the most representative are:
Sponsors. companies are interested in projecting your corporate image in a football team, and focuses on linking the image of success you can have the club with the image of the company. Real Madrid shirt is printed with the mark BWIN (online sportsbook), in an effort to reach millions of viewers who follow their party and position your brand in the betting market. Transmission
parties. This refers to the various conventions that carry the television companies to broadcast games of certain equipment. In the case of the Mexican soccer Pachuca well as transmitting their games on the television airwaves Mexico - TV Azteca, also U.S. broadcaster Fox Sports reached an agreement to broadcast its games on pay television.
Box Office. This point is represented by the loyalty fans have with the team and the sport situation experienced by the club in the tournament. The Chelsea is one of the few European teams in the 2005-2006 season achievements the total ticket sales (46,000), helping team to remain one of the best-attended English clubs per game.
Advertising. advertising focuses on all merchandise made by the football team and the team's presence in international tournaments that allow you to have a greater impact for your brand. Recently player Kaka has sold more than 200,000 shorebirds of Madrid and attracted over 50,000 fans at Santiago Bernabeu which speaks of the high impact advertising to be had.
All the above factors are vital for income in any football team, how to get and low income based firsts differs according to the area where they develop, so it is important to describe the situation in football in Europe, South America and Mexico.
We note that within the organization of a football team is affected by several factors which may cause revenues. Among the most representative are:
Sponsors. companies are interested in projecting your corporate image in a football team, and focuses on linking the image of success you can have the club with the image of the company. Real Madrid shirt is printed with the mark BWIN (online sportsbook), in an effort to reach millions of viewers who follow their party and position your brand in the betting market. Transmission
parties. This refers to the various conventions that carry the television companies to broadcast games of certain equipment. In the case of the Mexican soccer Pachuca well as transmitting their games on the television airwaves Mexico - TV Azteca, also U.S. broadcaster Fox Sports reached an agreement to broadcast its games on pay television.
Box Office. This point is represented by the loyalty fans have with the team and the sport situation experienced by the club in the tournament. The Chelsea is one of the few European teams in the 2005-2006 season achievements the total ticket sales (46,000), helping team to remain one of the best-attended English clubs per game.
Advertising. advertising focuses on all merchandise made by the football team and the team's presence in international tournaments that allow you to have a greater impact for your brand. Recently player Kaka has sold more than 200,000 shorebirds of Madrid and attracted over 50,000 fans at Santiago Bernabeu which speaks of the high impact advertising to be had.
All the above factors are vital for income in any football team, how to get and low income based firsts differs according to the area where they develop, so it is important to describe the situation in football in Europe, South America and Mexico.
The European Dream The European teams managed a revenue model focused primarily on two factors: the merchandising generated by the players and image of the club, and on the other athletic achievements made, that they bring better television contracts and sponsors that generate cash flow that the team needs to finance its operations.
When Real Madrid signed David Becham in 2003, it is estimated that revenues generated in three years by advertising concepts were higher at € 25 million for the club, as stipulated in his contract that he would cede 50% of advertising revenue, which lets us see the capacity in which only one player has to generate revenue in the club, which allowed return on investment recruitment, in the chart below is the progress of Beckham's income with the passing of the years.
But not only Real Madrid has managed to have a solid structure of income. The English team Manchester United has managed to maintain annual revenues of € 220 million thanks to the sporting achievements he has achieved, what has brought that during the 2005-2006 season assistance in the stadium has generated some € 103 million, and exorbitant contract with Nike € 438 million for a 14-year sponsorship, which leaves us not only understand that hiring famous players is the source of income for a computer, such as we can see in the following plot the distribution of equipment.
In fact, the most important teams playing in the old continent have a very similar model in generating income, are based on having a high-level sports to enable them to be known in all continents, creating brand value that attracts investors, sponsors, and more important than the expansion Team Worldwide is causing fans to buy all the merchandise that is made available from T-shirts, keychains, balls, stamps to collectors' items that reach a very high value, generating cash flow for creating planning long term thus manage to keep the football team returns and income millionaires.
All this creates an equity in the percentage by which the clubs receive income, which has created all marketing efforts are focused on keeping them but in turn give them the same importance . This means that not only depend on a single money supply, but are distributed correctly the different ways to make money for the club.
What happens in Mexico? The
seen before in Europe makes us wonder if this model is followed by different teams around the world. Go to the specific case of Mexico, where teams typically rely on one source of income: closing TV contracts.
level football in the last five years has been deteriorating, and managers have no clear idea how the business of soccer. To understand this, we will analyze the situation of two Mexican soccer teams.
seen before in Europe makes us wonder if this model is followed by different teams around the world. Go to the specific case of Mexico, where teams typically rely on one source of income: closing TV contracts.
level football in the last five years has been deteriorating, and managers have no clear idea how the business of soccer. To understand this, we will analyze the situation of two Mexican soccer teams.
Chiva
Mediocrity Club Guadalajara has the backing of the company Omnilife, owned by businessman Jorge Vergara and from whom it was purchased in 2002 set itself the goal of becoming the most successful of all the Americas, but only enough to see some numbers that have called into question this goal. During his tenure
only achieved a Mexican league title, their participation in South American cups and liberators not immediately released, have gone through the computer at a rate of almost two coaches per year, leading to a lack of stability in a gaming system. Economically speaking it has created new forms income as it depends on the transmission of matches by the Televisa television network that ensures a 40millones USD per year, representing over 70% of their income. This makes the first and possibly only concern is to keep the team contract, which has meant that fans have grown tired of the mediocre status of your computer and the dramatic changes that have given the shield, which has become possible loss of merchandising and box office revenue. The following table allows us to see how the team has relied on past glories to remain a winning team.
Mediocrity Club Guadalajara has the backing of the company Omnilife, owned by businessman Jorge Vergara and from whom it was purchased in 2002 set itself the goal of becoming the most successful of all the Americas, but only enough to see some numbers that have called into question this goal. During his tenure
only achieved a Mexican league title, their participation in South American cups and liberators not immediately released, have gone through the computer at a rate of almost two coaches per year, leading to a lack of stability in a gaming system. Economically speaking it has created new forms income as it depends on the transmission of matches by the Televisa television network that ensures a 40millones USD per year, representing over 70% of their income. This makes the first and possibly only concern is to keep the team contract, which has meant that fans have grown tired of the mediocre status of your computer and the dramatic changes that have given the shield, which has become possible loss of merchandising and box office revenue. The following table allows us to see how the team has relied on past glories to remain a winning team.
Eagle
fall Across the lake is the American Club, and not because it is doing things right, but because the expenditure that are totally disproportionate to their achievements. In a period of 5 years has been achieved only title (2005), have invested more than $ 50 million on players in that period and less than 70% of those players are the club. Economically
has been one of the teams with better box office in America with an average attendance in the 2006-2007 season of 49.000 fans. The company Televisa owns all the equipment, which allows for completely disproportionate to their income level football.
This questions the profitability of the team, because if not tell the company that handles it (representing 75% of income) there is no way that this club could make a profit, and sponsors only generate $ 15 million a year , much the club spends only on players.
Another important point is that while America is losing ground in the area of \u200b\u200bhis archenemy Chivas fans has gained ground, as this survey shows by Grupo Reforma in 2007:
fall Across the lake is the American Club, and not because it is doing things right, but because the expenditure that are totally disproportionate to their achievements. In a period of 5 years has been achieved only title (2005), have invested more than $ 50 million on players in that period and less than 70% of those players are the club. Economically
has been one of the teams with better box office in America with an average attendance in the 2006-2007 season of 49.000 fans. The company Televisa owns all the equipment, which allows for completely disproportionate to their income level football.
This questions the profitability of the team, because if not tell the company that handles it (representing 75% of income) there is no way that this club could make a profit, and sponsors only generate $ 15 million a year , much the club spends only on players.
Another important point is that while America is losing ground in the area of \u200b\u200bhis archenemy Chivas fans has gained ground, as this survey shows by Grupo Reforma in 2007:
But if the situation Mexico is different from Europe, South America has more than one scheme, where players become purchased from the age of seven years and be a source of dispute for the big European teams looking for young talent. For this case we analyze football leagues focused on Argentina, Brazil and Chile.
legs The South American market
In South America the main income comes from sponsors and television, but the sale of players to other teams mainly in Europe. It is estimated that 50% of their income from this source, which lets us see clearly that the level of soccer in countries like Brazil, Argentina, Paraguay, Uruguay, Chile, is a key factor in the clubs to have higher incomes.
The case of Brazil is the most striking and that in 2005 had sales of $ 100 million players in total 804 transifiriendo players worldwide, creating the Brazilian teams rely heavily on marketing talent.
Other factors such as the sale of tickets at the box office only represents 7% of total revenues, and to gain some sort of international competition, teams receive approximately USD5 million, which ultimately lets us see the reality of the revenue model depends the level of team sports but no figure on the team, which facilitates the sale of players or getting Brazilians championships for teams.
reality in Argentina is similar as it is estimated that 50% of their income comes from transfer of players to other football teams mainly in Europe, but they are opening new markets like Mexico and Russia and is estimated by Deloitte that generates income over USD160 million per year, allowing us to understand the dependence of the equipment to the talent of young athletes.
Another source of income in Argentine football is the transmission of soccer games because they generate 22% of the total, but due to the current crisis has not had any improvement in the contracts, and income have been reduced by this factor.
In Chile, the model is focused on just as the sale of players, with the University of Chile which had higher revenues in 2005, having received USD 1.8 million for this concept, coupled with the $ 855.000 that profit at the box office and below the $ 20,000 for merchandising, serving notice that if this is the best team in the league income is considered low in comparison to the European and Mexican teams, but with a sporting level has to have four titles since 2005.
All this leads us to conclude in a very accurate statement, in part apparent and sometimes ironic
"The level of all clubs and players who play in it, is the main support for higher income "We must not delude
the situation of some equipment with large consortia that allows them to have incomes that are not consistent with reality football, but we must admire those teams that have managed to create a brand presence that generates millions of euros a year, and that apart it results that support.
In South America the main income comes from sponsors and television, but the sale of players to other teams mainly in Europe. It is estimated that 50% of their income from this source, which lets us see clearly that the level of soccer in countries like Brazil, Argentina, Paraguay, Uruguay, Chile, is a key factor in the clubs to have higher incomes.
The case of Brazil is the most striking and that in 2005 had sales of $ 100 million players in total 804 transifiriendo players worldwide, creating the Brazilian teams rely heavily on marketing talent.
Other factors such as the sale of tickets at the box office only represents 7% of total revenues, and to gain some sort of international competition, teams receive approximately USD5 million, which ultimately lets us see the reality of the revenue model depends the level of team sports but no figure on the team, which facilitates the sale of players or getting Brazilians championships for teams.
reality in Argentina is similar as it is estimated that 50% of their income comes from transfer of players to other football teams mainly in Europe, but they are opening new markets like Mexico and Russia and is estimated by Deloitte that generates income over USD160 million per year, allowing us to understand the dependence of the equipment to the talent of young athletes.
Another source of income in Argentine football is the transmission of soccer games because they generate 22% of the total, but due to the current crisis has not had any improvement in the contracts, and income have been reduced by this factor.
In Chile, the model is focused on just as the sale of players, with the University of Chile which had higher revenues in 2005, having received USD 1.8 million for this concept, coupled with the $ 855.000 that profit at the box office and below the $ 20,000 for merchandising, serving notice that if this is the best team in the league income is considered low in comparison to the European and Mexican teams, but with a sporting level has to have four titles since 2005.
All this leads us to conclude in a very accurate statement, in part apparent and sometimes ironic
"The level of all clubs and players who play in it, is the main support for higher income "We must not delude
the situation of some equipment with large consortia that allows them to have incomes that are not consistent with reality football, but we must admire those teams that have managed to create a brand presence that generates millions of euros a year, and that apart it results that support.
is why football is the most beautiful sport in the world, and that besides providing a distraction from everyday life, identification with a reference group and the passion of being followers of an icon, allows from entrepreneurial vision to transform feelings and emotions of the fans in revenues, profits and the construction of a single communication scheme.
The soccer has achieved what he longs for communication as a discipline: to make the world speak the same language.
Carlos Díaz García is a graduate of Marketing at the Universidad Iberoamericana Puebla campus. The issues that make the document are merely targeting update.
article originally appeared in issue 85 of Journal Dircom , in September 2009.
