I probably know less about football than anyone else on CL, so please could someone tell me how Beyern Munich pay their players when a season ticket is only £97. I'm also no good at maths.
When I went to a game a few years back we got speaking to a few season ticket holders, they nearly wet themselves at our LEAGUE ONE prices! For a club of that size it's pretty amazing they look after their fans the way they do with prices.
I probably know less about football than anyone else on CL, so please could someone tell me how Beyern Munich pay their players when a season ticket is only £97. I'm also no good at maths.
Commericial deals. German clubs make more money from sponsorship deals than anyone else.
Bayern's commercial revenue is more than Man U and Arsenal combined.
Even Schalke make more than Liverpool, Chelsea, City etc from sponsorship deals.
When I went to a game a few years back we got speaking to a few season ticket holders, they nearly wet themselves at our LEAGUE ONE prices! For a club of that size it's pretty amazing they look after their fans the way they do with prices.
Germany is excellent for beer and football.
Bye all. I'm going to live in Munich.
Or maybe Prague, as I hear the czech girls do bounce.
Huge sponsorship deals, 65,000 sell outs every week, charge coroprates eye watering amounts for a box at the Allianz, plus, Bayern have 130,000 members who effectively own the club, paying €65 a year.
I've always been tempted to get a cheap season ticket for a big Italian side. Say with AC Milan, they used to start from 115E (top tier, probably 140E or so now) but go to a few games like Inter, Juve, Roma, Napoli and you've got your money's worth. You can also sell or transfer your ticket for games you're not going to, basically paying for your occasional flights there.
Read an article a week or so ago with the Dortmund chief exec saying they get on average 100-150 English fans at every home game. Apparently you can get a return flight, match ticket and buy a few beers and have change out of £120.
I'm trying to get to grips with German football finance for the Trust so we can better understand a more sustainable model of football. Several people have already mentioned some of the factors. Another thing to mention is that, while its difficult to get hard facts, German players are generally paid less than FAPL players. Further, German clubs, thanks to investment in academies have a higher proportion of home grown players than the FAPL. Bayern has always been the monster of German football in finance terms. Nevertheless, it, like nearly all the other clubs, is 51% owned by its fans. This is one factor in the reasonable level of German ticket prices.
They are the Manchester United of Germany, which helps. Plus the cash from always qualifying for the champions league group stages. Still admirable that the ordinary fan pays a relatively small amount.
Ticket prices are high here because mugs like us will pay. Let look at a hypothetical situation:
We are in the prem next year and finish bottom. So we get £70million from TV monies. Once you add in sponsorships, hospitality, etc. The club is bringing in over 80 million quid comfortably. We'll say 85 to make the maths easy.
We had in our last premiership seasons around 21-23k season ticket holders, bringing in around 7 million quid (again rounded to make the maths easier).
So total income was 92million and season ticket sales accounted for 7.5% of income. If season ticket prices were doubled, income would rise to 99million and season tickets sales would be around 14%. So by doubling prices there's only a 7.5% rise in total income.
Let's look at the other direction for season ticket prices. All season tickets are changed to £100 in the N, £150 in the E/W and £25 for kids. Season ticket revenue falls to around 2 million, so total revenue drops from 92 to 87 (around a 5% drop), and season tickets now account for just 2.3% of total income.
What does this show us? Season ticket prices don't have that big an effect on income, especially for clubs with smaller capacities, in the premiership. We could let everybody in for free and total revenues would only drop by 7.5%.
Of course, the further down the leagues you go the bigger effect ticket revenue has as TV, sponsorship and other revenues drop off.
This was why Curbs' teams habit of fading once we reached 40 points hurt the club financially. Every place higher in the final FAPL table brings a significant amount of extra money. Even back then one place higher was worth 600,000k. Heaven knows what it is now.
Bayern Munich are 80% + owned by the fans according to a preview of the game with 2 x 9% shares owned by top corporates. TV money in Germany has a much fairer split between clubs so clubs (and agents) cannot simply outbid each other to move talent around (remember Parker and Saha moving from Charlton and Fulham 9 years ago) Sky came into the English game in the early 90s and at first we had over the hill European stars finishing off their careers here and then 24 year olds ... and now we have top clubs recruiting 18 year olds from around the world. And premier league clubs routinely charging £1,000 a year for a season ticket. Look out for next edition of Trust News where various people will explore different models for running a club.
What does this show us? Season ticket prices don't have that big an effect on income, especially for clubs with smaller capacities, in the premiership. We could let everybody in for free and total revenues would only drop by 7.5%.
We've had that idea already. The trouble is we went down instead of up :-)
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Beyond that, TV rights, sponsorship etc? I'm guessing, by the way, I don't know.
Germany is excellent for beer and football.
Commericial deals. German clubs make more money from sponsorship deals than anyone else.
Bayern's commercial revenue is more than Man U and Arsenal combined.
Even Schalke make more than Liverpool, Chelsea, City etc from sponsorship deals.
If so, it must be due to safe standing and being able to drink during the game!
Or maybe Prague, as I hear the czech girls do bounce.
I think Bayern went 4 hours without conceding a shot! I think they are a decent bet for the champions league.
Bayern has always been the monster of German football in finance terms. Nevertheless, it, like nearly all the other clubs, is 51% owned by its fans. This is one factor in the reasonable level of German ticket prices.
1. Real Madrid - €512.6m
2. FC Barcelona - €483m
3. Manchester United - €395.9m
4. Bayern Munich - €368.4m
5. Chelsea - €322.6m
Bayerns commercial revenue considerably larger than the 4 around them
http://citywire.co.uk/wealth-manager/the-worlds-top-20-richest-football-clubs/a653393#i=1
We are in the prem next year and finish bottom.
So we get £70million from TV monies. Once you add in sponsorships, hospitality, etc. The club is bringing in over 80 million quid comfortably. We'll say 85 to make the maths easy.
We had in our last premiership seasons around 21-23k season ticket holders, bringing in around 7 million quid (again rounded to make the maths easier).
So total income was 92million and season ticket sales accounted for 7.5% of income. If season ticket prices were doubled, income would rise to 99million and season tickets sales would be around 14%. So by doubling prices there's only a 7.5% rise in total income.
Let's look at the other direction for season ticket prices. All season tickets are changed to £100 in the N, £150 in the E/W and £25 for kids. Season ticket revenue falls to around 2 million, so total revenue drops from 92 to 87 (around a 5% drop), and season tickets now account for just 2.3% of total income.
What does this show us? Season ticket prices don't have that big an effect on income, especially for clubs with smaller capacities, in the premiership. We could let everybody in for free and total revenues would only drop by 7.5%.
Of course, the further down the leagues you go the bigger effect ticket revenue has as TV, sponsorship and other revenues drop off.
You make a very good point.
This was why Curbs' teams habit of fading once we reached 40 points hurt the club financially. Every place higher in the final FAPL table brings a significant amount of extra money. Even back then one place higher was worth 600,000k. Heaven knows what it is now.
TV money in Germany has a much fairer split between clubs so clubs (and agents) cannot simply outbid each other to move talent around (remember Parker and Saha moving from Charlton and Fulham 9 years ago)
Sky came into the English game in the early 90s and at first we had over the hill European stars finishing off their careers here and then 24 year olds ... and now we have top clubs recruiting 18 year olds from around the world.
And premier league clubs routinely charging £1,000 a year for a season ticket.
Look out for next edition of Trust News where various people will explore different models for running a club.