The Deloitte Football Money Report 2015 highlights stadium importance
Deloitte’s Sports Business Group’s latest report emphasises the need, especially in Italy, for an improved matchday experience and investment in stadium facilities to avoid pattern of decline
Whilst Real Madrid’s continuing superiority in revenue terms, in Europe, continues for the 10th year, beneath the headlines of continuing growth in media rights, Deloitte highlight the importance of matchday revenue. Although matchday revenue is, for many clubs, a lower proportion of income, it is often one of the most controllable for the clubs. ISG CEO Andrew Hampel commented “Whilst TV revenues are increasing in most leagues, this does not help teams relative to their peers – to improve a team’s ability to compete financially, often the stadium is the biggest opportunity. Even without a major upgrade, it is possible for teams to significantly improve their customers’ matchday experience and hence their revenue generating capability.” The 2015 report shows there is a very strong relationship between stadium revenue and total revenue –the top 9 clubs in the world by revenue are also the top 9 by matchday revenue.
Deloitte's report highlights Italy in particular. "This year's ranking further emphasises the relative decline of Italian clubs. In our 2001 edition Italy had five clubs in the top 10 and seven in the top 20. Central to this remains the issue of stadium development and ownership, with the matchday revenue for all of the Italian Money League clubs except Juventus, in the bottom quartile of this year's top 20. Unless there is significant and immediate investment in both stadia facilities and improving matchday experience, it is unlikely - despite lesser relative direct importance of matchday revenue noted earlier - that this pattern of decline, relative to their European peers, will stop."
Richard Cheesman, Director of Business Development and Funding for ISG said “there is now funding available for clubs in Italy and elsewhere to create these experiences and drive their revenue streams upwards to prevent this decline. In the era of Financial Fair Play, the ability to create increased, stable long term revenue streams is vital and nowhere more than the stadium is this possible to do”.
Long term ISG clients have again performed well in the report. Galatasaray, the only representative in the top 20 from outside the “big 5” leagues, is ranked 18th after ISG delivered over double their expectations in revenues in their stadium, Atletico de Madrid have risen 5 places to 15th, Tottenham Hotspur continue their growth as they look forward to their new stadium and move up 1 place to 13th and FC Barcelona remain in the top 4 teams in the world by revenue and one of only 4 teams to achieve more than €100m of match day revenue – even before their exciting new plans developed with ISG come to fruition.
To read the the full Deloitte report, please click here