Soccer leagues: Revenue ranking

Discussion in 'MLS: General' started by pc4th, Apr 19, 2007.

  1. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    My educated estimate (I collect sports business info, so I have a good idea on the range).

    1. EPL (average $100-130 mil per team)
    2. La Liga (average $60-90 mil per team)
    3. Series A (average $50-80 mil per team)
    4. Bundesliga (average $40-70 mil per team)
    5. Ligue 1 (average $30-60 mil per team)
    6. Mexican league (average $15-30 mil per team)
    7. Dutch league (average $15-25 mil per team)
    8. Championship (average $12-20 mil per team)
    9. Scottish Premiership (average $10-12 mil per team...average is boosted up a lot by Celtic/Ranger)

    J-league: average $8-15 mil per team
    MLS: average $7-12 mil per team
    A-league: average $4-7 mil per team

    In order for MLS to become one of the top 5 leagues in the world, revenue will have to increase by at least 4-5 times.
     
  2. KevinLin

    KevinLin Member

    Apr 19, 2007
    I don't think becoming one of the top 5 leagues is likely but I think we could possibly make it up to sixth.
     
  3. PJohnson

    PJohnson Member+

    DC United
    Dec 16, 2004
    South Dakota
    Club:
    DC United
    Nat'l Team:
    United States
    LA Galaxy will gross over $25 million this year according to an article on Bloomberg.com. See "Beckham Sparks $13.3 Million In Sales for Galaxy".
     
  4. BobyOne

    BobyOne Member

    Apr 22, 2004
    Houston, TX
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    I've posted this in some other threads:

    Conclusions:

    - Your numbers for EPL are in the right ballpark, but the Deloitte report names Serie A as the second. I bet LaLiga is not far behind Serie A.

    - If MLS can match NHL revenues (granted, not an easy task) and become the 4th major sport in the US, it would probably be the 2nd richest soccer league in the world right behind EPL. (Yay for the ginormous US sports market!)
     
  5. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    With the new information, the leagues revenue ranking is as followed:

    1. EPL (average $160 mil per team)*
    2. Series A (average $93 mil per team)*
    3. La Liga (average $60-80 mil per team)
    4. Bundesliga (average $40-70 mil per team)
    5. Ligue 1 (average $30-60 mil per team)
    6. Mexican league (average $15-30 mil per team)
    7. Dutch league (average $15-25 mil per team)
    8. Championship (average $12-20 mil per team)
    9. Scottish Premiership (average $10-12 mil per team...average is boosted up a lot by Celtic/Ranger)

    J-league: average $8-15 mil per team
    MLS: average $7-12 mil per team
    A-league: average $4-7 mil per team

    *based on news sources (Forbes/Deloite)

    EPL: $2.6 bil / 20 teams = $130 mil each.
    However, with the new TV deal, on average each club gets around $30 mil more. Thus, average will be $160 mil starting in 2007/2008 season.

    EPL is 40% more than Series A: $130/ 1.4 = $93 mil
     
  6. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Lol. I made that Beckham's $13.3 mil thread by the way.

    Even if LA grosses over $25 mil, it doesn't affect the average much if most of the teams in the league are grossing $7-9 mil a year. It only boosts the average by $1.2 mil.
     
  7. striker

    striker Member+

    Aug 4, 1999
    Do teams in Serie A have very good TV contracts (since attendance isn't that good in that league)? Do Bundesliga teams have lousy TV contracts (since they have the best attendance)?
     
  8. NebraskaAddick

    Aug 26, 2005
    Omaha, NE
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    I am puzzled by that, too. Since Bundesliga clubs have the highest attendance, and they have a bunch of the biggest stadiums, and Germany must at least have as big a GDP as England's, what gives? Maybe the only thing I can chalk it up to is that globally, the English brand is bigger than the German brand.
     
  9. superdave

    superdave Member+

    Jul 14, 1999
    VB, VA
    Club:
    DC United
    Nat'l Team:
    United States
    German ticket prices are rock bottom compared to England. You oughtta ask around the German and EPL forums. It's shocking.

    When you throw in that a) Germany is more prosperous and b) has more people and c) get down to semipro status more quickly, it's really amazing. I guess it's just a cultural thing.
     
  10. Jabinho

    Jabinho New Member

    May 29, 2004
    The BBC just did an article related to this:

    http://news.bbc.co.uk/sport1/hi/football/world_football/6576807.stm
     
  11. flippin269

    flippin269 Member+

    Aug 3, 2003
    Houston
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    It's almost impossible to predict how much the non-Galaxy teams will make this season. Angel, Blanco, and Guilermo haven't played yet, we don't know what other DPs will be signed this year, and how much more popular those teams will become after all the media attention comes to MLS this Summer. Chances are that when Becks comes, the other foriegn stars will get a more focused press from their home countries.
     
  12. everton fc

    everton fc New Member

    Sep 18, 2006
    callander,scotland
    Each team in italy and spain do there own t.v. right witch means barcalona and real midrid will get something like $180 millionish each and the small clubs will get as low as $10 mil.
     
  13. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Found this information.
    http://www.deloitte.com/dtt/press_release/0,1014,sid%3D2834%26cid%3D120056,00.html

    THE NEW STANDING as of 2006: (based on the above info)

    1. EPL (average $130 mil per team)*
    2. Series A (average $90 mil per team)
    3. Bundesliga (average $89 mil per team)
    4. La Liga (average $70 mil per team)
    5. Ligue 1 (average $50 mil per team)
    6. Championship (average $25.5 mil per team)

    Series B: (average $15.6 mil per team)

    No idea about Dutch, Scotland or Mexico. But I figure they probably be among the top 12. And better than Series B's $15.6 mil per team.

    *EPL will increase to $160 mil per team starting in 2007/2008 due to the new TV deal.
     
  14. leg_breaker

    leg_breaker Member

    Dec 23, 2005
    German fans won't accept games being moved around for TV, and they won't pay for subscription TV. Meanwhile English fans accept any shit that's thrown at them and ask for another.

    And to respond to striker, the top Serie A teams have mega contracts. Juve get something stupid like $200 million a year, and another forty or so in shirt sponsorship. Real Madrid, Barca and AC Milan aren't that far away either.
     
  15. RichardL

    RichardL BigSoccer Supporter

    May 2, 2001
    Berkshire
    Club:
    Reading FC
    Nat'l Team:
    England
    German prices are actually normal for western europe - it just the English leagues that have the stupid prices.

    Germany's problem is how it does its TV deals. It has the attitude that football should be aired free on tv, and that restricts the amount of money that can be generated as it doesn't generate the revenue that subscription tv does.


    Italy has also gone down the individual tv deals for clubs route, so any talk of "average" tv deals is pretty much meaningless. The top clubs get vast sums, around $200 million per year, and the rest hardly get anything.
     
  16. leg_breaker

    leg_breaker Member

    Dec 23, 2005
    If MLS teams are making $7-$12 million a year, why is the salary cap only $2? That's merely 15%-29% of the revenue being spent on the wage bill. Time to loosen the pursestrings I think.
     
  17. superdave

    superdave Member+

    Jul 14, 1999
    VB, VA
    Club:
    DC United
    Nat'l Team:
    United States
    Many MLS teams have to rent their stadia. If NYRB have alot of home matches in the playoffs and the Open Cup, they'll probably spend more on stadium rental than their salary cap.
     
  18. DoctorD

    DoctorD Member+

    Sep 29, 2002
    MidAtlantic
    Club:
    Philadelphia Union
    Nat'l Team:
    United States
    Unlike europe, you have to add in benefits and insurance - typically 40 - 50% of the salary but maybe higher for an athlete. Then consider the front offices have at least as many employees as team members. Then travel: very few bus rides in the USA. Then MLS front office overhead.

    Plus rent or stadium maintenance like superdave said.

    I'm up to at least $7 million right now. Check the KC boards for the best financial breakdown.
     
  19. somaside

    somaside New Member

    Aug 17, 2004
    killumbus o-hi-er
    Sounds Like us!
     
  20. BobyOne

    BobyOne Member

    Apr 22, 2004
    Houston, TX
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    I wish Forbes did this wonderful evaluation for MLS as they do for other US leagues:
    http://www.forbes.com/lists/2006/31/biz_06nhl_NHL-Team-Valuations_land.html
    (click on the "sort list by Revenue" link to see the NHL information. If you scroll all the way to the bottom, you can get the NFL, NBA, and MLB info also. European soccer is included as well, except that all the countries are mixed)

    Using this info, I added the major US sports into this list, just to provide some perspective.

    1. NFL (avg. 190 mil per team)
    2. MLB (avg. 158 mil per team)
    3. EPL (average $130 mil per team)
    4. NBA (avg. 108 mil per team)
    5. Series A (average $90 mil per team)
    6. Bundesliga (average $89 mil per team)
    7. NHL (avg. $72 mil per team)
    4. La Liga (average $70 mil per team)
    5. Ligue 1 (average $50 mil per team)
    6. Championship (average $25.5 mil per team)

    Series B: (average $15.6 mil per team)
     
  21. sidefootsitter

    sidefootsitter Member+

    Oct 14, 2004
    In La Liga, ~ 40% of all revenues is generated by the top two clubs (and you know who they are).
     
  22. leg_breaker

    leg_breaker Member

    Dec 23, 2005
    But some teams don't, so why not allow them to spend the money?
     
  23. Baysider

    Baysider Member+

    Jul 16, 2004
    Santa Monica
    Club:
    Los Angeles Galaxy
    Well, that's an easy question. (A) In part they can, that's the DP rule (B) to the extent they can't, that's the desire for parity.

    Now you may disagree with having parity as a goal, but this would be an odd thread to discuss that.

    To go back to your original point, The Wizards (in their stadium plan) were assuming operating costs of about $6 million, excluding stadium costs and presumably excluding player salaries since they are paid for by the league. And so $7 million in total revenue (including money from the league) isn't enough to support the current salary cap of $2 million.
     
  24. Baysider

    Baysider Member+

    Jul 16, 2004
    Santa Monica
    Club:
    Los Angeles Galaxy
    To add to my own post, the league is characterized by a great degree of operating leverage. High fixed costs of running the team compared with their current low marginal costs of player salaries. The upside of this is that as revenue increases it can support a more than proportional increase in salaries.
     
  25. USMNT

    USMNT New Member

    Oct 28, 2006
    Good point...with tv rights fees, international competition, SSSs and an increase of the league wide attendance average through the DP rule, better quality of play and better atmospheres, the salary cap could rise very significantly in percentage terms very quickly...a nominal boost in the salary cap (even just $1-2mm) could seriously improve the caliber of players we have...which feeds attendance, etc...a virtuous cycle.
     

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