How Are Sports Clubs Funded?

At the start of every sporting season, be it for soccer, NFL, Superbowl, or International Rugby series, you hear of clubs and tournament organisers talking of incredibly bigger amounts of money that tournament cost or even the allowances awarded to players. Perhaps your big question has been how such purely sporting entities are able to raise such monies. Well, though sports betting sites like may generate revenues in terms of sponsorship’s, different clubs have different ways of raising revenues, across sports. The said clubs are able to remain afloat through the following revenue sources.

Sports Club

One of the mainstream ways of raising club revenues is through the selling of tickets. Different clubs have different approaches and structures on how to arrive at ticket prices. Actually, most of the games, especially in soccer leagues are scheduled on weekends so as to leverage various stadiums in terms of their carrying capacities. It is during such times that fans are free hence a chance to go out and enjoy their favourite match. Interestingly, some loyal fans even purchase a whole season package meaning they have bought a ticket for each and every match hence helping to raise funds for specific clubs. For instance, in Soccer, the English premier league top flight club Arsenal is considered to have the most expensive tickets for the 2018-19 season with different ticket classes ranging between £9 and £97.

Some important tips on getting sponsorship

Another popular way through which clubs raise funds is through the selling of TV rights to various media houses who wish to air matches live. Generally, the governing bodies of certain tournaments enter into deals with top media house and centrally collect the revenues which are then shared by the participating teams on a pre-agreed formula. For instance, between 2014 and 2022, three TV stations, CBS, Fox, NBC and ESPN paid a whopping amount of US $20.4 Billion for exclusive rights of airing live NFL matches. Though NFL Network, a league-owned television broadcasts specific matches, the exclusive contract for airing all matches are limited to the four channels which control a bigger market for NFL viewership.

Do’s and don’t’s on Crowdfunding

Sports clubs also receive a lot of funding from betting firms through sponsorship deals. As a way of advertising and publicity, such firms have signed sponsorship deals worth billions of money across clubs. Online betting apps for every OS have increased betting opportunities for betting enthusiasts across the world. This has resulted in expanded revenue channels for such betting firms as the market nowadays is not characterised by geographical limitations that existed in the past. This has resulted in increased social investments as a way of giving back to society or as part of corporate social responsibility.

Through various government initiatives, national leagues and clubs are also heavily funded by respective governments and authorities. With the emphasis on promotion of talents across sporting events, various governments have factored sports funds into their annual budgets. Actually, states act as central figures when it comes to sports funding. For instance, all countries that are members of FIFA are duty bound to remit yearly contributions to the governing body. During events which are organised and controlled by FIFA, like the World Cup, participating teams are facilitated through the common pool of funds that are sourced from various countries.

Great examples of successful crowdfunding in sport

Not only betting firms which are investing in sporting clubs but also lottery firms. Actually, some countries like the US which run a national lottery have statutory requirements which require the organisers of such lotteries to give back a certain percentage of their revenues to the society through the promotion of specified sporting activities. Clubs or teams organised around such sports stand a chance of raking in huge financial assistance for running their day to day activities.

Some clubs may have their local investments which after the maturity of the projected income period the profit is plowed back to the club. Such investments though loosely defined may range from transport arrangements for their fans and even to some extent the accommodation charges for their traveling fans. Under such arrangements, clubs are viewed as going concern entities with clear-cut ways of generating revenues other than pure sporting activities.

Clubs, especially when out of season may engage in charity activities which raise revenue for the club’s corporate social responsibility functions.  Such clubs may visit children parks, churches, schools, established community-based organisations and request for partnerships with a view of raising revenues for specified social functions. Such funds may be channeled to uplifting the lives of the less fortunate members of the community such as disabled persons.

Corporate sponsorship is another ideal way of raising clubs’ revenues. Large corporations like the Yokohama Tyres, Samsung, Fly Emirates, and AIG to mention just a few may enter into sponsorship deals with top-flight teams in deals normally worth monumental sums of money. Such corporate giants usually like the idea of being associated with winning teams so to convince their clientele how superior their products or services are. Though primarily a mode of advertising, corporates have cemented their global presence by sponsoring clubs within sports that have a wide and global following and viewership.

In as much as club resourcing may have attracted various industrial players across the world, financing of such clubs has never been enough. For this reason, clubs continually look for progressive partnerships in a bid to ensure their activities whether sport-based or otherwise are adequately funded.

PledgeSports is the global leader in crowdfunding & sponsorship for sport.

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