Even though football season is now over, teams around the world are examining their finances and planning for the next season. Despite the ever increasing amount of money coming into football, many of the clubs in the Premier League and throughout Europe are still making a loss and even some of the most famous are heavily in debt such as Barcelona with a £400 million debt to go with their champions league trophy. This is hard to believe when we examine the financial rewards currently available for success in modern football.
Manchester United have now earned more than £60m in earnings from Premier League prize money and TV cash from the overseas deals from TV has ensured that current premier league clubs can earn up to £7m more than the 2009 / 2010 season.
The English league governing body better know as the premier league shares out income in various ways firstly the money based on position in the league, then on equal shares of TV income, which is then added to depending on how many times your club is shown on TV on domestic television. The 2010/2011 season, each premier league club received a total of £13.8m of the domestic TV rights and again another £18m as rights to the overseas TV rights. Finally on top of this, From each place in the premier league is worth a staggering £756k, meaning the bottom club West Ham 756k, whilst Manchester United received over £15m.
Success in the F.A. Cup can also generate significant rewards with the winners Manchester City receiving £1,800,000 in prize money and the runners-up, Stoke receiving £900,000. This does not include additional revenue generated from match-day income and TV money. Birmingham City, the winners of the Carling Cup, received a relatively paltry £100,000 in prize money awarded by the Football League, with the runners-up Arsenal receiving merely £50,000 and the losing semi-finalists each taking home £25,000.
Barcelona are expected to generate in the region of £110m from victory in the Champions League final, based on a prize money, an increase in the players worth, the clubs brand, and enhanced media rights . The losers Manchester United will also benefit to the tune of an estimated £63m.
The clubs that took part in this year’s UEFA cup for the older of us or the Europa League received a better revenue from this competition as the prize money as each team that took part this term collected a £640,000 bonus for qualifying to the competition on top of that a £60,000 for every match played in the group stage. The prize money for the clubs that went all the way to the final was €3m for the winner and €2m for the runner-up this is on top of what you earned in previous rounds.
Despite the huge sums of money referred to above, UEFA president Michel Platini has created the financial fair play project, which he hopes will help “to prevent some of our most time-honoured clubs from going under because of risky management by an irresponsible few”.
Garry Hudson currently works for baines and ernst one of the largest debt management companies in the uk, dealing with bankruptcy, Debt relief , IVA’s and more
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