Football, economics and finance

The last twenty five years or so have seen an extraordinary transformation in the business and revenues of elite professional football throughout Europe. By 2011 club income had reached a record aggregate level of €13.2bn, while over the five year period from 2007, club revenue grew at an aggregate rate of 5.6%pa; this at a time when the average growth rate in Europe’s economies was 0.5% (UEFA, 2013). As has been well documented media companies have acted as a catalyst in this transformation. The English Premier League (EPL) has led the way: its three-year domestic rights deal with BSkyB and BT which began in season 2013/14 is worth £3.2bn pa - a 71% increase on the previous deal - with a further £2m approximately from overseas rights. By way of contrast the annual rights fee in 1992/93, the first season of the EPL, was £42.8m. Continued growth in broadcasting income is apparent in other countries too, most notably Germany where its domestic rights deal, also effective from 2013/14, is worth €2.5bn over four seasons; the annual rights of €628m representing a 52% increase on the previous deal of €412m (EPFL, 2012). This rapid escalation of rights has had a transformative effect on the structure and organisation of domestic leagues like the EPL and transnational competitions like the UEFA Champions’ League, as well as on the financial relationship between league and competition organisers and clubs