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The Economy Behind the Football Crisis in Europe

The economy behind the football crisis in Europe. With the controversy of income inequality, big clubs decided to establish a new league.

The Economy Behind the Football Crisis in Europe
Yazar: Elif Dinçer

Yayınlanma: 19 Nisan 2021 18:39

Güncellenme: 6 Kasım 2024 14:05

The Economy Behind the Football Crisis in Europe

What are the economic controversies behind the decision of Europe's giant football clubs to establish a new league under the name of "European Super League"? Here are the details ..

The economy behind the football crisis in Europe. The controversy over income inequality is cited as the reason why Europe's 12 big clubs decided to establish a new league. The infrastructure of the new league planned to be established in football due to the progress of the revenues distributed by UEFA to the clubs and the income distribution of the leading clubs is as follows:   1- The coronavirus outbreak has had a huge impact on football clubs. However, the revenues transferred by UEFA to the clubs in the 2019-2020 season were above the 3 billion Euro limit for the first time. 2- While football clubs whose revenues are under pressure compromise on the "Super League" decision to be under their control, it was noteworthy that Europe's richest clubs also find a place in this league. 3- Barcelona, ​​which is one of the clubs in question, has a 35 percent share of broadcasting revenues in its balance sheet. 4- The share of broadcasting in Real Madrid's revenues is around 32 percent. Half of club revenue comes from advertisements. 5- Although not included in the newly created league, the data of Bayern Munich show how important broadcasting revenues are for clubs. 6- Manchester United, which has the highest brand value, seems to be more dominant in the distribution of advertising revenues in the revenue distribution. 7- In the league to be created under the name of European Super League, broadcasting revenues stand out as one of the main sources of income for Liverpool, which is one of the 6 English teams.
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