Editorial SLT March 2024
It is with much pleasure that we welcome readers to the December 2023 edition (citation: SLT 2024/1) of our ground-breaking journal Sports Law and Taxation (SLT) and online database www.sportslawandtaxation.com.
With the growing importance of women’s football around the world, we devote the entirety of this Editorial to an important and recent report by the Deloitte Sports Business Group.
“Women’s Football: Ranking for the Financial Year ending in 2023
The Money League ranking for women’s football includes 15 of the highest revenue generating women’s clubs in Europe for the financial year ending in 2023. It covers the 2022/23 season and excludes revenue contributions from associated men’s clubs. The ranking is focused on clubs competing in some of Europe’s key football leagues (England, France, Germany, Italy, Spain and Portugal), for which information was available to us. The revenue of women’s football clubs in other key markets, such as Australia, Japan, Norway, Sweden and USA, was not made available to us and so is not included in our analysis.[1] In the future, we hope to provide a more comprehensive view of the global women’s game.
The average revenue generated by 15 of the highest revenue generating women’s clubs across European football in 2022/23 stood at €4.3m. This marks a 61% increase over these clubs’ 2021/22 average revenues (€2.6m) and highlights the steep growth trajectory of elite women’s football across the continent.
Revenue growth at the upper echelons of women’s football in Europe has been accelerated by the increased commercialisation of women’s clubs. Partnerships have leveraged the unique profile of the women’s teams, additional matches have played out at clubs’ main stadia and increased viewership has led to an uptick in broadcast distributions.
On average, commercial revenue accounted for 58% of 14 clubs’ total revenue, followed by matchday 22% and broadcast 20%.[2] A significant share of commercial revenue continues to be driven through combined central sponsorship agreements for men’s and women’s clubs (with a value apportioned or separately defined), while a number of women’s clubs have developed exclusive partnership options. Partnerships exclusively struck with women’s clubs are expected to drive significant growth in the future, as they leverage the distinct characteristics of women’s football.
Women’s club analysis
FC Barcelona Femení have remained at the summit of women’s football in Europe, both on- and off-pitch. The club reported €13.4m in revenue for the 2022/23 season, a year-on-year increase of 74%. In 2023, the club won its second UEFA Women’s Champion’s League (“UWCL”) in three years and their fourth successive Liga F title. Another club who maintained their position was Manchester United Women (€8m), who ranked second, driven by a strong commercial performance (€6m). The club qualified for the UWCL for the first time following a second-place finish in the English FA Women’s Super League (“WSL”) in 2022/23. Rising to third, Real Madrid Femenino reported €7.4m in revenue, an increase of 416%. The club generated commercial revenue of €5.8m, with a third consecutive top-three finish in its domestic league.
Manchester City Women (€5.3m) is fourth on this list. The club generated a year-on-year revenue increase of 5%, one of only three clubs (alongside Paris Saint-Germain Féminine and Everton Women) in the top 15 to report less than double-digit revenue growth. The club became one of the first in women’s football to enter a stadium naming rights agreement with baby-care brand Joie, capitalising on the unique commercial appeal of women’s football and its ability to attract sponsors from industries not typically associated with football.
Arsenal Women complete the top five clubs with revenue of €5.3m, a 138% increase year-on-year, and achieved the highest matchday revenue amongst the 15 clubs (€3.1m, 58% of its total revenue). The club hosted three WSL games in 2022/23 at Emirates Stadium, each drawing attendances of over 40,000, and also drew 60,000 attendees for the UWCL semi-final against VfL Wolfsburg Frauen.
Several European clubs are recognising the demand for women’s football by hosting more matches in their main stadia and driving an uptick in ticket prices. Chelsea Women (6th) reported revenues of €4.1m for 2022/23, an increase of 132% from the previous year, as the club secured their fourth successive WSL title. A third of the club’s revenue was derived from matchday sources, as the club hosted three of its five UWCL matches at Stamford Bridge, alongside the WSL London derby against Tottenham Hotspur. The club also demonstrated the importance of success in European competitions, as they reported the highest broadcast revenue among English clubs, with over 50% of broadcast income attributed to participation in the UWCL, in which they progressed to the semi-final.
What is clear is that there is no one size fits all revenue model when it comes to women’s football. As new opportunities arise, women’s clubs will need to continue challenging the template of the men’s game in order to grow.
At present, there is significant diversity in the way that clubs generate revenue, even within the same league. For instance, in 2022/23 Manchester United Women generated 74% of its revenue through commercial partnerships, while compatriots Arsenal Women earned 58% of revenue from matchday income. This variability is further accentuated, and in part driven, by the difference in broadcast revenue generated by each league. England’s WSL and Spain’s Liga F annual broadcast rights values were c.€8m in 2022/23, approximately eight times that of Italy’s Serie A Femminile (c.€1m), which became fully professional from the 2022/23 season.
In addition, it is important to acknowledge the revenue polarisation within the women’s game. The combined revenue of the five women’s clubs ranked in 11th to 15th position in the Money League (€7.3m) is just over half of FC Barcelona Femení’s total revenue, a similar distribution as in the previous year. As the game continues to grow, disparity will need to be considered to encourage greater financial and competitive balance across both domestic and European competitions.
Other data made available to us by the 15 clubs (but not reported in this publication) shows that no clubs were profitable in 2022/23, a feat that is expected noting that clubs are presently in the growth phase. The women’s clubs’ average wages/revenue ratio stood at 106% (the comparative figure for the top 20 men’s clubs is 59%).
Women’s teams have typically received contributions from their associated men’s club to help bridge the funding shortfall, with the 15 clubs receiving average revenue contributions of €1.5m.[3] Continuous investment is required to drive further growth and financial sustainability in the women’s game.
Growing the game further
We predict that women’s elite sports will generate global revenues in excess of €1.1 billion in 2024.[4] Football will be the most valuable women’s sport, with revenue of over €500m[5] expected to be generated worldwide in 2024. As leagues and clubs continue to professionalise across Europe and further afield, we expect that growing viewership and sponsor interest will create opportunities for clubs to further strengthen matchday and commercial revenue. We expect that football clubs, and leagues globally, could account for as much c.26% of the total elite women’s sports market in 2024.
In 2023/24, more domestic league matches will be played in the main stadia than ever before. Arsenal Women is scheduled to play five WSL games at the Emirates Stadium, while Chelsea Women and Manchester United Women will play four and two matches at Stamford Bridge and Old Trafford, respectively. We expect that clubs will continue to host a significant number of European matches in their main stadia, especially through the knockout stages of the UWCL.
At the time of writing, Manchester City Women (Joie Stadium), Chelsea Women (Kingsmeadow), and Real Madrid Femenino (Alfredo Di Stefano Stadium) play in dedicated stadia for their women’s club, while Brighton & Hove Albion Women have announced plans for a purpose-built stadium for their women’s club. As women’s football matures, a growing number of clubs may consider dedicated stadia.
We also expect sponsors and partners to continue to express interest in entering agreements exclusively with women’s clubs. These deals offer commercial partners access to a broader demographic and an opportunity to potentially drive greater return on investment in comparison to the men’s game, given they often present a lower cost of entry. In recent years we have seen a number of such partnerships, including Arsenal Women with Stella McCartney, Chelsea Women with Lindahls and FC Barcelona Femení with Rilastil.
As the sport grows, and changes to competition formats and scheduling take effect, broadcast revenues are also predicted to increase. With audience interest, attendances and participation in women’s football at an all-time high in the UK, the WSL’s current negotiations with broadcast partners for its domestic rights from 2024/25 are expected to see a material uplift in value. Additionally, as the UWCL expands to an 18-team competition from 2025/26 along with the addition of a second-tier competition, more clubs will receive UEFA distributions.
Given that the women’s game within the mainstream is at a formative stage, there is a real opportunity to define the sport in a global context through imaginative thinking across all facets, including player welfare, commercial relationships, governance structures and business models. The establishment of the NewCo in England to operate the two professional divisions for women’s football could prove to be a watershed moment for the sport in its growth story.
The total revenue generated by the top 20 Money League clubs in 2022/23 is a record €10.5bn, a 14% increase over the previous year and pre-pandemic levels (€9.2bn – in both 2021/22 and 2018/19).
Clubs generated record matchday revenues of €1.9bn in 2022/23, driven by the high-level of fan demand for live sport as stadia once again opened at full capacity across continental Europe. Overall, 13 of the top 20 clubs reported record matchday revenue, with the rise largely attributable to clubs in the Bundesliga, Serie A, Ligue 1 and La Liga. A number of clubs competing in these leagues reported enhanced stadium utilisation relative to pre-pandemic levels, with Italian clubs AC Milan, FC Internazionale Milano and SSC Napoli all reporting double-digit increases over 2018/19 levels. With the pandemic behind us, the desire to experience live football in-stadia is at an all-time high. Many clubs are responding by focusing on delivering an enhanced fan experience, to fuel further growth.
Alongside record matchday revenue, Money League clubs also generated record commercial revenue, which totalled €4.4bn in 2022/23, a 16% growth over previous year. Commercial revenue represented the largest revenue income stream for Money League clubs for the first time since 2015/16 (excluding the COVID-19 impacted 2019/20 season). Notably, 17 of the top 20 clubs reported a year-on-year increase in commercial revenue, with growth largely attributable to the improved retail sales, revenue from non-matchday events and recovery of sponsorship income which had been impacted by the pandemic.
Money League clubs reported a comparatively modest increase in broadcast revenue (5%). The average broadcast revenue of featured Premier League clubs rose to €243m from €208m, driven by a c.30% increase in the value of the Premier League’s international broadcast rights. However, the growth in broadcast revenue across Money League clubs was limited, as the 2022/23 season fell within existing domestic broadcast cycles for the German, Italian, and French top leagues, while the start of the new domestic rights cycles in England and Spain were relatively flat compared to the previous cycles.
Broadcast revenue also received a boost as a result of club income derived from private equity firm CVC Capital Partner’s (“CVC”) investment into a commercial subsidiary of Ligue de Football Professional. This provided a cumulative uplift of c.€120m to Paris Saint-Germain and Olympique de Marseille. Reportedly, a similar investment opportunity is being considered by the Deutsche Fußball Liga, which represents the Bundesliga and 2. Bundesliga in Germany, as the league negotiates with prospective investors over a sale of a minority stake, up to 8%, of media and commercial revenue.
Overall, Money League clubs reported an average revenue of over €500m, with commercial and broadcast revenue contributing similar amounts of €222m (42%) and €213m (40%) respectively, followed by matchday revenue (€93m, 18%).
Club analysis
Real Madrid have eclipsed Manchester City to become the highest revenue generating football club in 2022/23 for the first time since 2017/18. Real Madrid reported record revenue of €831m, an increase of €118m over the last year. The club’s growth is largely attributable to strong retail performance and higher stadium attendance, following the easing of COVID-19 restrictions.
Despite a record-breaking season both on and off-pitch, Manchester City fall to second place in the 2024 ranking. The club reported its highest ever revenue for a season, €826m, driven by successful UEFA Champions League (“UCL”) and Premier League campaigns that bolstered both broadcast and commercial revenues by €50m and €26m respectively.
Paris Saint-Germain (€802m) broke into the top three for the first time in Money League history, finishing ahead of FC Barcelona (€800m) for a second consecutive year. The Parisian club reported a year-on-year increase of €148m, largely attributable to its share in the aforementioned CVC investment into the commercial subsidiary of Ligue de Football Professional, generating €83.5m for the club.
FC Barcelona were one of the biggest movers, rising to 4th from 7th. Its growth was underpinned by fans returning to stadia, record licensing and merchandising sales and rise in sponsorship revenues. Overall, this yielded a 61% and 45% increase in matchday and commercial revenue respectively.
Contrastingly, Liverpool reported the greatest fall in year-on-year rankings, moving from 3rd to 7th, and were one of three Money League clubs (alongside Atlético de Madrid and West Ham United) to report a decline in revenue in comparison to the previous season. This was due to a downturn in on-pitch results across both domestic and European competitions after the club reached three finals and finished 2nd in the league in 2021/22.
There were minimal changes year-on-year elsewhere in the top 10, with no club moving by more than one position. However, whilst the top 10 clubs have remained unchanged since 2021/22, there have been notable changes between positions 11-20, with Eintracht Frankfurt, SCC Napoli and Olympique de Marseille replacing a trio of Premier League clubs in Leicester City, Leeds United and Everton.
The make-up of the clubs ranking in positions 11 to 20 in the Money League demonstrates the seismic influence of on-pitch performance on financial revenues. For instance, Eintracht Frankfurt ranked 16th in this publication, compared to 22nd in 2021/22, by virtue of its progression to the UCL Round of 16 for the first time in its history.
Serie A clubs – AC Milan, FC Internazionale Milano and SSC Napoli – also reported significant revenue growth following strong on-pitch results, both domestically and in the UCL. SSC Napoli reported an 80% increase in broadcast revenues following their first Scudetto since 1989/90 and a strong UCL performance. Similarly, AC Milan and FC Internazionale Milano reported increases of 30% and 22% having reached the semi-finals and finals of the UCL for the first time since 2006/07 and 2009/10, respectively.
Women’s football
Revenues of 15 of the highest revenue generating women’s clubs in European football grew 61% in the 2022/23 season.
Contrastingly, Atlético de Madrid moved from 12th to 15th in the ranking following a fall of €30m in revenue from previous year. The decline is attributable to a 19% decrease in broadcast revenue compared to the 2021/22 season, owing to an earlier elimination in the UCL (Group stage exit in 2022/23 compared to quarter-final in the previous season) and a marginal fall in La Liga distributions, as a portion of revenue was utilised to service the CVC agreement.
This further underscores the importance of developing a diversity of commercial revenue streams for clubs to ensure their budgets are cushioned against lower than expected on-pitch results.
The number of Premier League clubs featured in the Money League fell from at least 10 in the past two years to eight in the 2022/23 season. However, the financial strength of English clubs is still evident. Leeds United – relegated in 2022/23 – outperformed AFC Ajax, who fell outside the top 30 clubs despite being the runners up in the Eredivisie and participating in the Group stage of the UCL, in this year’s Money League. Notably, none of the Premier League clubs ranked between 21 and 30 played in European competitions during the 2022/23 season. In contrast, all clubs outside of the Premier League ranked between 21 and 30 competed in European competitions, barring Olympique Lyonnais who benefitted from CVC’s investment into the commercial subsidiary of Ligue de Football Professional.
This accentuates the need for clubs in Europe, outside of the Premier League, to consistently participate in UEFA competitions and nurture revenue generating opportunities through non-traditional sources to compete financially.
Future outlook
English clubs can be expected to maintain their strong financial performance, at least in the short to medium term. New domestic broadcast deals running between 2025/26 and 2028/29 will see an average annual increase of c.4% on a like-for-like basis, despite challenging market conditions. 2023 saw Serie A and Ligue 1 fail to secure bids matching their minimum asking prices in domestic rights tenders. The former eventually agreed deals through to 2029 at a marginal decline in average annual value over the current cycle, excluding variable components, while the latter is currently in private negotiations with potential partners. With LaLiga’s current domestic rights agreements secured through to 2027, the upcoming renewal of the Bundesliga’s domestic broadcast rights will be watched with interest by its peers.
However, the high demand for live sport, and other entertainment, is pointing towards more promising growth for commercial and matchday revenue. During the 2022/23 season, revenue uplift was unlocked through more effective utilisation of stadia by clubs, including on non-matchdays, and we expect this to grow in the future with a greater focus on infrastructure investment.
A new wave of stadia development is already underway across European football, funded in various ways including through minority equity sales (Paris Saint-Germain) and ringfenced private equity investment, as seen in the Spanish and French leagues. Clubs across Europe, including Real Madrid, Manchester City, FC Barcelona, Liverpool, AC Milan, and FC Internazionale Milano are all in the process of stadia development.
Such investments illustrate clubs’ vision of treating their stadium as year-round, multi-purpose entertainment venues. At a time when broadcast rights could be plateauing, enhanced stadium revenue could help clubs drive financial growth through increased capacity and a wider entertainment offering, including live events.
Going forward, diversification of revenues may prove particularly important for European clubs to gain control over a larger proportion of their total revenue. This will enable clubs to insulate themselves from the variability of on-pitch performance, challenging macroeconomic conditions and future jolts to the football ecosystem at a time when clubs face a greater degree of financial regulation from UEFA and local governing bodies.
It is expected that the flow of investment into top tier European football will continue in the short to medium-term. Since 2022, seven of the 20 Money League clubs have received external investment, with five of the transactions relating to minority stakes. This is in line with external macro-economic trends which have impacted the availability and cost of funds for investors. While such economic conditions persist, a polarising effect may occur whereby future investment may be concentrated to lower risk, stable opportunities.
Acknowledging that financial growth is one outcome, the continued expansion of global football also presents challenges around the calendar and player welfare. Other sports, most notably rugby, have grappled with the challenge of balancing player load and commercial growth through an expanded calendar. While we will report the financial impact of such changes, there’s also a need for care in how the game is developed. Stakeholder alignment is needed to protect the quality of the on-pitch product for the long-term.
Challenger leagues
The Money League has historically consisted of European clubs, but there may be challenge to the hegemony in the near term, notably from clubs in the USA and Brazil. Inter Miami has reported a significant revenue uplift following the signing of Lionel Messi in 2023, meanwhile Flamengo were knocking on the door of this year’s top 30. With plans for the 2025/26 FIFA Club World Cup to involve 32 teams (with 20 clubs outside of the European confederation), these challenger clubs could benefit from additional revenue streams. However, the impending expansion of UCL and UEFA Europa League competitions from 2024/25 could stand to likewise strengthen the financial position of leading European clubs.
Diversity and inclusion
On average, 17% of members on Money League club boards were considered to be ethnically diverse, with a high degree of disparity among Money League clubs. Newcastle United and FC Internazionale Milano reported the most ethnically diverse board members (60%), followed by Manchester City (50%) and Tottenham Hotspur (25%). However, seven clubs reported no ethnic diversity on their boards, whilst seven did not disclose this information. When compared to last year, the corresponding Money League clubs had reported c.10% of their board was ethnically diverse.
The share of board seats occupied by women among the Money League clubs increased from c.9% in 2021/22 to c.15% in 2022/23. However, female representation still lags behind that of the biggest global corporations, as the corresponding figure for FTSE 350 was above 40%.[6]
Diversity has become a priority for many companies that are recognising the impact this plays on financial and operational performance. Studies have shown that there is a statistically significant correlation between greater diversity in management teams and better financial performance, with companies with greater than average diversity reporting 9% higher operating (earnings before interest and tax) margins, on average.[7]
Sustainability
Just five Money League clubs are signatories of the United Nations’ Sport for Climate Action Framework (2021/22: four). Sustainability regulation in football and sport has been steadily increasing and may now begin to impact a significant number of club operations.
For example, since the 2022/23 season UEFA has mandated clubs participating in its competitions to have a social responsibility strategy, which must include environmental protections, in line with UEFA’s Football Sustainability Strategy 2030.”
This issue
As you will see from the Table of Contents of this issue, we again include a wide range of topical sports law and sports tax articles, which will engage our readers attention and provide them with much “food for thought”. In particular, we would draw your attention to the article by Stephanie Hilborne, the CEO of Women in Sport, a charity devoted to promoting women’s sport and which this year celebrates its fortieth anniversary. She writes in her introduction that:
“[…] 1984 was a year of new beginnings. Women ran their first Olympic marathon, and a small group of inspirational advocates for gender equality started a new movement to champion women’s sport in the UK. […] Our founder women, with their own deep experiences in hockey, lacrosse, netball, and pentathlon, shared the belief that sport could transform lives and that girls and women were missing out. Angered by the lack of opportunity for women and girls in sport at every level and frustrated by the paltry recognition for women’s sporting achievements, they set out on a journey for change.”
And concludes as follows:
“Our 40th anniversary falls not only in another Olympic year but in the year of a general election, affording us a unique opportunity to focus the minds of the sporting community and policy makers on achieving true equality. Back in Los Angeles in 1984, only 1,569 of the 6,800 competitors were women. Paris 2024 promises to be the first time the Olympics will see equal numbers of men and women compete.
Our journey continues with a steadfast commitment to dismantling barriers, fostering inclusivity, and creating a sports’ landscape where no one is excluded from the joy and benefits of participation.”
Through comprehensive research, and impactful initiatives, Women in Sport remains at the forefront of the fight for gender equality, inspiring a future where every woman and girl can thrive in the world of sport!”
As always, we would welcome and value your contributions in the form of articles and topical case notes and commentaries for our journal and also for posting on the SLT dedicated website www.sportslawandtaxation.com. Please do not hesitate to send them to us!
So, now read on and enjoy the March 2024 edition of SLT.
Dr. Rijkele Betten (Managing Editor)
Prof. Dr. Ian S. Blackshaw (Consulting Editor)
March 2024
[1] According to the 2023 FIFA Women's Football Benchmarking Report, women’s clubs in the USA reported average revenues of $5m (€4.8m) while those in Australia and Sweden reported average revenues of between $3m (€2.9m) and $5m (€4.8m) respectively for the 2021/22 season.
[2] Matchday, Broadcast and Commercial split excludes Paris Saint-Germain Féminine as the club did not provide a split of revenues.
[3] The revenue ranking of the 15 women’s clubs excludes revenue contributions from their associated men’s club, and excludes other loan and equity funding.
[4] Deloitte TMT Predictions 2024.
[5] Exchange rate used - €1 = $1.09.
[6] Deloitte FTSE Women Leaders Review.
[7] How and Where Diversity Drives Financial Performance, Harvard Business Review.
