Leagues

When looking at leagues across Europe, the financial might of the English Premier League is impressive. However, while the Premier League itself is rich, the clubs that play within it are pushing themselves to financial breaking point. In Germany, measures taken by the Bundesliga over recent years have created a financial model that benefits the league and its clubs.
Perhaps we can look at the two leagues like this:

The Premier League made 5.2 billion euros in revenue during 2018, making it the fourth richest sports league in the world. It’s paid the most in TV rights and is the most watched sports league in the world. Some clubs are growing rich in the Premier League, but below in the Football League clubs are at the financial limit. Even top Premier League clubs have banked their success on huge debt.

The Bundesliga cannot match the TV rights or revenue of the Premier League. However, the recent 2019 DFL Economic Report shows the league recorded revenue of 4.42 billion euros in 2018. Less than the Premier League, but still impressive considering the differences in global reach. This relatively small league (ranked fourth most prestigious in Europe) is the sixth richest sports league in the world. Serie A and La Liga may be more prestigious, but they cannot compete with the Bundesliga financially.

In its annual DFL Economic Report (for the 2017/2018 season), the organization says the Bundesliga and Bundesliga 2 increased revenue by around 10 percent compared to 2016/2017. This is no one off success as it is the fourteenth consecutive year of revenue growth.

Bundesliga is the top-flight league and managed to pull in €3.81 billion during last season. 17 out of its 19 clubs boasted revenue that passed €100 million. It’s a similar story of success in the Bundesliga 2, where the 18 clubs surpassed revenue of €600 million for the third consecutive year.

50+1 Rule

A big part of the financial success of German football over the last 15 years as been the 50+1 rule. This clause in the regulations of the Bundesliga states that a club must own at least 51% of its business to be allowed into the league. It is designed to allow club members to retain control of operations and protect themselves from external investors.

While the Bundesliga has built its success on growth based on the 50+1 rule, the English Premier League went another route. The league is far more open to external investment and outright ownership. In fact, only six of the twenty clubs are outright owned by British owners. Foreign ownership in of itself is not the problem, but the investment from outside sources potentially could be.

An example is Manchester City. Since being bought by the kingdom of Abu Dhabi, the club has received billions of pounds in investment. While the infrastructure is lasting no matter what happens, if City’s rich owners decided to leave one day, the club’s wage bill would likely be crippling. Man City is far from the only English club in this situation.

English clubs are content to gamble their finances on success, and admittedly it is a strategy that has worked so far. However, compared to the steadier German model, it feels like a bubble that could one day burst.

The world of sports is one of the most lucrative industries worldwide, generating billions upon billions in revenues across every continent on the planet. But there are a few sports leagues that stand head and shoulders above the rest. Through merchandising, ticket sales, illustrious ad campaigns, and players that pique fan interest to generate more buying power, these leagues are a hot commodity and their stock continues to rise.

1. National Football League (NFL)

Revenue (2017): $11.3B

The most popular sport in America is also the biggest earner of all leagues worldwide. The NFL generated in 2017 more than $11 Billion through ticket sales and lucrative deals of broadcast rights, merchandising and licensing rights. The Superbowl is the most watched television event in the US and generates tens of millions to the league and the teams participating in it in just one night.

2. Major League Baseball (MLB)

Revenue (2018): $8.9B

Noted for being one of the most diverse and inclusive leagues in the world, the biggest sports stars in the world come from this league, and they have generated interest that spans generations and continents.

3. National Basketball Association (NBA)

Revenue (2017-2018): $6.3B

Basketball is quickly gaining traction as one of the bigger and most popular sports worldwide and the reason for this is because of the history of the sport with players from all around the world representing their countries in the American based league.

4. Premier League

Revenue (2016-2017): $5.3B

Football (soccer) is still the biggest sport in the world, so it is only natural that the Premier League, one of the most popular European football leagues, make one the top spots. As Manchester United, Liverpool, Arsenal, and Chelsea remain popular within the country and abroad, the league generates billions upon billion of dollars internationally for their owners.

5. National Hockey League (NHL)

Revenue (2017-2018): $4.1B

As the biggest hockey league in the world, the United States based hockey league boasts some of the biggest players in the world, and includes a few Canadian teams thrown into the mix too for added measure. The league makes its income from broadcasting rights, merchandising and various sponsorships.

6. Bundesliga

Revenue (2017-2018): $3.8B

The second European football league on this list, the German league includes Bayern Munich as one of the most famous teams worldwide. Popular players include Thomas Mueller, Marco Reus, Robert Lewandoswki, and Manuel Neuer, who have made names internationally for their playing and lucrative sports contracts and commercials.

7. La Liga

Revenue (2016-2017): $3.4B

Another lucrative football league is the Spanish La Liga, which has three of the biggest teams in the world in Real Madrid, Atletico Madrid, and Barcelona. Popular players playing in La Liga include Lionel Messi, Iniesta, Marcelo, Modric and many others.

8. Serie A

Revenue (2016-2017): $2.3B

Another financial giant is the Italian football league. Serie A is huge in Italy and also has many fans worldwide. Juventus, Milan and Internazionale are the leading teams in the league. After landing Christiano Ronaldo the revenue of the popular league are only expected to grow.

9. Formula One

Revenue (2017): $1.8B

That Formula One made the list may shock many that are unfamiliar with the league, but for those that are in the know, it doesn’t because it is popular within certain circles, and the money it generates outshines NASCAR in America in several ways.

10. Nippon Professional Baseball

Revenue (2012): $1.3B

As one of the most closely followed sports in the world it is only fitting that the Japanese league make the list, with several Major League Baseball players claiming roots in Japan, including Ichiro Suzuki, Shohei Ohtani, and Hideki Matsui.