Stadiums, sponsorships and success: the evolution of football finances

The Deloitte Football Money League (DFML) is an annual publication that tracks and profiles the highest revenue-generating football clubs worldwide. Now in its 28th edition, the 2025 report—titled “Ground Control”—highlights how clubs have sought to expand their financial footprints through stadium investments, global brand-building, and evolving commercial strategies.

For business students, the DFML offers a great insight into how sporting institutions compete commercially, monetise their assets, and navigate a shifting media rights environment. Below are some of the key takeaways from the 2025 edition, focusing on lessons that resonate with future business leaders.

1. Real Madrid: The First Billion-Euro Club

Milestone Achievement
The headline story from the 2023/24 season is Real Madrid becoming the first club to exceed €1 billion in annual revenue. This figure represents a significant milestone, underpinned by the club’s newly renovated and expanded Santiago Bernabéu Stadium.

Key Revenue Drivers

• Stadium Renovation: A revamped stadium design allowed for increased capacity and new VIP offerings.
• Personal Seat Licenses (PSLs): Introducing PSLs gave Real Madrid an immediate revenue lift, reflecting a strategic approach to premium seating.
• Merchandising & Sponsorship: Strategic partnerships (including a new sleeve sponsor) and global merchandising boosted commercial income by 20% over the previous season.

Business Lesson
Infrastructure improvements can act as a major catalyst for revenue growth. By developing new ways for fans to engage—such as PSLs or VIP experiences—organisations can capitalise on brand loyalty and create premium product tiers.

2. Stadiums as Diversified Entertainment Hubs

Industry-Wide Shift
Collectively, the Money League clubs generated €11.2 billion in revenue in 2023/24. One of the most notable trends is the industry’s growing focus on stadium transformations. Approximately half of the clubs in the DFML are engaged in major stadium redevelopment projects—highlighting the importance of multipurpose venues that go beyond traditional matchday use.

Fastest-Growing Revenue Stream: Matchday

• Clubs reported an 11% year-on-year growth in matchday revenues, now exceeding €2 billion for the first time.
• Expanded premium seating areas, higher ticket prices, and hosting non-football events are primary contributors to this growth.

Business Lesson
In an era of intense competition and broadcast-income stagnation, clubs look to stadium investments as engines of long-term, diversified income. For business students, this underscores the value of asset utilisation—maximizing revenue by converting an underused resource (the stadium on non-matchdays) into a dynamic entertainment and community venue.

3. The Commercial Revenue Boom

Dominant Income Stream
Commercial revenue remained the largest source for Money League clubs at 44% of total revenues, totalling €4.9 billion in 2023/24. Growth in this segment stemmed from improved sponsorship deals, global merchandising, and increasingly sophisticated retail strategies.

Case in Point

• Liverpool and Olympique Lyonnais: Both clubs credited stadium improvements and retail performance for driving commercial gains.
• Olympique Lyonnais Licensing Deal: The club monetised its brand name through a 50-year license agreement, illustrating creative approaches to intellectual property.

Business Lesson
A strong global brand can be leveraged through multiple commercial avenues—sponsorships, retail, licensing deals, and hosting additional live events. Clubs that broaden their revenue mix become less vulnerable to fluctuations in on-pitch performance and shifting media rights cycles.

4. Broadcast Revenues Plateaus—and Next Steps

Stable Media Rights Cycles
Broadcast revenue across the “big five” European leagues remained steady at €4.3 billion. Many leagues are in long-term domestic broadcast contracts through 2027, limiting immediate upside.

Premier League’s International Edge
While domestic growth is constrained, the Premier League anticipates further gains in international media rights from 2025/26 onwards—particularly through new deals across the MENA and APAC regions. Additionally, the league’s plan to develop its own in-house media operation could shift its relationship with broadcasters.

Business Lesson
When a core revenue stream stabilises (or plateaus), businesses must pivot to other growth avenues—hence the emphasis on stadium optimisation, premium experiences, and commercial innovation. This is a reminder to diversify income streams to weather cyclical market changes.

5. On-Pitch Success vs. Commercial Strength

Diverging Revenue Models

• Top 10 Clubs: 48% of their total revenue comes from commercial activities, illustrating a global brand strategy.
• Clubs Ranked 11–20: 47% of their income is driven by broadcast revenue, highlighting greater dependence on strong on-pitch performances (especially participation in UEFA competitions).

Fluid Rankings
Since 2016/17, only 11 clubs have occupied the top 10 spots, whereas 18 different clubs have rotated in the bottom half of the Money League. This constant reshuffling is often tied to varying degrees of European success—underlining the significance of performance-based revenues for clubs not yet at “mega-brand” status.

Business Lesson
Sustainable success often arises from balancing sporting performance with steady commercial expansion. Clubs that rely purely on broadcast or matchday income can be more vulnerable to short-term on-field results, whereas those cultivating diversified brands can weather performance dips and maintain financial growth.

6. Future Outlook: Stadium Projects, New Competitions, and Player Welfare

1. Stadium Projects Multiply
   Over 300 global stadium projects are underway in 2025 (including both renovations and new builds). This trend signifies a broader push to create consistent revenue sources from venues that can host concerts, sporting events, and community activities.
2. New Competition Formats
   • UEFA: From 2024/25 onwards, expanded Champions League, Europa League, and Europa Conference League will provide clubs additional matches—and, hence, more broadcast and commercial revenue potential.
   • FIFA Club World Cup: Expanded format in 2025 offers a significant revenue boost for top clubs worldwide, including non-European teams like Flamengo (Brazil) or Inter Miami (USA).
3. Balancing Player Welfare
   Increased match calendars and elongated seasons are raising tensions. FIFPro Europe, the players’ union, has signalled concerns about player overload. Should major labour disputes emerge, the long-term value proposition of the entire industry could be affected.

Business Lesson
Growth must be balanced with stakeholder (player) well-being. Overextending core “assets” (players) without addressing fatigue or health concerns can lead to reputational risk, potential strikes, and a diminished product—threatening the entire financial model.

Conclusion: Lessons for Future Business Leaders

The 2025 Deloitte Football Money League demonstrates that football clubs—and the leagues they operate in—are more than just sports teams; they are complex, global entertainment businesses. For business students, the key insights include:

1. Infrastructure as a Growth Engine: Ongoing stadium developments show how real estate can be leveraged into a year-round revenue source, not limited to matchdays.
2. Brand Extension and Diversification: Clubs with strong global brands (merchandising, sponsorship, licensing) mitigate risk from fluctuating on-pitch fortunes.
3. Strategic Adaptation to Broadcast Plateaus: When a historically dominant revenue stream stabilises, organisations must pivot to new opportunities—stadium optimisation, digital media, or international markets.
4. Player Welfare & Sustainability: Overly aggressive expansion of competitions carries risks—future leaders must balance revenue growth with the well-being of critical stakeholders.

As the global sports market continues to evolve, the success of top football clubs will lie in innovative commercial models, robust infrastructure investments, and consistent on-field performance. In a world where entertainment options abound, football clubs are positioning themselves as year-round lifestyle and entertainment brands—offering invaluable lessons to anyone looking to craft sustainable business strategies.