Spanish League Leads the Merchandising Race

Hi everyone,
For those familiar with my Football Lounge, you do know my strong interest in SPORT+MARKT football marketing reports. FC Business provides a spot on analysis. Spain’s Primera División, generated revenue of approx. EUR 190 million in the past season, making them the top grossing league in Europe according to the European Football Merchandising Report 2010 by SPORT+MARKT and PR MARKETING.

However, whilst almost 80% of their income can be allocated to the two global clubs, Real Madrid CF and FC Barcelona, the EUR 168 million gerenated by England‘s clubs is distributed much more evenly. With merchandising income of EUR 130 million, the German Bundesliga follows, clearly ahead of Italy‘s Serie A (EUR 77 million) and France‘s Ligue 1 (EUR 67 million).

The clubs in the five European top leagues generate merchandising and licensing revenue of EUR 631 million. The report showed that club’s from Europe’s top leagues had increase their income by more than 6% in comparison to the 2008 investigation.

“The boom in European football merchandising is on-going”, according to Dr. Peter Rohlmann of PR Marketing. However, it is primarily the less established leagues that can look forward to significant growth, as they are gradually identifying the importance of club merchandising in brand management,” he added.

Supplemented by the income of teams from the first divisions in the Netherlands, Poland, Russia, Turkey and Ukraine, the top flight clubs from the ten leagues generate total revenue of approx. EUR 727 million from merchandising and licensing.

This income corresponds to a 7.3% share of the league’s total revenue. In extrapolated terms of retail revenue and based on the individual club business models, the sum corresponds to a total market volume of EUR 2.1 billion.

Over half of the sum can be attributed to the products of the ten most popular clubs. Merchandise bearing the logos of Real Madrid CF and FC Barcelona are in the strongest demand. English clubs Liverpool FC (3rd) and Manchester United FC (6th) were also amongst the top 10 clubs in terms of retail revenue.

The top selling item of merchandise for European clubs remains the jersey. 13.7 million replica shirts were sold in the 2009/10 season.

The two sports equipment giants, Adidas and Nike, enjoyed a combined market share of approx. 83%, whilst the remaining 34 kit manufacturers in the ten leagues sold a mere 2.3 million jerseys in total (17%).

“Jersey sales represent the core business of many clubs and are often responsible for around 50% of merchandising revenue”, says Andreas Ullmann, Senior Consultant SPORT+MARKT.

“Cultural differences do exist regarding preferences for certain products. Russian or Ukrainian fans, for example, tend to buy more warm scarves, whilst English fans like to buy mugs bearing the logo of their favourite club.”

A great report I invite you to have a closer look here.

Karl Lusbec

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