The European football market may generate $30B in revenues in '16-17, an $8B increase relative to '11-12, and a compound annual growth rate of 7%, according to research by Deloitte Global. Most of this growth will likely be driven by the five largest leagues -- England’s Premier League, France’s Ligue 1, the German Bundesliga, Italy’s Serie A and La Liga in Spain -- whose share of revenues continues to rise. These leagues are expected to generate approximately $17B (58%) of total revenues in '16-17. Football and pay-TV have had an increasingly symbiotic relationship over the past two decades, and forecast '16-17 revenues attest to this. Football’s revenues are predominantly made up of matchday (admissions and hospitality), commercial income and broadcast revenues, and it is this latter source which is forecast to generate both the majority of total revenues and the increase in revenues in '16-17. The '16-17 season will see new broadcast deals for both the EPL and La Liga come into effect. There is global interest in football’s top leagues and clubs at many levels, from broadcast interest to shirt sponsorship and ownership. In the EPL, over half of the 20 clubs have non-U.K. owners and the principal sponsors of three-quarters’ of the teams are headquartered abroad, with many based in Asia Pacific and the Middle East. Combined revenues of the 20 EPL clubs are predicted to surpass $6.5B in '16-17, more than double that of the next-highest European league. Europe is currently football’s financial powerbase, with leagues and clubs continuing to explore how to capitalize on their global appeal through a variety of strategies -- broadcasting and distribution of content, sponsorship, other commercial partnerships, shareholdings, talent development and matches abroad. It is established practice for top European clubs to play pre-season matches in non-European markets. This trend is likely to increase, and it seems only a matter of time before a European League stages regular season matches outside of the continent, in a similar manner to how the NFL has staged matches in London and the NBA in Europe (Deloitte).
