Football organisations are constantly searching for innovative ways to increase revenues. Before regularly televised games became the norm, the majority of income generated by English football clubs was through ticket sales. The formation of the Premier League and its contagious spread across the world is a prime example of the money that can be generated from fans. The popularity of the Premier League created huge opportunities for clubs to benefit from a global audience. Last month Sky Sports, TNT Sports and BBC spent a combined £6.7 billion for the right to show live games and highlights of Premier League matches in the UK for a period of four years between 2025 and 2029. As reported by The Athletic, in the previous broadcasting cycle from 2022 to 2025, international broadcast rights (£5.05 billion) had surpassed the total value of UK broadcast rights (£5 billion) for the first time[1].
Continuing desire to increase revenues
These are staggering figures and have turned English football clubs, which were often traditionally run by local businessmen from the area, into enormous corporations run by billionaires, oligarchs, and more recently countries. This has fundamentally changed the way football clubs are run. In many cases, these owners run the clubs primarily as profit-making enterprises, as they would any of their other businesses. Given the incredible growth of Premier League revenues, you could be forgiven for mistakenly thinking these clubs may be happy with their lot. However, the reality is that these clubs are enormous international corporations and are understandably run as such. Accordingly, these clubs will continue to look for different ways to increase revenues into the future. The recent attempts at forming a breakaway European Super League are a clear example of this expansionist ethos.
Are broadcasting revenues stagnating?
It may seem ridiculous to suggest this given the eye-watering value of the most recent UK broadcasting rights, and the fact that the value of the Premier League’s rights remains far ahead of all other European leagues, however when the deal is broken down in more detail it suggests that this market may be starting to plateau somewhat. The overall value of the deal is the highest in history; however the domestic broadcasters will also receive the right to broadcast 70 more matches than in the previous deal, meaning the value of the deal has decreased on a per match basis. This may not seem like an issue now, and the new overseas broadcasting deal which has not yet been announced is likely to continue to increase. The reality is that the Premier League is already incredible popular across all continents and the likelihood of the growth of fanbases continuing at the rate we have seen over the past two decades is remote.
As well as some potential stagnation in the value of broadcasting rights, the sports broadcasting industry is facing threats from the increasingly widespread availability of illegal streams. These illegal streams are becoming more common and may be continue to be utilised by increasing numbers of consumers. This will have knock on effects for Sky and TNT and other broadcasters by making consumers less likely to renew their subscriptions. It remains to be seen how this issue will be dealt with by broadcasters and it is certainly an area worth monitoring.
Alternative sources of revenue from spectators
If the issues above continue to materialise, and potentially even if they do not, it is likely that football clubs will start to look at alternative means for generating money from fans. There are millions of Premier League fans overseas and this has consistently presented the greatest opportunity for football clubs to increase revenues, for example most Premier League clubs undertake various pre-season tours all over the globe to grow their fanbase. One possible opportunity currently being explored by football clubs is the use of Virtual Reality (VR) and Augmented Reality (AR) to enhance the experiences of fans. As described by Forbes, “augmented reality is designed to superimpose digital elements onto the real world” whereas “virtual reality is an immersive experience that isolates users from the real world, usually with the help of a headset and headphones to help”[2].
The use of AR and VR to enhance or expand the match day experience for fans is still in its infancy. The Los Angeles Rams of the National Football League have partnered with a technology company called ARound to offer mini games and enhanced AR experiences to in-stadium supporters through their smartphones. Furthermore, Sky Sports have reported that FC Barcelona “are aiming to future-proof the technology inside their redeveloped Nou Camp, which is due to re-open in 2026”[3]. The potential future uses of AR and VR are vast; however they will certainly be expensive. One such use is the opportunity of selling wearables to fans to offer something akin to the match-day experience from the comfort of their living rooms. For example, as reported by Sky Sports, Manchester City have been “working with tech giant Sony since late 2021 on a plan to recreate the Etihad Stadium in the ‘virtual world’ of the metaverse for fans across the world to explore”[4]. Similarly, just through the use of smartphones alone, AR could allow fans to click on a player while at a game and discover a multitude of statistics relating to that player or the football match in general.
Further down the line, there are technologies being developed to create holographic image displays of live action. These would allow spectators to view 3D holographs of the action unfolding and has to potential to revolutionize the way we consume sports. Given the costs associated with such technologies, these developments may be many years away, however, if such developments come to fruition it would create incredible opportunities for football clubs, especially in terms of providing more immersive and attractive experiences to overseas fans.
[1] Premier League overseas TV rights will top domestic rights for first time in next cycle – The Athletic
[2] Augmented Reality (AR) Vs. Virtual Reality (VR): What’s The Difference—And How Do They Work (forbes.com)
[3] Future of Football: How VR, AR and the metaverse could change the fan experience beyond recognition | Football News | Sky Sports
[4] Future of Football: How VR, AR and the metaverse could change the fan experience beyond recognition | Football News | Sky Sports