Football Clubs generate huge money from selling kits and other club merchandise to its fans around the world. It is not hard to find shops that sell Jerseys shirts or flags around stadiums, or even club owned stores that sell hundreds of items of club Merchandise.
Selling players to other clubs is another profitable source of income for football clubs. Small clubs those are good at nurturing a pool of amazing young talents can make massive profits by selling them off to bigger clubs with skyrocketed prices. Some football clubs even include sell-on clauses which allow them as parent clubs to create an avenue to earn money when the player is sold again to other clubs.
Clubs take part in different competitions at the start of a football season, in England’s top flight league, clubs compete in the domestic Premier League, then the F.A Cup and many other domestic cup competition. As long as they get into the Top 4 of the previous season, they will qualify for another competition — The Union of European Football Associations Champions League. If they finish two spots behind the top 4 which means top 6, they will qualify for the Europa League. Each competition comes with a prize which is huge amount of money. The higher the club finishes on the League table, the bigger their prize money. The more competitions they win, the more money they get.
Why do clubs need to win tournaments?
By winning tournaments, clubs not only satisfy their fans which help them sell more merchandise but also it brings in money. However, it is nothing especially significant. Part of the prize money from winning tournaments might come in the form of television rights while the other part includes matchday revenue and profit. But from a commercial point of view, it is vital to win tournaments as that will attract the attention and interest from the public and lure some new sponsors who will pump in huge cash into the football club.