Competition structureManchester United as a football club takes a participation mainly in three tournaments. There are English Premiere League, Champions League and England Cup. We can consider these tournaments as a market segments. In this segments football clubs compete for: • Championship (Fans, more broadcasting, more merchandising, prize money) • Sponsor’s money (In a condition of financial fair-play it would be a main source of revenue) • New players (Main asset for each football club) Prize money for UEFA Champions League of 2010–11 were 2.1 million to each team in the play-offs round. For reaching the group stage, UEFA awards €3.9 million, plus €550,000 per group match played. A win in the group is awarded €800,000 and a draw is worth €400,000. In addition, UEFA pays teams reaching the first knockout round €3 million, each quarter finalist €3.3 million, €4.2 million for each semi-finalist, €5.6 million for the runners-up and €9 million for the winners.[4] In the last Champions League MU, who lost the final earned 53,2 million euro in total against 51 million euro earned by Barcelona, who won the final.[5] In the same time prize money in English Premiere League for the championship are 18 million euro. And if club in one time take a participation in both tournaments it is a hard choice what will be the bet. You can concentrate all club’s effort on the Champions League in strive for getting prize money, you can lost Premiere League and you will not take a participation in the next Champions League. And all competition is building around these events, because if club doesn’t participate in championships and doesn’t get a trophy. Another type of competition we can see at the transfer market, where twice in a year football clubs can sell and buy players. And it is a really tough competition period when several big clubs want to get one perfect player. In this case everything is important, image of the team, prestige of the National Championship, last trophies, wage and a sum of transfer. And financial questions depend on right business running compared with non-financial aspects which depend on right football game strategy.
[1] Financial Times 9 june 2011. Crunch time for football clubs as costs grow. By Roger Blitz, Leisure Industries Correspondent [2] Deloitte Football Money League 2011. http://www.deloitte.com/view/en_GB/uk/industries/sportsbusinessgroup/sports/football/deloitte-football-money-league-2011/66f55ec578ffd210VgnVCM2000001b56f00aRCRD.htm [3] Deloitte Football Money League 2011. http://www.deloitte.com/view/en_GB/uk/industries/sportsbusinessgroup/sports/football/deloitte-football-money-league-2011/66f55ec578ffd210VgnVCM2000001b56f00aRCRD.htm [4] 750 million euro for UEFA Champions league football clubs. (Union of European Football Associations) (110): 6–7. August 2011. Retrieved 26 August 2011. [5] 750 million euro for UEFA Champions league football clubs. (Union of European Football Associations) (110): 6–7. August 2011. Retrieved 26 August 2011.
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