Football clubs seek alternative fundraising avenues
Football clubs seek alternative fundraising avenues as COVID strips up to £100m from 2021 match day revenues.
With UK football clubs increasingly seeking alternative fundraising routes, such as bonds to increase their financial clout and make long-term sustained success more achievable, Alliance Fund has announced that it’s set to launch a dedicated sports investment fund to sit alongside their existing real estate-focussed offering.
Football is a big business. It is the world’s most popular pastime and generates unimaginable amounts of money. In 2021 alone, the average Premier League team generated £246m in revenue, with Manchester City leading the way with a total of £571m.
With so much money to be made, it’s perhaps surprising that some clubs are turning to alternative investment channels in order to raise money.
The impact of the pandemic on profits
Alliance Fund analysed data on club revenues from the Deloitte Football Money League which shows that between 2016 and 2020, match days accounted for an average of 16.5% of total club revenues.
In 2021, matchday revenues fell to just 1% of total club revenue, a dip to the tune of -15.5% due to the pandemic’s impact on matchday earning potential. Income that clubs, especially those in lower leagues, rely heavily upon.
As a result, Alliance Fund estimates that in 2021, the average lost revenue per club due to Covid was an estimated £45.1m for Premier League clubs; £5m for Championship clubs; and just under £1m in League One.
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