/Thread/ #ManCity and #PSG have seen 344% and 715% commercial revenue growth between 2010/11 and 2019/20 respectively. So, what’s behind this commercial growth? The rapid surges are certainly a result of increased sporting achievements over the past decade, #SportBusiness #UCL
elevating both clubs and placing their global following firmly amongst the elite clubs, in turn attracting new and lucrative global sponsorship deals. PSG’s reported €65m per year shirt deal with global hotel brand AccorHotels is a case in point and represents the third most
lucrative shirt deal for the current football season, after those of #RealMadrid and #ManchesterUnited, whilst Manchester City’s ongoing shirt sponsorship with Etihad Airways at a reported €51m (£45m) a year is currently the 5th most valuable in world football.
have the desire or financial capability to renew their deals beyond '21. However, this is just part of the story. PSG’s lucrative €80m p.a. deal with Nike, utilising the company’s ‘Air Jordan’ brand as the kit sponsor, has helped consolidate PSG as a global lifestyle and apparel
brand. Through savvy co-branding and celebrity endorsements, PSG can engage with many new customer segments and markets worldwide to drive diversified commercial income streams.
#MCFC’s kit supplier deal with apparel brand PUMA is worth €74m per year, the 5th most lucrative deal of its type globally and a reflection of the club’s growing global brand appeal.
A focus on the commercial revenues, which best represent the benefits attributable to the power of the brand, reveals the main driver behind the large total operating revenue increases. Since the season 2011/12 PSG has the advantage when it comes to commercial revenue.
In the last season, we see relatively comparable amounts, PSG (€309m) & ManCity (€284m)
Social media followings of this scale are successfully leveraged by both clubs to attract big-money commercial partners looking to capture greater global exposure and reputation. Of the two clubs, PSG have a superior social media following and two-and-a-half-year social media
growth rate, yet it is worth noting that Manchester City’s strategic efforts in China see them far outperforming PSG in terms of Weibo following, one of the most popular platforms in the country. Alternatively, PSG are far superior in terms of Instagram following.
This is perhaps no surprise considering the club's brand and marketing activities in fashion and lifestyle, supported by their marque players and famous influencers lend itself to the visually rich content of Instagram #SportsBiz #SportMarketing
Data from the last nine years show that staff costs have increased dramatically for both clubs as increasing revenues are absorbed by staff expenditures, with relatively small fluctuations also due to sporting performance, naturally because of the extensive investment
into playing squads. The chart shows the immediate impact of the PSG takeover, with staff costs increasing by 73% from €130m to €240m in the first season under the new ownership in 2012/13
Today, both clubs boast being among the top 10 most valuable football clubs. According to KPMG's latest, pre-Covid club valuation report as at 1 Jan 2020, #ManchesterCity were the 6th most valuable football club, while #PSG were 9th in that ranking #SportBusiness #MCIPSG #CityPSG
Tottenham and Inter. Thanks to such a speedy increase, PSG have been able to significantly catch up with Manchester City’s EV, as the Citizens boast now only a 36% higher EV than Les Parisiens (92% in 2016)
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