European football scores $30 billion Deloitte Global predicts that the European football Both the UK and Spain are now relatively mature pay-TV market may generate $30 billion (€27 billion) in markets for football, with 17.4 million pay-TV homes in There is global 272 revenues in 2016/2017, an $8 billion (€7 billion) increase the UK (65 percent of all households) and 5.4 million interest in 273 relative to 2011/2012, and a compound annual growth (29 percent) in Spain as of Q2 2015 . Live rights to football’s top rate of seven percent. premium content such as top-tier domestic league football provides regular content through most months leagues and Most of this growth will likely be driven by the five largest of the year, and hence is highly attractive to pay-TV clubs at many leagues (England’s Premier League, France’s Ligue 1, the operators in driving subscriptions. German Bundesliga, Italy’s Serie A and La Liga in Spain) levels, from whose share of revenues continues to rise. These leagues It is not just from domestic markets that Europe’s top broadcast are expected to generate approximately $17 billion leagues are achieving substantial growth in broadcast (58 percent) of total revenues in 2016/17. rights fees. The EPL and La Liga’s international rights interest to shirt fees have been climbing fast too. In the 2016/2017 sponsorship Football and pay television have had an increasingly season the EPL is expected to generate over $1.5 billion symbiotic relationship over the past two decades, and from overseas broadcast rights, a gain of at least and ownership. forecast 2016/2017 revenues attest to this. Football’s 40 percent compared to the previous rights cycle. revenues are predominantly made up of matchday La Liga generates less than half this amount, but has (admissions and hospitality), commercial income and achieved substantial recent growth, and generates the broadcast revenues, and it is this latter source which is second-highest broadcast revenues from non-domestic forecast to generate both the majority of total revenues markets of any sports league. and the increase in revenues in 2016/17. There is global interest in football’s top leagues and The 2016/2017 season will see new broadcast deals clubs at many levels, from broadcast interest to shirt for both the English Premier League (EPL) and Spain’s sponsorship and ownership. In the EPL, over half of the La Liga come into effect. Domestic live broadcast rights 20 clubs have non-UK owners and the principal sponsor is expected to generate an average of $2.6 billion of three-quarters’ of the teams is headquartered abroad, 269 for the EPL for the three seasons from 2016/2017 , with many based in Asia Pacific and the Middle East. a 71 percent increase on the prior agreement. Spain’s La Liga, which has recently moved to a collective broadcast rights selling model, is expected to earn approximately $1.1 billion per season from domestic live 270 rights . These are the two biggest drivers of revenue growth in the European football market. Figure 13: Predicted European football league revenues in $ billions for 2016/2017 $20 $18 $17 $16 $14 $12 $10 $8 $6 $5 $4 $3 $4 $2 $1 $0 'Big five' Non 'big five' FIFA, UEFA and Big five countries' Non 'big five' European leagues European leagues National Associations other leagues other leagues 271 Source: Deloitte Sports Business Group, 2015 Technology, Media & Telecommunications Predictions 2016 39