MPAX in football: unlocking hidden monetization opportunities real-time

MPAX is designed to assist sports teams in monetizing previously untapped pre and post-game content without the need for additional investments or costly production budgets. With our innovative platform, fans can enjoy first-person-view (POV)content while simultaneously driving traffic and sales to the club’s website. Moreover, MPAX enables fans to make purchases during live streams without ever leaving the page, increasing revenue potential for the club.

In this article we will delve deeper into the untapped revenue streams in football, analyze European Football League and its clubs’ revenues in 2021/2022, and reveal the vast potential of MPAX integration into the industry benefiting all parties: the club, the players and the viewers.

Current football finance landscape and ways of football monetization

Delloite’s 2023 Annual Review of Football Finance highlights significant growth in the European football market, reaching €29.5 billion during the 2021/22 season, driven by record matchday and commercial revenues. The ‘big five’ European leagues, including the Premier League, played a pivotal role in this growth, surpassing pre-pandemic revenue benchmarks. The Premier League reported a remarkable 12% rise in overall revenues, reaching £5.5 billion.

The report underscores the importance of financial sustainability in European football’s future, as various stakeholders, including investors, owners, and governments, play key roles in the success of clubs and leagues. This emphasis on sustainability is crucial for preserving Europe’s largest cultural property.

Key Football Revenue Streams

• Live Games/Stadiums:

Revenue from live games and stadiums encompasses ticket sales, matchday experiences, and season passes. These in-stadium revenues have traditionally been a substantial part of a football club’s income, offering fans the chance to witness the action in person, creating a unique atmosphere.

According to Deloitte’s Annual Review of Football Finance 2022, matchday and stadium revenues for the Premier League fell by 12% during the 2019/20 season due to the impact of the COVID-19 pandemic. In contrast, the 2018/19 season witnessed a record-high figure of £5.2 billion in total revenues, highlighting the significance of matchday income.

• Merchandise:

Merchandise sales encompass the purchase of club-related products, including jerseys, scarves, hats, and various team memorabilia. Fans proudly wear these items to display their allegiance to their favorite teams.

While specific data may vary from club to club, merchandise sales are a vital revenue source. For instance, Barcelona’s annual merchandise revenue was reported to be over €93 million in 2021, as per Deloitte’s Football Money League.

• Broadcasting:

Broadcasting revenues comprise income from television and streaming rights deals. These deals enable football leagues to reach global audiences, as broadcasters acquire the rights to air matches to viewers around the world.

The 2022 FIFA Global Media Rights Report highlights the significant sums involved in broadcasting rights deals. For example, the English Premier League’s broadcasting rights for the 2022–2025 seasons were sold for over £5 billion, illustrating the immense financial impact of broadcasting deals.

• Sponsorships:

Sponsorship revenue includes funding from corporate partners and endorsements. Clubs collaborate with various brands for jersey branding, stadium naming rights, and other sponsorship agreements to generate income.

Forbes’ “The Most Valuable Soccer Sponsorships” in 2023 showcases the value of these sponsorships. For instance, some prominent clubs have secured multi-million-dollar deals with sponsors, demonstrating the financial importance of sponsorship agreements in modern football.

These revenue streams are the lifeblood of football clubs, and their successful management is crucial for the financial stability and competitiveness of clubs in the dynamic football industry. The specific revenue figures may vary for each club, but these streams collectively form the backbone of football finances.

European Football League Revenue Analysis 2021/2022

According to Deloitte, in the 2021/22 season, the top 20 revenue-generating clubs saw a remarkable 13% increase in total revenue, reaching €9.2 billion. This surge was driven by the return of fans, with matchday revenue skyrocketing to €1.4 billion. English clubs benefited from favorable exchange rates in commercial revenue, offsetting the 11% decline in broadcast revenue.

Clubs in 2021/22 generated 15% of their income from matchday activities, 44% from broadcasting, and 41% from commercial sources, similar to 2018/19 levels. FC Barcelona and Real Madrid have yet to recover to pre-pandemic revenue levels, while Liverpool, Paris Saint-Germain, Chelsea, and Manchester City have outperformed.

Manchester City retained the top position in the Money League, driven by a new Premier League record in commercial revenue. Liverpool climbed to third place, overtaking Manchester United, due to a UEFA Champions League Final run and robust matchday revenue. Arsenal entered the top 10, replacing Juventus, thanks to substantial matchday revenue.

FC Barcelona reported a decline in rankings due to a 13% drop in broadcast revenues and slower growth in commercial revenue. The impact of their commercial agreement with Spotify and the sale of economic levers remains uncertain in future editions of the Money League.

European Football Club Revenue 2021/2022

Premier League

Broadcasting decline hasn’t been noticed in individual clubs only but across all Premier League, while the industries are still recovering from the Covid dip. Premier League’s revenue stream statistics and forecast show that although broadcasting constitutes the majority of the income, its past year's stagnation suggests that some new ways of increasing broadcasting popularity need to be discovered.​​

Below we discuss the possible reasons for this change and the solution of tapping into a yet-to-be-discovered power of POV live streaming in football.

The Next Wave of transformation in football

Football is undergoing a dynamic transformation, driven by various factors such as the growing importance of data, shifting fan expectations, and changes in revenue streams. This transformation includes the emergence of independent regulators and minimum fan engagement standards, as well as adaptations to financial regulations for clubs in UEFA competitions.

The impact of these changes became evident during the COVID-19 pandemic, highlighting the industry’s overreliance on broadcast and matchday revenues. Some clubs now face the challenge of diversifying their revenue streams to appeal to the next generation of fans.

Data is emerging as a strategic asset in this evolving landscape.

To unlock the potential of untapped revenue streams, football organizations must not only understand their data but also their fans.

Furthermore, sponsors are increasingly seeking value exchanges beyond traditional metrics like fan numbers. Spotify’s sponsorship deal with FC Barcelona underscores the importance of reaching a broader fan base by leveraging data-driven insights.

Untapped revenues and engagement opportunities unlocked by MPAXPOV live-streaming

Taking into consideration the changing landscape of football revenue and engagement, there is a rising need for increased monetization opportunities. Whereas social media has stepped in increasing both club revenues and fan engagement, MPAX proposes a solution that is one step ahead, unlocking untapped revenue streams benefiting all, the club, the players, and the viewers:

Pre/Post Game Content Monetization: MPAX offers clubs to monetize content before and after matches, offering fans unique behind-the-scenes experiences and insights. POV live streaming of players’ daily routines has never been done before and the rising fan need for changed approaches indicates a high potential for streams like this.

Live Commerce: Fans could make purchases during live streams, boosting club merchandise sales and increasing revenue, with no additional revenue spent on advertising. MPAX solutions give a unique twist to live commerce as the streamers see the world through their idol’s eyes and make a more personal connection to the brand and the items sold.

Fan Engagement: Interactive features like polls, quizzes, and draws during the streaming time off-pitch engage fans and create additional revenue opportunities. Introduce a draw and a price — watch your engagement rates shoot through the roof. On an Instagram survey, giveaways made up 91% of posts with more than 1000 comments. The research proves that giveaways made up 91% of all the posts in the research with more than 1000 comments. This means that giveaways bring a high engagement rate super fast.

Football Stars’ Daily Lives POV content: Fans could follow their favorite players’ daily lives through first-person-view content, enhancing their connection with the team and generating more revenue in the long run.

Insight into players, trainers, and football legends: MPAX offers a unique perspective by showing everything surrounding the game from the point of view of trainers, players, and football legends, which could further enrich the fan experience.

Connection with Fans: Besides the revenue and engagement, the MPAX platform is also a source of valuable user data. Advanced in-built platform analytics will give the clubs insights not only on the content performance but also on behavior patterns and ever-so-important preferences.

In conclusion, MPAX innovative platform addresses the challenges faced by football clubs in diversifying their revenue streams. By offering engaging and immersive experiences to fans, it benefits not only the clubs but also the players and viewers. The changing landscape of football revenue and engagement calls for MPAX to ensure the long-term financial sustainability and competitiveness of football clubs, tapping into innovative solutions such as POV live streaming, which would take broadcasting to unexplored waters full of possibilities. So, keep an eye on MPAX, as it is poised to revolutionize the football industry and unlock hidden opportunities for all.

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