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Wednesday, 13 February 2019

Rise and Rise of Sports Marketing: The Story of German Football League

According to Wikipedia, Sports marketing is a subdivision of marketing which focuses both on the promotion of sports events and teams as well as the promotion of other products and services through sporting events and sports teams. It is a service in which the element promoted can be a physical product or a brand name.

The goal is to provide the client with strategies to promote sports or to promote some other product, service, business or cause through sports. Sports marketing is also designed to meet the needs and wants of the consumers through exchange processes.

Before Now
After marketing began to be used in sports, it turned into one of the most profitable businesses. Sports marketing and management gives an accurate answer to the question of how to make money on it. It is a collection of activities that result in money. If to study the history of any sport, it becomes obvious that earlier none of them brought money. On the contrary, any competitions were costly before. The situation changed after sports marketing became actively used. This turned the sport into a source of money. The profitability of many sports is the best proof that marketing brings money and it is even worthy to consider top marketing undergraduate programs in the field of sports.

The Bundesliga, a professional association football league in Germany and the football league with the highest average stadium attendance worldwide. At the top of the German football league system, the Bundesliga is Germany's primary football competition.

The Rise of Sports Marketing 
The league has recorded steady financial growth for over a decade. The Bundesliga turned in a profit of 52.5 million euros in 2010/11 compared to a 78 million euro loss the previous season.

In 2013-14, Bundesliga had a record breaking season for its tenth consecutive season of financial growth. The DFL report declared a 12.9 percent financial growth from the previous year to 2.45 billion euros ($2.8 billion). The second division also had a record year, reaching a total revenue of 458 million euros ($522 million) for the first time in the league's history.

It Keeps Getting Better 
The Bundesliga and Bundesliga 2, the top two divisions of professional football in Germany, generated total revenues of €4.42bn in the 2017-18 season, a 14th consecutive year of record turnover.

The German Football League (DFL), the body which operates the two divisions, also revealed in its 2019 Economic Report that the 36 Bundesliga and Bundesliga 2 teams contributed €1.28bn to the German economy in tax, duties and social security payments.

Broadcast and media revenue was the biggest driver, reaching an all-time high of €1.25bn following the new four-year rights contracts which began in the 2017-18 season. That boost meant media revenue represented a full third of overall income, up from 28.5 per cent the previous year.

The DFL has witnessed an average annual growth of 8.6 per cent over the past ten years. The overall 2018 results are up 10 per cent – around €412m – over the previous year, while the €3.81bn revenue recorded by the top-tier Bundesliga represents growth of 13 per cent over 2016-17. 17 of the league’s 18 clubs generated revenues exceeding €100m.

Bundesliga 2 revenues declined slightly, to €608m for the year, although the DFL puts this down to the fact that Stuttgart and Hannover, among the most popular teams in the country, were promoted to the Bundesliga after the 2016-17 season.

While a far cry from the Premier League’s £7.6bn (€8.7/$9.9bn) contribution to the UK economy, the DFL is still able to boast of a positive societal impact. According to the report, 55,142 jobs are sustained directly or indirectly by the Bundesliga and Bundesliga 2.

In the Spirit of Sports
The success story of Bundesliga is a prime example of how sports in becoming a real business. Attracting top investors across the world. The English Premiere League now boost of over 15 top business mogul investing in sports in the country. The French league (Ligue 1) and Italian League (Seria A) are also experiencing massive investment on sports - from the field, to player sign on fees, branding, sponsorship deals, media coverage, digital innovations etc. 

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