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BBC News
14-07-2025
- Business
- BBC News
Which team make di highest profit from di Club World Cup $1bn prize pot?
Di Club World Cup get im critics but for di clubs wey bin dey involved di competition $1bn prize pot don prove to be good business. Now wey di first edition of di new-look tournament don complete, we fit analyse di financial rewards wey clubs wey compete get. BBC Sport explain di breakdown of di prize money and wetin e mean for di clubs wey get am. How much money bin dey on offer? Di new look competition bin get a prize pot of $1bn (£726m) to give out to di 32 competing clubs, out of dat money $525m dey divided between all clubs for participation and Fifa award $475m on a performance-related basis. Di money wey dem give European clubs for appearance dem share am based on sporting and commercial criteria, e mean say some clubs collect more pass odas for taking part. European clubs collect between $12.81m and $38.19m just for turning up, while teams from oda continents dem give dem a set fee - $15.21m for South America, $9.55m for North and Central America, and Asia and Africa, and $3.58m for Oceania. Fifa neva confam di individual amounts wey dem give to European clubs for taking part, so we dey use estimates from football finance website The Swiss Ramble based on Uefa club coefficient system. Di prize money figures dey converted from US dollars into pound sterling. Di big winners Tournament winners Chelsea na by far di most financially successful team, dem earn about £84m, while Paris St-Germain make about £78.4m for dia run to di final. European clubs, wey generally bin enjoy larger participation fees, make an average of around £39m while impressive runs from di likes of semi-finalists Fluminense mean say dat South American clubs make £24m on average. Money bin dey on offer for results for di group stage, wit around £1.5m for a win and £730k for a draw. Five clubs, including Pachuca and Seattle Sounders, bin lose all three group games dis one mean say dem only receive dia participation fee. Auckland City hit jackpot Despite say di prize money figures for di likes of part-time side Auckland City bin look small, di competition been dey incredibly lucrative for dem within di context of dia overall finances. Di £3.3m wey Auckland City take home na around seven times dia overall 2024 revenue of approximately £488,000, while di £67m wey Real Madrid make na just 4% of dia 2024 figure of £901m. While dis na huge positive for di part-time club, football finance expert Kieran Maguire share im concerns for di impact on oda sides from New Zealand. Im say: "Dem don earn so much money sotay e dey difficult to see anybody wey fit compete wit dem if dem invest di money for dia playing squad. "And dem get reason to do so becos e go boost dia chances of qualifying for di next Club World Cup. "E good for dem, but e no necessarily dey good for di league wen you dey try to sell a competitive league to broadcasters." Extra transfer funds For di European clubs, di extra revenue dey welcomed as dis na way of increasing dia transfer budget. In line wit Uefa rules, clubs dey limited to spending 70% of dia revenue on wages, transfers and agents' fees - so for every £50m dem earn, an extra £35m dey available for recruitment. Some clubs don already pay off dia summer transfer business sake of say dem take part for di competition. More dan 65% of Borussia Dortmund £57.9m transfer business so far dis summer dem don pay am off from dia participation for United States afta dem reach di quarter-final stage. Di £27m Dortmund bin pay to Sunderland for Jobe Bellingham already dey completely paid off. Chelsea bin spend £198m on reinforcements so far dis summer on di likes of Joao Pedro and Liam Delap - £84m of dat dey covered by dia impressive run for di Club World Cup. Despite Manchester City surprise last-16 exit to Al-Hilal, dem still earn around £38m from di tournament - wey equate to 35% of di summer business dem don conduct so far. In more simple terms, e don pay for dia £31m acquisition of Rayan Ait-Nouri from Wolves. Real Madrid bin pay Liverpool a fee of around £8.4m for Trent Alexander-Arnold to sign am one month early to dey part of dia squad for di competition - dem pay dat one off afta just three matches. "Di accountant for di football club like di idea. Di business go dey happy," na wetin finance expert Maguire tok about di competition lucrative incentives. "But I no sure say di fans dey happy, particularly European clubs, and e go be di same for players and managers. "We dey reach a crisis point as far as player welfare dey concerned. We fit enter a period of conflict between players and owners."
BBC News
13-07-2025
- Business
- BBC News
Who profited most from Club World Cup $1bn prize pot?
The Club World Cup has had its critics but for the clubs involved the competition's $1bn prize pot has proved a lucrative the first edition of the new-look tournament now complete, we are able to analyse the financial rewards reaped by those competing Sport explains the breakdown of the prize money and what it means for the clubs getting it. How much money was on offer? The new look competition had a prize pot of $1bn (£726m) to give out to the 32 competing clubs, with $525m divided between all clubs for participation and $475m awarded on a performance-related awarded for participation for European clubs was weighted by a ranking based on sporting and commercial criteria, meaning some were awarded more than others for taking part. European clubs were handed between $12.81m and $38.19m just for turning up, while teams from other continents were given a set fee - that was $15.21m for South America, $9.55m for North and Central America, and Asia and Africa, and $3.58m for has not confirmed the individual amounts given to European clubs for taking part, so we have used estimates from football finance website The Swiss Ramble based on Uefa's club coefficient system. The prize money figures have been converted from US dollars into pound sterling. The big winners Tournament winners Chelsea were by far the most financially successful team, earning about £84m, while Paris St-Germain made about £78.4m in their run to the clubs, who generally enjoyed larger participation fees, made an average of around £39m while impressive runs from the likes of semi-finalists Fluminense meant that South American clubs made £24m on was on offer for results in the group stage, with around £1.5m for a win and £730k for a clubs, including Pachuca and Seattle Sounders, lost all three group games meaning they only received their participation fee. Auckland City hit the jackpot Despite prize money figures for the likes of part-time side Auckland City looking small, the competition has been incredibly lucrative for them within the context of their overall finances. The £3.3m taken home by Auckland City was around seven times their overall 2024 revenue of approximately £488,000, while the £67m made by Real Madrid was just 4% of their 2024 figure of £ this is a huge positive for the part-time club, football finance expert Kieran Maguire has concerns for the impact on other sides from New said: "They have earned so much money that it's difficult to see anybody being able to compete with them if they invest in the playing squad."And there's a huge incentive for them to do that because it enhances the chances of them qualifying for the next Club World Cup."It's good for them, but it's not necessarily good for the league when you're trying to sell a competitive league to broadcasters." Extra transfer funds For the European clubs, the extra revenue has been welcomed as a way of increasing their transfer line with Uefa rules, clubs are limited to spending 70% of their revenue on wages, transfers and agents' fees - so for every £50m earned, an extra £35m is available for clubs have already paid off their summer transfer business by taking part in the competition. More than 65% of Borussia Dortmund's £57.9m transfer business so far this summer has been paid off from their participation in the United States after they reached the quarter-final £27m Dortmund paid to Sunderland for Jobe Bellingham has already been completely paid have spent £198m on reinforcements so far this summer on the likes of Joao Pedro and Liam Delap - £84m of that has been covered by their impressive run at the Club World Manchester City's surprise last-16 exit to Al-Hilal, they still earned around £38m from the tournament - which equates to 35% of the summer business they have conducted so more simple terms, it has paid for their £31m acquisition of Rayan Ait-Nouri from Madrid paid Liverpool a fee of around £8.4m for Trent Alexander-Arnold to get him a month early to be part of their squad for the competition - that was paid off after just three matches."It's welcome for the accountants at football clubs. The business will be happy," said finance expert Maguire about the competition's lucrative incentives."But I'm not sure fans will be happy, particularly of European clubs, and it'll be the same for players and managers."We're reaching a crisis point as far as player welfare is concerned. We could be entering a period of conflict between players and owners."
BBC News
08-07-2025
- Business
- BBC News
What's going on at Hull City?
"A club source has told me that there are longstanding and growing concerns within the football club about their finances and the ability to keep up with day-to-day payments with suppliers."Confused about what is going on at Hull City? Join football finance expert Dr Dan Plumley and BBC Radio Humberside's Mike White as they break down what's happening with the Tigers' financial troubles and EFL to the full explainer and more on BBC Sounds.
BBC News
29-06-2025
- Business
- BBC News
'Rangers need to see this money being spent smartly'
Football finance expert Kieran Maguire appeared on the BBC's Reporting Scotland programme to discuss Rangers' new the best of what he had to say:On how far £20m of investment will go for Rangers: "It will certainly help. Rangers have sizeable debts. Its wage bill is parallel to that of Celtic."The amount invested in players in terms of the total cost of the squad is the same, but the revenue generated by Rangers is around about £35 million less than that of Celtic, and that means that Rangers have been losing money. " I think the previous board, they felt that they had reached the point where they couldn't continue to inject that money. "So, now we've got Andrew Cavenagh and 49ers Investments coming in, taking control, and that could potentially give the club greater direction. And of course, putting money in, which from the pronouncements that we've seen, is certainly going to help the playing budget."On how Rangers go about bridging financial gap between themselves and Celtic: "Celtic are in a very strong position financially. They've got over £70 million in the bank compared to Rangers having less than two, and this was before the announcement. "So they do have a very strong position, Celtic, there's no doubt about it. "I would say that they've been relatively cautious in terms of their investment in the squad over the past few years, and this has allowed Rangers to certainly catch up in terms of the amount of money being invested. "I think what we really need to see at Rangers is money being spent smartly rather than large signings coming in. "We've seen that be successful elsewhere, and we've also seen those clubs that have just spent the cash because they've got a new owner, they've got a new injection - that doesn't necessarily translate to ultimately what Rangers fans want, where being second in Glasgow is being nowhere."On what re-registering as a private limited company, instead of being publicly listed, means for Rangers: "Yeah, it won't affect fans at all. "Instead of having the additional compliance costs of being a public listed company, and the shares weren't being traded on a standard market, it simply means that Rangers will revert to individual transactions between shareholders going through on a private basis. So it's nothing for fans to get worked up about."
BBC News
27-06-2025
- Business
- BBC News
Could Everton sell their women's team to help with PSR?
Football finance expert Kieran Maguire, speaking to BBC Radio Merseyside about whether Everton could sell their women's team to help with PSR rules: "There has been a new company which has been formed."Everton Football Club Women Limited has been in existence for over a decade, but it looks as if the new owners have set up a company which is linked to the women's team."Could it be that the current owners of Everton Football Club Women, which is Everton Football Club itself, could sell Everton FC Women to this new company which has been set up?"You might say: 'Hold on, well surely that's just transferring things from the left hand to the right hand and overall we're no better off or there's no change?' But in the world of accounting it's very different."It could be this is being done for strategic, planning or tax reasons - or lots of other things."On the basis that Chelsea's women's team was sold for 20 times the amount of revenue it generated, if you take a look at the most recent accounts for Everton's women's team, that means you could probably sell that football club for somewhere in the region of £60-65m and if that was the case that would be pure profit - which goes into your PSR budget and would enhance the ability of Everton to compete in the transfer market."Listen to the full interview on BBC Sounds
