On April 8, the Arsenal vs. Real Madrid match was decided by two crucial free kicks in the second half. Beyond the box score, what happens on the pitch can have impacts to the tune of millions of dollars.
Football — or soccer, if you prefer — is big business. Although he might be at the tail end of his career, Cristiano Ronaldo remains the highest-paid athlete in the world.
Beyond impacts in terms of stock price increases or decreases, or perhaps marketing potential as it relates to other ventures, matchups like these have significant financial repercussions.
At present, the two football titans we’ve discussed are competing in the Champions League, and the most prestigious tournament in world football doesn’t skimp when it comes to prizes.
Real Madrid has won the title a record-breaking fifteen times, while the Gunners have so far failed to do so. The clubs will meet again on April 16, so we have plenty of time to examine the staggering amount of money that’s in contest
Millions per match — what is at stake in bouts like Arsenal vs. Real Madrid?
The financial impacts of the matchups on the pitch are quite significant. This year, the size of the overall prize pot has increased to £2.06 billion from last year’s £1.74 billion. In dollars, that’s an increase from $2.23 billion to $2.64 billion.
Each club that qualifies for the Champions League earns £15.7 million — or roughly $20 million.
Following that, each triumph in the league phase nets a club £1.8 million, or approximately $2.3 million, while a draw secures $755,000. Clubs that finished in the top 8 in the standings were awarded another $2.1 million.
After that, teams are awarded for winning each round of the knockout phase. The payments in question are as follows:
- Round of 16: £9.4m, or $12.03 million
- Quarter finals: £10.7m, or $13.70 million
- Semi finals: £12.9m, or $16.51 million
- Runner-up: £15.9m, or $20.35 million
- Winner: £21.5m, or $27.52 million
These are significant sums — but it doesn’t end there. To little surprise, the most prestigious competition in the most popular sport in the world is a huge draw in terms of viewership. Based on a newly introduced “value pillar”, an average of a club’s 10-year performance and the value of its domestic TV market determines its share of a roughly $930 million pool.
So, what does it all add up to? Last year, Real Madrid made a grand total of $154 million from its Champions League win.
Then, there are sponsorship deals. Securing victory on the biggest stage makes a club all the more attractive for sponsors. The Arsenal vs. Real Madrid match saw two of the most profitable European clubs in this regard — the former will make some $208 million from this avenue this season, while the latter will make a more significant profit of $221 million.
Beyond the million-dollar impact and the balance sheet
Apart from the figures that we’ve discussed, there are also plenty of tangible financial benefits that are not easily quantifiable.
The marketing value, exposure to new fans, and prestige of winning the competition are hard to put into concrete figures — but they cannot be discounted. Moreover, securing the top spot makes a club an attractive destination for top talent, providing yet another hard-to-quantify tailwind.
With that being said, benefits like these usually take time to come into effect and play out over a timespan of years rather than in the immediate term.
Featured image via Shutterstock
