The soccer club market - Italy

1.2 A growing global market

The global soccer market size reached $*.* billion in ****. It is expected that the market will reach $* billion by ****, with a compound annual growth rate (***) of * percent over the forecast period ****-****.

The growth factors that will drive the market are people's increasing participation in professional soccer tournaments and leagues, growing awareness about the benefits of staying active by playing sports, and the growing trend of adopting fitness activities as part of self-care.

Value of the soccer market World, ****-****, in billions of dollars Source: ****

The soccer club market

According to data released by Deloitte, the top ** clubs generated revenue worth *.* billion euros in ****/**, ** percent more than the revenue generated in the ****/** season, which was around *.* billion euros. Thus, the soccer market has returned to pre-covid values, that is, when €*.* billion was generated in ****/**, thanks to the return of fans to stadiums.

The covid-** pandemic for two seasons affected and limited stadium revenues, which nevertheless generated €*** million per day in ****/**, and €*.* billion in ****/**. With the return to normalcy, events such as concerts and stadium tours have resumed, and with them the revenues of major clubs derived from new partnerships, TV deals, and more.

The graph below shows that there was an increase ...

1.3 The market for soccer clubs in Italy

The top ** clubs generated a revenue value of *.* billion euros. The graph below shows the breakdown of revenue by club. For the first time, more than half of the top ** clubs (***) are presented by one country, namely England. This highlights the financial superiority represented by the Premier League, which has seen an increase in the total value of its media rights, driven by demand from international broadcasters. Manchester City maintained its position at the top and for the second time was the club generating the highest revenue in world soccer. This growth was fueled by an increase in commercial revenues of €*** million in the ****/** season.

Revenues of the top ** clubs World, ****, in millions of euros Source: ****

Further down the top **, the only Italian clubs are Juventus, Inter Milan and AC Milan. Juventus generated revenue of *** million euros in the ****/** season, less than the *** million euros in ****/**, mainly due to continued restrictions on Serie A appearances and performances in UEFA competitions. Meanwhile, Inter Milan generated revenue of €*** million in ****/**, compared to €*** million in ****/**.

Considering the value of the ** Serie A clubs, it is possible to get the total market value of Serie A clubs in Italy, which amounts to *.* billion euros. Leading ...

1.4 The burden of coronavirus on calcium

The coronavirus crisis has affected all the world's soccer clubs equally. KPMG's **** report on the turnover of the ** largest European soccer clubs points out that in **** this figure decreased overall. In fact, in absolute terms, there was a decline of -** percent (***).

Revenues of the top ** European clubs Europe, ****-****, in % and in billion euros Source: ****

Among Italian clubs, for example, in **** Juventus saw a percentage drop in its revenue of -**.*%, Inter Milan -**% from the previous year. Finally, Milan is the club with the largest percentage decline, namely -**.*% in **** compared to **** revenues.

The reductions in revenue are mainly caused by the closure and postponement of football matches that occurred during the covid-** pandemic. From the graph below, it can be seen that **** was the worst year for soccer clubs, worldwide and in Italy. Milan, in particular, generated no revenue from ticket sales for sports matches in ****, Inter €* million, and Juventus €* million.

Revenue from admissions to sports matches Italy, ****-****, in millions of euros Source: ****

2.1 Demographic characteristics of fans

Gender

The data below show the percentage of men and women who follow soccer in Italy, with ** percent of men and ** percent of women being interested in soccer. These percentages indicate a gender gap in popularity and interest in the sport in Italy that depends on multiple factors, such as to cultural and social traditions embedded in Italian society. Soccer is traditionally considered a male sport, and there may be cultural barriers that limit women's access to and interest in soccer.

However, it is important to note that there are ongoing changes in women's interest in soccer. In recent years, women's soccer has gained increasing visibility and popularity, contributing to greater participation and involvement of women in soccer.

Share of soccer fans by gender Italy, ****, in percent Source: ****

Age

The data in the following chart show the percentages of soccer fans in Italy by age group. Soccer in Italy has a broad following among different age groups, with a relatively balanced distribution. This highlights the importance and popularity of soccer as a national sport in Italy, involving a wide range of people of different ages. The highest percentage was observed among Italians with ages between ** and **, that is, the age group ...

2.2 Determinants of demand

Fan Attitude

The data shown in the graph below are the result of a survey of *,*** Italians. Fifty-two percent of respondents said they feel part of a community and experience a sense of belonging through cheering for soccer. This highlights the social role of soccer in creating bonds and connections among fans, creating a sense of shared identity and belonging to a group. Fifty-one percent said they want a more inclusive soccer environment that can involve all generations, promoting a positive experience for families who possibly want to enjoy games together. To end, soccer clubs as highly followed by Italians have an important economic as well as social role for Italy.

Attitude toward soccer among Italians Italy, ****, in percent Source: ****

The number of fans

La Gazzetta writes that ** percent of the Italian population cheers for a Serie A soccer team. In fact, the twenty Serie A teams, ****-****, have a total of ** million and *** thousand fans at the end of ****. Juventus, Milan and Inter together are worth ** percent of the Serie A fan base.

Comparing a **** survey published by Gazzetta with the most recent one conducted by StageUp and Ipsos, it is clear that Juventus FC has always been by far ...

3.1 Market structure

The soccer club market in Italy is composed of a variety of players who play key roles within the soccer industry. First, there are the clubs that represent the core of the market and participate in different competitions based on the sporting performance of each club. Second, there are the organizations, such as the soccer leagues that manage and regulate soccer competitions in Italy. They are responsible for organizing the calendar, playing rules, television rights, and other issues related to competitions. The Italian Footballers' Association (***) is, on the other hand, the governmental organization that oversees soccer in Italy. it is responsible for managing soccer at the national level, regulating competitions and monitoring clubs' adherence to rules and regulations.

Then there are the technical sponsors and commercial partners, with whom soccer clubs enter into sponsorship agreements and commercial partnerships. Partners can be sportswear companies, beverage brands, telecommunications companies, and others. These agreements provide revenue to clubs and enable them to finance their activities, including expenses for player purchases and facility management. Club revenues are also derived from fans who pay for sports matches, club merchandise, and television subscriptions.

As seen, the structure of the soccer club market in Italy is complex and ...

3.2 The soccer market

The soccer market is characterized by player disposals, purchases, and loans with exorbitant figures at times. In ****, for example, Juventus paid *** million for Cristiano Ronaldo's transfer to Serie A. Teams often acquire players through "free transfers." This is the case with Lionel Messi and Gianluigi Donnarumma, who were bought by PSG. This means that clubs did not spend anything on the transfer of these players because they were "free" in the market. Therefore, going back to the previous example, the former clubs of both players (***) did not receive any money from PSG for the players.

Looking at the top three clubs, in the graph below, in the ****/** season the only one with a positive balance just over * million euros is Juventus. The other two, Inter and Milan, spent more than what they got from the sale of its players. Specifically:

Juventus bought ** new players in the face of ** sold Inter bought as many as ** new players against ** disposed of AC Milan bought ** new players and ** disposed of

Soccer market figures: purchases and disposals Italy, ****/**, in millions of euros Source: ****

The graph below shows the transfer spending of Italian Serie A soccer teams from **** to ****. In ****, Serie A teams spent a total ...

3.3 The Series A

Serie A is the top division of professional soccer in Italy and one of the Big Five leagues in Europe. Serie A matches are played between August and May, with ** teams competing in ** matches to win the Scudetto, the highest accolade in Italian soccer.

Juventus FC dominates Serie A, and has the most titles in ****, with ** in total. Meanwhile, in the ****/** season, SSC Napoli won the Scudetto for the first time in ** years, bringing the club's total number of titles to three.

Club with the most titles in Serie A Italy, ****, in absolute value Source: ****

Players

As of March ****, Victor Osimhen of SSC Napoli was the most valuable player in Serie A, with an estimated transfer value of *** million euros. Osimhen scored more than ** goals in the ****/** season, helping Napoli win its third Scudetto. Lautaro Martínez is the second player with the highest market value of €** million.

Player salaries

During the ****/** football season, Juventus offers the highest average annual salary among all Serie A teams, averaging about *.** million euros. They are followed by Inter and Roma, who pay their players an average of *.** million euros and *.* million euros per year, respectively.

Average annual salary of Serie A players Italy, ****/** season, ...

3.4

4.1 Supply analysis

Women's soccer

Women's professional soccer is at the beginning of its journey, that is, at that stage where clubs are still making losses and investments are not sufficient. In fact, The vast majority of the clubs analyzed by Deloitte reported a loss in ****/**. The factors for success in women's soccer will be to establish planned business strategies, detail the value they are seeking from partnerships in women's soccer, and the people responsible. Another important factor is for clubs to demonstrate to partners the value women's teams, i.e., that they in turn are able to increase spectator engagement and have a larger fan base than imagined[***].

In Italy, FIGC, the relevant body, makes it known that:

Interest in Serie A Femminile TIM increased between **** and ****, from ** percent to ** percent of the over-** population and from ** percent to ** percent of the cluster of those interested in soccer, compared to a European average of ** percent and ** percent, respectively. In ****, **% of fans of a men's soccer team say they also follow their club's women's team. In the ****/** sports season, TV rights increased in terms of audience reaching an average audience of ***,*** viewers and a share of *.**%. Thus, a **% increase in TV rights revenue was ...

4.2 The prices

Season tickets

For the upcoming Serie A season, clubs have presented their season ticket prices. Milan set prices so that in the curves season tickets range from €*** to €*** depending on the ring of the stadium, instead, for the grandstand €*,***. Inter set prices for the curves from €*** for the third tier to €*** for the first tier, for the central third tier at €***, and for the central red seat at €*,***. Juventus has put the central grandstand on sale from *,***€ to *,***€, for the curves from ***€ to ***€.

The clubs with the highest listings are those of Atalanta and Lazio. Atlanta's new U.S. ownership has opted for a price list for the Curva Sud Morosini at €***, while to watch the upcoming Serie A matches from the Zerazzurri grandstand will take about €*,***. The Curva Nord Pisani, on the other hand, will be sold at *** euros. The biancocelestri have decided to offer the North Curve and Districts at *** euros, the Monte Mario stand will be sold between *** and *** euros (***), and the tribuna d'onore will instead be on sale at *,*** euros.

Serie A season ticket prices by club Italy, ****/**, in euros Source: ****

Costs for technical partners

Clubs' contracts in Serie A range from €* million to Juventus' €** million, by ...

4.3 Operating costs

Taking Juventus' annual report as an example, it is possible to observe the operating cost items that the company and others incur to operate in the market, with different figures among the companies.

Source: ****

Juventus' operating costs Italy, ****-****, in millions of euros Source: ****

5.1 Current regulations

At the international level, theInternational Football Association Board sets the rules of the game of soccer each year. These rules must be adhered to by all FIFA-recognized teams, which then participate in a FIFA or UEFA competition.

The latest document published by the IFAB (***) updates the old regulations from ****/****. In fact, important new issues are addressed:

Release of substitutions allowed during a match and during extra time Regulation of video-assisted refereeing More fluid play is encouraged at goal kicks, where it is no longer necessary to wait for the ball to leave the penalty area before playing it At free kicks, attacking players are no longer allowed to stand in the defensive wall to disturb the opponent (***)

Nationwide, there is only one law that regulates professional sports, namely Law No. ** of March **, ****, on "Norms concerning relations between companies and professional sportsmen." The law is divided into four chapters and stipulates, among other things, who can be defined as a professional sportsman. In fact, Article * states that "professional sportsmen and women are athletes, coaches, technical-sports directors and athletic trainers who engage in sports activities for remuneration on a continuous basis within the framework of the disciplines regulated by CONI and who obtain ...

6.1 Segmentation

• Nike
• Puma
• Macron
• SSC Napoli
• Inter Quadra
• ACM Milan
• Juventus