00:00 I think if you look at the comparatives in respect of the capacity of the stadiums,
00:04 the Real Madrid have invested significant sums in their stadium. They've got far greater capacity
00:11 than Manchester City and I think they're probably more of a global brand and Madrid itself is more
00:17 of a global city than Manchester. So you put those factors together and that gave Real Madrid an
00:22 advantage in terms of ticket sales. Manchester City's ticket prices are very modest by world
00:29 standards for the elite clubs so they're only generating around about 70-75 million dollars
00:35 which is around about half of what Real Madrid are getting. If you then look at the things from a
00:40 broadcasting point of view, Manchester City did slightly better than Real Madrid on the back of
00:47 its success in winning tournaments and in terms of commercial deals, again Real Madrid has a legacy
00:54 benefit due to its success over many decades whereas Manchester City is very much the new kid
01:01 on the block. Well given that you're based in the University of Liverpool this might be a slightly
01:05 controversial question but looking at Liverpool on the pitch, it had a poor season didn't it really
01:10 and dropped two in terms of revenue. What effect does performance have on the amount of money a
01:15 club makes? Well if we take a look at the Premier League itself, each individual position in the
01:24 Premier League is worth an extra three million dollars so therefore by falling from say sixth
01:29 from second to seventh or second and so on that's a difference of around about 15 million dollars.
01:36 If you get to cup finals then you will get bonuses from your sponsors, you will also have
01:43 significantly higher prize money and that's very much geared to UEFA's senior competitions as well
01:50 where the Champions League is worth around about four times as much as the second competition,
01:56 the Europa League, which itself is worth two and a half times the third competition,
02:00 the Europa Conference. So getting into one of those elite four places in the Champions League
02:06 is absolutely critical if you want to maximise revenues. Leaving individual clubs to one side,
02:12 overall football clubs are making more money though aren't they? What's behind that growth?
02:17 Well football continues to be the most popular sport and the Premier League itself is the most
02:26 popular league closely followed by the Champions League so we are seeing broadcasters, especially
02:33 I think international broadcasters, willing to pay higher sums on a regular basis for those rights
02:40 because they notice that the one thing that stops consumers and subscribers cutting the cord
02:47 is access to not just sport but live sport. Most products these days from a broadcast medium
02:54 perspective are streamed so if you want to get those ABC1s, especially the under 35s,
03:01 they tend to watch a lot of sport, they tend to spend money in certain areas which are attractive
03:06 to broadcasters and certain industrial companies and therefore those two things are linked.
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