Premier League, LaLiga, Bundesliga... and the "successful product"

Four for four finalists in Europe ...and the champion (Manchester City) is not even among them. The Premier League has done it. What we anticipated three seasons ago when the English league broke the TV rights market by tripling the annual revenue figure (over 3,000 million), has materialized (never better), and even in a more resounding manner than the expected. With figures that are able to mark the differences on the pitch.

They are selling an unbeatable product for years: success. Sold-out Stadiums, that catch you in front of the TV (or laptop, tablet, mobile ...) and everyone would love attending one of the matches that they host. It does not matter, if it is one of the teams in the bottom of the leaderboard. The fans are lured by that atmosphere of electrifying passion, that show their stadiums packed of fans, beyond the team performance in the field. That is their product. And from there they make cash (TV rights, sponsors, commercial), further to the direct income generated in the venue.

The football is great, huge ... because sometimes a kind of Leicester appears, or comes out a "Gran Reserva" vintage of Ajax, and stage through the fields the rebellion of David vs Goliath that makes us all fall in love. Or a post, a penalty, or a goal almost out of time ... But if you take ten seasons in a row, the average suggests that the income will lead you to the sporting results. And Premier League has proven it again.

LaLiga. Major challenge ahead. We have "lived" off, in large part, of Cristiano and Messi in terms of assessing our broadcasting rights, for many years. With the first one already in Calcio, and the second (32 years old on 24/6) in the last leg of his career, the substitutes that can cover the loss of media impact are not seen around the corner. And those who could become one of them, it seems that they no longer sigh so clearly for our clubs. Either because they will have more income in the Premier and in some more teams like PSG and Juventus, either because they guess that in the future they will not have "guaranteed" to win the titles playing in a LaLiga side, because they will not be so wrapped up by other top players in the squad.

Some tools are being implemented with success, that strengthen the brand in order to mitigate the impact of the loss of talent (part of the model that ran the Premier for many years with great success). But on the other hand, in the essence of the product, there is a lot of opportunity for improvement and development, to have chances to close the gap with the English league. Likely by approaching it with different methods, and prioritizing some measures over others.

There have been definitely, great achivements such as overtaking the Bundesliga in TV rights revenues. Although we cannot ignore that by the projection of the language and the historical affinity Spanish football has wider global opportunities in this field, even with the existing difference in population in both national markets. But there are also two data particularly for thought, from German league, from which we can draw useful conclusions: the matchday income and commercial income ratios (2016/17).

They reached 504 mill € in matchday, for 544 mill generated by LaLiga. On this data we have to take into account that there are 36 fewer matches in the Bundesliga, and that due to the share ownership 50+1 rule (and as a market strategy), there is a commitment in order that ticketing prices may be over 30% more affordable than in LaLiga and Premier League.

The result of this strategy setting up more affordable ticket prices, is crowded stadiums (quality stadiums with excellent proposals on fan experience, as comfort, access, food and beverage...) generating more income by other concepts beyond ticketing, related to matchday, which give them that revenues of 504 mill €...and also revenues in sponsors and commercial business lines (brands interested in being associated with a product that projects success, passion, commitment, stability...) of 1,329 mill €, for just 826 mill on the part of LaLiga for these chapters.

The impact of the "successful product" (crowded stadium), rather than waiting to see if the product is successful, is key in the Bundesliga revenue cake.

If we also consider that the ratio of wages vs revenues, is the lowest of the Big Five, the importance of the product that project success is even higher. In other words, even with the lowest cost on players within five strongest leagues (what means less talent on the pitch) they remain in the fight to achieve the second position in income level. An outstanding outcome of their strategy.

Finally, 17 out of the 18 clubs were profitable at the end of the last season, ratio that remains almost unchanged in recent years. Without a doubt, the sustainable model by excellence.

Their unfinished business, the lack of European trophies. Bundesliga had four finalists in Champions League, with only one title, and no news in the Europa League in the last decade, what it seems a short score so far. But I insist, we will have to see in the near future, after the Messi/Cristiano era, which grade we will achieve in that subject.