Posted by Felipe Tomasi
Some factors that contributed to the highest English professional football league become the most rentable football league in the world.
The Premier League was first established in 1992-1993, replacing the former Football League First Division. The reason was that the English clubs wanted to break away from The Football League, which was originally founded in 1888, and take advantage of a lucrative television rights deal. Therefore, the 20 clubs that compete in the league own the championship, acting as a corporation, In which each club acts as a shareholder.
The newly established championship would have commercial independence from the Football Association and the Football League, giving the clubs independent license to negotiate its own broadcast and sponsorship agreements. A reason that gave significant boost to sponsor players, to transfer fees and multimillion deals.
The Premier League has the highest revenue in the world. The reasons for this includes sponsorships, including Carlin brands, the multinational bank Barclays (which is nowadays the main sponsor of the championship), sports brands such as Nike (which sponsors the balls used in the pitches) and Adidas, broadcaster revenues such as Sky Sports, BSkyB, ESPN and BBC Sports, shirt sponsors such as AON, Emirates, Standard Chartered and Etihad Airways and other sponsors such as Budweiser, Samsung, EA Sports and Tombola.
Manchester United shirt with Nike and AON sponsors
Some of the clubs are owned by multimillionaires, who spend high investments on them. Some of these people include Glazer's family at Manchester United, billionaire Roman Abramovich at Chelsea and Sheikh Mansour at Manchester City.
Also, the three most successful clubs from 1992 to 2012, Manchester United, Arsenal and Chelsea (with 18 from 20 trophies between the three), are at the top of the most valuable sports teams. As of April 2012, Manchester United is number one in Forbes magazine’s annual ranking of the world’s 10 most valuable sports teams, with an estimation value at £1.4 billion, while Arsenal is ranked 4th (£807 million) and Chelsea 7th (£760 million). These clubs succeeded in producing star players that acted in merchandising and thus enhanced their revenues. Some of the players include David Beckham, Thierry Henry and Didier Drogba.
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