KPMG- Football Benchmark- 10 October 2016 Media and industry stakeholders invariably refer to the so-called “big five” leagues - namely England, Germany, Spain, Italy and France - when discussing the overall trends and growth trajectory of European football. Undoubtedly, these countries are some of the most highly populated and wealthiest in Europe and also include a high percentage of the elite bracket of football clubs.

However, Europe also includes less visible, but certainly important, markets with clubs that have significant histories and the backing of passionate supporters.

In this article, the KPMG Football Benchmark team analyses some of the characteristics of a selection of leagues outside of the “big five”: the Süper Lig (Turkey), the Eredivisie (The Netherlands), the Primeira Liga (Portugal) and the Ekstraklasa (Poland)[1].

Broadcasting

The scope of the domestic broadcasting market is considered a key factor when assessing the prominence and relevance of a league. Among those reviewed in this article, Turkey currently seems to enjoy the most lucrative deal with a reported EUR 360 million per year over the 2015-16 – 2016-17 seasons. Whilst the Süper Lig’s deal is below the French Ligue 1, which at EUR 727 million a year is the lowest among the “big five”, Turkey’s large population (78 million inhabitants) and growing economy, seem to indicate an upside potential for the league in the long-term.

With approximately 38 million inhabitants, another sizeable country in terms of population is Poland. The Polish Ekstraklasa, still at an early development stage, reportedly secured a EUR 34 million per year deal until the 2018-19 season. Although figures appear low compared to the sample, the league has shown some encouraging signs as it is trying to develop a more international profile, with Polish matches being broadcasted in more than 40 countries worldwide.

The Netherlands, according to media reports, signed a 12-year, EUR 960 million agreement up to 2024-25 season, equating to approximately EUR 80 million per year. These numbers, again, seem modest when benchmarked against bigger leagues, and give some indication of how the country that gave birth to “total football”, winning six UEFA Champions League titles with AFC Ajax, Feyenoord Rotterdam and PSV Eindhoven (the last one in 1995), faces difficulties in keeping pace with the “big five”.

By contrast, broadcasting rights in Portugal are still sold on a club-by-club basis rather than collectively. Since this system benefits teams with larger fan bases, unsurprisingly, SL Benfica, FC Porto and Sporting Clube de Portugal – who account for more than 60% of total Portuguese attendances - record the highest domestic agreements, each earning in excess of EUR 40 million per season. As a result, this liberal market approach arguably decreases the competitiveness of the league and widens the gap between big and small clubs.

Stadia

The attractiveness of a competition can also be measured by its ability to attract spectators to matches. Supporters not only create a vibrant atmosphere at the stadium, they also contribute to club finances through ticket sales and other forms of discretionary spending. Furthermore, the level of fan engagement can be broadened if clubs provide adequate facilities that improve the matchday experience.

Although the wealthiest in terms of TV revenues, the Turkish Süper Lig recorded the lowest average attendance and stadium utilisation at the end of the 2015-16 season, also hampered by the resistance of some fans to its controversial ticketing system. Indeed, crowds in the country’s top division have almost halved in a decade to the current level of around 8,500 per game.

Polish Ekstraklasa, despite its large pool of potential fans, is the second lowest in terms of attendance. In addition, the utilisation rate is also low as many of the venues rebuilt for the 2012 European Championships struggle to be filled on a weekly basis. However, it should be noted that in the 2015-16 season the Polish top tier recorded a healthy 9% increase, a sign of the recent growth of the competition.

Despite having similar capacity, Portuguese Primeira Liga attendance and stadium utilisation  are marginally better than Poland.

On the other hand, the Dutch Eredivise stands well on top of the four leagues taken into consideration. Averaging approximately 20,000 spectators and an 88% utilisation rate, a figure that exceeds the “big five”, it should be noted that AFC Ajax and Feyenoord Rotterdam aside, Dutch football stadiums are smaller by comparison. Nevertheless, the Netherlands shows that being a relatively small country (population approximately 17 million, higher than Portugal’s 11 million) does not necessarily mean recording low stadium attendance.

It is also interesting to highlight how the four countries fare when benchmarked against the “big five”. This does reveal the gulf between the two groups and asserts the average attendance across the “big five” is 57% higher than Eredivisie, the best performing league outside the European elite. In addition to having larger stadiums and a stronger market position overall, most clubs from these leagues enjoy state-of-the-art facilities that offer a unique matchday experience to their fans.

This analysis highlights the different challenges that these two peer groups face. Whilst the European football elite countries seek international expansion and top sponsorship deals, both at a global and a national level, non-“big five” leagues face significant challenges to maximize their domestic broadcasting revenues, due to their countries’ small population size or yet emerging economies. Furthermore, another significant challenge is to attract local fans, who often prefer to watch, and sometimes even attend, matches played in the “big five” leagues, rather than those played in their own countries.

Further investigation into this and related topics, as well as analysis of industry data, can be undertaken for you by KPMG’s Sports Practice. Our subject matter experts can also assist stakeholders in assessing and interpreting the potential impact on their organizations of any particular piece of research, identifying the underlying reasons behind specific trends or developing potential solutions and considering future scenarios.

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