In recent years, Arsenal Football Club has been consistently growing its revenue, thanks to a strong focus on key performance indicators (KPIs) that are driving their business growth. Understanding these KPIs is crucial for any business looking to achieve similar success. Through this article, we will explore the KPIs that are critical to Arsenal’s success and how they drive continued business growth.
KPI 1: Matchday Revenue
Matchday revenue is a crucial KPI for any football club. It includes the revenue generated through ticket sales, hospitality packages, and stadium tours. Arsenal has consistently ranked in the top five clubs in Europe for matchday revenue, which was €111m in 2019-2020.
Arsenal’s focus on matchday revenue comes from their state-of-the-art stadium, the Emirates Stadium. The club has invested heavily in the infrastructure of the stadium and has made it one of the most iconic in Europe. This investment has resulted in a significant increase in matchday revenue for the club.
KPI 2: Commercial Revenue
Commercial revenue is the income generated through sponsorships, merchandising, and corporate hospitality. Arsenal has always been a popular name in the world of football, and the club has leveraged this popularity to drive its commercial revenue. In 2019-2020, the club generated €169m in commercial revenue.
One of the reasons for Arsenal’s thriving commercial revenue is their sponsorship deals. The club has partnered with global brands such as Emirates, Adidas, and Visit Rwanda. Arsenal has also received global recognition for their online merchandise store, which offers fans a vast range of team merchandise.
KPI 3: Broadcasting Revenue
Broadcasting revenue is the income generated through media rights, and it’s an essential source of income for football clubs. Broadcasting revenues aren’t straightforward – in general, the more successful a team is in competitions like the Premier League and Champions League, the more broadcasting revenue they earn.
For Arsenal, this means performing well on the pitch, which hasn’t been easy in the last few years. Still, the club has managed to earn €177m in broadcasting revenue in 2019-2020. The club’s strong fan following and global outreach have also helped to increase broadcasting revenue.
Conclusion:
Overall, Arsenal’s focus on key performance indicators has been integral to their continued business growth. By focusing on matchday revenue, commercial revenue, and broadcasting revenue, Arsenal has managed to create a solid stream of income that continues to grow year on year. To achieve such success, businesses must learn to identify the KPIs that matter and focus their attention on improving them to drive business growth. By understanding how KPIs influence revenue streams and the bigger picture, businesses can create a roadmap for their long-term success.
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