Viewpoint: Champions League £15M boost to Mersey economy

Kieran Maguire is an Economics, Finance and Accounting Lecturer in the University of Liverpool’s Management School

“The results at the weekend for both Liverpool and Everton have fans salivating at the prospect of winning the Barclays Premier League for the Reds and Champions League football for both. The impact on the finances at each club will also be exciting the money men.

“Last season Everton had total income of £86 million, and the new Sky TV deal that kicked in this season will give them at least another £15 million. However if they manage to secure Champions League football then a further £25 million is the minimum they can expect just from TV money, and that’s just for the group games.

Rewards

“Winning the Champions League is worth double that sum. If Everton have clauses with sponsors that give them bonuses for Champions League qualification then the rewards will be even higher.

“Roberto Martinez, whose astute management in the transfer market has brought in a net £14 million this season, will have a sizeable transfer kitty available to him to boost the squad too.

”With all eyes at Anfield focussed on the massive match against title rivals Manchester City next weekend, the money men will also be rubbing their hands if Steven Gerrard gets to lift the trophy. Premier League TV and prize money will be nearly £100 million this season to the winners, and on top of that there will be the Champions League benefits as detailed above.

“Last season Liverpool had total revenue of £206 million, but the club will be able to negotiate substantial increases with commercial partners if they can add Champions League exposure to those who want to be associated with the club.

“If both clubs can maintain their Champions League status then the rewards in 2015/16 will be even higher, as BT Sport have secured the exclusive rights to European football from that season and Champions League qualifications will be worth a minimum of £40 million a year.

“It’s not just the clubs themselves that will benefit. Potential matches against high profile opposition such as Real Madrid, Barcelona and Bayern Munich, and the fans that they will bring, along with the increased international media profile, will have a positive impact on the city’s profile.

£15m boost

“A recent study indicated that the average overseas football fan spends £776 when watching their team play overseas, which is great for the airport, hoteliers, bar owners, taxi drivers and restaurants.

“Each home match is potentially worth up to £2.5 million to the city economy, which means that there could be a £15 million boost to the local economy if both clubs qualify for the group stages of the Champions League, and far more if they progress further.”