Fan base as a basis for calculating club revenue
The more well known and successful a club is, the greater its fan base
which is formed from potential fans as well as die hard fans.
The fans generate the income for your team, by filling up your stadium for
home games, tuning in to your teams game on TV and buy your teams fan merchandise.
Fans also help indirectly by raising awareness and passion with the help
of the clubs to attract products and services of partners that act as sponsors
to fill up numerous advertising areas.
A clubs fan base is an important indicator when calculating the clubs revenue.
The higher the fan base value, the higher the potential club revenue.
Calculation of the fan base
The calculation of the fan base is based on three factors, the success
of the club in various competitions, the success of the club‘s national
association on an international level and a time component that is weighted.
A clubs fan base reflects the current success of a club as well as its
success in the previous 4 seasons. Success in the league championship
forms the basis of calculating the fan base, which is further complemented
by successes in the national cup, league cup and international competitions.
Success is not the only deciding factor on the size of a club‘s fan base.
The teams country of origin is also important. Winning the championship in
a very strong league, for example, is not the same as winning the title
in a moderately competitive league.
These facts are accommodated for the by the consideration of the strength
of the national association. This strength is again measured by the success
of clubs in the international competitions and is represented by the 5 year
performance evaluation. With a certain combination the country coefficient
is formed which is necessary for the calculation of the fan base.
Previous club success can fade over time, therefore the fan base value
in each respective season is weighted differently.
The further in the past respective season is, the lower its influence
on the overall fan base is.
Value Range of Fan base Factors I: League
A club‘s success in a the league is the foundation for its fan base points.
The table leader (during the season in progress) or champions (at the end of the season)
of a country‘s first league gets 200 fan base points.
This value drops by one point for every descending position, meaning the
team in second place will receive 199 points, the team in 3rd place 198 points
and so on. Teams in last position in the league receives 183 and the
team on top of the league below will get 182 fan base points.
The success of a club in other competitions supplements the value
achieved in the league championship.
Value Range of Fan base Factors II: National Cup
For reaching the 1st, 2nd, 3rd and last sixteen round: One point for each round
For reaching the quarter and semi finals: Two points
For reaching the final: Three points
For winning the final: Four points
The winner of the national cup collects 15 points in total towards their fan base ranking.
Value Range of Fan base Factors III: League Cup
One point is awarded for reaching the quarter and semi finals as well as the final.
The winner of the League cup collects 4 points in total towards their fan base ranking.
Value Range of Fan base Factors IV: Champions League and Copa Libertadores
Participation in the group phase and the last sixteen: Two points each
Reaching the quarter finals: Three points
Reaching the semi finals: Four points
Reaching the final: six points
Winning the final: Ten points
The winner of the competition collects 27 points in total towards their fan base ranking.
Value Range of Fan base Factors V: Europa League and America League
Participation in the 1st, 2nd (group stage) and 3rd round: One point each
For reaching the last sixteen and quarter final: Two points each
For reaching the semi final: Three points
For reaching the final: Four points
For winning the final: Six points
The winner of the competition collects 20 points in total towards their fan base ranking.
The calculation of the country coefficients is based on the final standings
at end the of each season in international competition over the past 5 years.
It should be noted in this context, that it is not the point level
of each individual season that is decisive, but the points level
achieved over the 5 seasons at the end of the current or respective season.
Value Range of Country Coefficients
The higher a country or rather its national association is in the 5 year
performance ratings, the closer its coefficient value is to the maximum
value of 1000 points. The lower a country is in the 5 year performance ratings,
the closer its coefficient value is to the minimum mark of
0.225 points (0.250 in the American confederation).
The country coefficient has a far reaching impact on the fan base points.
In concrete terms, for example, a coefficient of 0.500 for all clubs in a country:
the base points (from the league and cup competitions) are halved
(or rather multiplied by 0.500) . A coefficient of 1.000 on the other
hand does not reduce the base points (as they are multiplied by 1).
Areas of application of the Fan base values
The fan base value affects the main sources of a club‘s income:
the contracts offered by sponsors, ticket sales for home games,
sales of fan merchandise sales and revenue from the sale of television rights.
The country coefficient has a direct effect on the value of bonuses
and on the revenue from television income of international competitions.
The higher the fan base value, the higher is the potential revenue
that can be obtained from these areas.