As a great soccer fan that I am, I have decided to write this paper about one of the most prestigious clubs in not only Europe but in the world, the FC Bayern Munich. FC Bayern, like every sports institution that moves millions of dollars has a financial challenge; its case is with its broadcasting rights. When compared to the other giants in this sport, the Bayern Munich does not generate what a team of its magnitude should due to the limitations that its league has, in which even the smallest hierarchy in the English league receives more money for television rights than them. They have made numerous advances and partnerships to improve this disadvantage, and they have new leadership with the German legend Karl-Heinz Rummenigge as their president.
The German club is one of the best football clubs and brands in the world, with twenty-nine German League championships, six-time European champion (five times UEFA Champions League, one time UEFA Europa League), and winner of the FIFA Club World Cup. Its success on the field has helped it become one of the only organizations operating above the break-even point for over 25 years and ranked fifth on Forbes’ list of the world’s most valuable soccer teams in 2019. ‘ Real Madrid is followed by rival Barcelona ($ 4 billion), Manchester United ($ 3.8 billion), Bayern Munich ($ 3 billion), and Manchester City ($ 2.69 billion)’ (Ozanian, 2019). Some of the successes of the team can be attributed to their loyal fan base. Season tickets are some of the lowest in the industry, as fans can buy regular-season passes for less than $ 200.
The property truly believes that the roots of football are the fans and their support for the team. FC Bayern did not do a good job when pay television was established in the early 2000s. The German League and FC Bayern made a wrong decision, and the English Premier League television revenue is much higher; in fact, as far as financial and institutional organization is concerned, the English Premier League is the cream of the cake. ‘As a result, Liverpool, despite finishing second, received £ 149.5 million (€ 172.6 million) in television revenue, more than double what Bayern earned this year.’ (Vert, 2019) The English also has an advance due to its open market system with very little financial supervision by the management of the league.
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FC Bayern has done a great job building its brand with numerous partnerships. “FC Bayern Munich positioned itself, once again, as one of the most forward-thinking teams in sports, announcing an international content-sharing agreement with ESPN” (Hartwell, 2018). The Club has also opened offices in Mainland China and New York. They are working with the Chinese Football Association to improve the programs. FC Bayern has increased its number of friendly matches in Asia to help increase its fan base. They have opened an office in New York City with merchandising deals, support from MLS teams, and a growing audience across the United States. Under the leadership of Karl-Heinz Rummenigge, the club has been able to maintain a faithful sponsor and secure strong support from German companies. The club has six consecutive Bundesliga championships, which has never been done. Mr. Rummenigge has managed to grow the club’s brand by more than $ 1 billion during his leadership.
FC Bayern Munich faces some challenges with its low television earnings. But thanks to his new leadership, the club has managed to become one of the strongest brands in the world. Its success on the field, the support of the local fan base, the growing worldwide audience, the opening of offices and training facilities in Asia, USA, have made FC Bayern Munich extremely successful in the sports franchise industry.
