Football club finances - Part 2 - On InsideIIM's Knowledge Cafe
Revenues In the last post, a comparison of Real Madrid’s revenues with corporate giants made club football look like a cottage industry. However, we hadn't looked at Revenue per employee and now that we have the data, we find that the big clubs do redeem themselves. In revenues per employee, the comparison with Apple is misleading and should be omitted. This is because Apple, in its operations, behaves like a design company– they design ipads whose components are actually manufactured by ARM, Samsung etc. and assembled by Foxconn in China. The people in the Chinese sweatshops aren’t being counted as employees of Apple, but their contribution is being reflected in Apple’s revenues. The revenue per employee, is therefore, artificially inflated.
