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Sports & Money

A digital exhibition by the Swiss Finance Museum about the financial aspect of physical exercise

1.7% 1.7%
Professional and amateur sports in Switzerland contributes 1.7% to gross domestic product (GDP) and 2.4% to total employment.
11.4 BN CHF 11.4 BN CHF
In 2017, the Swiss sports industry generates CHF 11.4 billion gross value added (GVA) and thus a total employment volume of 97.900 full-time equivalent jobs (FTE). Therefore, sports contributes 1.7% to the gross domestic product (GDP) and 2.4% to total employment in Switzerland.

Podcast: "Sports Industry Switzerland"

In this podcast episode in German, we talk to Oliver Hoff, Business Unit Manager at Ernst, Basler and Partners EBP. He has been systematically surveying the financial importance of sport in Switzerland for several years now in the study Sportwirtschaft Schweiz (Swiss Sports Industry) and gives us an insight into it.

Listen to the episode

The Swiss Finance Museum podcast series highlights episodic economic topics. Listen to our podcast on Spotify or Apple.

Formula 1

Formula 1

The first documented car race took place in France in 1894, the route ran over 124 km from Paris to Rouen. However, the race is not only about speed but also reliability: only 17 of the 21 participating vehicles reach the finish line. Over the years, various international competitions have developed, whose different regulations for engine and car are also known as “ formulas”. Formula 1 is considered the royal class of sport, its first season was in 1950. 

Price money

The Formula 1 prize money is administered by Formula One Management Ltd. (FOM), which coordinates and exercises the commercial marketing rights of the racing league. FOM’s income consists of racing fees, T V broadcasting rights, perimeter advertising and much more. The prize money in Formula 1 is distributed according to a complicated breakdown. The winner of the World Championship does not automatically receive the highest sums, even though the ranking is of course very important. 

What the box costs

Tennis

The word tennis stems from the French tenez (“ keep”). The sport has its origins in medieval monasteries in France. “Jeu de Paume”, developed from a racket game, f lourished in French and English ball houses of the 16th and 17th centuries, and was popular with the aristocracy and bourgeoisie. In the 1870s, modern grass tennis was invented in Great Britain and initially spread throughout Europe, the USA and the former British colonies. 

20M USD 20M USD
Sponsoring Deal from JP Morgan Chase at US Open

Grand Slam Sponsoring-Deals 2019:

  1. JP Morgan Chase at the US Open (USD 20M)
  2. BNP Paribas at the French Open (USD 17.5M)
  3. Emirates at the US Open (USD 17M)
  4. Kia Motors at the Australian Open (USD 14.1M)
  5. Luzhou Laojiao at the Australian Open (USD 14.1M)
  6. Rolex at Wimbledon (USD 12.3M)
  7. Oppo at Wimbledon (USD 11M)
  8. American Express at the US Open (USD 10M)
  9. Mercedes-Benz at the US Open (USD 10M)
  10. Rolex at the US Open (GBP 10M)

The costs

Education costs

According to the British Tennis Federation, over CHF 300.000 must be invested in a tennis talent from the pre-school period until becoming an adult.

Travel expenses

 In 2014, Swiss Tennis calculated the travel costs that a player has to pay every season for travel expenses (flights) and other expenses required: CHF 150.000. Not a big deal for the 10 best players in the world – but it is for those who do not have attractive sponsorship deals or do not win Grand Slam tournaments

Staff costs

The annual costs are over CHF 200.000 if a coach and physiotherapist are to be added – a must if you are among the top 50

Tennis school

A tennis boarding school costs up to CHF 50.000 per year

Payback contracts

CHF 6.500 is paid for a tournament victory on the Challenger Tour – the “lower level” of ATP tournaments. A drop out in the first round is compensated with CHF 500. Swiss Tennis supports young talents with infrastructure, coaches and payment of travel expenses, but payback contracts are signed; players have to repay part of the subsidies if they make it to the top

Soccer

England

England is considered the home of soccer. Already in the 15th century the game is played between two villages. The aim is to get the ball into the opponent's city gate. From 1863 onwards, fixed rules were introduced: kicking opponents, catching and carrying the ball by hand were forbidden. This leads to the spinoff of the game rugby, with its oval ball. 

Switzerland

From the 1860s onwards, soccer is played at private schools in the French-speaking part of Switzerland – by English pupils. In April 1879, the first Swiss soccer club, FC St. Gallen, is founded, which is now the oldest club on the European mainland

Soccer clubs and their shareholders

Soccer clubs can choose from various legal forms for their organizational structure. Among others, there are registered associations, limited liability companies and also joint stock companies. Some soccer clubs are listed on the stock exchange. The portion of their shares that is available in the so-called free float is also open to private individuals for trading. However, none of the Swiss soccer clubs are listed on the stock exchange.

Football clubs as public limited companies: Ajax Amsterdam, Borussia Dortmund and Manchester United

Fussball und TV - Untrennbar

Soccer and TV are inseparable today.  The very first live broadcast takes place in England: in October 1946, the BBC broadcasts the match between the London clubs Barnet FC and Wealdstone FC. In Switzerland, the international match between Switzerland and Germany (5:3) is broadcast live for the first time on April 25, 1954, as a dress rehearsal for the upcoming World Cup in Bern. Today, a flourishing business model has developed from TV broadcasts. The national leagues sell the rights to the matches, UEFA (Union of European Football Associations) and FIFA (Fédération Internationale de Football Association) those to the international competitions. Depending on the country and league, these are sold directly to the TV stations or to so-called marketing agencies. The revenues are then largely paid out to the soccer clubs according to a key

Equestrian sports

Horses have accompanied mankind for over 6.000 years: as workers, a means of transport, partners in the war. In the last 100 years, the horse has transformed from a farm animal into a leisure and sports companion for humans. In 1900, the first equestrian tournament in Switzerland was held in Yverdon, and the first riding association was formed in the same year. Many disciplines have developed in equestrian sports, the most prominent of which are certainly horse racing, as well as show jumping and dressage.

Equestrian sport in Switzerland

From Underdog to record holder

At the 2010 spring auction for racehorses, nobody wanted to make the minimum bid of EUR 9.000 for the mare Danedream – she looked sleepy and bored. Trainer Peter Schiergen persuades the owner of the racing stable, Helmut Volz, to buy the mare. Within a short time she turns into a wonder horse: in 2011 she wins the renowned race Qatar Prix de l’Arc de Triomphe as an outsider, and sets a record that is still unbroken today. Further international victories follow. In 2012 the little mare retires as a four-year-old, and goes down in history as the German race horse who won most races ever.

60 Km/h 60 Km/h
Average speed
2'24"49 2'24"49
Track record in Paris for 1.5 miles in 2’24’’49
3.6BN EUR 3.6BN EUR
profit in 4 years

Ski

“Ski” is Norwegian and means “log, split wood.” Already in the 18th century, the Norwegian army had skiing units, and the sport started to become a leisure activity. Around 1850, the first races took place. By the turn of the century, the Alps also became the scene of the ski boom, and the first associations were founded. After World War I, tourists began traveling by train to Switzerland to ski, and the first ski schools were opened.

Dynamic prices for ski tickets

From 2017 to 2020, the number of ski resorts offering dynamic prices has tripled. Ski resort operators hope for a 5 to 10% increase in sales. Prices mainly depend on the weather and booking time.

For example: St. Moritz, ski season 2018/2019:

45 CHF 45 CHF
Cheapest day pass
105 CHF 105 CHF
Most expensive day pass

Ski resorts that offered dynamic prices in 2019. Some have abandoned this, e.g. Andermatt / Sedrun

Book «Sports & Money»

The exclusive book “Sports & Money” accompanying the exhibition of the same name with even more exciting facts about the financial side of physical activity.

Available at the Finance Museum for CHF 5 on site or by post plus postage.

Texts in German and English.

Video of the former Sports & Money exhibition

Sports-related securities

Les Tennis de Duinbergen, Share from 1930, Source: Stiftung Sammlung historischer Wertpapiere

Les Tennis de Duinbergen, Share from 1930, Source: Stiftung Sammlung historischer Wertpapiere

Les Tennis de Duinbergen

Construction of a new seaside resort began just over 120 years ago in the dunes between Knokke and Heist on the Belgian coast. By 1905, Duinbergen already has three hotels and more than 50 villas spread across the dunes. British tourists, who enjoy the Belgian coast and its fresh sea air, bring their recreational pursuits with them. Belgians and other wealthy Europeans follow. To keep them entertained, Belgium invests in sports facilities including riding schools, tennis courts and golf courses.

The “Les Tennis de Duinbergen” club is founded on June 26, 1930. The company leases the tennis courts from the state. Today, Duinbergen is a well-known seaside resort and, in contrast to the lively Heist holiday resort, is an oasis of calm with a large number of characteristic villas and few stores. There are still tennis courts, and the eponymous association Tennisclub Duinbergen also still exists.

Ski- und Sessellift Hahnenmoos AG Adelboden, Share from 1986, Source: Stiftung Sammlung historischer Wertpapiere

Ski- und Sessellift Hahnenmoos AG Adelboden, Share from 1986, Source: Stiftung Sammlung historischer Wertpapiere

Ski- und Sessellift Hahnenmoos AG Adelboden

The Hahnenmoos Pass is located in the Adelboden-Lenk ski area. It forms a direct link between the two municipalities and has been in use since ancient times. The first hostel on the pass is built in 1905 and expanded in 1928. From as early as 1935/1936, a “toboggan lift” runs up to the mountain lodge. Ski- und Sessellift Hahnenmoos AG is entered in the commercial register on 14 September 1954, and the toboggan lift is replaced by a two-seater chairlift. In 1974, this gives way to the first fully automated gondola in Switzerland.

On 5 September 2003, Ski- und Sessellift Hahnenmoos AG Adelboden merges with Adelboden-Silleren-Bahnen AG and Chuenisbärgli AG to form Bergbahnen Adelboden AG, which still exists today. With 160 employees, it is among the largest transport companies in the Bernese Oberland. Every year, the 14 lift and gondola systems transport more than 600.000 guests. Since summer 2019, “Vogellisiberg” (Vogellisi mountain) – named after a Swiss children’s song – has offered non-skiing experiences.

Zürcherische Privat-Reitanstalt zu St.Jacob, Share from 1877, Source: Stiftung Sammlung historischer Wertpapiere

Zürcherische Privat-Reitanstalt zu St.Jacob, Share from 1877, Source: Stiftung Sammlung historischer Wertpapiere

Zürcherische Privat-Reitanstalt zu St.Jacob

The Zürcherische Privat-Reitanstalt zu St. Jacob equestrian institution is named after the nearby St. Jakob church at Stauffacher, Zurich. In 1883, the limited company runs a riding school at Müllerstrasse. Alongside classic riding lessons in the arena, rides are offered regularly to Zurich’s “Allmend”, a large park just outside the city – at the time using the bridle path along the Sihl river, leading out of the city. When the Swiss Army disbands the cavalry in 1972 and closes the garrison on Gessnerallee, the bridle path is also no longer required. The Zürcherische Privat-Reitanstalt zu St. Jacob is forced to look for a new location for the equestrian center and finds just what it is looking for in the Kolbenhof, just outside of Zurich. An equestrian center run by a family of tenants is still located here today, with a wide offering for horse boarding as well as horse riding lessons.

Sport Lisboa-Benfica, Share from 1994, Source: Stiftung Sammlung historischer Wertpapiere

Sport Lisboa-Benfica, Share from 1994, Source: Stiftung Sammlung historischer Wertpapiere

Sport Lisboa-Benfica

Back in 1903, two groups of young men meet regularly in the Belém district of Lisbon to play soccer. Over lunch together, they come up with the idea of founding a team. On 28 February 1904, soccer club Sport Lisboa is founded, and is soon renamed Sport Lisboa e Benfica.

Benfica wins three championship titles in a row between 1936 and 1939 and, over the years, becomes one of the country’s leading clubs – around half of all Portuguese people claim to be a fan.

However, the club suffers repeated financial difficulties. In 1994, it even comes close to bankruptcy. The club launches the “Operação Coração” (operation of hearts) and issues “solidarity securities”. For ESC 5.000 – approximately CHF 25 – per security, fans can participate in rescuing the club.

Benfica has been listed as a public listed company on the Lisbon stock exchange since February 2000.

Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Sahre from 2001, Source: Stiftung Sammlung historischer Wertpapiere

Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Sahre from 2001, Source: Stiftung Sammlung historischer Wertpapiere

Dr. Ing. h.c. F. Porsche Aktiengesellschaft

Ferdinand Porsche starts his own business in Stuttgart on 1 December 1930: a design office for car manufacturing. He had previously been responsible for sports car development at various car manufacturers. The legendary VW Beetle is based on his plans. From 1947, the first sports cars are produced under the Porsche brand: the first is the 356, which is available in both racing and series versions. From 1951, Porsche is active in motorsport as well, mainly in sports car races but also as a supplier in formula racing – including as an engine supplier in Formula 1 for McLaren between 1983 and 1987. With the Porsche engine, the team with drivers Niki Lauda and Alain Prost becomes World Champion several times. In 1972, Porsche becomes a limited company but only goes public in 1984, listing the preference shares on the exchange, which were previously non-voting. The opening price is DM 1.020. The ordinary shares continue to be held by the Porsche and Piëch families.

Blog article on the topic


Concept and implementation: Swiss Finance Museum

 

The content is based on the former Sport & Money exhibition with data from 2020.