Welcome to the bio-motive here we provide motivation, inspiration stories, and business ideas that you can apply in your business, today we're discussing the history, philosophy, and culture of the beautiful successful football club Bayern Munich.
The most decorated German club team FCB have 50+ major trophies some of them are:
- 30 Bundesliga titles
- 20 DFB- (German Cups)
- 6 UEFA Champions Leagues or European Cups
- 1 UEFA Cup (now known as Europa League)
- 1 German National Championship before the Bundesliga was created
- 12 UEFA Cup Winners' Cup
- 2 FIFA Club World Cup
Bayern Munich has been absolutely down in the past decade But today Fc Bayern Munich club stands as the top 3 clubs in the world in terms of honors stature and prestige they have.
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| Bayern |
An advantage of a big budget is to attract some of the top players in the world and some of the all-time best german talent.
Year over year, FC Bayern Munich club reports new record financial results. However, the club has neither crushing amounts of debt on the balance sheet nor an ultra-rich investor as most of its international competitors do.
How did Bayern manage to remain internationally competitive at the highest level while simultaneously being sustainably profitable? first, let study FC Bayern Munich club history
Table of content
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Intro Starting days of Fc Bayern Munich Club history Logo design Financial rise of Fc Bayern Munich Hoeness contribution to Bayern revenue Stadium for Bayern Allianz arena Bayern 50+1 rule Summarize Hoeness Clubs independent New manager for Bayern International expansion How club choose a player How does Bayern make money Bayern trophies winner
in all major league Club transfer record Top highest
purchase by club Top highest sell
by club Club success summarize Bayern future |
Starting days of FC Bayern Munich history
Bayern Munich is located in the northern part of the city of Munich. Munich is located in the southeastern part of Germany. The club currently plays in the Bundesliga and its home ground is called the Allianz Arena.
The stadium opened in 2005 and holds about 75,000 people.
On February 27, 1900, a group of 11 men stormed out of a meeting for the München 1879 Sports Club. There was a dispute between existing members over the sport of soccer's future at the club.
The group of men who stormed out of the meeting, then met at the Gisela restaurant in Munich that night and formed Football-Club Bayern München or FC Bayern Munich in English.
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| 1974 Bayern squad |
Bayern is the German word for Bavaria, the region where the city of Munich is located. The leader of this rebel group was named Franz John and he was elected Bayern's first president.
In 1906, the club merged with Münchner Sports-Club and adopted the colors of red & white that are still in use by the club today.
There would be a few other mergers and splits of the club, but the core of what we know as FC Bayern Munich club history Munich was formed and solidified in 1900 and 1906.
Logo design
Bayern's crest has more or less been the same since 1970, with only minor design changes since then. It's a relatively simple design with the club's name around the outside of the circle and a portion of the Bavarian flag in the middle.
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| Bayern logo |
The flag of Bavaria is light blue and white with a diamond pattern design. The colors and design come from the coat of arms of the Wittelsbach family.
The Wittelsbach family ruled Bavaria from the 13th century into the 20th century and is deeply ingrained in the history of Bavaria.
Financial rise of FC Bayern Munich Club
Here we talk about the master plan of Bayern and how they became the financial success and healthiest club in world football.
FC Bayern Munich club is by far the most successful club in Germany since its founding the club has won more than 50 national titles and achieved international glory by winning the champions league more often than any other german team.
But it wasn't always like that to understand how they got there we have to rewind to the 70s which marked the turning point for the club.
After five years without a national title, FC Bayern Munich club was struggling with a lot of debt they decided it's time for change and hired the former player Uli Hoeness as a new manager to financially stabilize the club.
Hoeness Contribute on FC Bayern revenue
Hoeness realized that they had to expand their revenue he had done several things to make FC Bayern Munich club a financial success.
the first thing he did was to focus on merchandising he adapted strategies from American sports leagues that significantly boosted the club's revenue.
Match Streams, back then matchday sales made up around 85 percent of the total revenue to put this into perspective in 2019 Bayern's matchday sales made up, more than half of the income coming from various commercial activities like sponsorships and merge sales.
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| Uli Hoeness |
In the past fans might have been able to buy a jersey and maybe a scarf today fans can sleep in their favorite club's bedsheets shave their beards with a Bayern razor and even eat toast with the club's logo all happen through the vision of Hoeness.
Besides this, his strong focus on merchandising and marketing Hoeness realized the importance of a state-of-the-art stadium for a long period, in the rest of the thing Bayern was successful.
Stadium for Fc Bayern Munich club
They were taking advantage of the Olympic stadium that the city of Munich built for the 1972 summer games with a capacity of more than 60,000 spectators. Before this Fc Bayern Munich club history does not have their own stadium.
It was one of the largest arenas in Europe at that time and due to Bayern's success, the home games were usually sold out the matching revenue laid an important financial foundation for the club for decades.
That's why Hoeness strongly advocated a new arena, he saw that club had grown out of the multifunctional Olympic stadium and needed their own made arena. They complete their stadium Allianz arena in 2005.
Allianz arena
They took advantage of another major sporting event in Germany the FIFA world cup 2006 the Allianz arena was completed right before the world cup with a capacity of 75,000 spectators.
After the Allianz arena was built some fans complained that the atmosphere in the arena would be bad and the ticket price is too high this confrontation at the annual shareholders meeting led to a raging speech of Hoeness.
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| Allianz Arena |
Today the club has paid off all its debt Bayern is the exclusive owner of the arena and therefore receives 100% of the matchday revenue without having to pay rent to the city or any other owners like many other clubs have to.
Whether it is the vast merchandise business or the paid of Allianz arena the financial success of Bayern today is largely shaped by honors and its legacy.
Bayern 50 +1 rule
While a business model relying on sponsors matchday and broadcast revenues are not that different from other European top clubs what really makes the club unique is their shareholder model.
Bundesliga clubs are obliged by the association to hold the majority of their voting shares this is known as the 50 plus one rule ensuring that the respective club always has the last say when it comes to strategic decisions.
FC Bayern restricts those percentages even further when it comes to their shareholders according to their statute they will never sell more than 30 percent of their shares.
Currently, 25 of the shares are equally distributed amongst three investors Adidas, Audi, and Allianz the remaining 75 are owned by the club itself. with the 50 + 1 rule fans are also a part of Bayern's success.
This has two major benefits the club is independent of investors in its decision-making and receives a large share of its profits to reinvest back into the club for example to buy new players.
Let's summarize Hoeness
While their competitors are either owned by private investors or hugely in debt the FC Bayern, company is still owned by the club their so-called ‘Festgeldkonto’ is a legendary reference in german media alluding to the hundreds of millions in cash on their bank account.
Since the beginning of the Hoeness era, Club has never returned to be in the red again with that philosophy in mind the club would only acquire players that they could afford without having to go into debt.
They also don't want to be dependent on one single player like Ronaldo, Messi a recent example is the negated contract extension of David Alaba despite Alaba being a vital part of Bayern's success the club was not willing to pay his demanded salary.
Bayern independent
Hoeness built the financial success of Bayern on organic growth independence from external investors and national dominance the national dominance is not just seen in the success in the Bundesliga but also by the investment into the german market.
Hoeness positioned the club as a national hero by always making sure to sign some of the best german national team players that in turn makes the club attractive to sponsors who target the german market and its 80 million consumers.
It's no coincidence that the three external stakeholders of the club are german companies.
We are done telling the story about Bayern as the national hero and so is the club itself with Hoeness stepping down from the presidency the emphasis on the national hero now takes a back seat to the focus on becoming a global player.
New Fc Bayern Manager
This process will be guided by the new president Herbert Hainer, Hainer was CEO at Adidas for 15 years and led the company to unprecedented global success this expertise is what the club needs to expand on the international market.
Pairing highness economic knowledge with the football knowledge of Oliver Kahn who will be the new chairman in 2022 allows the club to move in its desired direction without detaching from its core values.
by establishing a holistic club strategy that reduces complexity and grants orientation as Kahn explains the club wants to expand its strengths and exploit its potentials.
Fc Bayern focuses on superstar transfers and heavy investment in their own academy to become more independent from the transfer market in general and develop a more consumer-centric approach to stay true to its roots.
at first, the plan might sound exactly like the things that Hoeness has already done in the past but on closer inspection, Hainer and Kahn follow a more strategic approach than just their gut feeling.
Fc Bayern international expansion
Some recent moves of the club show a clear emphasis on international marketing especially in regards to the Asian market Bayern invests in its own youth academies in Asia to develop talents and potentially have them play in the Bundesliga.
This very organic market development strategy could be the key for opening the revenue flood gates of the Asian market they have already made the first step into this direction by partnering with KONAMI in the course of this partnership
FC Bayern made the first appearance in the world of esports in 2020 by choosing pro evolution soccer and KONAMI, not FIFA, and electronic arts the club specifically targets the Asian market.
Investment into esports is the first clear distinction from the Hoeness era who always refused to make that move the new management duo of Kahn and Hainer wants to distance the club from the management style of former president Uli Hoeness
while Hoeness stood for short-term gut decisions and polemics. The concept paper sounds more like a long-term and level-headed strategy for the future remember with the German.
triple-a investors the club still has 5 of their shares to sell looking at where the club is going it's easy to imagine that they will include an international investor in the future.
how FC Bayern choose the player
To build some of the best squads in the paths, Bayern relied heavily on their scouting mainly of young promising players already in their own league.
One criticism of buying gates is that they poach talent from other teams and use their stature and leverage to bully smaller clubs and they're taking less with a player.
The next best thing, buying young, talented players from other Bundesliga sides or the periphery of other big European clubs.
Leroy Sane, PSG’s Tanguy Nianzou, and Gladbach’s Michael Cuisance have all been added to a squad already brimming with ability and fresh from winning the Champions League.
Bayern is a brilliantly run club, one of the best in Europe, despite the occasionally tempestuous relationships at the boardroom level.
They have a clear strategy for transfers: young, preferably relatively inexpensive, and with a very high ceiling.
How does Bayern make money?
For the 2019-20 season, Bayern recorded total revenue of 634.1 million euros. This breaks down into a
70.3 million in matchday income,
203.3 million in broadcasting and a huge
360.5 million euros in commercial income.
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| Bayern revenue |
Domestically club dominates in this area. Their 634.1 million-euro revenue is over double that of Borussia Dortmund's, the second-highest generators of revenue in the Bundesliga.
Beyond Dortmund, the picture is even bleaker, and worse the gap is growing. Bayern has also steadily grown in profitability recording a 17 million euro profit before tax last season following improvements every year.
all though it is reported that due to the COVID-19 pandemic FC Bayern Munich lost 150 million euro match day revenue. only selected people were allowed in for the final game at the Allianz Arena
Despite this club is still falling behind Europe's elite. The 2020/21 money league places the German champions in third behind Real Madrid, Barcelona,
Bayern trophies winner in all major league
Many other important events happened in the club's history, but I want to flash forward to June 1, 2013. On this date, Bayern beat VfB Stuttgart in the final of the DFB Pokal to win their 16th Pokal title.
The reason that this title was so special is that club had already won the Bundesliga title and beaten Borussia Dortmund in the final of the UEFA Champions League that season.
By winning their domestic cup title as well, Bayern became the 7th European club, and the first German club ever to win a treble. A treble is when a club wins its domestic league, domestic cup, and the Champions League in the same season.
It was a historic moment for a historic club. After the 7 years, later in 2020 season history repeat again club win a treble major cup under the guidance of Hansi Flick.
Bayern transfer record
Club did not spend too much on buying players like other clubs do. Fc Bayern's record's highest transfer purchase was Lucas Hernandez from Atlético Madrid in Spain on March 27, 2019, for €80M.
The transfer was officially processed on July 1, 2019, when the transfer window opened.
And the club's record transfer sale was Douglas Costa to Juventus in Italy on July 1, 2018, for €40M.
Top 5 highest transfer fees purchased by Bayern
- Lucas Hernandez €80.00M from Athletic Madrid
- Leroy Sane €45.00M from Manchester City
- Dayot Upamecano €42.50M from RB Leipzig
- Corentin Tolisso €41.50M from Olympique Lyon
- Javi Martinez €40.010M from Athletico Bilbao
Top 5 players transfer fees sell-by Bayern
- Douglas Costa €40.00M to Juventus
- Mats Hummels €30.50M to Dortmund
- Toni Kroos €25.00M to Real Madrid
- Owen Hargreaves €25.00M Manchester United
- Thiago €22.00M to Liverpool
Bayern success summarize
Well, the club has been the king of German football for a long long time they've been at the top of the Bundesliga for decades winning more titles and achieving more international success than any other German club.
Fc Bayern is a famous club in the German form decades, they have major trophies than other german clubs do you know? because they are financially independent and they healthiest club there was one person behind it ULI HOENESS.
When he became a manager of Fc Bayern Munich, he expands the income sources of clubs, By selling the product of Fc Bayern Munich, I think you have read all the products in the above articles.
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| how Bayer make money |
It wasn't easy for Hoeness While Allianz was complete Hoeness was criticized by the fans, people say the atmosphere was not good his reply in front of the press confesses
if the atmosphere is sh*t that's your fauld- not ours!
If we didn't have the allianz arena you'd be playing in ice a snow again!we'd only have 12.000 watching against bolton wanderers.
Today Bayern did not have to pay any rent, and they have paid all debt. Matchday sales are one of the major sources of revenue.
The club will not depend on a single player whether it could be played or coach, they believe in teamwork. Bayern always tries to make their fans trust the club because the more you trust the more you generate income.
Fc Bayern Munich future
let's talk about the future of Bayern. In the future, clubs will have more worth globally because they focus on the international market and the partnership with KONAMI. With this deal, they open the door for Asian markets because Asia has more population than others as well as talent too.
They also focus on youth Bayern elite has an international youth club and football school partnership which they have opened in many nations like Japan, India, America, etc. They are focusing on making their own talent.
As compared to Premier League and La Liga television right Bundesliga right is low I don't know but I think in the future is going to be high, because they have young fresh talent and famous players.
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