Behind the "football" business empire craze ⚽️

You know, the football clubs we love are more than just sports teams, they are "big business enterprises" that can make a lot of money, and there are interesting models like the top companies in the world. Let's delve into how football makes money and why businessmen want to take ownership.

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4 Main revenue channels:

Football clubs have very diverse sources of income to generate profits.

Especially from the live broadcast copyright.

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Copyright live broadcast: "The real gold mine"

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TV companies are willing to spend a lot of money to compete for the right to broadcast the game because football has a huge global audience, like the English Premier League, earning over $10 billion in live royalties. In 2022-2025, big clubs can earn over $150 million a season just by being on TV.

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Match Day Income: Building a Bond with Fans

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From tickets, food and drink and merchandise sold on game days, clubs like Real Madrid, Manchester United or Bayern Munich can earn $4-6 million per home game from ticket sales alone. Having a star player that attracts fans is very important because if the seat is not full, there is no money.

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Commercial revenue: sponsors and souvenir goods

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By partnering with major brands and selling licensed products at clubs, brands like Emirates, Nike, Adidas, Coca-Cola or EA are willing to pay millions of dollars each year to put their logos on kickers or billboards across the field. For major clubs, these deals are worth a hundred million dollars. Selling products like racing shirts, scarves or coffee mugs also makes a fortune. For example, PSG makes 80 million dollars selling Messi shirts shortly after signing a contract.

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Bounty: The better the form, the better the money.

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Winning a domestic league, a European competition (such as the Champions League), or even just qualifying comes with a lot of prize money. Winning the UEFA Champions League can earn a club over $100 million in prize money and bonuses. Just participating in the competition can change the club's budget for the entire season.

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A lot of revenue, but no less spending.

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Huge costs:

Despite the club's huge income,

But they also have huge costs that can swallow up profits.

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Player salaries: This is the biggest expense. Some top-tier footballers make more than $1 million a week.

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Player Trading: Attracting new players is very expensive, sometimes exceeding $100 million. Tires and bonuses are not included.

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Field Management: Maintenance of large pitches is very costly, turf care, lighting, safety, and one match can cost hundreds of thousands of dollars.

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Manager costs: Hiring a loud coach is expensive, but more expensive is "firing a coach out of the middle," for which a club may have to pay millions of dollars in compensation.

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Youth Academy and Training Center: Investing in young players is also required to be very costly, both high-tech gyms, scout systems, and regular coaches.

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So why do so many millionaires want to own a football club? 🤔

Billionaires often buy football clubs for reasons beyond short-term profit; they look at long-term investment and building global influence.

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Building brand and influence:

Owning a football club provides an unparalleled global visibility and helps strengthen the business image and influence of the owner.

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Increased asset values:

Football clubs can increase in value significantly over time, making it an investment that yields good returns.

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Example: Chelsea was bought for $300 million in 2003 and sold for $5.2 billion. In 2022, it represents a huge profit in the long run, even though the club may be losing operations in some years. This is the "long run" game of many owners.

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So what's the strategy for a small club?

To survive in this capitalist world...

A small club with no global reputation like a big team.

Creative strategies must be used to survive financially.

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Local sponsors: rely on partners within their own communities.

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Player Trading: Developing a star player and then selling a profit. This is the key strategy that helps support the club.

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Example: Benfica bought Enzo Fernandez for about $12 million and sold it to Chelsea a few months later for $120 million, making a profit of over $100 million from a single player.

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On loan, players and community support:

Borrowing a player reduces the burden of exhaustion.

And building a strong bond with local fans is also very important.

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The most successful football clubs are those that "run football like a business." They manage huge revenues to balance huge expenses wisely.

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Although football is built on "patrons," good financial management, diversified income sources and strategic investment are essential for sustainable profit and growth in this billion-dollar industry. Even clubs that do not often champion can make huge profits because they have a strong Business Model.

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