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So What’s In It For Football Clubs Owners/Investors?

The global football market is worth billions, so it’s no surprise it attracts the eyes of super-rich and super-investors. But ownership of a football club is notoriously difficult. There are a huge amount of spending on resources (i.e. players, facilities) subject to a huge amount of variability (injuries/bad form/bad luck/ethical issues).

South African PSL football clubs are not a very profitable businesses, not surprising while European Premier League generates more revenue than any other football league in the world, the financial state of its teams is generally poor. 

PSL Football clubs tend to be reliant on cash injected by their owners to run, with exemption of Kaiser Chiefs & Orlando Pirates and Its clear those that makes profit they are few and far between.

Is it worth investing in a football club?

Historically, football club ownership was typically the domain of the super-rich, it has always used to be perceived as the ultimate trophy asset.

So what’s in it for Football Clubs owners/investors?

Influential Leverage Value - There is a belief that the real power of football lies in ancillary benefits it can provide to owners: ‘you can do incredible things in business and political networks by owning a football club’.

From royalty to political leaders and heads of the country’s biggest corporates – can be found hobnobbing in the same executive suite.

Club Appreciation Value - Even if a team isn’t turning over huge profits annually, its value can still increase significantly over time due to factors like inflation and growing popularity of the sport worldwide which could translate into massive payoffs when/if sold.

In 2003, Chelsea was bought for £140 million, a relative drop in the ocean compared to the £4.25 billion American businessman Todd Boehly and his Clearlake Capital consortium parted with to buy the club in 2022.

It’s also long been argued that businesspeople seem to lose their acumen when they venture into football, a world in which they have little if any experience.

Wealthy owners can provide financial stability, ensuring the club’s ability to invest in top-tier players, state-of-the-art facilities, and advanced training programs. This of course, will (hopefully) elevate the team’s competitiveness and attract top talent.

A reputable wealthy businessperson can offer a successful track record in business, allowing the football club to benefit from enhanced global branding and exposure. This can attract sponsors, investors, and a broader fanbase.

To sum it all up, owning a football team is not a get-rich-quick scheme. It’s more about the love for the game and less about immediate monetary gain. Owning a football club is a statement that you’re at a certain level as a businessperson.