The Business of Football - [Business Breakdowns, EP.126]

This is Dom Cooke and today we’re breaking down the business behind the most popular sport in the world, Football or Soccer. It’s a vast market. 3 billion people around the world watch the sport and more than €30 billion euros are spent within the football ecosystem in Europe alone each year. But aside from a huge addressable market and reasonable revenue, is it actually a good business?

Why do investors keep buying Football clubs? Is there any economic rationale behind that? Is there a link between sporting and financial success? Has middle-eastern money distorted the transfer market for good?

These are some of the questions I asked our guest, Dr Rob Wilson, who is a football finance expert and Head of the finance, accounting, and business systems department at Sheffield Hallam University. I hope you enjoy us breakdown the business of football.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. 

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Show Notes

(00:03:16) - (First question) - Defining the European football market

(00:05:12) - How the Premier League defined itself as the world’s best league

(00:08:16) - The delegation of funds based on a team’s final position in the league

(00:11:19) - A brief introduction to the breakaway European Super League

(00:12:53) - The sale of Manchester United and how it affects the scope of the footballing world

(00:18:34) - The role emotion plays when it comes to buying and selling of football clubs

(00:20:47) - The makeup of a well run football club

(00:23:54) - The four-pillar model and exploring new revenue streams in football

(00:25:59) - The utilization of ‘access all areas’ type documentaries as a source of revenue

(00:28:40) - Breaking down the return on investment for football clubs building new stadiums 

(00:33:51) - Financial regulations in football and a brief history of UEFA’s Financial Fair Play

(00:40:41) - The correlation between sporting and financial performance

(00:42:23) - The different types of football club ownership profiles   

(00:44:51) - Reasons why investors choose to enter the football market

(00:48:12) - Changes to the football landscape since sovereign wealth funds have entered the market

(00:51:36) - The importance of the transfer market to football clubs

(00:53:03) - How the fans fit into the sport moving forward

(00:55:52) - Potential opportunities for TV revenue streams by entering new market places 

(00:56:55) - The relationship between the clubs and the leagues

(00:58:20) - The lessons learned from researching the football industry