Part 2: BAD BUSINESS
Generally, soccer people are bad at business. Anyone who spends any time inside soccer soon discovers that and as a result of this soccer clubs get exploited because people in other industries understand business better.
In the 1970s, the big English clubs used to pay companies like Umbro to supply their clothing. It was obviously great advertising for the gear makers to have some of England’s best players running around in their clothes, but the clubs had not yet figured that out. And so, sportswear companies used to get paid to advertise themselves.
Most of Players wore the three stripes of Adidas for free anyway. All that happened is that adidas would give the players boots. But even then, at the beginning
of every season the clubs would go to their local sports retailer and just buy twenty, thirty pairs of boots and hand them out. For a company like Adidas, it was the cheapest type of PR you could imagine. Only on special occasions did Adidas have to pay players.
Only in the late 1980s did English soccer clubs discover that some people were willing to buy replicas of their team shirts. And gradually over time, soccer clubs have found new ways of making money. However, by 1992 Tv companies began paying about $115 million a season for the television rights to the new Premier League.
Then came the renovation of English stadiums in the early 1990s. It was an obvious business idea. Yet soccer clubs never seem to have thought of spending money on their grounds until the Taylor Report of 1990 forced them to. They did up their stadiums, and bingo: more customers came all this did was prove how much like consumers soccer fans are.
This also explains why the three English clubs whose crowds grew fastest over the nineties were Manchester United, Sunderland, and Newcastle. In other leagues, clubs such as Ajax and Celtic also drew huge new crowds to their new grounds.
As the world evolves football clubs need to adjust to take advantage of the many opportunities that they come across. These days clubs are appointing CEO’s and other business minded people. Soccer is global with the clubs having more popularity than many billion-dollar companies maybe in the near future these clubs could become multi-billion-dollar entities. Part 3:https://wordpress.com/post/footballreligiontv.com/772
Check the following links on Deloitte’s ranking of Football clubs finances and a few links on financial fair play.
Deloitte football money league:https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/deloitte-football-money-league.html
Uefa financial fair play:http://www.uefa.com/community/news/newsid=2064391.html
Highest earning football clubs:http://www.businessinsider.com/the-20-richest-football-clubs-in-the-world-2018-1?IR=T
Premier league financial fair play:https://www.premierleague.com/news/102374
Manchester United and Real Madrid have the most finances in the world check their financial results below
Manchester United Financial Results:http://ir.manutd.com/financial-information/annual-reports/2017.aspx
Real Madrid Financial Results:https://www.realmadrid.com/en/members/member-card/annual-reports
Channel sponsor Ubergeekout :https://www.youtube.com/channel/UC8AM8hbMSBkkgMHuwVWRagQ
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Football is Religion
The information was adapted from soccernomics.