There are many benefits that come with owning a football club.
Some of the most significant benefits include the following:
– The personal satisfaction of owning a football club. This can be an incredibly rewarding experience, as it can give you ownership over something that is important to you or your company and allow you to make a contribution to the community.
– The business opportunities that come with owning a football club. For example, the traditional benefits associated with owning a football club include opportunities for commercial partnerships or sponsorship deals. However, the emergence of Private Equity buyers with substantial capital has created multiple new revenue streams. These include Real Estate such as the Stadium and surrounding Commercial Real Estate and Hotels. An additional benefit of an enhanced stadium is using the venue for concerts and other special events. Real Madrid($5.1Billion Dollar Valuation) is undergoing a $850m stadium renovation which will enhance their value substantially.
Television Broadcasting has become a major source of revenue for many teams. An interesting recent statistic is that the number of viewers of the World Cup television audience has exceeded the number of viewers of the Super Bowl.
Increasing the Fan Base and Fan Engagement is a natural for the owner interested in increasing revenue. Branding and Marketing are becoming more efficient with the use of data and analytics to support management decisions.
The use of BlockChain technology and NFT’s are evolving and may soon become an interesting niche in the football club business.
Finally, the opportunity to influence the direction and standing of the of the club to generate a Substantial Financial Gain.
An example of how to do this the right way would be the club AC Milan. The Italian club was in debt with negative equity of $37m. Elliot Management took over the team and ended fiscal 2021 with positive equity of $70m. The club was sold to Red Bird Capital for $1.2 Billion Dollars.
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