The ‘Business’ World of Football

The ‘Business’ World of Football

Football, ‘The beautiful game’, is a popular sport and needs no introduction. With over 250 million players across more than 200 countries, and winning the hearts of billions, football deserves the tagline, ‘The Global Sport’. The world of football not only consists of teams, players, coaches, match officials, physios, but also players agents, managers, transfer market, brand endorsement, jersey sponsorship, television rights, etc.

The game of football is played by 22 players on the field. But there is far more to the game, a large portion is played off the field today. The ‘business’ part of the game. European football is popular worldwide. Escalating payouts from television agreements, shirt and kit deals, sponsors, and the Champions League are continuing to fuel higher values for the world's top soccer teams. As a result, investors who feasted on soccer teams during the past decade or so are now looking very smart--especially those who bought English teams.

When it comes Jersey sponsorship, Adidas and Manchester United signed the biggest ever deal in 2014. It came into effect from 2015-16 season. Sportswear giant Adidas has signed a £750m deal to make Manchester United's kit for 10 years. It comes after US rival Nike decided to end its association at the end of the 2014-15 season. Nike has been paying United £23.5m a year, and the new deal is worth a world record-breaking £75m ($128m) a season to the Old Trafford club.

One may wonder why Adidas pays this much. The answer is simple, Marketing. Adidas chief executive Herbert Hainer said the deal would help the firm "to further strengthen our position in key markets around the world". He also said that Adidas expect total sales to reach £1.5bn during the duration of this partnership. Also, in trading on the German stock exchange, the firm's shares closed up by 2.73% as the news rolled out.

Premier League (England) and LaLiga (Spain) are the most watched football leagues in the world. They attract viewers across the globe. The Premier League has sold television rights to its games for a record £5.136bn, 71% above last time in 2015. The most lucrative television deal in world professional football will generate a combined £10.4 billion, which will be distributed among all 20 Premier League clubs. It consists of £5.3bn for the broadcast of live matches by Sky and BT and ancillary deals, plus another £5.1bn from the sale of overseas rights. The deal runs for three years from 2016.

We can be rest assured that Sky Sports and BT Sports will make many folds their investment. The viewership of Premier League matches is increasing every year, especially in India and other Asian countries.

Does the business part of the football hamper the game? They do, in certain aspects. For example, the match schedules are changed to fulfill TV broadcast commitments. Some teams will have to play consecutive matches without ample rest required. There are less loyal players these days, they don’t feel attachment with the club or its fans, they are more than ready to change clubs when more money is offered, especially from China and US in recent times.

But, is making business out of football all bad? Definitely no, the investments made in the sport makes it better day by day. The clubs earn a lot, they invest it in grassroot levels to find new talents. The grounds are getting better, it gives better experience for both players and fans. The game is reaching new markets, the game gets popular and also grow parallelly.

Football is just more than a game, its Passion!!