The Difference Between Clubs Owned by Associations and Private Owners

Introduction

Football clubs have evolved from being just a source of entertainment to becoming an attractive investment opportunity for individuals and businesses alike. The global football market is worth billions, making it a lucrative option for investors. However, owning a football club can be a complicated process due to a number of factors involved. There are numerous stakeholders, such as players, coaches, fans, and sponsors, all of whom have differing interests. Managing resources, such as player transfers, salaries, and stadium maintenance,

is also complex. Additionally, unforeseen events such as injuries, bad form, and bad luck can have a significant impact on a club's success. This complexity gives rise to a variety of ethical issues that must be considered. Finally, unlike many other businesses, a football club’s final output, i.e. the game of football, is the lifeblood of millions of fans worldwide, which adds further complexities to club ownership.

In recent years, several prominent European football clubs have witnessed changes in ownership. These new owners have diverse motivations, with some utilizing the clubs as diplomatic tools, others aiming to tap into the untapped revenue potential of football, and some taking advantage of financially burdened clubs amidst the pandemic. The allure is understandable considering the Premier League, Europe's wealthiest domestic competition, generates only marginally more revenue than the NHL ice hockey league. While the attempted creation of a European Super League similar to the NFL was unsuccessful, the desire for a lucrative, stable income stream persists.

The spending spree shows no signs of abating. Manchester United is currently contemplating offers from local billionaire Jim Ratcliffe, a Qatari group benefiting from the country's vast natural gas exports, and various US hedge funds and asset managers. However, investment fund-owned clubs have struggled to achieve consistent success in the Champions League. Real Madrid, under the helm of Spanish billionaire Florentino Perez,

has emerged as the most victorious team since 2013. Interestingly, Real Madrid remains a club owned by its members, rather than any wealthy individual or group of investors. The upcoming prestigious final match presents Manchester City, a club owned by a sovereign-backed firm, with another opportunity to claim Europe's top prize. This comes just two seasons after losing to Chelsea, which was owned by Russian billionaire Roman Abramovich at the time. The clash in Istanbul will witness Manchester City facing Inter Milan, a club owned by a Chinese retail conglomerate that has borrowed heavily from a US asset management firm.

As the football ownership landscape continues to evolve, it becomes increasingly apparent that financial backing alone does not guarantee success on the field. It remains to be seen how these ownership changes will shape the future of European football and its pursuit of both profit and glory.

You can check this video down below to get more details about this.