Football is pretty much the world’s most popular sport. Over 3 billion people watched the 2018 World Cup of France v Croatia, and 11.3 million people watched the 2019 Champions League Final, which was streamed free on YouTube via BT Sport. Furthermore, over the years football has had heaps of investment pumped into it via many private businesses. This is happening all over the world, not just in Europe.
The MLS which is the soccer league in America is currently unprofitable. However, there have been reports that popularity is increasing and in the next decade, it could surpass baseball in terms of popularity. The MLS is severely underrated and I believe that after the 2026 United world cup, the popularity of the MLS will grow. Right now, we are seeing a few new stadiums being built by MLS slubs. One of them is Inter Miami’s new stadium which will also host a few lucrative real estate offers and opportunities.
Then there is the Premier League in England and Wales, which is by far the most cash-driven league in the world. Over the past few years, investors have driven billions into the Premier League which has caused a surge in popularity. The first club to get an investor “overhaul” was Chelsea back in 2003 when Russian billionaire, Roman Abramovich, purchased the club which at the time had a £90 million debt. He purchased the club for just over £140 million back in 2003 and since then he has invested billions into the club.
Chelsea FC used to be a mid-table team but now they are one of the most successful teams in football having won five league titles, five FA cups, two Europa League titles, one Champions League title, two charity shields, three league cups as well as many women’s and youth trophies under Roman Abramovich’s reign. Today, Chelsea FC is worth $1.09 billion which equates to over £777 million. That is a great return on investment, and many of the players are worth quite a bit.
Clubs like Manchester City have risen over the years too with the help of Sheikh Mansour, the owner of City group based in Abu Dhabi. They have literally had billions invested into them over the years and have turned them from a relegation battle club to six-time champions of England in just 12 years. The popularity for City has gone through the roof and the club is now worth $1.41 billion, which is just over £1 billion. The club itself was only purchased for £150 million however, Sheikh Mansour has invested over £1.3 billion into the club.
How Are Normal Civilians Making Money?
Not everyone is a Russian oil Billionaire or a Sheikh. So how does the average joe make money from the lucrative world of Football? Well, over the years many people have made truckloads of money from Football. From selling kits to betting, the demand for Football has just increased hugely.
The first people I will mention are the YouTubers. People like Craig from AnfieldAgenda or Robbie from AFTV. These fans started their channel to connect with fans all over the world. They make money from it off course from sponsorships and AdSense, but they are also practically doing a job they love. Sports channels are exploding all over the place and now companies like 90min make millions each year from literally just reporting football. That leads to the bloggers who are also making a lot of money too from writing about football.
Media companies are all over it. In the old times, football used to be shown on free TV. Nowadays, you have to pay a costly subscription to access the teams you love. It’s a pain but it has allowed so much more investment into how football is reported. We have seen new tv shows about football come on all the sports channels, discussing the game, highlights, etc. It seems football highlight tv shows are becoming increasingly popular, which has allowed ex-footballers to keep involved in the game.
Betting is a big one too. Many people have made a hefty amount through betting and some even treat it as a serious job. Betting companies over the years have made millions. Betting is now far more competitive and easier to do with many companies launching mobile apps which allows you to create your own bets.
Then merchandise has gone through the roof. Manchester United could sign a $200 million superstar and get double that back via merchandise sales. Many companies over the years have made a tom of money through football-related merchandise whether that’s with shirts or artwork.
Are Football Clubs On The Stock Exchange?
Yes, football clubs are on the stock exchange. Manchester United is listed on the New York Stock Exchange, Borrusia Dortmund is on the Frankfurt stock exchange and Celtic is listed on London’s AIM stock exchange. Unfortunately, stock values have mostly gone down for these clubs especially during Covid. This just shows though that Football clubs are becoming more business-like than an actual community club.
Real Estate Benefits
Having a big successful club nearby is always bound to drive up area value. Liverpool’s stadium, Anfield, was recently redeveloped and house prices nearby went up by over 6%. Chelsea revamped their stadium, Stamford Bridge, back in 2004 and they brought along many development opportunities for apartments, shops, etc. This has ultimately increased the value of nearby Chelsea homes, which were already very expensive before.
Then Arsenal also offered a lot of real estate benefits when it moved into its new state-of-the-art stadium in 2006, the Emirates. Their old stadium, Highbury, was knocked down for apartments, which has made the area a more pleasant place to live. When a big football club is nearby, prices are higher for everything.
A restaurant that is near a football stadium can make considerably more money than if it were placed elsewhere. Houses are worth more as they are seen as more desirable. More affluent areas nearby are priced higher because sports stars might live there.
A football stadium brings so many real estate benefits and people should take them more seriously. Tottenham’s new billion-pound stadium has brought a lot more life into the area.
Across the pond in the USA, and David Beckham’s team, Inter Miami CF is planning on creating a new stadium that will boast park space and many developments nearby.
Featured image credits via: thecivilengineer.org