London Business News

Why football clubs can be a qualified investment

As an investor, it is always smart to scrutinize for recent investment opportunities that allow you to diversify your portfolio. For many people, investing in a football club will be appealing, especially if they are a fan! While it is the super-rich that are able to own football clubs, it is possible to invest in these clubs which are, essentially, businesses at the pause of the day. So, is investing in a football club a qualified thought?

How carryout football clubs produce money?

First, it is critical to understand how football clubs produce money. You should never invest in a business if you carryout not know how it makes money and it is no different for a football club. One of the best reasons to invest in a football club is that it has a wide range of revenue streams, including:

  • Match tickets
  • Sponsorship deals
  • Merchandise sales
  • TV broadcasting deals
  • Stadium hiring fees
  • Prize money
  • Player transfers

The power of the football club brand

It is also critical to recognise football clubs as enormous global brands. In today’s day and age, it is not sales from match day tickets that nets clubs the most money and instead, it is coming from merchandising and sponsorship. You could be practically anywhere in the world and it would not be surprising to see someone wearing the Liverpool home kit and this should pique the interest of any investor. This is also evident with the number of followers on social media that the top clubs in the world maintain – Manchester United has an eye-watering 61.7 million, which is more than twice as many as Apple.

carryout they produce qualified investments?

So, carryout football clubs produce qualified investments? With football clubs becoming enormous global brands generating enormous amounts of revenue each year, it is certainly worth considering for any investor looking to diversify their portfolio. Of course, the club that you invest in will also play a considerable role. Manchester United is one of the highest-earning clubs in Europe with revenue of around £835 million and paid out £23.3 million in shareholders in 2020, but this is not common. Additionally, share performance can vary greatly and be hard to predict. Therefore, investing in a football club can bring risk and it is critical to be aware of this and ensure that you diversify if you resolve to invest.

Many fans want to invest in their favourite football club as a way to display support as well as potentially produce some money. With some football clubs becoming enormous global brands creating staggering revenue each year it is easy to see why, but it is still a risk and it is critical to carryout your due diligence and ensure that you are investing with your head and not just your heart.