Football is the sport of the world, and owning a top flight football club in one of Europe’s best leagues is the dream of many fans. That said, the sport is not that much of a lucrative venture. In fact, the very best clubs in Europe have been reporting losses recently, and a great deal of them are languishing in debt. With millions being made in sponsorship deals, ticket sales, kit sales, and side investments, it is almost impossible to see why these world-famous clubs are struggling financially. Even more confusing is why any serious investor would put their money in a football club.
Studies show that one of the main reasons people invest in football is the sheer passion of the game. There are approximately 4 billion fans in the world, and, plausibly, a number of them can afford to set up or buy and run a football club. That, however, is not to say that all owners have money to burn. Some have had to save for years to achieve the status. It is also not uncommon to hear of lottery winners who have bought football clubs. Often, these are individuals who care less about profits and are willing to take the huge risks that come with football club ownership just to be in charge of their favourite clubs.
That having been said, the financial ability to make the investment comes above passion, willingness to buy, risk-awareness, and everything else that goes into owning a club. You have to afford it to own it.
Starting a Football Team
If you want to start from scratch and be credited as the founder of your football club, the challenges may not always be lesser. For one, you are going to have to start at the lowest league and perform your way up the divisions. The lower leagues attract fewer donors and sponsors, meaning you are most likely going to spend more than you are making. In England, new grassroots clubs have to pay £80 to be registered by the Football Association (FA). Entry into the local league as a member of the FA will cost you an additional £90.
Pitch Costs
The cost of a grassroots pitch is harder to estimate since pitch providers and different local authorities charge differently. However, most new clubs have to pay at least £500 per year to be able to use a pitch a couple of times a week. There are teams that pay upwards of £1,000, but that may come with additional usage privileges.
Kits
Kits make for one of the costliest aspects of running a grassroots football club. The largest clubs typically experience negative costs as kit sales exceed expenses. Smaller clubs with fewer fans do not enjoy this advantage. Most spend more than £1,000 every year while others rely on hand-me-downs to cut back on the costs.
The purchase of match balls, matchday snacks, and training equipment, changing room hire, travel expenses, contributions towards paying match officials, and FA compliance fees are other expenses that club owners have to face. Per year, a large club with more than one team and regular fixtures may spend upwards of £10,000.
Running a bigger club is even costlier and more stressful. There are more fans to impress, bigger bills to pay, and huge expectations to meet. You have to pay astronomical salaries, hire professionals to scout new talent, buy players, hire a medical team, and aim for promotion into higher divisions or avoid relegation.
The current premier league wage bills are 10 times what they used to be two decades ago, inflation taken into consideration. In the 2018/19 season, the only club that didn’t surpass the £1 million mark in average annual salaries per player was Cardiff city, and they were relegated into the Championship. Manchester United had the highest average wage bill of £6.5 million while Manchester City, Chelsea, Liverpool, and Arsenal all spent at least £4 million per player in salaries.
What these heavy spenders have in common is huge fan-bases and trophies to show for their extravagance. Safe to say, it is all about what you are aiming to achieve with your club on and off the pitch that will determine how much running it will cost you.