This article explores the inefficiencies of football management, noting a shift towards corporatization driven by investments from Asia and Europe. It highlights major events and changes in club ownership, particularly the influence of Chinese investors and the impact on traditional clubs. Revenue disparities are emphasized, particularly in the case of AC Milan vs. Real Madrid, reflecting the challenges faced by historic football institutions.
Football, often regarded as one of the least efficient sectors of the sports industry, has begun a slow but promising shift towards corporatization. Unlike previous assessments in the book “Soccernomics” which depicted the sport as managed through trial and error, recent trends suggest a more strategic approach. Key clubs, like Real Madrid and FC Barcelona, exemplify shareholder-like oversight through fan engagement, improving overall management efficiency.
Historically, clubs such as Bayern Munich have adopted strong management practices that support sustainable models, contrasting with Manchester United’s journey since being listed on the London Stock Exchange in 1991, then delisted in 2005. While the Glazers secured major sponsorship and TV deals, resulting debt overshadowed sporting success, leading to a re-listing in 2014 but with chronic financial challenges.
The turn of the decade saw an influx of investment in European football, initiated by Chelsea FC’s acquisition by Roman Abramovich in 2003, signaling a shift. Chelsea’s ascent culminated in their Champions League victory in 2013 while other clubs from England’s industrial North and Midlands saw fluctuating fortunes with changing ownership dynamics.
Following London, Paris and Rome attracted investment; Qatari and American capital flowed into clubs like Paris Saint-Germain and AS Roma. Recently, Asian investors have significantly entered the football market, discovering a lucrative broadcasting segment that began with MP & Silva, which secured prominent rights agreements around 2013.
MP & Silva, founded to distribute Italian football rights in Asia, moved to London after amassing major deals, such as distributing the English Premier League across 51 territories. Following this, Infront Sports Media garnered significant interest through events like the FIFA World Cup, reflecting the growing influence of Chinese investment as evidenced by Wanda Group’s $1.2 billion stake in the rights distributor.
Asian investors have pursued ownership stakes, highlighted by the purchase of Inter Milan by Erick Thohir, followed by the Suning Group’s acquisition of a controlling stake. The trend extends to other clubs with notable investments from Chinese and Thai entities, indicating a shift in football globalization.
Investment behavior showcases a preference for clubs undergoing a decline from the top tiers, with Asian entities acquiring teams like Grenada FC and ADO Den Haag. This purchasing strategy echoes broader trends across Europe’s historical industrial areas, previously strongholds in football.
Despite challenges, some prominent clubs continue to attract investment. Atletico Madrid and Manchester City received minority contributions from Asian investors. However, Italian football remains a stronghold for local ownership, with few top clubs openly accommodating foreign investors, a situation likely to change given the competitive landscape.
AC Milan remains noteworthy, being the last major club with Italian ownership as global capital increasingly saturates European football. Investigative figures illustrate stark revenue disparities, with Real Madrid’s annual takings outpacing those of AC Milan significantly. Berlusconi’s limits on capital influx point to the challenges for traditional clubs competing against increasingly globalized and well-funded institutions.
In conclusion, the landscape of football is rapidly transforming as Asian investments rise, reshaping club ownership and management structures. Traditionally inefficient football management practices are being challenged through improved oversight and investment strategies, particularly in European clubs. While some iconic clubs struggle to keep pace in revenues, others are capitalizing on globalized interest, illustrating the ongoing transition towards a more corporately driven sport.
Original Source: www.videoageinternational.net
