Why Football Is Bad Business

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Күн бұрын

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Football is the beautiful game that brings in billions of dollars every year as the world’s most popular sport. There’s been no shortage of controversy with the World Cup in Qatar. Yet most people learn and follow football through leading clubs like Liverpool and Manchester City in England, Juventus and AC Milan in Italy or Barcelona and Real Madrid in Spain.
It is these clubs that make the spectacle of football possible. On the outside, the biggest football clubs seem successful - they win trophies, pay high salaries, play on the biggest stages, and sign the best players. As these clubs achieve success on the field, their brands get stronger, which grows the fanbase, and fuels revenue. The business seems simple enough. And with so many famous clubs all over Europe, this flywheel must work.
But in reality, football clubs are businesses that are barely cash flow positive and bankrupt themselves to sustain on-the-field success. They say that if they keep winning, money will materialize in the future to offset costs today. Or these clubs operate at losses with the goal of one day flipping the team for billions in appreciation.
Whether they’re run by corporations or sheiks - a successful football club, simply put, is an unprofitable one. In this episode, we’ll look at the problematic business of football clubs through Manchester United, Juventus, and Barcelona - and how it is only a matter of time before every successful football club is run by a rich oligarch looking for their latest passion project.
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🎧 Audio Editing & Mixing: Sonalf
0:00 The Beautiful Game
6:01 Glory Glory Man Utd
12:55 Atoms For Sale
17:29 Storia Di Un Grande Amor
23:32 Barca, Barca, Baaarca!
28:50 A Virtuous Cycle

Пікірлер: 707

@ModernMBA Жыл бұрын

🚀Get free stock when you open an account at public.com/ModernMBA and earn up to $10,000 when you transfer from another brokerage. 0:00 The Beautiful Game 6:01 Glory Glory Man Utd 17:29 Storia Di Un Grande Amor 23:32 Barca, Barca, Baaarca!

@jonnovember2136 10 ай бұрын

🇨🇦💘⚽️

@Poosley 3 ай бұрын

cringe ad for cringe crypto lmao

@Erveon Жыл бұрын

Making a video about football so you can write off the expensive ticket for the barca match, clever!

@C_M_R Жыл бұрын

I was going to comment on this as well. They also did a video where they traveled to Korea to get a hair transplant, which I assume was written off as well. Clever indeed.

@radmaster13 Жыл бұрын

Because it doesnt fit his hypothesis

@tylerhasbeo Жыл бұрын

Smart but not worth the hours he puts in for this quality content

@danielating1316 Жыл бұрын

@@tylerhasbeo Why?

@djkalenomuzic2615 Жыл бұрын

He a hater 😂

@lolgod1695 Жыл бұрын

Quick correction: Manchester City is owned by Abu Dhabi in the UAE, not Saudi Arabia - Newcastle United is owned by Saudi Arabia

@jitennchaudhary9665 11 ай бұрын

By this logic, Manchester United is owned by USA

@Icecubegv 11 ай бұрын

I was like what, when i heard that

@anon-zk6iz 8 ай бұрын

Correction: Newcastle United is owned by PIF (not Saudi Arabia).

@askkedladd 8 ай бұрын

@@anon-zk6iz And who owns PIF? Let's stop lying to yourself here.

@anon-zk6iz 8 ай бұрын

@@askkedladd Ask the PL. I am saying what's official.

@GeliCarlosJ Жыл бұрын

"Up north from Italy to Spain" i may not be an A+ at Geography but im pretty sure Spain aint north of Italy 😂😂

@2841guilherme Жыл бұрын

I was like, bro, Barcelona is literally west from Italy 😂

@captainyank138 11 ай бұрын

Just an honest mistake

@malcsito Жыл бұрын

As an asterisk there are outliers such as the clubs owned by Red Bull (RB Salzburg, RB Leipzig, etc.) which are run as cash generating businesses. Also, would be useful to look into the profitability of Portuguese clubs (Benfica, Sporting) who are known for developing players before selling for an extreme markup. I'm not sure of the profitability of these clubs, but would be a good case study for how clubs can be made profitable without sacrificing domestic success.

@homiga1 Жыл бұрын

The Portuguese clubs are not that profitable though, income from the league side isn't amazing and some of those player sales are rushed in order to not struggle financially that year or the following one.

@Number69 Жыл бұрын

@@homiga1 there is also the issue of jorge mendes etc owning the player, not the club. Almost no Brazilian players coming to Europe now are club to club transfers

@rockchok Жыл бұрын

a part two covering these clubs would be very interesting to watch!

@designexplainedllc346 Жыл бұрын

That's not a solution. The solution is to follow the American Sports team examples of profitability and start instituting 4 quarters with ad breaks. Honestly so easy to make money with the world's largest audience.

@malcsito Жыл бұрын

@@designexplainedllc346 Horrible take. You clearly do not understand the football market or how the sport works.

@Agtsmirnoff Жыл бұрын

I don’t think the AIG sponsorship “expired”, more like the entire company collapsed in 2009 😂

@Raptorsified Жыл бұрын

A part two to this video looking at clubs like Ajax, AS Monaco, Porto, benefica, and/or Sevilla would be amazing. As these clubs not only regularly punch above their weight but do so while turning a profit.

@truejacksonveep Жыл бұрын

He completely missed the mark on this one.

@victorkreig6089 11 ай бұрын

Sevilla only punch above their weight because they dive and play keep away for 90 minuets with the philosophy of if you can't score on me it doesn't matter if I can't score just like Sociedad.

@texacojobes8702 11 ай бұрын

Ajax only diving and arrogance club

@rohankishibe8259 8 ай бұрын

Lol, Ajax is a dishes cleaning tool in my country 😅

@alpacamale2909 8 ай бұрын

@@victorkreig6089 fool

@Max-ve5tu Жыл бұрын

It is a broken business because there are actors, who do not care about being profitable. It would be like if you had to compete with a restaurant that would gladly take a loss on every single item because they had so much money coming in from elsewhere.

@GTM9164 Жыл бұрын

Yep but low table clubs can’t act like that so there’s a huge difference in the quality of the lower tier teams and the top teams

@Laotzu.Goldbug Жыл бұрын

@@GTM9164 meaning what exactly, that the smaller clubs have a higher quality ratio for their players performance compared to how much cash they put in, versus the larger ones?

@GTM9164 Жыл бұрын

yes but the quality of football they play has gap that is widening. Man city Bayern Barca etc vs the low table teams in the respective league isn't even close in terms of quality of the product of football. Unless the big teams have a really bad game and the low table team has a really good game.

@vaiyt Жыл бұрын

It's more like a restaurant taking a loss to buy all the best cooks, recipes and ingredients in the market leaving the competition to work with scraps and dishwashers.

@freatythedreary5491 Жыл бұрын

Babe wake up a new Modern MBA video just dropped

@alexanderdyers6025 11 ай бұрын

I don't know why, but this is sooooooo funny 😂😂😂

@AlexandruPop2299 Жыл бұрын

What about Bayern Munich? They've been profitable for almost 20 years (not by much, but pre-pandemic they recorded 50 million euros after tax in profits) and they are very succesful year after year.

@TheSeargentStriker Жыл бұрын

Yes it seems like he intentionally left out German Clubs

@SASMADBRUV7 Жыл бұрын

Maybe it's more the outlier than the rule

@Rayansaki Жыл бұрын

@@TheSeargentStriker don't think it was intentional. He didn't mention Netherlands, Portugal or France either. Fact is the British, Spanish and Italian leagues are the biggest in the world with the biggest revenues and spending, so they were the best examples. German teams tend to be a lot more conservative with their finances which is part of the reason they have much lower international appeal, even though their teams still have success in the international stages..

@AKK5I Жыл бұрын

Americans don't know too much about sport outside their nation it seems

@TheSeargentStriker Жыл бұрын

@@Rayansaki Thats not true. Both Ligue 1 and the Bundesliga have higher TV viewer numbers than Seria A and if we go by average Attendance for every game Bundesliga has the most, even ahead of the premier league

@benba8342 Жыл бұрын

Leeds United in 2000's is probably the textbook Case 0 for the current day economics of football clubs.

@fhsh531 Жыл бұрын

A video from modern MBA about my favourite sport? Hell yeah.

@gabrielgarcia7554 Жыл бұрын

And he never even called it soccer once, it’s truly a blessed day 🙏

@organizedchaos4559 Жыл бұрын

I think the problem is that everyone is expecting salaries that doesn't exist because they see everyone else getting high salaries.

@EatMyShortsAU 9 ай бұрын

Yeah they seem sustainable in the log run. I wish my company paid me $200m a year lol Billionaire Tech CEO don't even make that much.

@waazim160 10 күн бұрын

😅

@aliraid1295 Жыл бұрын

One problem with Barca. They’re a 100% fan owned club owned by 220k members from all over the world. I don’t think Arab oligarchs can buy them

@duaneswaby622 11 ай бұрын

That’s not a problem, it’s a good thing

@aliraid1295 11 ай бұрын

@@duaneswaby622 Absolutely! It gives a voice to the fans since they get to vote on most important decisions that the board takes and they can even sack the president of the club if they gather enough signatures

@imthecoolestguy 11 ай бұрын

nice

@ifldiscovery8500 4 ай бұрын

@@aliraid1295 Having fans own the club is dumbestr idea in the world, that why your going broke fans don't fund clubs.

@aliraid1295 4 ай бұрын

@@ifldiscovery8500 you don’t have to worry about Barca for every season for more than a decade they were the club that generated the most money in the world and the only sports team ever to generate 1 billion+ dollars in a single season and they did that twice in a row. What broke them was the monstrous contract of Messi paying him 555 million Euros in 4 years and buying extremely expensive players every season also overpaying them whin they didn’t even play well for us and the biggest reason is the ongoing construction on the stadium and training facilities which cost 1.35 billion Euros . So with the construction finishing in a year and cutting their spending drastically and with the big sums they generate each season they’re expected to recover financially in few seasons

@JoelJohnson24 Жыл бұрын

A small correction at the end. Manchester City is not a Saudi club. It's owned by UAE's Abu Dhabi Investment Authority.

@kb_100 Жыл бұрын

All "Arabs" are the same to some people. I grew up in Dubai and I still sometimes get asked "are women allowed to drive there?" by people in the west. Although Dubai is a playground for all forms of debauchery one can imagine. But the media narrative has painted the entire middle east with a broad brush for decades and that's what sticks in peoples' minds.

@JoelJohnson24 Жыл бұрын

@@kb_100 Agree. I'm from India and I grew up in Sharjah. Dubai is the complete opposite of Saudi but Westerners are ignorant.

@rohankishibe8259 8 ай бұрын

@@JoelJohnson24westerners are "east bad and backward to our degenerate standards, so they're all shit, boooohhhoooo they value modesty and family values, very primitive, we're so progressive we don't even identify a women, because we cannot anymore"

@oskarihonkasaari3215 Жыл бұрын

In a business where some actors are willing to operate at a loss it is impossible for anyone to make a profit.

@EatMyShortsAU 9 ай бұрын

Some businesses/companies do that sometimes to gain/retain market share and crushed their competition.

@USER06584B 4 күн бұрын

now here is a brain teaser with a hint. Hint: accounting sheets often consider time sequentially but can obscure some factors we wanna observe stably even with the variance in time. --> Now when it comes to profits there is the profits with respect to time (perhaps in a fiscal year of sorts when it comes to accounting i.e. quarters) which may provide me a relative rate of profitability year over year, quarter over quarter etc. but theres also the mass of profits, i.e. how much profit i made the last time added with the amount i make the next time etc. and how is that relative to the mass of losses. is this notion not the notion of profitability we mean when we speak about it in terms of football. as in yeah juve may have a loss this year, but in 3 years we expect a huge boom which will offset these losses. Also, the fact that a team has such liquidity to provide under the table deals when it is supposedly at a loss is bewildering no?

@Brabour Жыл бұрын

Manchester City is not owned by the Saudis but by a sheikh from the UAE

@earnestjonahdaniel3802 Жыл бұрын

Develop your own Players. This is what has been lost.

@harukrentz435 Жыл бұрын

Your own players would be bought by bigger club lol lol

@kauswekazilimani3736 Жыл бұрын

It's not lost. Those player are just used by bigger clubs to generate revenue through loans and sells.

@LitoLochoss 10 ай бұрын

@@kauswekazilimani3736 in some part it is mostly no but club like Madrid dont use academy players look at their line up most of them are brought and if they from academy they dont make the team only one starter from Madrid is from the academy and is Carvajal and he barely fit getting old and he pretty much the weakness of Madrid

@louisazraels7072 Жыл бұрын

basically, top football players are way overpaid, they don't generate nearly enough income to justify their salaries, which is not something that ever happens with most other athletes or other type of celebrities like pop stars, you wont ever find a label paying an artist more than they bring in income. Its due to the very specific and odd conditions of the industry.

@skp8748 Жыл бұрын

Not true... Look at how much clubs sell for.

@vaiyt Жыл бұрын

If you dont pay a high salary, your player will be bought by someine else who does. And thus starts the competitive death spiral.

@Robert96902 Жыл бұрын

@@vaiyt yep, the players will go to oil clubs 🥲

@kennythelenny6819 Жыл бұрын

@@Robert96902 If hypothetically they all do and run to the oil clubs, then what happens?

@sacmarv8997 11 ай бұрын

@@kennythelenny6819 then oil clubs will dominate the leagues

@serignedrame9251 Жыл бұрын

Great video, I also would have loved a focus on PSG and also some smaller/mid size clubs in the premier league to also compare if at any level/location, a football club could actually be profitable. What about a video on the NBA as well too? Love the content

@organizedchaos4559 Жыл бұрын

PSG is funded by gas giant, Qatar. They have so concern with profitability. The very same Qatar wasting 220 billion on a world cup.

@sandman1347 Жыл бұрын

Most NBA teams are very profitable so the situation is not the same.

@bornagh1045 7 ай бұрын

MLB,NFL,NBA,NHL and MLS each of these would make fantastic content!!!

@Mixcoatl Жыл бұрын

I don't think the assumption that "if spending goes down, so will quality" holds up. That assumes a perfect, or near-perfect, correlation between salary and quality, or transfer fee and quality. As you mentioned, Barcelona have, over the last few years, given the footballing world a wonderful lesson in inverting this truism.

@Scaraptor619 Жыл бұрын

Clubs like Bayern Munich spend less relative to the results the are getting but generally speaking a club that has 300 mill budget will perform better than one with 1 mill

@SB-mg1wy Жыл бұрын

My little FC Freiburg is doing pretty well

@spinyslasher6586 11 ай бұрын

@@SB-mg1wy But not well enough to win the league.

@MrTuttiFrutti 24 күн бұрын

Exactly, if there was this correlation then Barça should've been winning everything as they spent so much since selling Neymar.

@wagnerabrantes4034 11 ай бұрын

Despite the bad financial moment, Barcelona profited in 21/22 98M euros. Clubs like Bayern, RB Leipzig and Real Madrid were also profitable on 21/22. Every business is bad if you run it like Manchester United.

@s.s6499 Жыл бұрын

I appreciate the anecdotes you added here. It's one thing to make a video showing research but it's another to actually experience it yourself as well.

@GTM9164 Жыл бұрын

It isn’t Man utd or Barca that really show the problem in football business model it’s yo-yo clubs like Norwich or Fulham that really show the problems

@skp8748 Жыл бұрын

Yoyo clubs make a lot money getting into the prem then repeat...

@alilalani9531 Жыл бұрын

This is largely due to a lack of a salary cap, forcing many teams to spend or die, as they cannot compete. NFL teams, NBA teams, even NHL teams continue to be profitable

@rox282 Жыл бұрын

They don't have the same system USA sport's is closed unlike football who is open for every team to compete if you do a salary cap every player in the top team will leave to England cuz the cap will be higher there

@alilalani9531 Жыл бұрын

@@rox282 uefa financial fair play is almost never enforced either

@weirdofromhalo Жыл бұрын

The MLB is uncapped and it's still profitable, even if some teams are utter cheapskates when they could spend more. So I don't think it's the salary cap.

@alilalani9531 Жыл бұрын

@@weirdofromhalo Profit for MLB comes from the insane TV deal they have throughout the US, and despite that a majority of the teams can never compete because they don’t have enough cash. Profitable? Yes. but not competitive

@dylanf3108 11 ай бұрын

@@weirdofromhalo MLB has many more stoppages then European football does and thus many more opportunities for advertising

@makb_the_striker Жыл бұрын

Don't forget that Jeep and Juventus have one major owner - the Agnelli family.

@Laotzu.Goldbug Жыл бұрын

On the longest time scale every business becomes a bank

@user-xm5is4dz2z Жыл бұрын

I have to add another angle to this. There is a lot of income off the books. Especially in small clubs in the top three championships and in other leagues all over Europe. And the big clubs prefer it this way because they benefit also. A lot of betting money is being generated in international betting industries. Last but really important the owners of football clubs benefit by associating themselves with the clubs. This comes to benefit them in other economic endeavors they take.

@phoenix5054 Жыл бұрын

I think this is not an industry-level analysis but a team-level analysis. Teams don't benefit from betting and you haven't given a reason why big clubs benefit from small clubs. Also, what off the books income were you referring too? Game rigging?

@victorkreig6089 11 ай бұрын

Betting is the main reason behind the refs being so shite in the last few years, they now get paid to influence matches to arrive at set full time outcomes. Literally match fixing or at least attempting to And UEFA sanctions it

@centralaudiorecords 3 ай бұрын

All those millions could solve world hunger, but the greedy continue to greed... This world is absolutely crazy...

@AntonioSS22 Жыл бұрын

Would love to see a video in the future on the fastest sport to become a Billionaire to a Millionaire: Formula 1.

@nuudelz3711 Жыл бұрын

Going the same way as hockey. Tv and ad revenue are king. Hopefully it doesn’t destroy the soul of the sport and just the business side

@julienv4928 Жыл бұрын

Great video & clearly a lot of research was put into it. Wonder why PSG was not mentioned specifically though

@harukrentz435 Жыл бұрын

Competing with billionaires like Roman Abramovich is one thing but to compete with the whole country?

@itskrox-johnochuro Жыл бұрын

I appreciate the effort and research you put in these videos. I always end up learning so much. This fascinates me a great deal. Keep up the good work.

@SergyMilitaryRankings Жыл бұрын

Please don't listen to him, he doesn't know what he's talking about

@raosiddharth4726 Жыл бұрын

THat was amazing, only spectacle matters 90% of the time, you just can't be a business machine and leave football to dust.

@Stellarproductions123 Жыл бұрын

Great video! Well done again. One thing to add. The football is devastated by the lychees of middlemen that push this transfers to sky high prices. There is no way Dembele, Coutinho, De Jong or the fodder that Man U has been collecting over the years costs tens of millions of Euros. They are paying for average players extraordinary amounts for, imo, only to satisfy agents and keep the world turning. That in turn pushes all the prices up (even if you exclude the 3 case study teams). Why did the players start needing 20m annually to warm the bench and why the transfer fees even of the most average player is at least 30m? i cant think of any other reason other than middlemen. Just putting out my thoughts here, maybe I am wrong

@prod.german Жыл бұрын

would a salary cap solve this issue?, or is it not a realistic solution

@victorkreig6089 11 ай бұрын

Bad analogy, United's prices were specifically inflated by Woodward and the top brass at United in order to keep stock prices as high as they are. Players going for so much means the stocks stay high due to the high cash flow, which means the club keeps it's worth which means that they can continue to leverage bank loans against the club's market value to pay themselves millions while the club struggles financially. The good news is they have run out of credit at the bank and will no longer leverage loans against the club's market price, this is the main reason the glazers are looking at selling the club

@theblackswordsman9951 8 ай бұрын

@@prod.german It would, but then the players would just move to a league in another country which doesn't have a cap, weakening the league. It's why, despite wages getting ridiculous in the Premier League it won't change, becaue higher wages is the biggest reason players will move there over clubs in other countries, and that makes it the best league in the world.

@qvmdaboss 7 ай бұрын

@@prod.germanlaliga and the efl league 1/2 already has a salary cap based on turnover, UEFA and the premier league has Financial Fair Play/Profitability & Sustainability where clubs cannot lose more than £15m/€5m over 3 years

@qvmdaboss 7 ай бұрын

@@theblackswordsman9951la liga has a salary cap and everyone else has FFP/P&S

@maartenostermann9435 Жыл бұрын

You should do a video on hello fresh and it’s industry

@tiagopaim3060 Жыл бұрын

Talking about the Super League without including Portuguese teams is ridiculous. Tighter spending needs to be the way. We see some clubs being managed with decent profit and still being able to achieve in-field success. The wild transfer fees and salaries are not correlating with sports success at all

@rtomsa1 10 ай бұрын

This was very well done. I appreciate the time and work you put into this

@rcb_reddit 11 ай бұрын

Hats off! This entire video essay is the best thing I have watched this year. Kudos!

@jonathanwagner6370 Жыл бұрын

It seems that Bayern is the only club that figured out how to do it...

@harukrentz435 Жыл бұрын

Yeah rigging bundesliga lol

@urint3902 Жыл бұрын

@@harukrentz435 Dortmund fan?

@kauswekazilimani3736 Жыл бұрын

@@urint3902 I mean it is what it is. German football values are different. If Bayern were to win 9 out the next 10 season Germans would not care. They will enjoy their fight for 2nd and upholding their values. The Anglos are not the same. Always grasping.

@wifi961 Жыл бұрын

So the Super League is kind of like how the US does the MLS all stars and stuff, it’s just to make more money.

@sia_ibk Жыл бұрын

This is wild. I honestly believe players are overpaid. Cutting players salary across the football industry is actually needed. It's a necessary evil. I wish you can do this for basketball teams in the US. I know there was an introduction of a team salary cap at a time.

@SB-mg1wy Жыл бұрын

The larger teams would only agree to that once they are actually forced into bankruptcy.

@shadow_realm47 11 ай бұрын

Salary caps are actually good. Wouldn't have bloated teams such as PSG, Chelsea. Juventus Bayern United and City. Besides City all these teams reached a tipping point. Plus building the team around one or two players actually makes the teams more exciting. PSG is a crazy case for salary cap, they spend more than a million per week on just 3 players

@imthecoolestguy 11 ай бұрын

@@posebnonista615hmmm interesting... wanna elaborate? (not disagreeing, just curious)

@kennythelenny6819 11 ай бұрын

@posebno nista can you elaborate? are you talking about footballers in the big clubs?

@Londronable 6 ай бұрын

Yes! We need to make sure the owners can earn a few additional millions a week from the work of the athletes! It's the American tradition of exploiting their labor force and we should certainly feel sorry for the owners for having to give some money for the revenue the players are generating. The greedy bastards those players are!

@notgoonmusic Жыл бұрын

literally just establish a salary cap and a salary floor… really not that hard to fix but everyone too greedy

@giftokoh7153 Жыл бұрын

Yes I agree, I think football players should earn no more then 15 million pounds or its equality in other currencies a year.

@Szeksp Жыл бұрын

I think it's insane that football player's salary is not capped.

@randomnerd2332 Жыл бұрын

I would say the reason for that is the fact that anything like that would have to come from UEFA itself. I guessing the leagues themselves are scared that if they put a salary cap in their league players would just go to another league that doesn't have a cap on it.

@notgoonmusic Жыл бұрын

@@randomnerd2332 i agree so all the top5 leagues would have to do it together at once for the good of soccer but selfish mindset they all have so itll never happen, funny enough the super league had players salary cap listed

@cash8688 Жыл бұрын

I was hoping you'd make a football video. My wish came true, it's a Christmas miracle.

@MarioMastr Жыл бұрын

The choice to not include background music is really intriguing, and I actually prefer it.

@SeanPattersonLA 11 ай бұрын

Great video, thanks. Well researched and informative, seems kind of obvious after the fact. Nice one!

@asambatyon Жыл бұрын

I wonder why the Bundesliga is ignored in this video. Bayern Munich, as mentioned by you, has trashed Barcelona the last few times they have met, and yet they have turn a good profit over the last few years. BVB can win against the biggest teams on a good night, by basically playing the next generation of super stars.

@LitoLochoss 10 ай бұрын

nah they cant unle they haves someone like lewa or good midfield and upcoming defender then nah they lot to 12 place chelsea

@EatMyShortsAU 9 ай бұрын

Maybe there should be a part 2 and explain clubs that are run well.

@elmehdinafia1237 7 ай бұрын

Bundesliga suck bro.. it's bayern league and there's no competition cause every young player who have some talent in middle table team in Bundesliga get snatched by Bayern..

@demonslayermk235 Жыл бұрын

Great video. The only thing I don't agree with is that Barça fans were happy with signings. Everyone but the most diehard of diehards knew it was bad business and most didn't even make sense football wise. Barto, the previous Barça president, who made all those signings is almost universally hated by the fans.

@tired-dev 11 ай бұрын

Abidal, the director at the time made those signings

@juanritanjaya6254 Жыл бұрын

Thank you for doing the video so thoroughly by buying a VIP ticket to a Barca game. We salute your sacrifice.

@hundid5930 Жыл бұрын

You continue upping the on-line product!

@swefr235 11 ай бұрын

Every team you studied has one problem in common. They are all in their current negative situation because their club academies have failed to produce talent like they used to. As a life-long football fan here in Europe I can assure you that this is the fundamental reason for the financial woes of these clubs. Barca's situation is particularly interesting, as they produced the best players in the world at the start of the 21st century, but have since paid huge money for huge flops like every player you highlighted in your video. At the same time their academy has gone from producing the best players in world to merely decent ones. Young talented players often find themselves locked into low value contracts for the first four/five years of their careers, which can therefore be sold-off for massive profit while such talent is still under contract. No true fan would shed a tear if all the clubs who's finances you highlighted went out of business, so long as the current league structure is maintained. It is relegation and the risk of financial ruin that makes football what it is, and turning football into a product which contains a bunch of safe assets would likely see interest in the sport fall. You are failing to understand the historical and almost familial relationship a club has with its core fanbase. You are also strategically failing to mention clubs like Bayern Munich or Ajax, which generate a profit year after year precisely because they refuse to overpay for players and opt to generate their own instead. The bad management of a handful of clubs should not cause the demise of the cherished European institution that merit-based football leagues represent.

@lilbaz8732 10 ай бұрын

Gavi and pedri say hi.

@USER06584B 9 ай бұрын

and he misunderstood the profitability of the clubs. the clubs are still massively profitable for the owners, not to mention that the owners do not internalize the costs and debt leverage in order to make these transfers -- which are often very merky when it comes to public details and specifics over how things will be paid out. the big clubs make lots of money for their owners, which also partly explains why smaller clubs are squeezed if they do not sell, and if they attract less rich fans they are capped over how much they can raise ticket prices without alienating their supporters. Their is a reason why some of these club owners are rich with the football club as their biggest cash cow irrespective of what the books say -- and debt is a big aspect of it. a wise man once said if im in debt 1 million then im at the mercy of the bank, if im in debt 1 billion then the bank is at my mercy/i own the bank.

@taliamason7986 7 ай бұрын

@@lilbaz8732 Pedri didn't come out of La Masia.

@chemicalsimulationcorner Жыл бұрын

Clubs lost their power when they all became greedy and gave in to player demands and salaries. A player weekly wage today equates to managers salry who's working a 9 to 5 job. Worse, in football, players get paid more than their managers. This is very unrealistic and unprofitable. I find it difficult to pitty them but at the same I understand that they are fighting a battle that they will never win. Even the oil money is not enough because the club still runs at a loss.

@Avaricumstudios Жыл бұрын

Which players are earning more than managers?

@archidius 11 ай бұрын

@@Avaricumstudios Mbappe gets paid 72mil EUR every year, that's way too much mate..

@archidius 11 ай бұрын

To add to this point, when he was contracted 630 million for 3 years, That's a $4,038,461 per WEEK, Dude this is weekly... It's absurd.

@wamnicho 10 ай бұрын

@@archidius one day, these clubs will implode and I will be the happiest to see that happen, and they will because as lots of people are no longer having children or enough of them, the fan base in the coming decades is going to start getting smaller and smaller

@EatMyShortsAU 9 ай бұрын

When big clubs like Barcelona go bankrupt or fans stop watching Soccer the whole house of cards will fall down.

@vietimports Жыл бұрын

sports organization are so inflated its actually hilarious. everybody is trying to flip for a higher price. players want a higher salary, owners want a higher price

@Trollbot007 Жыл бұрын

I used to work in Mayfair, London at an oil company with my office just above the Manchester United London Corporate offices. 😊Fun times

@Ryan-kg9un Жыл бұрын

Really great vid. The way you pronounced “premier league” almost drove me to insanity though haha

@shaggytoph 11 ай бұрын

If man City win the treble, the reward would get the owner more money than he paid for the club.

@jjj8317 Жыл бұрын

When the majority of the fans* are not in Europe and South America, and football is just like watching a Netflix show, the sport losses it's core value. This why the WC was where it happened this year. There is no longer any value added to the football culture.

@giftokoh7153 Жыл бұрын

Football is actually a popular sport in Africa as well.

@jjj8317 Жыл бұрын

@@giftokoh7153 Yes, but as it is today is a European and South American sport. The way Africans live it is absolutely different, and the ways Arabs, people from South Asia live it is completely different. That's why it has become more of marketers gimmick, where as before a club was deeply rooted to its city. A club carried it's local culture, foreign players were an important part and they adopted this new culture and were accepted to it. This is no longer the same. Manchester United doesn't care if they win at all because fans from India and Pakistan care about the brand, and it being "cool." They don't know much, if anything about the local culture in Manchester. This is why the club doesn't even care about the city anymore, it markets itself for the Asian and Middle Eastern markets. For example, you have Real Madrid a Royalist Catholic club, and there is a bunch of anti western people from the middle east using the image of the most traditionalist club in Spain. Which is insane. A lot of the value of football in Europe and South America is the culture and local traditions, the club means more than just a Sunday game. It represents the local people. It can represent the poor people from a city, a local minority, it isn't just a game. An international game was a meeting of 2 cultures it was an special event, even just a friendly. That has been lost with football.

@giftokoh7153 Жыл бұрын

@@jjj8317 What has all your said got anything to do with what I say. My point is that football is the most popular sport in Africa. Football is not nearly as popular in Asia. As for your nonsense about a lot of the values of football having anything to do with the local culture of exclusively European and south American I can not see how a team sport like football has anything to do with the values and traditions of people from Europe and south even when there are many ethnicities and languages in these two continent which are very different from one another so can not be put together in one category. Also what values of football? There are no cultural values in football and has no relation to the traditions of any people to claim so is ignorant and unhinged? Where did you come out with all this rubbish? What is this marketing gimmick you speak of?

@jjj8317 Жыл бұрын

@Gift Okoh that's why you don't get it, it is not part of your culture. It is just a popular sport for you. You wouldn't know whereBilbao is on a map without Google, for us it is part of the culture. Like in Spain, Bull Riding goes back to the Roman Empire and its part of the Spanish identity. You don't understand it, you don't get the whole cultures of the ultras, the rivalries between cities, the representation of different regions because it is not part of your culture. You see Barcelona vs Madrid and see Modric vs Busquets, you don't understand the Spanish culture and the rivalry between Republicans and Royalist, or Ajax vs Feyenord, or Boca Juniors vs River Plate, or Besiktas vs Fenerbahce. You see a ball and gol, you don't get the culture, and the importance this has for the cities. You don't get the importance of Rayo Vallecano representing the working class people or Atletico de Madrid representing the Spanish military, or Real Madrid representing those who are pro monarchy, or Barcelona representing Republicans.

@giftokoh7153 Жыл бұрын

@@jjj8317 What do you mean I don't get that football is not apart of my culture football, for one thing football originally was invented and originated in England not Spain secondly there is nothing cultural about kicking a ball playing football. Anyone is free to play football. Football is not a costume or cultural practice of a particular group of people, it is a simply a sport open to anyone of any background to play for fun whether it be with friends or family members so you sound so foolish and ignorant saying that football is not a part of my culture. As for your claim that I would not know where whereBilbao without looking at google you know nothing about me and to presume that I would not know where whereBilbao seemingly because of my racial origin is offensive. Your messages is so filled with ignorance, misconceptions that it is mind blowing? You really need to go out more and understand the world better before making these extremely ignorant statements.

@shaneg9081 11 ай бұрын

Oh boy, you jumped the gun on this video. Considering the spot Everton is in, you could really drive your point home so much harder. Heck, with them and Rangers a few years back, as well as the crazy spending of PSG you could really prove the point. Though I would say Wrexham is now an example of how there may actually be hope that there could be a better way of doing it.

@stavas05 Жыл бұрын

Bayern München is as successful as Football clubs come and they are consistently profitable , they also have no net debt. And no it is not just because they dominate their league, because they have been profitable for a long time

@kauswekazilimani3736 Жыл бұрын

Aren't they more of an outlier?

@taliamason7986 7 ай бұрын

All thanks to the blood, sweat and tears Uli Hoeneb and Karl-Heinze Rummenigge have put into running that club for almost 50 years and the big mistakes they both made along the way in the 80's, the FC Hollywood days which was much of the 90's, having no real succession plan when the Ottmar Hitzfeld era came to an end, etc that they had to learn from to get to where they are now. There is a phenomenonal documentary about all about by who I regard as the absolute best football content creator of KZfaq called 'Balon'.

@DBomber_24 5 ай бұрын

I hope you can do a similar video for other sports like F1, MMA/UFC, Basketball, American Football, Cricket, Rugby and others. This is a great video.

@harrydolan5097 11 ай бұрын

Love the content, favorite part had to be when he misidentified scholesy as ryan giggs💀💀

@ygaudreault Жыл бұрын

They should have a expense cap to make it more sustainable and even the playing field between top and minor teams.

@MarinaAli Жыл бұрын

F1 tried this but some teams have worked around it. I wonder if the wealthier football teams will also try to find loopholes in cost cap rules.

@ygaudreault Жыл бұрын

@@MarinaAli Don't bring my Max Verstapen into this 😅

@devilex121 Жыл бұрын

That requires the other clubs to also commit to the salary cap. When the potential teams for a player cross national borders, there's no surefire way to actually enforce such an agreement.

@MarinaAli Жыл бұрын

@@ygaudreault This took me out 😹😹

@RANDOMZBOSSMAN1 11 ай бұрын

Even the playing field? That's not what Salary caps are for they're used as a wealth transfer from players to owners by limiting labour costs If it makes it more competitive is a secondary achievement but not the reason its used

@alexwolfgang1951 Жыл бұрын

Dang I just bought some MANU stock, thanks for the heads up. I own a soccer team now!!

@PenduLover02 Жыл бұрын

But these big clubs help smaller clubs make profit by taking players them so owning a smaller feeder club that buy players cheap and sell em to big clubs is good business model

@GTM9164 Жыл бұрын

Not really flipping player and the development model still a low margin and much riskier business model as not every prospect will pan out. They risk relegation far more than big clubs and unless a Arab prince or Elon own the club it’s very very hard to get close to the big clubs.

@MoveOnUpMusicEvan Жыл бұрын

Not to nitpick but it was 2013/2014 when they finished 7th so the season ended mid 2014 so wouldn’t necessarily account towards the 2013 revenue much because they won the title in 2012/13. That being said, it doesn’t really change any trend you mentioned, great video though!

@yovanilla 10 ай бұрын

I think the takeaway is that broadcasting money, or the promise of it, ultimately has lead to overspending by certain clubs. A good follow up video might cover the inception of the Prem and the changes in spending it ultimately created. It's quite ironic that the (horrible) idea of a Super League, a closed league with promises of even MORE broadcast revenue, is considered to pay for these club's financial shortcomings. You know what, let them have it. Maybe if they get out of the real leagues, the rest of the clubs won't have to strain themselves so hard to keep up. I won't watch a single match.

@od9694 11 ай бұрын

The only place left for football clubs to bring in more money is if the league's start streaming the games themselves cutting out broadcasters

@babaahaha Жыл бұрын

Club that strive for Sustainability like Ajax dortmund or Leipzig are not going to spend 100m euros for players thus will never be bigger brand than man u or barca. So only oil merchant can afford these big clubs

@asianpablo1574 9 ай бұрын

It should be studied how Real Madrid is the biggest club in the world for decades, and runs on a positive net spend.

@blueguy5588 9 ай бұрын

While they are money sinks to operate, it's worth noting that the capital appreciation on most professional sports teams has been huge. The New York Yankees, for instance, were bought for $8.8M in 1973 and are now worth $7.1B.

@ivanst8320 Жыл бұрын

Awesome piece, man!

@ablqze Жыл бұрын

sublime analysis, poised to objectively portray the nebulous and subjective sport

@BabsW 9 ай бұрын

The profitability in football clubs is in selling the football club for much more than it was bought. Look at how much the Glazers will get in profit for selling Manchester United despite not putting their own funds into the club and their leveraged buyout in 2005.

@Nohandleentered Жыл бұрын

How do you “invest” in sneakers via an app? 🤔 Does Public by the shoes and hold them until you sell? I don’t get it. Sounds sketchy.

@Laotzu.Goldbug Жыл бұрын

It is. More scam sponsors.

@The_Wetherman Жыл бұрын

I don’t really care about Soccer but this was an excellent video that was very interesting and informative!

@maska1870 11 ай бұрын

"If we travel up north from Italy to Spain..."😂

@akhilesh9862 Жыл бұрын

Babe wake up new modern mba just dropped

@fardeensiddiki7957 Ай бұрын

As a fan of united, the only innovative sponsorship deal under the glazers is the training ground. Otherwise, most cluns are quite similar, and real madrid were more ground breaking with image rights, though as a public traded company its a lot clearer and its one of the 2 clubs that are a business in the pl, other maybe is Tottenham, what is a club that has leveraged its location and sponsorship and son to get good deals, though i know less about it. Though good essay

@jerryfavorito3702 10 ай бұрын

Bro for the owners, if the club remain at the top. It is worth more money to sell in the future. No one buys a football club to make profit on it on a yearly basis. You can take a small club,manage them well Scouut players for cheap, sell for profit like Ajax,Dortmund,brighton etc

@Zebel7 8 ай бұрын

I'd love to see a video like this about Bundesliga teams

@kiefdemon1979 7 ай бұрын

When I clicked on this video I thought this was about American Football not Futbol.

@shmookins 10 ай бұрын

27:47 Why was 'Los' in Los Angeles covered up? In the bottom left of the screen on the black T shirt.

@YazeedAlakel Жыл бұрын

Getting to the end of the video to find out he thought man city is owned by Saudi 😂

@iAmAyoDigital 11 ай бұрын

Would love to see breakdown like this down produced about the basketball Euroleague.

@dbsk06 8 ай бұрын

Digital ads = every pixel can be utilized and “personalized” to region 13:33 commercial revenues most predictable & recurring regardless of on-the-field performance but still need to be competitive and have an attractive product. Player compensation is the highest operating expense

@user-pw6gm1tu6q 3 ай бұрын

the reason UTD are such a big club worldwide i think is because of their obvious great history,the fact they where the top team as the premier league really started to grow round about 1995 and the fact they had becks in the team around the early 2000s,those three things all coming together in a perfect storm is why they are still huge despite being pretty shite lol

@Miloadeur Жыл бұрын

Real Madrid has done well for lots and lots of seasons, with high class players and a good on-field product.

@andilencapai295 Жыл бұрын

No wonder Ronaldo went to Saudi Arabia.....maybe it was a deeper issue of salary affordability and breaking even as the performances were somewhat lackluster....

@gswdeclan 5 ай бұрын

Meanwhile in North America, owning a major sports franchise is the only business where it is impossible to lose money. Shake down taxpayers by threatening to move the team if the politicians don't fund your new stadium, repeat 15 years later by claiming the stadium is obsolete and must be replaced.

@starb0146 11 ай бұрын

You've left several important factors such as revenue from merchandise sales and revenue from UEFA sponsorship for playing in European championships such as the Euroleague or Champions League.

@DaPeePeePooPooCheck Жыл бұрын

Love the way you say adidas😂🔥

@willardSpirit 11 ай бұрын

I like that you went to a Barcelona game for "business research"

@Khigha87 Жыл бұрын

Great vid bro. Except for 1 thing, people follow teams like Liverpool and and literally anyone else in England lol, not Man City, Man City has maybe a fan, not plural. Which is weird given their recent success, they still struggle to fill the Emptyhad stadium 😂🤣. I'm sure most of you know where I'm going with this. There's only 1 team in Manchester 😈

@matthewplunk4928 11 ай бұрын

Also, Man City are owned by Abu Dhabi, not Saudi

@SeanDelaney42 10 ай бұрын

A simple google search on average attendance will dissolve that old tired joke of yours. Oh and by the way… Treble winners 2023 🤫

@Mrmaniqs 6 ай бұрын

Do one with Brighton hove Albion. Now that's a business cog running very well.

@kicker7955 Жыл бұрын

I think there are much more interesting football business models like Brighton, Ajax, Sporting or Dynamo Zagreb. Top level football and commercial based revenue is stupid and also hurts the actual sport because it's basically a bidding war for high names that will never deliver the amount invested in them - but if you don't you basically look weak and sponsors look elsewhere towards more media savvy clubs. This isn't football, this is a losing game of PR.