Football is the most popular game in the world. Earlier it was considered a game for the peasants. As the name suggests it is a game where a ball is kicked with the foot. The oldest football club is the Celtic Football Club formed in the late eighteen eighties in Glasgow. The first game was watched by a crowd of over five thousand people. This figure can be considered minuscule as compared to the present crowd at any match is now at over one lac people. Football sees one of the world’s greats rivalries as compared to any other sport in the world.
Who can own a football club? A very good question. If anyone wishes to own a club that entire one needs is to shell out two million pounds. The English Premier League started in the year nineteen ninety two and began at a cost of one million which as on date means a very small amount to own a club.. Even though TV and other advertising companies earn lots of money but as on date most clubs are not even able to break even as far as profit is concerned. In lower divisional clubs the profit is just a fraction compared to that of the premier clubs. In the Championship league only three clubs were able to make a profit and only five were able to make a net profit. It has been seen that English clubs are more in demand. This can be seen by the fact that eleven of the twenty Premier league clubs are owned by foreigners while thirteen of the twenty four teams in the Championships are also owned by foreign teams.
Making money but cutting down on costs : In English Premier league there are three sources from which revenue is earned. The three sources are television, gate receipts and commercials. When one buys a club, the revenues it generates is just enough to pay down the debts. Let us take an example. The North London football club named Arsenal had a cash reserve of over one hundred and twenty million. The owner of the club is American Stan Kroenke has a share of over sixty three per cent and hence it can give itself a lump sum profit. However it is just not this that can make money from football clubs. As on today sponsorship extends beyond just shirting and kit sale to stadium naming rights. The Malaysian owner of Cardiff City created a sensation when they changed the customary blue stripe to red . Even the emblem of the club was changed from a bluebird to a dragon. The reason for the change was given as increasing the market value of the Asian community. The Premier League which was established twenty years ago has put more of its money in wages. This was because there was an eighty per cent increase in revenues.
So coming to the real question. Who actually buys a football club? The answer is a person who has at least three pockets in his pants, must have a magnetic approach and should be strong hearted.