Introduction

According to leading football platform Transfermarkt, there are around 15,000 agents operating globally and almost 7,000 established agencies. The clientele of these agencies varies greatly based upon nationalities, value, standard and leagues. Some agencies boast extensive lists of players whilst others adopt a different approach and have a smaller, more selective portfolio.

There are advantages and disadvantages for agencies approaching the industry in their own way. This blog will look into specific examples of agencies around the world that operate differently. I will begin by assessing the world’s biggest and most well-known global agencies before looking at the more exclusive and niche agencies that keep their market narrow, specialising in specific areas of football.  Finally, I will look at the agents who have paved their way using their own name, unattached to an agency brand and the unique elements of this approach, including that of family members and friends. 

The aim of this blog is to give you as the reader an insight into the particulars and intricacies of football agents and agencies. The table below outlines some of the agencies that will be referred to throughout this blog and their particular clients:                                   

The Big Players

There are some global giants that exist within the world of agency. These companies will have players in leagues in all corners of the footballing world. Consequently, they will employ a considerably-sized range of staff and personnel. These agencies may employ their own scouts, lawyers, tax advisers, marketing specialists and consultants as well as many agents that work in certain jurisdictions and additional employees that help with social media, legal matters and other areas of the profession.

An extensive client base means an equally large number of sources of income. The companies that operate at this level are able to generate enormous revenue from their clients and have become powerful entities in the world of football and of sport in general. For example, ICM Stellar have established themselves as the most valuable agency in the world over the last few years. They have almost 800 players in their books that accumulate a market value of almost £1.5billion. They have also negotiated comfortably over €1billion worth of contracts including Jack Grealish’s £100million British-record transfer from Aston Villa to Manchester City.

Their main competitors operating at this level are the likes of CAA Base (formerly Base Soccer before merging with the Creative Artists Agency), Jorge Mendes’ Gestifute, Unique Sports Group, Wasserman and some individuals that I will discuss further later.

CAA Base have over 500 players with an average individual market value of over €1million per player and has several major clients such as Heung-min Son, Richarlison, James Maddison, Raphael Varane, Trevoh Chalobah and Kyle Walker. Base Soccer was a UK based agency which entered into a merger with the Creative Artists Agency. If you are interested further in this, you may be interested in reading our previous blog entitled “Uniting Forces, Power and Income: Why Do Football Agencies Merge?” which explains this merger in more detail. Similarly in Europe, the likes of Lian Sports, ROOF, and Rogon have developed a similar reputation and dominance across the continent and will pick up players which are not signed by the biggest players in the game.

Whilst Base Soccer began as solely a football agency, its merger with CAA reflected a growing trend in the industry. Football is the most popular sport globally and commercially and financially sits at an extraordinarily high level. Multisport agencies and even agencies in other industries such as music and entertainment are venturing into football to further broaden their power within the industry. Often these are US-based agencies who look at the ever-increasing potential of ‘soccer’ and have the facilities and financial capabilities to try out this new arm of business as a lucrative source of income.

Whilst CAA made a significant expansion decision in merging with an already established football agency, they are not alone in doing so. Large agencies such as Wasserman, whose $1billion+ clientele list includes top-level athletes in Baseball, Basketball, Golf and American Football as well as Olympians and Musicians such as Drake. Wasserman merged with SFX soccer agency as part of their bid to begin in football and took on clients such as Steven Gerrard, Michael Owen and Jamie Carragher. Since their foray into football grew, they have looked after clients such as Aymeric Laporte, Harvey Barnes, Federico Valverde and US female star, Alex Morgan.

Another US-based global giant, Octagon, are in the process of establishing themselves in soccer. Currently their biggest clients include Tajon Buchanan, Gianluca Busio and Roberto Martinez but they may just be the beginning. Similarly to CAA and to Wasserman, Octagon employ hundreds of staff and have divisions that specialise in sports from ice hockey to tennis and boast major clients such as Basketball superstar Steph Curry. Football is their next project and their soccer division is likely to grow substantially.

A summary of the top 10 most valuable football agencies is screenshotted in the graphic below from Transfermarkt:

The advantages of being a global and giant agency are plentiful. As I mentioned, there are multiple sources of income to capitalise upon. This is coupled with a vast network and countless contacts in global sport, allowing these agencies to take on new possibilities and challenges and experience further growth in power, reward and dominance. Their global presence makes them the most reputable and well-respected names around and it can be seen as a privilege for players to be approached by them regarding representation. However, as we will go on to explore in the following sections, this does not mean there isn’t space for boutique agencies and even individuals to make major inroads into the industry.

Boutique Agencies

I speak from personal experience when detailing the benefits and challenges of being a part of an agency that operates in an entirely different nature to the global giants mentioned in the previous sections. My agency, Family & Football has always had a relatively narrow clientbase. Although our client base spans across Europe between countries such as Turkey, the UK, Germany and Austria, we are limited in number in both players and in agents. Despite this, we have managed to grow into a well-respected agency which prides itself in its broad network and ethical values and principles.

We are not the only ones who have spotted the potential of this structure. Many companies across football operate on this kind of level with a particular clientele that is limited in number and may be represented by just a handful of agents. The advantage of this is that the agencies are able to find their niche in the market. They conduct their business in a certain manner and in a specific area of the industry that allows them to thrive regardless of their size. Below I have provided a short list and brief summary of some examples of these kinds of agencies. Note that this is far from exhaustive and simply aims to depict the kind of company I have described in this section, there are countless agencies that fit the characteristics I mentioned:

1. Leaderbrock: A Spanish specialist. They have a particular stronghold in La Liga and in top Spanish football talent. They prioritise ensuring they are able to successfully represent players in this market and to understand its intricate nuances and opportunities. Leaderbrock represents clients such as Pedri and Ferran Torres on the back of the reputation they have built in their unique speciality.
2. GR Sports: Dominant force in Italy. Once again, whilst perhaps not a globally recognised name, GR sports look after over 50 players in the Italian leagues as well as Italian national team players. Their clients include Sandro Tonali and Gianluca Mancini and they are involved in numerous deals within their territory.
3. ND Sports Management: French-African Players. As you may have realised in the previous two examples, these medium-sized companies find a particular area of the industry to specialise in. They capitalise on their own expertise and network in order to best serve a very particular clientele demographic. The previous two examples focused on a national jurisdiction. ND Sports Management, however, look after clients of a certain race. Their major client is Arsenal’s William Saliba who reflects the rest of their clientbase in his mixed-race ethnicity. All of their clients are French citizens with African backgrounds and the agency has successfully built themselves up as the go-to agent for such players.
4. Haspel Sportconsulting (Ingo Haspel): Individual expertise. Haspel represents a notable collection of German players, best known for looking after André Schürrle. We will look at individuals more closely in the next section but he is a great example of targeting a specific niche market to grow business as an agent.

It is also a significant factor to mention that the size of these agencies does not necessarily restrict the magnitude of transfers, deals or contracts they may be involved in. Although an all-encompassing network and limitless access may not be readily available to them, they will often still be able to find a way to engage with the desired party. Often, agencies of this size will utilise the network they do already have to collaborate with others and manufacture and complete the desired deal.

Going Solo

Some of the best known individuals in football agency have built their reputations and achieved their success because of the exact nature of their business; conducted as an individual. Names such as the late Mino Raiola and Pini Zahavi, known by some as the ‘Godfather of Agency’ may be the first that spring to mind. Both of these agents have built their empires as individuals and have represented the cream of the crop.

Raiola’s clients included Erling Haaland, Matthijs de Ligt, Marco Verratti, Gianluigi Donarumma and Paul Pogba. He was involved with major international transfers and deals throughout his career and was a globally-respected agent. He was never a part of a major agency but built himself a close team with an extensive network that enabled them to experience success across the footballing world. His clients are now represented by Rafaela Pimenta who had been a longstanding part of Raiola’s team.

Zahavi is also a solo operator that has always had a clientbase limited in numbers but exclusively represents a select and exclusive calibre of player. His current clients include Robert Lewandowski, Christopher Nkunku, Pierre-Emile Hojbjerg and Aleksander Mitrovic. Zahavi and Raiola are rare examples of special characters that are able to conduct the business and services of an agent as well as personally develop a worldwide network to best serve their clients.

Another example of an agent who began alone is Jorge Mendes, the agent of Cristiano Ronaldo. Although he now has his own company, Gestifute, he is a noteworthy example in this section. Of course, he was in the fortunate position of starting out by representing a future Ballon d’Or winner, but he has utilised and developed his position to maximise his success in the industry. Rather than purely leaning on CR7’s success, Mendes has found his own niche just like some of the companies mentioned in the previous section. He is another example which shows how an individual who experiences such success can also create a company to aid their further growth in the industry. Below is a list of some further notable examples of solo agents who have established themselves across different football markets:

1. Ingo Haspel has successfully implemented a similar operation in Germany as mentioned before.
2. Pascal Pavel dominates the Czech Republic market with 60 top players from the region.
3. Hernan Berman has over 40 Argentinian players.
4. Fernando Felicevich in the Chilean market.

Lone-operating agents may also be the family or friends of players. For them, there is less of a need to be a part of a company. They will often just represent their relatives. However, they will likely have to collaborate with other agents who can give them access to a wider network and opportunities. In some cases, as with Mendes and Cristiano, the agent may use this as a platform to continue and to develop in football agency. For example, the brothers of Danny Welbeck have taken on additional clients as well as their brother and have set up their own company. Others have done the same including the brother of Sergio Ramos or the father of Lionel Messi; the father of Neymar is also his agent and it is becoming a more common pattern in modern football. The family agents often work with other agents with wider networks to manufacture and complete major deals.

Conclusion

This blog has hopefully given you an insight into the variety of structures, systems and approaches of agencies and agents in the world of football. From world-dominating multi-sport agencies to individuals who build themselves up alone, there are many ways of achieving success in the industry. The integral part of the success of these agencies is their commitment to building a network and the principles they conduct themselves by.

Introduction

According to leading football platform Transfermarkt, there are around 15,000 agents operating globally and almost 7,000 established agencies. The clientele of these agencies varies greatly based upon nationalities, value, standard and leagues. Some agencies boast extensive lists of players whilst others adopt a different approach and have a smaller, more selective portfolio.

There are advantages and disadvantages for agencies approaching the industry in their own way. This blog will look into specific examples of agencies around the world that operate differently. I will begin by assessing the world’s biggest and most well-known global agencies before looking at the more exclusive and niche agencies that keep their market narrow, specialising in specific areas of football.  Finally, I will look at the agents who have paved their way using their own name, unattached to an agency brand and the unique elements of this approach, including that of family members and friends. 

The aim of this blog is to give you as the reader an insight into the particulars and intricacies of football agents and agencies. The table below outlines some of the agencies that will be referred to throughout this blog and their particular clients:                                   

The Big Players

There are some global giants that exist within the world of agency. These companies will have players in leagues in all corners of the footballing world. Consequently, they will employ a considerably-sized range of staff and personnel. These agencies may employ their own scouts, lawyers, tax advisers, marketing specialists and consultants as well as many agents that work in certain jurisdictions and additional employees that help with social media, legal matters and other areas of the profession.

An extensive client base means an equally large number of sources of income. The companies that operate at this level are able to generate enormous revenue from their clients and have become powerful entities in the world of football and of sport in general. For example, ICM Stellar have established themselves as the most valuable agency in the world over the last few years. They have almost 800 players in their books that accumulate a market value of almost £1.5billion. They have also negotiated comfortably over €1billion worth of contracts including Jack Grealish’s £100million British-record transfer from Aston Villa to Manchester City.

Their main competitors operating at this level are the likes of CAA Base (formerly Base Soccer before merging with the Creative Artists Agency), Jorge Mendes’ Gestifute, Unique Sports Group, Wasserman and some individuals that I will discuss further later.

CAA Base have over 500 players with an average individual market value of over €1million per player and has several major clients such as Heung-min Son, Richarlison, James Maddison, Raphael Varane, Trevoh Chalobah and Kyle Walker. Base Soccer was a UK based agency which entered into a merger with the Creative Artists Agency. If you are interested further in this, you may be interested in reading our previous blog entitled “Uniting Forces, Power and Income: Why Do Football Agencies Merge?” which explains this merger in more detail. Similarly in Europe, the likes of Lian Sports, ROOF, and Rogon have developed a similar reputation and dominance across the continent and will pick up players which are not signed by the biggest players in the game.

Whilst Base Soccer began as solely a football agency, its merger with CAA reflected a growing trend in the industry. Football is the most popular sport globally and commercially and financially sits at an extraordinarily high level. Multisport agencies and even agencies in other industries such as music and entertainment are venturing into football to further broaden their power within the industry. Often these are US-based agencies who look at the ever-increasing potential of ‘soccer’ and have the facilities and financial capabilities to try out this new arm of business as a lucrative source of income.

Whilst CAA made a significant expansion decision in merging with an already established football agency, they are not alone in doing so. Large agencies such as Wasserman, whose $1billion+ clientele list includes top-level athletes in Baseball, Basketball, Golf and American Football as well as Olympians and Musicians such as Drake. Wasserman merged with SFX soccer agency as part of their bid to begin in football and took on clients such as Steven Gerrard, Michael Owen and Jamie Carragher. Since their foray into football grew, they have looked after clients such as Aymeric Laporte, Harvey Barnes, Federico Valverde and US female star, Alex Morgan.

Another US-based global giant, Octagon, are in the process of establishing themselves in soccer. Currently their biggest clients include Tajon Buchanan, Gianluca Busio and Roberto Martinez but they may just be the beginning. Similarly to CAA and to Wasserman, Octagon employ hundreds of staff and have divisions that specialise in sports from ice hockey to tennis and boast major clients such as Basketball superstar Steph Curry. Football is their next project and their soccer division is likely to grow substantially.

A summary of the top 10 most valuable football agencies is screenshotted in the graphic below from Transfermarkt:

The advantages of being a global and giant agency are plentiful. As I mentioned, there are multiple sources of income to capitalise upon. This is coupled with a vast network and countless contacts in global sport, allowing these agencies to take on new possibilities and challenges and experience further growth in power, reward and dominance. Their global presence makes them the most reputable and well-respected names around and it can be seen as a privilege for players to be approached by them regarding representation. However, as we will go on to explore in the following sections, this does not mean there isn’t space for boutique agencies and even individuals to make major inroads into the industry.

Boutique Agencies

I speak from personal experience when detailing the benefits and challenges of being a part of an agency that operates in an entirely different nature to the global giants mentioned in the previous sections. My agency, Family & Football has always had a relatively narrow clientbase. Although our client base spans across Europe between countries such as Turkey, the UK, Germany and Austria, we are limited in number in both players and in agents. Despite this, we have managed to grow into a well-respected agency which prides itself in its broad network and ethical values and principles.

We are not the only ones who have spotted the potential of this structure. Many companies across football operate on this kind of level with a particular clientele that is limited in number and may be represented by just a handful of agents. The advantage of this is that the agencies are able to find their niche in the market. They conduct their business in a certain manner and in a specific area of the industry that allows them to thrive regardless of their size. Below I have provided a short list and brief summary of some examples of these kinds of agencies. Note that this is far from exhaustive and simply aims to depict the kind of company I have described in this section, there are countless agencies that fit the characteristics I mentioned:

1. Leaderbrock: A Spanish specialist. They have a particular stronghold in La Liga and in top Spanish football talent. They prioritise ensuring they are able to successfully represent players in this market and to understand its intricate nuances and opportunities. Leaderbrock represents clients such as Pedri and Ferran Torres on the back of the reputation they have built in their unique speciality.
2. GR Sports: Dominant force in Italy. Once again, whilst perhaps not a globally recognised name, GR sports look after over 50 players in the Italian leagues as well as Italian national team players. Their clients include Sandro Tonali and Gianluca Mancini and they are involved in numerous deals within their territory.
3. ND Sports Management: French-African Players. As you may have realised in the previous two examples, these medium-sized companies find a particular area of the industry to specialise in. They capitalise on their own expertise and network in order to best serve a very particular clientele demographic. The previous two examples focused on a national jurisdiction. ND Sports Management, however, look after clients of a certain race. Their major client is Arsenal’s William Saliba who reflects the rest of their clientbase in his mixed-race ethnicity. All of their clients are French citizens with African backgrounds and the agency has successfully built themselves up as the go-to agent for such players.
4. Haspel Sportconsulting (Ingo Haspel): Individual expertise. Haspel represents a notable collection of German players, best known for looking after André Schürrle. We will look at individuals more closely in the next section but he is a great example of targeting a specific niche market to grow business as an agent.

It is also a significant factor to mention that the size of these agencies does not necessarily restrict the magnitude of transfers, deals or contracts they may be involved in. Although an all-encompassing network and limitless access may not be readily available to them, they will often still be able to find a way to engage with the desired party. Often, agencies of this size will utilise the network they do already have to collaborate with others and manufacture and complete the desired deal.

Going Solo

Some of the best known individuals in football agency have built their reputations and achieved their success because of the exact nature of their business; conducted as an individual. Names such as the late Mino Raiola and Pini Zahavi, known by some as the ‘Godfather of Agency’ may be the first that spring to mind. Both of these agents have built their empires as individuals and have represented the cream of the crop.

Raiola’s clients included Erling Haaland, Matthijs de Ligt, Marco Verratti, Gianluigi Donarumma and Paul Pogba. He was involved with major international transfers and deals throughout his career and was a globally-respected agent. He was never a part of a major agency but built himself a close team with an extensive network that enabled them to experience success across the footballing world. His clients are now represented by Rafaela Pimenta who had been a longstanding part of Raiola’s team.

Zahavi is also a solo operator that has always had a clientbase limited in numbers but exclusively represents a select and exclusive calibre of player. His current clients include Robert Lewandowski, Christopher Nkunku, Pierre-Emile Hojbjerg and Aleksander Mitrovic. Zahavi and Raiola are rare examples of special characters that are able to conduct the business and services of an agent as well as personally develop a worldwide network to best serve their clients.

Another example of an agent who began alone is Jorge Mendes, the agent of Cristiano Ronaldo. Although he now has his own company, Gestifute, he is a noteworthy example in this section. Of course, he was in the fortunate position of starting out by representing a future Ballon d’Or winner, but he has utilised and developed his position to maximise his success in the industry. Rather than purely leaning on CR7’s success, Mendes has found his own niche just like some of the companies mentioned in the previous section. He is another example which shows how an individual who experiences such success can also create a company to aid their further growth in the industry. Below is a list of some further notable examples of solo agents who have established themselves across different football markets:

1. Ingo Haspel has successfully implemented a similar operation in Germany as mentioned before.
2. Pascal Pavel dominates the Czech Republic market with 60 top players from the region.
3. Hernan Berman has over 40 Argentinian players.
4. Fernando Felicevich in the Chilean market.

Lone-operating agents may also be the family or friends of players. For them, there is less of a need to be a part of a company. They will often just represent their relatives. However, they will likely have to collaborate with other agents who can give them access to a wider network and opportunities. In some cases, as with Mendes and Cristiano, the agent may use this as a platform to continue and to develop in football agency. For example, the brothers of Danny Welbeck have taken on additional clients as well as their brother and have set up their own company. Others have done the same including the brother of Sergio Ramos or the father of Lionel Messi; the father of Neymar is also his agent and it is becoming a more common pattern in modern football. The family agents often work with other agents with wider networks to manufacture and complete major deals.

Conclusion

This blog has hopefully given you an insight into the variety of structures, systems and approaches of agencies and agents in the world of football. From world-dominating multi-sport agencies to individuals who build themselves up alone, there are many ways of achieving success in the industry. The integral part of the success of these agencies is their commitment to building a network and the principles they conduct themselves by.

Introduction

For anyone with a vested or general interest in the political and economic situation of the UK, you will be aware of the current turbulence in the country amongst the government and the weakening of the Pound Sterling (£) currency. A cost-of-living crisis has been declared due to the significant increase in basic living costs. Many families and a majority of the population will struggle to afford sufficient heating and other necessities during the upcoming winter months.

The conflict in Ukraine has had a widespread impact on Western European countries and beyond. For the UK, it has meant that fuel and other products that are sources from the conflicted region have become more expensive. Consequently the living costs have risen. Furthermore, instability within the government has led to several inconsistent and detrimental measures being taken by various authorities to try and combat and mitigate against the challenges. This includes the raising of interest rates to stem inflation, changes to the taxation structure and other government intervention.

In this blog, I will focus on a specific impact of the financial situation in the UK; that on football. Football is the region’s most popular sport and is a staple feature during the Christmas period. However, fans and EFL clubs alike are impacted by the economic crisis. Players themselves are also affected by changes in the structure of taxes and otherwise. I will endeavour to explain these consequences within the blog.

The Proposed Changes to Income Tax

In September of 2022, Kwasi Kwarteng, who held the position of Chancellor of the Exchequer for a grand total of 38 days, proposed changes to taxation schemes and tax cuts to attempt to counteract the effect of rising living costs and the disposable income of the general population.

The suggestion of lowering basic income tax to 19% from 20% will not affect football players at the highest level and Premier League footballers are always in the highest-threshold tax bracket of 45%. However, such a change may assist the heart of the game of football; the fans. In the current economic climate, people are forced to give up certain luxuries that are not considered necessities. Unfortunately for some, this may mean less room for buying tickets and attending football games and even giving up season tickets. This will have a knock-on effect to less financially stable clubs within the EFL who rely on gate income from fans. Lowering the basic tax rate may help these fans continue to attend and support their local and adored clubs.  

Another significant change that was proposed in the mini-budget was the abolition of the 45%  income tax rate. This would reduce the effective tax rate for Premier League players to  40%. As mentioned previously, with an annual income of well over £150,000, the top players are in the top income tax-bracket of 45%. After the  changes were announced on September 23rd that the proposal to abolish the 45% tax rate  was scrapped on October 3. The decision was swiftly reversed due to widespread criticism that this reduction in the top bracket of income tax served only to protect the wealthy. Consequently, the value of the pound plummeted, particularly against the US dollar, and the Bank of England again threatened to hike interest rates.  Below I explain the impact that the 45% tax rate cut would have had on English football were it to be set at 40%:

1. Players, who average wages in excess of £3million in the Premier League, would have  seen significant net (after-tax) wage increases
2. This would have been great for player  recruitment and could have led to even more talent being drawn to the UK.
3. On average, every starting XI Premier League player would have received a net pay rise of £2,700 a week, totalling £144,000 annually. This is based on their average salaries.
4. In an extreme example, Cristiano Ronaldo with a reported salary in excess of £26million would have received a  £1.3 million raise.
5. This net wage increase alone would have been more than 3.5 times the average UK wage before tax.
6. These numbers only consider first-team players and ignore academy and staff salaries.

For the UK treasury, the Premier League tax cuts alone would have cost more than £72m.  To some extent, this may illustrate why the decision was reversed as the government wishes to protect their tax income. Furthermore, football players  already have a reputation in some circles for being “overpaid”. This change in taxation would only fuel the fire and create a further economic inequality between the general public and these athletes.

Corporation Tax & National Insurance

In addition to the proposed income tax changes, the government and His Majesty’s Revenue and Customs (HMRC) announced additional changes to other taxable assets and income, such as repealing the proposed corporate income tax hike. In other words, the Government is hoping to raise corporation tax in order to increase their revenue sourced from the profits of corporations.

Presently, this would only have a limited impact on football clubs as they have traditionally made taxable losses. However, with profitability for clubs in English football increasingly sought after, clubs could become corporate taxpayers in the future. Increasing players wages, stadium maintenance costs and other expenditures may result  in clubs deferring their taxpayer status for a while. Energy bills are a significant consideration for clubs that are not financially powerful. Some EFL clubs have trialled and advocated for earlier kick-offs to avoid the cost of floodlighting that is required during the winter when darkness sets in earlier. This is just one example of measures being taken by clubs to try and be financially sustainable against the economic crisis and avoid bankruptcy, administration and worst case scenario, liquidation. EFL clubs will inevitably feel the impact of the financial crisis greater than Premier League clubs due to their financial foundations being far inferior to these bigger clubs already, as demonstrated in the graph below which shows the average revenue across a single season for clubs according to their division:

There may be one welcome change from the club’s perspective.  The government has proposed removing the 1.25% social security cost increase. If it remains approved, this will come into force on November 6th. Providing clubs with relief of £1m a year, particularly in the lower tiers of English football, will provide an economic boost to the clubs. This is based on the average payroll. Clubs with bigger payrolls like Manchester United and Manchester City, despite no realistic financial fears, are expected to benefit from savings of around £4million from the change. The reduction in national insurance benefits all employers (clubs) and employees (players  and non-playing staff) to some extent. However, the benefit to top-level players will not be as significant as getting  rid of the previously proposed 40% income tax rate!

The State of the Economy 

As outlined, the UK economy is currently in a fragile state, experiencing inflation and the pound is  weak. Foreign players are interested in the value of the pound, the currency in which they are likely to be paid with. A weak pound means a devaluation in a currency that a foreign player might have previously preferred and sought after an opportunity at a UK club. This could cause recruitment problems or drive up the cost of  player salaries in the UK going forward in order to continue to attract players. If the current economic situation were to continue this could materialise quite dramatically in the future and UK clubs will struggle to compete in European competitions as they are unable to recruit foreign talents as easily as currently.

The graphs below show the exchange rates between the Pound and the Euro and the Pound and the Dollar respectively over the last 40 years. Note the general pattern of decreasing value for the Pound Sterling (GBP):

This would have another knock on consequence as the weakening pound will lead to an increase in the value of prize money in other currencies. For example, Premier League clubs may struggle to compete in the UEFA Champions League which is a major source of income for the top clubs. The money is also paid in Euros so it becomes even more valuable to these clubs to reach the latter stages of the competition as the Pound Sterling declines. This will also have a notable impact upon Financial Fair Play statements and clubs will have to be careful when navigating around the value of losses when converted into Euros.

US investors already have significant holdings in the Premier League, including  Manchester United (Glazers), City Football Group (Silver Lake), Arsenal (Kroenke) and  Chelsea (Todd Boehly/Clearlake Capital) to name a few.. With a weakening  pound, we may see more US investment in the Premier League. Everton FC is the latest  club to attract interest from US investors. It makes sense that as the Dollar grows stronger, investors with the financial capacity will look to purchase shares and invest in clubs in the Premier League for less of an expense.

Summary  

This blog has demonstrated that football is not immune from the fragile and erratic financial situation in a country. All through the footballing pyramid from owners, to clubs, to players, to fans at the very core of the game will be affected in some way by financial changes and measures taken to mitigate against a cost-of-living crisis. For some this may be positive benefits although on the whole, if the rest of the country is suffering, so will football. It is an ongoing situation that may play out over several years before the full extent of its effect upon UK football is understood in its entirety.

Introduction

After last week’s blog which provided an understanding around the intricate Bundesliga law of the 50+1 rule, this week I will attempt to delve deeper into the trials and tribulations of club ownership across the footballing world. Away from the 50+1 rule, an enormous and diverse array of individuals, groups and other investors own the majority of economic and authoritative shares in a club or, in some instances, a collection of clubs. However, it is an area of football that is fraught with danger and risk to the owner’s financial, political and social status.

I will begin with an overview of the widespread variety of club owners across the footballing landscape and what their motivations behind owning a club may be. I will go on to consider the good and the bad sides of club owners and suggest the characteristics, traits and attributes that could comprise a successful and well-revered owner. However, it is also important to acknowledge the biggest risks and threats that the owners may face by choosing to take charge of a football club and how this can have a detrimental impact upon their own credibility and respect. Finally, I will outline the facts of a well-known case-study; the Glazers’ ownership of Manchester United.

A Wide Variety

It is difficult to know where to begin to understand the extraordinarily diverse demographic of football club owners across the world. The first common point of identification is that it will be an individual or a group that has a significant volume of wealth. The source of this wealth can be almost anything. In the top European leagues alone, the backgrounds of club owners span far and wide across finance, property, the steel trade, automobile industry, venture capital, newspaper tycoons, investment firms, food and catering, oil and gas and even gambling moguls.

In an era where gender equality and equal opportunity is emphasised and prioritised, it is somewhat surprising that there are currently no female owners of football’s major clubs. There are examples, however, of women who have minority shares in clubs and it could be something that changes in the future. Currently, even the so-called ‘most famous lady in football’, Karren Brady, the vice-chairman of West Ham United, does not possess significant shares of the club.

One changing aspect of club ownership that has and remains to become more prevalent is the existence of consortiums and group ownership. A consortium is an association or union of several companies or individual investors that collate their funds and purchase ownership of a football club. By pooling their resources and each entity involved agreeing upon certain contractual obligations, they are able to raise greater finances to own some of the world’s biggest clubs.

A recent, famous consortium purchase was that of Chelsea Football Club led by Todd Boehly and his consortium which included Clearlake Capital Group. Boehly is the chairman, founder and CEO of the Eldridge Holding Company and forefronted the £4.25billion takeover of the London-based club. Alongside Clearlake Capital Group, Boehly will have joint control and governance over the club as it enters and negotiates through the post-Abramovich era. Boehly, alongside his associate Mark Walter, already own the Los Angeles Dodgers Major League Baseball franchise as well as the Basketball equivalents in both the NBA and the Women’s NBA; the Lakers and the Sparks respectively. They are familiar with what it means to be in charge of a major sporting entity and they have taken the leap of expanding their investment into English ‘soccer’.

The wealthiest club ownership, by a considerable distance, in the current football era, is the Saudi Public Investment Fund that purchased the Premier League’s Newcastle United in the latter stages of 2021. With an estimated net worth of assets of over $600billion, they fly high above the second wealthiest ownership, the City Football Group ($20billion estimated net worth). These are assets and finances of the sovereign wealth fund of Saudi Arabia and is overseen by a businessman and Governorand the Saudi Crown Prince who has a personal fortune of $17.6billion himself. The investment fund, which now owns 80% of the North-East of England club, is supported by many major companies across the world such as BP, Boeing, Facebook, Disney and the Bank of America to name but a few.

The practice of cross-sport ownership, such as in the case of Todd Boehly, is becoming a new norm. Some of the richest members of society are able to invest their wealth in two or more sporting entities across the globe. Commonly, investors will look into major sports in the US and the UK for increased outreach. For those that have the financial capabilities to do so, coupled with the love of sport, it is a great opportunity to heighten their status and enhance their popularity. I outline some of the best-known examples of this below:

1. The Kroenkes

• ○ The Kroenkes built their wealth from several different ventures. Most noticeably, their company Kroenke Sports & Entertainment, opened the doors into sport.
• The family have now acquired majority ownership of clubs in soccer, American Football, Basketball, eSports and Ice Hockey
• ○  Soccer: Arsenal (UK) and Colorado Rapids (MLS)
• ○  Other sports: Los Angeles Rams (NFL), Denver Nuggets (NBA), Los Angeles Gladiators (eSports), Colorado Avalanche (NHL).

2. Shahid Khan
   • ○  Khan is a Pakistani-American billionaire businessman. The majority of his wealth comes from his automotive company based in the United States.
   • ○  Khan owns majority shares of the Jacksonville Jaguars in the National Football League in the US and London-based Fulham Football Club in the English Premier League.
3. Andrea Radrizzani
   • ○  Radrizzani is the owner of ELEVEN SPORTS, a global sports broadcasting company. Similarly to the Kroenkes, this made sport an accessible avenue for him to invest his wealth into.
   • ○  The businessman has acquired both San Francisco 49ers in the NFL and Leeds United Football Club in the English Premier League.
4. The City Group
   • ○  The City group is one of the best examples of the power that a consortium can obtain through pooling their resources. The consortium is formed of the Abu Dhabi United Group (which owns a majority 78% share), the American Silver Lake investment firm and China Media Capital.
   • ○  They are the second wealthiest ownership group in the world with an estimated $20billion net worth. They are led by the Deputy Prime Minister of the United Arab Emirates.
   • ○  The consortium now owns eleven football clubs across the globe in England, Australia, France, United States, Japan, Spain, India, China, Belgium, Uruguay and Italy.
   • ○  Their biggest success is undoubtedly Manchester City, but they have also become part of the success and growth of clubs such as Melbourne City, New York City and Mumbai City, as well as others in different corners of the globe.

Why own a Football Club?

Not only is there a variety in the business acumen, backgrounds and financial sources of the owners of football clubs; there is also a wide variety in the intentions of and motivations behind these individuals and groups purchasing ownership of football clubs. The decision to acquire a football club is not one that should be taken lightly. It can have a significant impact on the reputation, respectability and popularity of those involved. It is important to note that, in most cases, a football club is unlikely to make any kind of worthwhile annual profit and hence, the acquisition of a club is rarely financially motivated in terms of yearly returns. So why is investing large sums of one’s wealth into a football club still an attractive proposition to many who have the financial ability to do so? The major factors behind purchasing a football club are summarised below:

1. Appreciation in Value

As mentioned, year on year, a club is unlikely to make a profit that will make a difference to the bank account of the individual that owns it. However, with the direction in which football finances are going, in which player wages, transfer fees, commercial deals and the values of clubs are rising exponentially, a long-term owner of a club may see a dramatic appreciation in the value of their shares which they can then sell for a healthy profit. This may mean that there is still an underlying financial motivation in purchasing a football club. Despite the risk of losing money annually, the attraction of selling shares for a far larger value than they were bought can be a source of temptation.

An example of this is Liverpool Football Club. When the Premier League club was bought by Fenway Sports Group in 2010, managers John Henry and Tom Werner forked out £300million for the red, which was already widely recognised as one of football’s most iconic and legendary club giants. The American-based firm also owns both Boston Red sox (MLB) and the Pittsburgh Penguins (NHL) and are an example of the, often American, investments into sports teams that are somewhat financially motivated. Forbes now estimates that, as of the start of 2022, purchasing Liverpool would now cost around £3.6billion; reflecting an enormous and rapid appreciation in the value of the shares that Fenway Sports Group acquired only a dozen years ago. The graph below depicts the extraordinary rise in value of European clubs in the top leagues since 2008 and demonstrates the financial opportunity that some investors are concerned with (Source: Statista):

This is not guaranteed, however. There have been examples of clubs such as Portsmouth, Derby County, Sunderland and others that have experienced dramatic declines over recent years and no longer even hold their previous value, which has depreciated significantly. Relegation to a lower league inevitably causes major losses in value and is one of the main factors that has such an impact upon a club’s worth. These failures can partly be attributed to poor ownership and shows that it is not as simple as buying a club and sitting back and waiting for its value to increase before selling. As I will go on to explain, it is vital that the owner knows what they are doing and assists the club properly, or they may experience a fate similar to these clubs as a result of their own mismanagement and malpractice.

Ownership that is financially motivated is often the kind that induces fan resentment. Avid and devoted fans of clubs do not want to feel or witness the owners of their club withholding or withdrawing funding and financing of new transfers or worthwhile investments to improve the club for the sake of maximising their own financial gain. This is worsened if owners are also motivated by the opportunity in order to avoid or reduce taxation in their own country by investing their assets elsewhere. Ill-feeling amongst fans is inevitably detrimental to the popularity of the ownership and creates difficulties for them in maintaining their control and respectability. Financial gain is a problematic, risky and complex attraction of club ownership.

2. Political, Status and Publicity Motivation

Owning a football club can often be viewed as a ‘trophy asset’. In other words, wealthy business people acquire shares in clubs as part of a ‘status-enhancing’ venture. It can almost be seen as a form of showboating and demonstrating one’s wealth to others by acquiring an asset in the most popular sport in the world. Owners can reap a variety of benefits from owning a club. Such an opportunity can play a part in building one’s personal brand as a strategic, positive PR stunt. It is a unique form of advertising and growing awareness of an individual or group.

There may also be an element of geopolitical motivation behind the purchase of a football club. Owning a football club allows these business people and investors to open up new avenues and new, wider networks in foreign countries that can benefit them, their state or their company’s reputation greatly. For example, the likes of Roman Abramovich or other foreign investors from the United Arab Emirates, Saudi Arabia and the United States will improve the public’s perception of themselves and their states.

Regardless of what the motivations behind Roman Abramovich’s acquisition of Chelsea was, he was also determined to make the club a success under his ownership. Following his purchase of the club in 2003, Chelsea experienced almost two decades of an incredibly successful spell; the most successful period in the club’s history. Under Abramovich’s reign, they won five Premier League titles, five FA cups and had two UEFA Champions League victories. Chelsea fans did not mind why Abramovich bought the club, he was adored by the fans as he dedicated his wealth to make his ownership a success and was often in attendance at games, demonstrating his own love for the club. Up until his assets were frozen by the British government, his ownership was rarely criticised and demonstrated how club ownership can enhance the public’s perception of individuals.

3. For The Love of The Club and Local Investors

Local ownership is perhaps the most endearing and ‘boy-done-good’ sentiment behind owning a football club. This could be the case when an individual has a strong affiliation with a club, is part of their fanbase and community and has succeeded in life to the point where they are fortunate enough to purchase their beloved club. Fans may long for such an ownership as it can be reassuring to know that the owner is not there for profit or other reasons, but solely for the love of the club and a willingness to be a part of its successes.

An example of this is the Lancashire-born-and-bred businessman, Andy Holt, who made his personal fortune from the plastics industry. In 2015, on the verge of declaring bankruptcy and entering administration, Holt purchased Accrington Stanley, his boyhood club, and brought it back into safety. He has been the long-term owner since and has ambitious aspirations for the club’s future. This is a rare and unique example of club ownership but is an idyllic one for the fans and a heartwarming story in the world of football that is otherwise occupied by money-grabbing foreign investors.

The Good Versus The Bad

As I think has already been illustrated in the previous section, the successes, failures and outcomes of club ownership are turbulent and unpredictable. There are many examples of ownership that have failed for a variety of reasons, and others that have been brilliant, both for the club and for the investor or group of shareholders.

You yourself might be a lifelong fan of a club somewhere in the world; if not, place yourself inside the mind of a devoted fan that only wants to see the success of their beloved club. What might you look for in an owner? For football associations around the world, there are different criteria and regulations around who can own a football club. For example, the English FA conducts a Fit and Proper Persons Test which checks the prospective buyer’s criminal records, financial circumstances and any past history of ownership. This is as extensive as their restrictions go and means that many wealthy investors are able to acquire a club. The regulations seem to fail to account for their aptitude and skills that are needed to successfully know how to run a football club in theory and in practice. This is what the fans may look to instead.

A good owner would possess certain characteristics and implement practices that demonstrates to the fanbase that they are interested in improving the club and achieving success rather than any other reason. This would include things such as investment into the academy, the women’s team, the infrastructure such as the stadium and the training ground, the staff, the fans and arguably most importantly, the team and player personnel. All of these are important to improve the club as a whole and will ingratiate the owner with the fans of the club. Other aspects such as transparency and open dialogue with the fans as well as physically attending the games and outwardly showing support for the team are sure ways of improving the public image for an owner.

Failing to do these things will only create a negative reflection of the owner of a club. Buying a football club is a risky investment in itself, it is not helped by an owner who fails to appear hands-on and loses the backing of the fans. As has been seen across the footballing world, in clubs as big as Arsenal or Manchester United, fans will go as far as protesting openly against the ownership and can create a toxic atmosphere in and around the club. In the next section, I will explore an example of this through the Glazers ownership of Manchester United which has become increasingly sour in recent times in an attempt to show the risks of club ownership and where it can all go wrong.

Case study: The Glazers and Manchester United

The Glazer family made their fortune through First Allied Corporation, a commercial real estate company based in the United States and was well-known for handling large premium shopping center spaces. They are worth an estimated $4.7billion by Forbes in 2022. $192million of this wealth was used to purchase the Tampa Bay Buccaneers NFL franchise in 1995, although this investment has paid off as the team is now estimated to be worth over $1.2billion.

Their relevance in this blog, however, begins in 2003 when the Glazers, led by the late Malcolm Glazer, became involved in English Premier League side and global giant, Manchester United. Back then, the family had 3.17% shares in the club which quickly escalated to 75% by May of 2005 before catapulting to 98% ownership around a month later. The final purchase cost of the club was around £800million in total. Many would argue that the Glazers spotted the potential for the globalisation and commercialisation of ‘soccer’, which American Football, and the Buccaneers, did not have to the same extent, and bought the club for financial gain. If this is the case, the Glazers would see their investment as an undoubted success considering the club is now valued at around £4.9billion.

Despite the extraordinary rise in value of Manchester United, there are many fundamental flaws and problems that have been identified by the fanbase of the club and from the broader footballing community. Perhaps the fact that the club was originally purchased using loans and ‘payments-in-kind’ which came with high levels of interest, was a sign of things to come. It plunged a club that was previously debt-free, into a large amount of debt following the takeover. Hence, many objected to the purchase of the club by the Glazers from the start although during the years of success under the managerial stint of Sir Alex Ferguson, these protests gathered little momentum as the fans were enjoying the accolades the club was gathering.

During this time, Malcolm Glazer passed away and the ownership fell to his sons from 2006. By 2012, the sons had listed 10% of the club, which was equivalent to 16.6m shares, on the New York Stock Exchange. This raised some funds that were presumed as part of the efforts to pay off some of the debt the club had amassed. However, the Glazers themselves took almost half of the £150million that was raised and was the beginning of over a decade of failures following the retirement of Sir Alex at the end of the 2012-13 season.

The fans were quick to argue that the previous success was in no part thanks to the ownership of the Glazers, and lay solely with the impressive management of Ferguson and the talent of his players. The ownership and direction of the Glazers has been questioned, particularly due to their recruitment approach and transition processes since Ferguson. Coupled with rising ticket prices and increasing commercialisation as well as a reclusive style of ownership that is drastically disengaged from the fanbase, the fans have regularly participated in protests and the feeling of resentment towards the Glazer ownership is ever on the rise.

During this time, United, who previously sat at the top of the English football tree, have been swiftly surpassed by their local rivals, Manchester City. Whilst the Glazers have invested minimally in the infrastructure of the club and its academy and hadn’t even appointed a director of football until summer of this year, the City owners have put £160million into City’s academy alone, a similar amount to the funds that the Glazers took out of United from selling shares in 2012.

The protests of the fanbase and the outward expressions of disapproval towards the Glazers is a stark reminder and demonstration of the risk and dangers that come with owning a football club. Nevertheless, the family may be satisfied with their investment as the club’s value has risen enormously and means that one day they may receive a profitable payout from their original purchase. However, this begs the question of whether such ownership is healthy for football? Is there a way in which football associations can prevent owners purchasing clubs purely for financial reasons and instead encourage owners to buy into the values and principles of a club, to engage with the fanbase and have a genuine desire to improve the club in all aspects and achieve success?

A solution which may come to fruition in the future in the case of Manchester United is the potential ownership of Sir Jim Ratcliffe, a locally born businessman who has made his fortune through chemical engineering. Ratcliffe already owns Nice in France and Swiss club Laussane Sport, as well as having expressed interest in Chelsea before he was ousted by Boehly and his consortium. Now, as a lifelong United fan, Ratcliffe could become a prospective buyer for United if the Glazers were to succumb to the pressure being placed upon them by the Red Devils’ fanbase. This seems a far more attractive and fitting acquisition than Chelsea in any case for Ratcliffe as a United fan and could be a great opportunity with someone with a genuine care for and affiliation with the club to bring it back to the successes it experienced in the first dozen years of the 21st century.

Conclusion

This lengthy blog has scraped the surface of the complex world of football club ownership. I hope that it provides a level of understanding and intrigue into the diversity of club owners and the challenges and demands they face. It is far from simple and requires a varied scope of knowledge and expertise in order to achieve success with a football club. Some owners may acquire clubs for reasons that may not be appropriate and they are often quickly found out by the fans whilst others can master the skill of engaging with the club and its fans and enduring long-term spells of success as owners of a club that is part of the most popular and exciting sport in the world.