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You will prepare and submit a term paper on How to Maximize Club Capital. Your paper should be a minimum of 2000 words in length.
You will prepare and submit a term paper on How to Maximize Club Capital. Your paper should be a minimum of 2000 words in length. Soccer is one the most common games worldwide that is played with the feet and a ball and consists of two teams with each 11 players battling it out to score goals of which the one with most wins. They obviously follow a set of rules and regulations laid down by the worlds soccer governing body FIFA (Federation Internationale de Football Association) whose memberships consists of 209 national associations (www.deloitte.com). Discussion Soccer is usually played for fun as a sport but when clubs are associated, this is where finance and soccer get into crossheads. Friends, workmates or just groups of people with the purpose of having fun initially formed soccer clubs but as professionalism came into play and larger numbers of crowds and fans became associated, “Soccer clubs then became considered as limited companies that can make profits and play in soccer leagues that are present all over the world” (Booth 78-90). So as we have seen soccer clubs do make profit and hereby we see the relationship between finance and soccer. Now we have to look at how these clubs generate their incomes and how they maximize on it. Most professional soccer clubs have academies where talent is nurtured from youth levels and the players get promoted to the next level as they grow up and also how good they get in the game. At one time, “most of the youth players make the first team squad but the rest who do not are usually sold to other clubs to further their careers” (http://soccerlens.com). “The club is responsible for providing all the necessary equipment needed for training of the players inclusive of gyms and fitness instructors as well as club doctors” (Walter 56-77). So how does a club earn income to cater for all of these expenses including paying the players wages? Well first we look at advertising. All professional soccer clubs have sponsors. These sponsors are mostly big companies or corporations. They give certain amount of money to the club and in return the soccer clubs put the sponsor’s name in front on their jerseys. This is a way of advertising. If we take examples of real-world soccer clubs that are well known and their sponsors like FC Barcelona, Qatar Airways sponsor which is a Spanish based club, Real Madrid also Spanish club is sponsored by Emirates Airline. Emirates has also sponsored other clubs such as Arsenal FC, an English based club. AC Milan, Italian based. Paris Saint-Germain(PSG), a French-based club among others. Soccer clubs can also have many sponsors, for examples the sports company that makes their jerseys and shoes. For examples Nike has sponsored FC Barcelona, Manchester United, Juventus etc while Adidas has sponsored Real Madrid, Bayern Munich, Chelsea etc. The players are also sponsored by different sports company that provide things like shoes for example, Lionel Messi (considered as the world’s best soccer player) is sponsored by Adidas. This sponsorship is separate from the clubs sponsorship. Other sponsors are like beverage companies that provide energy drinks for the players, motor companies that provide the players with luxury cars and so. All of these sponsorships earn the club a large amount of income which is used to pay the players’ wages and pay other bills. Another way of a club earning money is through the selling of players. A player that plays for a club is considered as an asset of the club and can be sold to make profits. .