Football is in dire strats …. what are the solutions ?

Football industry in dire straits… 

Not a day passes by without further worrying news about that state of the football industry, whether it be point deductions and certain Clubs sweating they will be next in the firing line, eye watering losses from Clubs despite record revenues at some Premiership Clubs,  lower leagues struggling to survive,  ridiculous blue card “solutions”  that were eventually booted into touch and yet again VAR spoils a game...   oh and the scrapping of FA CUP replays, much to the disgust of lower league Clubs whose fans dream of a big tie and every season a lucky few teams earn a lucrative replay that keeps the wolves from the door for not weeks but years in some cases ..  where was the open discussion here ?

The ongoing 777 partners saga , which I am led to believe after talking with a US investment fund recently is FAR  from over…  where does this leave Everton .. surely the fans have suffered enough ?

Piracy is rampant and the ease at which the younger generation can access  games via links from their mobiles, laptops and then cast to a TV and watch it  !  I saw it with my own eyes the other day when kids wanted to view El Classico (Real Madrid  v Barcelona FC) and was bamboozled by  their knowledge and ease of how they were able to do it.  How can media companies and Leagues stop this… ?   An interesting anti-piracy debate outlined how difficult it was and how one expert described it like playing “whack-a-mole, as soon as you kill one web or link, another appears”..

This is the future generation that will dictate how games are watched.   Where will this leave companies such as DAZN and Leagues ?  Will Clubs in the higher leagues be able to rely on lucrative payouts for TV rights, which for many Clubs represent up to 75% of their revenue ?    I fear not … Sustainable ?

A more detailed insight into the above issues can be read at the following article.  How sustainable is football in its current state? – Sol Sports Invest

Solutions ?

Fans & Crowdfunding Clubs

 

Ticket prices are on the rise at most Clubs (see How sustainable is football in its current state? – Sol Sports Invest for further details)  and fans are reaching breaking point at many  Clubs due to rising prices and the complete lack of communication and empathy shown from Owners & Board members.  What so many at Club ownership level fail to see is that without fans , there is no game!!

It is no suprise then that Club Crowdfunding ventures and platforms are on the rise.  A recent talk with Wolfgang Muller, CEO at F2O sports gave a fascinating insight into how his company are starting to revolutionise how crowdfunding will give more power to the fans.  Fans are creating the monumental valuation for each shareholder but get nothing in return or voice in decision making.

f2o Sports aim to change how the professional sports industry works:
– Ownership Decentralised.
– Digitalisation
– Global reach

Their digital platform will allow fans to buy and sell F2O sports stock, vote, see statistics, access content and interact with other fans, players and the Club.  This is one to watch, contact us for further infomation.

Attractive European Clubs for sale

Away from the top leagues , opportunites are available to obtain small to mid-sized Clubs across Europe that are  close or qualified for European qualification places.   These Clubs can offer an excellent platform for talented players to shine in Leagues across Europe, from Austria to Romania.   Many have good academies and real estate to develop land for elite academies at a fraction of the costs involved in competitive league countries such as the UK, Germany and Spain.

Over the last few weeks we have had talks with Clubs in Austria and Romania which in our view offer value for money (valuations are reasonable) , European football, access to academies that can be developed and surrounding real estate for football and tourism projects. For further information, contact us at rpe@solsportsinvest.com

Real estate stadiums  

 

We have seen here in Spain that there is a massive potential to develop real estate around existing stadiums as well as utilise stadiums a great deal more than just on matchdays.   Clubs are slowly realising the potential and this is now earning Clubs additional revenue from events,  academy trials. tours and sponsorship opportunities.

With salary caps coming into play in the future and player wages a real burden on any Club´s balance sheet, never has been a better time to invest in elite academies to develop talent rather than pay overinflated prices for players.

Although the football industry is going through severe challenges at the moment, there exists opportunities in the game at a number of levels to make it more sustainable and access football for relatively low costs in comparison with buying tope league costs, which inevitably only private equity funds can afford and manage.

Here at Sol Sports Invest our aim to connect investors with the right football investments and people via football related real estate, social football projects, Clubs, academies and sponsorship opportunities.

Contact us on rpe@solsportsinvest.com or whatsapp + 44 7300 211 262 to discuss sports-related opportunities in Spain, UK and elsewhere in Europe.

 

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