The sports industry is minting money globally with investments running into several billions of dollars. Such has the madness grown that a successful career in sports not only promises lucrative monetary returns but also sets a path for a flourishing business. This is the main reason why more and more businessmen are choosing to invest in sports teams that are excelling in order to maximise their returns. Consider football to be one of the most money-raking businesses as millions of dollars is funnelled into one club, which they use in buying players. But saying that the money is invested solely on players would be a down-statement since there are numerous endorsement deals, merchandise, training sessions and travelling expenses that come into the picture.
Source: https://www.pexels.com/photo/stadium-flag-holding-cheering-58461/
English Premier League can be taken as an example since every year, there are record signings that take place with millions of dollars being spent on players. The highest earning players take anywhere between half a million dollars to 3 million dollars per week, which makes them insanely rich. Cristiano Ronaldo makes around $80million dollars with a salary and bonus component going up to approximately $53 million. This shows how lucrative the sports industry has become.
Source: https://www.pexels.com/photo/1-us-bank-note-47344/
Following the most elementary concept of investment, the more a businessman puts money on something good, the better the returns. The craze for sports has reached such a level that it has inspired the gaming industry with numerous online casinos getting in on the business. Sports fanatics are thronging to have fun with UK online casinos since the culture of football is rich all over the United Kingdom. And the footfalls on any popular online casino website have increased to a colossal extent.
Type of investments in the sports industry
At times, there is a whole conglomerate that makes a huge investment into sports clubs for business enhancement purposes. But then, there are certain wealthy individuals who get into the business of buying clubs for their own benefit. Consider Chelsea Football Club, which is owned by Russian billionaire Roman Abramovich or City Football Group owned by Sheikh Mansour Bin Zayed Al Nahyan who owns Manchester City FC. Not only does this allow the owners to make profits, but they also get to interact with the star players on a personal level that adds to their reputation.
Source: https://www.pexels.com/photo/adult-blur-boss-business-288477/
The sports industry was never a failing business opportunity since there are hundreds and thousands of investment opportunities with guaranteed returns in most cases. But when it comes to taking ownership of a club, there is cut-throat competition since it is not necessary that the one with most money will bag the deal. Clubs are looking for lucrative investments backed by support in terms of endorsements and other nitty-gritties that are pivotal to the club. Going by the trend, the investments are only going to go up over the next few decades making sports into a multi-billion dollar industry. This will serve as an encouragement for new and budding sportspersons all across the world and this, in turn, will add tremendous fan following, henceforth keeping the hype intact.