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Perils of Buying a European Football Club for American Investors


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Americans are Buying European Football Clubs for Sale

It’s no secret that football (soccer) is one of the most popular sports in the world. With so many people around the world following the World Cup, (Predict 5 Billion TV Viewers’s) no surprise that there are a lot of Football Clubs for Sale. However, before you buy a football club, be aware of the potential downside. In this blog post, I am going to discuss the financial risks and lack of understanding of the issues that come with buying a football club. I’ll also discuss the psychological impact of buying a football club, and how to avoid these exposures. By understanding the risks, you can make an informed decision about whether or not to buy a football club.

1. Financial Risk

Buying a football club can be a fun and exciting experience, or it can be a financially risky proposition. Before you make your purchase, it’s important to understand the risks involved. Many of these clubs are burdened with debt, and the transfer market is unpredictable. This means that you may not be able to sell your club for the amount that you paid for it, or you may only receive a fraction of what you expected. Additionally, player salaries can increase exponentially and there is risk of overspending. Finally, relegation is always a possibility – even in the most stable leagues – so it’s important to factor that into your decision-making process.

To help mitigate these risks, there are a number of ways to go about buying a European football club. You can use an M&A Advisor such as MergersCorp to research potential football teams for sale. The company will assist you in making an offer and will help you navigate the complex financial landscape of buying a club. If buying is still something that interests you, there are several steps that you can take to minimize your financial risk: establish realistic budgeting guidelines for both player and stadium costs; carefully study debt structure; and lastly, make sure that you have sufficient capital in case things don’t go as planned. No matter what your plans are for buying a football club – whether it’s as part of an investment portfolio or simply as part of your passion for sport – understanding the risks involved is essential in making an informed decision.

2. Lack of Understanding

When it comes to buying a European football club, there are a few things that you should keep in mind. European football clubs often have a culture that  is difficult to understand from an American perspective.  This means that you may not be able to make an informed decision about whether to buy the club. I have seen fans in Italy turn on American Investors when the team in not doing as well as expected. Economic instability can lead to high interest rates which could make your debt payments very expensive especially as the Federal Reserve is relentless in it’s desire to stop inflation.

3. Psychological Impact

 Making changes to a football club can be difficult and unpopular. Many fans feel attached to their team and want them to succeed, which makes it difficult for investors or directors to make unpopular decisions. This heightened level of scrutiny also puts pressure on managers and players, who may feel under intense pressure to perform well. Ultimately, if you’re looking to invest in European football clubs – be prepared for the psychological impact that it can have on you!

 All of these factors mean that buying a European football club is not for everyone – especially those who aren’t familiar with the sport or aren’t comfortable with risk. If you’re still interested in purchasing a club, be sure to do your research first and arm yourself with knowledge about both the sport and financial risks involved in this type of investment. And don’t forget – always consult with an independent M&A Advisor before making any major decisions!

All In All

If I have not scared you yet, there is some good news to share about the benefits of buying a football club for sale. For example, if you buy a Serie B team and can move up to Serie A you will probably make a very substantial return on your investment.

 Deloitte’s Sports Business Group has been compiling the Football Money League, the total revenue generated by the highest-earning football clubs has grown over seven-fold, from €1.1bn in the 1996/97 season to €8.2bn in 2020/21.

Recent investments in Football Clubs include John Textor’s investment in Olympique Lyonnais which will give the club a valuation of $842m. Billy Foley and other investors finalized the purchase of Bournemouth for a deal in the $150m range.

My suggestion for those of you fearless enough to consider the risk/reward of investing in a football club is to start small with a Serie B or C club. This will limit your exposure and allow you to navigate and resolve the perils of owning a football club.

Please contact me with any questions: ed@mergerscorp.us

Anna Disini
Anna Disini
Anna Disini
Hardworking and self-motivated Business Development Manager with more than five years of experience . Involved in the management and development of new business opportunities.

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