The Business of Football: Insights from eToro’s Football Investment Report
Football and big business have always been intertwined. Behind the scenes, there are massive sums of money at stake, and player acquisition is not just about winning matches but also about generating bottom-line profits. Investment platform eToro has recently published a comprehensive report that delves into the world of European club investments and transfers, shedding light on the buying, selling, and investment habits of some of Europe’s elite clubs.
The report, created in collaboration with German football site Transfermarkt, offers a fascinating window into the business dealings of clubs such as Premier League treble-winners Manchester City, Borussia Dortmund, and Benfica, among many others. It highlights that there is no one-size-fits-all approach to success for elite clubs. Each team adopts its own methods and priorities, with some strategies being long-term and others short-term. However, what all these titan football clubs have in common is that they operate in an absolutely ruthless big-bucks industry.
Former England midfielder and BT Sport pundit Joe Cole emphasizes the importance of transfers and talent development in his foreword to the report. He states that the margins at the top of the game are so small that any edge a team can find can be the difference between success and failure. Getting it right has never been more crucial.
One of the key findings of the eToro Football Investment report is that Benfica generated the highest profits from transfer sales, making a whopping £625.4m in player sales and a £312.3m profit in transfer activities. The club’s ability to “buy low, sell high” has been instrumental in their financial success. Borussia Dortmund, on the other hand, saw the highest return on a player investment. They bought Ousmane Dembélé from Stade Rennais for £30.7m and sold him to Barcelona for £122.8m, resulting in a significant profit.
Interestingly, Benfica also boasts the most profitable player as a whole. They sold João Félix to Atlético Madrid for £111.6m in the 2019/20 season. The next two players on the list, Ruben Dias and Éderson, were both sold to Manchester City. It’s worth noting that Ousmane Dembélé delivered the biggest profit after just one season, but Benjamin Mendy ranks at number 5 on the list. He was signed from Monaco to Marseille for £11.4m in 2016/17 and then acquired by Manchester City for £50.4m in 2017/18.
Among UK clubs, Tottenham Hotspur has added the most value to their team, ranking at number 3 on the list with an increased value of £281.4m. These statistics provide valuable insights into how clubs compare against their rivals in terms of financial success and player investments.
For a more in-depth analysis of these statistics and their implications for investors, eToro’s Football Investment Report is highly recommended. The 27-page report offers a comprehensive view of the football industry and its investment potential. If you are passionate about football and considering entering the world of investing, this report is essential reading. You can download the PDF from the eToro website.
eToro, a major sponsor of the Premier League since 2018, has also sponsored teams across the top European leagues since 2020. In the upcoming season, they will sponsor both the men’s and women’s teams of Arsenal, Everton, West Ham, and Crystal Palace in the Premier League and Women’s Super League.
eToro is a multi-asset investment platform with over 30 million users worldwide. If you’re interested in starting your investment journey, visit their website today.
In conclusion, eToro’s Football Investment Report sheds light on the intricate relationship between football and business. It reveals the strategies and financial successes of Europe’s elite clubs, providing valuable insights for both football enthusiasts and investors alike. With the ever-increasing competition in the football industry, getting transfers and talent development right has never been more important.