PREMIER LEAGUE

Comparing Investment Across the Most Popular Football Leagues

Football - Featured

The English Premier League is the most popular football division across the world. The figures will back that up, but it’s very easy to see why without analyzing all of the numbers.

The world’s best players are involved in the EPL, and huge sums of money are paid for their services. The league also attracts the best coaches in the game, and outside investment is significant.

But how does that investment compare with other leagues in world football?

Ways to Invest

Investment into a sports league can come in many forms. In football, we see some of the world’s richest individuals and conglomerates buying a club. They then aim to purchase the best players and a run of trophies represents the return on their investment.

Outside companies then buy into the concept. Sponsorship of the team and advertising in and around the ground are important sources of revenue. Digital platforms now offer an additional way for those advertisers to get involved.

Among those battling for sponsorship and advertising space is the gambling industry. They want to attract customers to their soccer betting markets in a busy sector and this is one way in which to raise a brand’s profile.

Many other industries follow this lead and extra revenue is generated for the clubs. But how much is really invested?

The Numbers Involved

The revenue generated for Premier League clubs is staggering. While it’s hard to pinpoint numbers in certain cases, there are reports that indicate just how much is being plowed into each team.

Over at Everton, it was claimed that owner Farhad Moshiri invested £348 million GBP into the Merseyside club over a five-year period starting in 2016. Overall, in the five years from 2015 to 2020, the 20 EPL teams had received some £1.9 billion in financing.

The majority of those funds come from the club’s owners, but there are contributions from banks and other external sources. Those are eye-watering sums, but can other countries hope to compete?

Compare and Contrast

The Premier League in England is a huge draw for investors and it’s hard for other nations to match. This is especially true in Canada where the sport of soccer is seen as something of a footnote.

The best teams in the country play south of the border in the US’ Major League Soccer while the national competition, the Canadian Premier League, is left with clubs of mixed quality.

It’s an odd situation, because the men’s national team is actually on the up. The team qualified for the World Cup for only the second time in their history in 2022 and Canada will be one of three joint hosts for the 2026 edition.

However, the fact that the best Canadian international players all feature for overseas clubs is an indication of the standard of domestic club football here.

Elsewhere in the world, Europe is a big hub of investment. Italy, Germany and France are among a number of countries with historic and glamorous teams. There is significant investment as a result, but it can’t quite match the levels of money that are being pumped into British football.

Struggling to Compete

Why are owners and advertisers drawn to the English Premier League above other divisions? In some cases, it’s because football is the national sport in this country. If we take a look at Canada and also the US, there is simply too much competition from baseball, basketball, hockey and bigger organizations such as the NBA and the NFL.

In Europe, many countries do list football as the national sport, but they struggle to compete with the EPL in one key area. England has a long history which others cannot match. They provide the oldest league system in the sport and the FA Cup is the most historic knockout competition in the world.

Many of the teams taking part in the league were formed in the second half of the 19th century. That history attracts initial investment and something of a snowball effect ensues.

Once the ball is rolling, the league gets better, and more investment will naturally follow. The momentum builds and divisions in other parts of the world simply can’t keep up.

The Odd Exception

There is always an exception that proves a rule, and we can see a perfect example across the English channel. French side Paris Saint-Germain have received the type of outside investment that allowed them to break the world transfer record when signing Neymar in 2017.

The problem for the French topflight is a lack of competition. PSG are just too good for everyone else, and this acts as something of a deterrent to further investment.

The short term future suggests that little will change and, for any rich owners looking to get involved in a football club, the English Premier League remains the logical destination.

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