The Business of Sports: Why Football Clubs Are Worth Billions

Football stands among the world’s most impactful sports. Its vast global following has turned football clubs into highly valuable commercial assets, with leading teams now often valued at several billion dollars. This is not solely due to their performance on the pitch, but rather the result of multiple commercial operations and globalization strategies working together.

Diversified Revenue Streams Build Massive Value

Football clubs have a wide range of income sources. One of the core revenues is prize money. Clubs earn significant sums by participating in various leagues and cup competitions. Especially in top-tier tournaments, this income plays a crucial role. Take the upcoming 2025 FIFA Club World Cup, for example — its total prize pool is set at $1 billion, with the champion set to receive over $125 million (around €113 million), far exceeding the cost-benefit ratio of traditional competitions like the UEFA Champions League.

In addition, revenue from broadcasting rights is another major source of income. FIFA attracts billions of viewers worldwide through international broadcasting deals, prompting TV networks and streaming platforms to bid fiercely for the rights. A portion of these profits is directly distributed to participating clubs. As clubs gain more global exposure, they attract international fans, which in turn drives sales of jerseys, brand endorsements, and other commercial spinoffs.

Commercial Partnerships and Expanding Brand Value

A club’s commercial value is also reflected in its sponsorship deals. With their massive fan followings and strong brand influence, clubs are ideal advertising platforms for major corporations. Sponsorships come in many forms, including shirt sponsorships, stadium naming rights, and official partnership agreements. These stable sources of funding are key to a club’s operations. At the same time, merchandise sold in official stores—such as jerseys and souvenirs—not only provides additional revenue but also extends the club's brand influence.

Capital Investment Driving Soaring Valuations

As professional football becomes increasingly globalized, clubs have become attractive targets for capital investment. Equity transactions are frequent, with multinational companies and even sovereign wealth funds vying for ownership. Star players have also become “assets” themselves — for example, transfer rumors surrounding superstars like Cristiano Ronaldo can directly impact a club’s market value. Other factors such as ticket sales (e.g., Dalian Yifang FC earned 24.6 million yuan in ticket revenue in the 2024 season) and government subsidies also contribute to rising club valuations.

Among Europe’s elite clubs — such as Real Madrid and Manchester City — continued growth through prize money, sponsorships, and commercial development has created a “the strong get stronger” feedback loop. While FIFA has allocated $250 million in solidarity payments to help clubs that don’t take part, aiming to reduce financial disparities, the broader environment remains increasingly divided.

The 2025 Club World Cup will undoubtedly be a key milestone in the commercialization of global football. FIFA’s $1 billion investment is essentially a large-scale venture capital project. They are betting on football’s potential as the most commercially viable sport in the world to yield widespread returns. FIFA seeks to create an inclusive, multi-level, and globally connected football ecosystem by capitalizing on the popularity of top clubs and fostering growth at the grassroots level.

As FIFA President Gianni Infantino stated at the press conference: “This money will not stay in Zurich; it will flow to every land where there is a demand for football.” This not only reflects FIFA’s ambition in the global market but also reveals how football, as an industry, is evolving into a larger, more complex, and more efficient model of capital operation.