Why Invest in a Football Club Now?

Capitalizing on Football Investments Ahead of the 2026 World Cup

As a prospective investor in a football club, you stand at the precipice of a unique opportunity. With the 2026 World Cup set to spotlight Football Clubs, valuations of top clubs will soon rise. However, clubs in the lower leagues will have valuations rising as well. Consider acquiring full ownership or shares in an British, Italian, or other international club over the next 18 months. Significant returns await those who capitalize on surging revenues.  Read on to explore prudent ways to profit from football ahead of the 2026 World Cup.

Football Clubs for Sale

The Financial Landscape of Football Clubs

Increased Valuations and Deal Flow

The football industry has seen valuations of top clubs increase substantially over the past decade. Major clubs like Manchester United and Real Madrid are now worth billions. This has led to increased deal flow, with more private equity firms and family offices looking to acquire or invest in football.

It is not just the top tier clubs that are being acquired, as evidenced by lower tier clubs which have a unique challenge in determining valuation. as most transactions are not listed or promoted by the media. New York-based private equity manager John Aiello acquired a majority stake in Cesena FC, an Italian football club. Currently it plays in Italy's Serie B from 2024 to 2025 after promotion from Serie C in 2023–24.

 Wrexham is another example of a lower tier club that was acquired in February 2021.  Reynolds and McElhenney have bankrolled the team's return to the English Football League (EFL) after a 15-year absence, signing high-profile sponsorships and gaining global attention through FX's 'Welcome to Wrexham' docuseries along the way.

Valuations of these clubs have increased substantially because of these promotions.

Broadcasting and Sponsorship Revenues Rising

Broadcasting rights for major European leagues have skyrocketed, with the English Premier League soaring  to record levels.  Sponsorship deals have also grown significantly, with major brands paying tens or even hundreds of millions to sponsor top football clubs. These revenue streams provide more stability and predictability to football club finances.

Growing Global Fanbases

Top football clubs have huge global fanbases, especially in fast-growing markets like Europe, Asia, and North America. This provides massive commercial opportunities through merchandising, pre-season friendlies, and digital media. The 2026 World Cup in North America will only increase the profile and popularity of football on the global stage.

Challenges Remain

However, there are still challenges. Many smaller clubs struggle financially and risk administration. The global health crisis has also severely impacted matchday revenues. There is a lack of cost control, with wage inflation a consistent threat. Government intervention may be required to implement financial fair play regulations.

The financial landscape of football is compelling but complex. While the upper echelon of elite clubs will likely see further valuation growth, especially around major events like the 2026 World Cup, smaller clubs face an uncertain future. With prudent investment and financial management, football clubs can be attractive long-term assets, but risks must be properly assessed and mitigated.

Why Football Club Valuations Are Rising

Growing global interest in football

 Football has captured the attention of fans worldwide, driving increasing global viewership and revenue. The English Premier League, for example, boasts a huge viewing audience, over half of which comes from outside the UK. This global interest is fueling the growth of broadcasting rights deals, currently the largest component of club revenue in the major European leagues.

The next round of rights deals is expected to see substantial increases, which will directly impact club valuations. In 2021, the German Bundesliga saw a record increase in international rights fees. La Liga in Spain projects substantial growth in the value of its next rights deals. These trends point to significant appreciation potential for top clubs with large international fanbases.

Increasing diversification of revenue streams

Football clubs have actively expanded into new revenue streams beyond matchday and broadcasting income. Global sponsorships, merchandising, and commercial partnerships are fast-growing areas. Top clubs like Manchester United, Barcelona and Paris Saint-Germain have built global brands and now generate hundreds of millions in commercial revenue each year.

This diversification reduces reliance on any single revenue source and provides more stability to cash flows, positively impacting valuations. The growth of new revenue streams is still in its early stages, indicating meaningful untapped potential, especially in developing markets.

Scarcity and trophy asset value

Professional football clubs are scarce assets, with only a limited number able to compete at the highest levels. This scarcity, combined with the prestige and status that comes from owning a top club, gives them "trophy asset" appeal and drives interest from wealthy investors and sovereign funds.

As competition for prime assets increases, buyers are willing to pay higher premiums. Recent deals have shown valuations of 3-5 times revenue for top clubs, pointing to a robust M&A market for those looking to capitalize on European football.

How the 2026 World Cup in North America Will Further Increase Club Values

The 2026 FIFA World Cup, jointly hosted by the US, Canada and Mexico, will provide football clubs a major financial boost. The tournament will significantly raise the global profile of football, attracting sponsors and broadcasters worldwide. This heightened interest and viewership will translate into higher revenues for elite clubs through increased sponsorship, merchandising and broadcasting rights deals.

Greater Sponsorship and Commercial Opportunities

With an expanded 48-team format, the 2026 World Cup will be the largest in history, exposing sponsors to billions of viewers across North America and globally. Clubs with strong brands and large international fanbases are well positioned to capitalize on this heightened exposure by negotiating improved sponsorship terms and attracting new commercial partners eager to associate with high-profile clubs.

Enhanced Broadcasting Rights

The World Cup effect on broadcasting rights was demonstrated after Russia 2018, when the English Premier League sold its 2019-2022 rights for nearly US$12 billion, a 70% increase over the previous deal. Major clubs can expect significant jumps in broadcasting revenues in the years following 2026 as networks bid aggressively to secure the rights to air matches from top European leagues and the UEFA Champions League.

Increased Matchday and Merchandising Revenues

The passion and excitement around World Cups have a halo effect, stimulating interest in club football. This leads to higher matchday attendance, merchandise sales, and participation in fan engagement platforms as supporters reconnect with their clubs. The 2026 World Cup, in particular, provides an opportunity for North American clubs to cultivate new fans and drive incremental revenues through targeted marketing to capture the heightened interest.

In summary, the 2026 World Cup will raise the prominence and passion for football globally. Top clubs are poised to capitalize through improved commercial deals, broadcasting rights, matchday revenues and merchandising. For clubs and investors, the 2026 World Cup offers a platform to significantly increase brand value and financial returns over the long term.

Smart Ways to Capitalize on the Growth of Football

With the 2026 World Cup set to be hosted in North America, increased global interest and investment in football is on the horizon. For private equity firms and family offices seeking to capitalize on this growth, several strategic moves can be made.

Target Undervalued Clubs

Clubs with dedicated fanbases but lacking recent on-field success or financial investment are particularly undervalued. By providing capital for stadium improvements, youth development, and player acquisitions, investors can significantly increase club valuations over a 3-5 year period. With major leagues negotiating more lucrative media rights deals, even mid-table clubs stand to benefit financially in coming years.

Focus on Youth Player Development

Investing in youth academies and development programs is a proven way to boost club valuations. Homegrown players that make it to a club’s first team not only save on transfer fees but also build fan goodwill. Top youth prospects can also be sold for major profits. Several mid-sized clubs like Benfica, Ajax, and RB Salzburg have built successful business models around developing and selling young talent. By investing in training facilities, coaches, and recruitment at an early stage, investors can gain exposure to rising player values.

Expand into Related Business Areas

Owning a football club provides opportunities to invest in related business areas. Stadium naming rights, kit sponsorships, and hospitality packages are all potential revenue streams. Media rights to friendly pre-season tours, documentaries and behind-the-scenes footage are also valuable, with some clubs launching dedicated streaming platforms. For investors, buying into these commercial opportunities in addition to a club itself helps create a well-rounded sports business asset.

With smart investments and a long-term outlook, European football clubs are poised to provide private equity firms and family offices attractive returns over the next decade. By focusing on undervalued clubs, youth development, and commercial opportunities, investors can capitalize on the excitement surrounding the 2026 World Cup and position themselves for future success.

Buying a Football Club: FAQs

What factors determine a club’s valuation?

Several key factors determine a football club’s valuation and selling price. Revenue streams are critical, including matchday revenue from ticket sales, commercial revenue from sponsorships and merchandising, and broadcast revenue from media rights deals. Club prestige and potential for growth also matter. Historic success, loyal fanbase size and engagement, and location in a major media market can increase a club’s appeal and valuation.

How are football clubs valued?

Football clubs are valued based on several standard methods used to value any business. The most common are the discounted cash flow model, which estimates future revenues and costs to determine current value, and comparable company analysis, which compares the club to recent sale prices of similar clubs. Additional factors like brand value, fixed assets, and debt levels are also considered. Ultimately, a club is worth what a buyer is willing to pay based on their strategic interests and growth potential.

What is the acquisition process?

Acquiring a football club follows a standard M&A process. Interested buyers will evaluate the target club to determine an initial offer price based on the valuation methods previously discussed. If the offer is accepted, the parties will conduct detailed due diligence to verify financials, contracts, and other material information before finalizing the deal. The entire process, from initial offer to completed sale, typically takes 6-18 months for a club the size of a major European team.

How can buyers maximize their return?

New owners can increase a club’s value and their return on investment in several ways. Growing revenue through improved commercial partnerships, upgraded facilities, and on-field success will boost valuations over time. Strategic investments in player talent and youth development can raise a club’s prestige and competitiveness. Expanding into new markets through preseason tours and digital platforms also builds brand equity and reach. However, football club ownership is a long-term play, and buyers must be patient to fully realize returns.

Conclusion

Looking ahead, the 2026 World Cup presents a timely opportunity for investors to capitalize on the growth and popularity of European football. With valuations of top clubs set to rise in tandem with expanding audiences and revenues, now is the moment to evaluate investment prospects. Conduct thorough due diligence, modeling club values based on projected broadcasting deals, sponsorship revenue, and other income streams. Focus on prime acquisition targets that offer upside from enhanced global exposure, balanced with prudent risk management. For investors with patience and vision, European football provides a compelling avenue to deploy capital ahead of the North American World Cup. The landscape is primed for those ready to kick off and get into the game.

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