Has football become more of a business than a sport in the
UK in the past 30 years (1990-2020)?
Football is played by 250 million people, making it the most popular sport in the world. The
2018 World Cup final was watched by 3.5 billion people, further highlighting the popularity
of the game. The International Federation of Association Football (FIFA) recognises the
ancient Chinese game of tsu-chu as the modern games` oldest ancestor. It was then
developed by the Romans and brought to Britain in the Medieval era. By the 19 th century,
football had started to take a form we would recognise today and had been implemented
into public school curriculums. The English Football Association (FA) was formed in 1863 and
created a set of laws for players of the game to abide by.
Football as a sport is still growing, as is football as a business. A business is an organisation
where people work together to sell products or services. As a business, football sells players,
merchandise, and TV rights. The value of these has dramatically increased since 1990, giving
the impression that football has developed massively as a business. The creation of the
Premier League (PL) in 1992 saw clubs in England breakaway from the Football League for
the promise of more significant revenue in the PL. When it first began, there were 13 "nonhome grown" players in the PL as opposed to the 330 currently playing, highlighting the
popularity of the league and its apparent attraction to foreign players. Just as when
businesses expand, they attract international customers, the expansion of football as a
business has meant 64.5% of the players in the PL are now foreign.
Sponsorship is now ubiquitous, with one not being able to enter a stadium without seeing a
brand such as “Etihad”, “Emirates” or “The Britannia” being promoted. Kit sponsorship deals
for Premier League clubs are now worth tens of millions of pounds and brands compete
fiercely to get these deals. Recently, Liverpool won a High Court dispute against New
Balance who accused them of refusing to honour the terms of their £40 million per year
contract. The European Cup became the UEFA Champions League in the 1992/93 season,
and it saw the competition grow from 16 teams to 79. In the European Cup, teams could
only enter if they won their league or they won the cup in the previous season. In the
Champions League, however, the former winner gains entry as well as the winner of the
Europa League. Other entrants are determined by the position in which they finish their
respective league. Each league has a different number of champions league places,
determined by how well teams do in it. Throughout this essay, I have adjusted all prices for
inflation (AFI) using the Bank of England inflation calculator. The value of the pound has
changed over time as a result of inflation the pound held will appear to have a lower value
in the past so, for example, £15 million in 1996 is the equivalent of £28 million in 2019.
Adjusting prices for inflation with a “like for like” value of players and their salaries in
today’s money.
The Premier League
The creation of the Premier League saw clubs stray from the FA in 1992 as the result of a
lucrative TV rights deal. The most significant change since the 1990s in terms of football as a
business is club revenue. In the 1992/93 season, Manchester United made £52.5 million
(adjusted for inflation). In contrast, in the 2017/18 season, they made £590 million. The
club’s TV revenue alone was £150 million. This illustrates the willingness of businesses such
as Sky Sports and BT Sport to buy TV rights as they have a strong knowledge of the
opportunity involved with regards to advertisement and revenue. BT uses the promise of
free BT sport if you buy BT Wi-Fi, they utilise fans desire to watch the game to sell their
product.
The table below shows club revenue from both the UK and International television
companies.
One of a football club's primary source of finance is derived from TV revenue. In the
2017/18 season, Tottenham generated £144.4 million and Arsenal £142 million in TV
revenue. In contrast, Huddersfield, who finished far lower in the table, made £102.4 million.
Despite earning £42 million less, Huddersfield still charged less for shirts, tickets and far less
for season tickets. While Tottenham fans had to pay £1700 for the dearest season ticket,
Huddersfield fans only had to pay £299 for their equivalent. Though it can be argued
demand is lower for the latter, club revenue is much higher for the former. It can be
perceived as unnecessary to charge such high prices when it’s not clubs such as Tottenham
who need even more money. While Huddersfield were promoted in 2018, Tottenham were
last promoted in 1950 and have not been relegated since. This highlights the lack of
reasoning for such high prices, further called into question when we realise Tottenham were
in the Champions League, where participants are paid 900,000 euros for a draw, a result
Tottenham fans are accustomed to. While there have been no protests about ticket prices
at Huddersfield, Tottenham fans find themselves outraged at some ticket prices for
matches.
The table above shows key statistics on match day prices from clubs in the Premier league
Though clubs such as Tottenham and Arsenal create high revenue, they still charge high
ticket prices and have a higher cost of shirts and merchandise. Though some criticise this,
what they do not realise is how great the costs these two clubs have suffered in recent
times due to stadium costs. The building of the Emirates in 2004 cost the club £600 million
and the construction of the new White Hart Lane set Tottenham back £1 billion. As a result
of this, the clubs must charge higher prices to ensure a profit is made. This may be the
reason why the most expensive season ticket at Arsenal is £1768, with the cheapest being
£891 (prices in 2017). Comparatively, the least costly season ticket at Manchester United is
£532 and the dearest is £950. Though the club is in £206 million of debt, it still does not
charge outrageous ticket prices. It can be argued that it still holds its values by not changing
ticket prices to pay off debt. While a business would seek to increase profits as much as
possible, some clubs still hold themselves to higher standards by maintaining football's
status as a spectator sport.
Overseas development
Just as businesses may advertise overseas, Arsenal do not travel to Asia in the pre-season to
promote football. Though they play for the enjoyment of the fans, the shirt and
merchandise sales are a considerable part of the reasoning behind the journey. Arsenal seek
to promote themselves and the players within the club. The games in Asia may cause some
people to watch Arsenals Premier league matches or fly over to go to the stadium. One of
Arsenals kit sponsors is Visit Rwanda. The Rwanda Development Board said the £30 million
deal was part of the "plan" to double tourism. They saw the vast audience of football as a
business opportunity and exploited it in the hope of boosting their country’s economy. This
internationalisation of football in the UK may be the reason behind foreign businesses and
businesspeople willingness to buy clubs.
In terms of the sport itself, tactics have been advancing, with teams moving from the
traditional 4-4-2 formation in the 1990s to more fluid formations such as 4-3-3. As a result
of this, the quality of play is much higher, with possession being turned over far less. This
may also be a result of the higher quality pitches in the Premier League, with under-ground
heating mandatory and strict grass-length rules introduced. Technology in football has
developed immensely, with footballs more aerodynamic and lighter than in the 90s. Also,
kits are tighter than fans in 1991 were accustomed to seeing. The introduction of goal-line
technology came late but, none the less, fans were pleased to see its debut as it ensured
goals such as Frank Lampard's in the 2010 world cup would not be ruled out again. The
controversial Video Assistant Referee (VAR) has proved helpful for referees but appears to
be celebration-ruining for fans and time-consuming for players. With regards to players
specifically, nutrition has changed considerably, with clubs moving away from the team
having post-match drinks in their diet but instead adhering to a strict plan.
How life for players has changed
Tony Adams, a former Arsenal and England defender, writes in his book "Sober" that he was
"getting smashed Saturdays after games and Sunday lunchtimes. I would find little pubs and
working men's clubs that would open on Sunday afternoons." This is a man who was
idolised in the eyes of many North Londoners, having no problem being seen drunk. At the
time, this would not have tarnished the reputation of the club as it was such a common
sight. Between age 17 and 29, Adams talks the reader through his success as a player as well
as some horrific lows such as going to prison for drink-driving and being in intensive care
after having 29 stitches in his head from falling down steps, drunk. Actions such as these
would be less likely to be tolerated from a player nowadays. They would find their career
ending abruptly and no club would want such a smear on their reputation. Contrastingly to
Adams, an idolised footballer today is James Milner, a man who managed to win the
Champions League. He prides himself in not drinking and there are many famous stories of
team nights out where he is found to be drinking Ribena. Due to the growth of football as a
sport, it has drawn a much wider audience and within that audience are children and
teenagers who view the players as role models. One of the benefits of the sport being a
business is that it puts players in the public eye, with some fans waiting for a slip up to
ridicule. As a result of this pressure, I believe players these days are less inclined to
misbehave off the pitch as the consequences are far more significant. Through the rise of
social media and the pressure it puts on teams to punish wrongdoers, football as a sport has
reached a higher level, with clubs no longer holding post-match drinks or its players being
sent to prison for drunk driving.
The Oxford dictionary defines a sport as “an activity in which an individual or a team
competes against another or others for entertainment”. Therefore, for football to be
enhanced as a sport, it must become more entertaining. One may interpret this as
entertainment for the fans while others may see it as entertainment for the players. I see it
as both. Since 1990, football has significantly enhanced as a sport due to an ever-increasing
world population and the simple fact that it is incredibly easy to play. You do not need an
11-a-side pitch or the latest boots and ball to play, but you can still kick an old ball with a
few friends for hours. This passion is then manifested in the form of support for your local
club. Even in the worlds developing countries, football is loved and played all over. I was in
Sweden over the summer for a football tournament and Marta, one of my Brazilian coaches,
made a football out of plastic bags, wrapped around each other. She proceeded to do 78
kick-ups with it, to the amusement of the 9-year olds and the amazement of us 16-year olds.
The simplicity of playing football was made blindingly evident as she told us stories of
growing up in Brazil, playing every day with an old football. It is this simplicity that allows us
to understand why football is so popular.
In addition to this, football as a sport is further enhanced by the players and those who
develop the beautiful game. Pioneering players of the Premier League during the 90s
include Ryan Giggs, Alan Shearer, Dennis Bergkamp and Roy Keane. Players such as these
formed a strong foundation upon which the Premier League became renowned.
It was stars of the game that helped football in England become so well known, highlighted
by how well-known certain moments are. The legendary control of Bergkamp, the dazzling
run of Giggs against Arsenal or the single finger pointing to the sky from Shearer that
opponents of Newcastle during the 90s knew oh so well. The 2000s were also important
years for football in England, rife with defining moments such as Liverpool's legendary
comeback in the 2005 Champions League final or the Premier League being graced by a
young Cristiano Ronaldo for years. The growth of the sport during these years was a result
of the sport enhancing, not the development of football as a business.
Another substantial change in the game has been transfer fees and player salaries. With
regards to the former, due to more money circulating in football, prices of players have
skyrocketed. Adjusted for inflation (AFI), in 1990, the world record transfer fee was £18
million for Roberto Baggio. In 1996, Alan Shearer cost Newcastle £28 million (AFI), a
seemingly small price in comparison to Luis Figo in 2000, who cost £62 million (AFI). Another
substantial increase came in 2009 when Cristiano Ronaldo transferred to Real Madrid for
£108 million (AFI). However, these fees are relatively small in comparison to the £198
million paid by Paris Saint Germain for Barcelona star Neymar in 2017. Clubs have had an
increasingly large amount of money they are able to spend every transfer window as a
result of ever-increasing revenue.
Year
Player
fee at the time
fee adjusted for
inflation (2019)
1990
Roberto Baggio
£8 million
£18 million
1996
Alan Shearer
£ 15 million
£28 million
2000
Luis Figo
£37 million
£62 million
2009
Cristiano Ronaldo
£80 million
£108 million
2017
Neymar
£198 million
£198 million
TV revenue
The Premier League is widely regarded as one of the most competitive and popular leagues
in the world and, with this popularity, comes revenue. The promise of TV revenue first
began in 1992 with the creation of the PL and numbers have been rising ever since. This
revenue was further increased with the creation of the Champions League, where clubs
receive 2.7 million euros for every win and 900,000 for every match they draw.
Furthermore, there is a reward for making it through the group and knockout stages. In
theory, if a team wins every game during their Champion League campaign, they will earn
82.2 million euros. With all the recognition comes an increase in shirt sales and other club
merchandise. Much like bonuses in a business, the better you perform, the more money you
receive. The amount of money a club makes dictates how much they can spend, of course,
but some clubs have wealthy owners which creates an unlevel playing field. These wealthy
owners realised the growth potential of the sport and saw the money to be made through
investing in a clubs training facility, transfer desires and the hiring of a strong manager.
Reasoning behind the purchase of clubs may be for love of the sport or club, a vanity
project, to increase their status or for profit. The reasoning varies from owner to owner, but
an example is Sheik Mansours purchase of Manchester City.
In 2008, Sheik Mansour bought Manchester City and, since then, has built a state-of-the-art
training facility and made several significant transfers. Since 2008, Manchester City have
won the league four times, as opposed to their two league wins in the club’s history before
2008. Between 2013 and 2018, Man City spent £818.5 million on players and sold £312.9
million worth of players, making their net spending £505.6 million. This gives smaller clubs
in the Premier League little chance of winning as they are competing against teams who
have far more money to spend. Norwich, for example, spent £65.2 million between 2013
and 2018 and sold £112 million worth of players. In the current season, as it stands,
Manchester City are second and Norwich are last. Though it was entirely within his rights to
buy Manchester City, the club are then given an unfair advantage over smaller clubs. While
trips to Manchester City used to be uncertain for clubs such as West Ham or Crystal Palace,
fans seldom see a win nowadays.
Another example of a controversial foreign takeover is that of the Glazers purchase of
Manchester United. They bought the club for almost £800 million between 2003 and 2005,
gradually buying out United shareholders. This is the equivalent of around £1.2 billion in
today's money. As part of the takeover, the Glazers saddled the club with a large amount of
debt, £386 million of which was secured by the clubs’ assets and the total debt around £1
billion. The takeover of this renowned club shows the disregard of business owners for
football clubs, using them as vanity projects or to build their wealth. This personifies
footballs growth as a business, with the sport being used as a vessel for mass- advertising
and sponsorship. It is not just life for fans and clubs that has changed, with players
specifically now having more freedom with regards to where they can move.
A staggering 16 Premier League clubs are either owned or part-owned by foreigners, with
only Burnley, Brighton and Tottenham being owned by English businessmen and there
currently being a takeover process at Newcastle from Mike Ashley. No owner’s primary
business interest is the club, with some owners being involved in the oil industry (Chelsea),
the steel business (Everton) and even American supermarket chain Wal-Mart (Arsenal). This
highlights businesspersons’ tendencies to buy clubs as a vanity project, to raise their status
and, in some cases, for profit. However, it is not just life for owners that has changed
substantially, with players having more freedom with regards to the clubs they choose to
play for.
The Bosman ruling
Life for players has changed significantly since 1990, primarily due to the Bosman ruling in
1995. When Jean Marc Bosman's contract with Belgian club Liege was finished, he wanted
to move to the French club Dunkerque, but Liege demanded a transfer fee. Bosman argued
in front of the European Court of Justice that this interfered with his right as an EU citizen to
freedom of movement. The court agreed with him - and since then, it has been forbidden
for teams to demand transfer fees for out-of-contract players joining clubs within the EU;
and for leagues or competitions to impose a limit on the number of players from within the
EU in any team. Clubs had to hand over freedom to players with regards to where they want
to play at the end of their contracts. One of the most significant transfers made possible as a
result of the Bosman Ruling was Sol Campbell moving from Tottenham to their North
London rivals, Arsenal. As a result of saving on transfer costs, Campbell received a £2 million
signing-on bonus and a £100,000-per-week contract adjusted for inflation.
The Football Association (FA)
Though football clubs have Human Resources (HR) departments to deal with individual
issues, football in the UK has the Football Association (FA) acting as a HR department. If one
perceives football as more of a business than a sport, it is beneficial to have the FA
regulating clubs. Fines are implemented for breaches of rules on and off the pitch. Players in
the Premier League receive an £8,000 penalty for a yellow card and a £12,000 fine for a red
card. Furthermore, clubs receive a £20,000 fine if their players surround the referee. As, I
am sure, a business would fine employees for breaching regulation, the FA act to correctly
control clubs. In addition, the FA investigate the misconduct of fans at matches. Racism,
fighting and pitch invasions are all dealt with by the FA. I believe the Premier League would
not be able to operate without a governing body such as the FA to oversee their operations.
It can be argued that the FA further make football less of a sport and more of a business
with the introduction of the Video Assistant Referee (VAR). The introduction of VAR, amid
much controversy, sought to help referees by providing additional eyes to the first official.
Referees could review fouls, offsides and more decisions after they happened by taking a
short run to a monitor on the side of the pitch and re-watch the moment. This timeconsuming procedure's purpose was to rid the game of the controversy that fans know all
too well. Suddenly, instead of some goals being awarded straight away, the referee may
take 5 minutes to decide it will stand and the celebrations in the crowd are ruined. As
opposed to quick decisions on the referee’s part, players are left sitting or wandering the
pitch waiting to see if they have scored.
However, overall FA rule changes have enhanced football as a sport, making it fairer to play
from grassroots to the Premier League. It has succeeded as a governing and regulating body,
ensuring football clubs still do their part in giving back to the fans. Part of what makes
football the most popular sport in the world is the fans, not just the people who play. Clubs
give back to those who make their matches the spectacle that they are, such as Arsenal who
set up “Arsenal in the community”. This is where coaches, for free, teach local children how
to play football and, through learning, also develop social skills such as leadership.
How football has changed on the pitch
To further enhance football as a sport, the 4-4-2 formation that fans in the 90s were
accustomed to seeing so regularly has been replaced by more “diamond” based ones. I
believe changes in formations and tactics have revolutionised the game, spearheaded by
coaches such as Pep Guardiola and Sir Alex Ferguson. Combined with the mesmerising
ability of Barcelona in the 2000s, Pep revolutionised the game with a "tiki-taka" style of
football that was fascinating to watch. However, as mentioned in Jonathan Wilson's book
"Inverting the pyramid”, the performances that Pep and co put on in games such as the
2011 Champions League final “were not the result of a handful of great players all
happening to be in the same place once, or one visionary coach leading a revolution. It was
instead the result of four decades of evolution.” Johan Cruyff managed Barcelona from
1988-1996, successfully trying to implement “total football” into their style of play. Then
came the years of 1996 to 2003 where Barcelona went through 6 managers, trying to find
the right fit. Then came Frank Rijkaard in 2003, who introduced attacking football as a
cohesive unit. He believed, in doing this, a team could meet two objectives of winning
games and ensuring the audience enjoyed the game. This greatly enhanced football as a
sport as the most widely known club in the world was playing both for the fans while
developing the game on the pitch.
By 2008 there was a sense that Rijkaard had "run out of steam" and that certain members of
his squad had become disruptive. The director of football at Barcelona at the time was
Beristain, whose policy was one of philosophy over personality. So, he promoted from
within, giving the job to Pep Guardiola, who was only thirty-seven at the time. In hindsight,
it was an inspired appointment. Though he was young and inexperienced with regards to
first-team football, his philosophy demanded discipline and wholehearted commitment
from everyone. His attacking style was revered by many and a spectacle to watch. As a
manager, he inspired many with his focus in training sessions in correlation to his tactics on
the pitch. The rondo held great importance in his training, and this has spread far and wide
in the world of football. It can be argued that, as a manager, Pep and other Barcelona have
greatly enhanced football as a sport, making it a pleasure to watch.
The talent found in his team came from the academy. A Mail Online article titled "La Masia
dream team" tells of a home-grown team being played with all the Barcelona players on the
pitch coming from the academy (La Masia). In November of 2012, Barcelona won 4-0 against
Levante, fielding the following team:
Victor Valdes, Martin Montoya, Carles Puyol, Gerard Pique, Jordi Alba, Xavi, Sergio
Busquets, Andres Iniesta, Pedro, Lionel Messi and Cesc Fabregas.
This highlighted the lack of necessity to spend big money, acting as a business. If the club
trains their players correctly and invests time and effort, they can win and consistently
perform well. Yes, Barcelona is an extreme example as they boast one of the most
successful academies in the world, but the principle still stands. Well-funded businesses
have no issue with spending money on the best personnel, whereas smart businesses invest
time and resources in what they are given, the personnel they have. Football clubs should
not spend enormous amounts of money on new players but instead should invest time and
resources in the players they have, treating their players as people rather than assets or
liabilities.
It is decisions such as these of Barcelona that help football grow as a sport rather than as a
business. That team showed wealthy club owners and managers who only seek to buy the
best instead of making the best. It may inspire clubs to stop spending huge amounts of
money, acting as a business would, and instead train the players they have, as a football
club should. I believe it is unethical of owners and managers to decide they will spend
hundreds of millions of pounds on players when they know other clubs simply will not be
able to compete on the same scale. It is owners and managers with this mentality that kill
football as a sport and expand it as a business, nothing more than a vanity project for the
rich and an unlevel playing field for the poorer managers and owners.
I believe the equivalent of this amount of faith in the youth system in the UK can be found in
Barcelona's 2011 Champions League final opponents, Manchester United. In 2019,
Manchester United took on Everton in the Premier League. It was their 4000th senior match
in succession in which at least one youth graduate is represented in their first-team or
matchday squad. The run began in 1937 and United pride themselves in their dedication to
the development of home-grown talent, motivated by the success of their "Class of '92",
arguably the greatest group of academy graduates in history. The group was comprised of
David Beckham, Nicky Butt, Ryan Giggs, Gary Neville, Phil Neville and Paul Scholes. This class
personified the importance of a strong academy and proved you do not need money to
spend, as a business might, to be successful.
I believe football is still more of a sport than a business, but this may not last long. Football
in the UK is still growing, with teams repeatedly touring Asia and the United States in preseason, drawing new fans to the UK and increasing TV revenue due to more people in Asia
and the US tuning in. As a result of this, I can see a future where academy players are
disregarded for players bought elsewhere. Spending from clubs will increase, as will the
price clubs change hands for, as owners will be making higher revenue from their clubs.
While clubs are still heavily involved in their communities and give back to the fans, this
does not excuse high season ticket and shirt prices that fans feel obliged to pay in show of
support for their club. However, developing tactics from pioneers such as Pep Guardiola
have moved football forward as a sport, away from the 4-4-2 formations fans were
accustomed to seeing in the 90s to variations of 4-3-3 and many other line-ups we have
today. With the development of outstanding youth systems, football as a sport will be put to
the test as to whether or not it will put faith in what it has, or continue spending far too
much money in the hope of winning trophies.
Every aspect of a footballer’s life has changed since the 90s, from nutrition to clothing. In
the public eye, footballers have become less inclined to misbehave as they understand the
implications. In the new world of social media, every one of their actions outside of their
homes are followed and they are held accountable for. The FA acting as a governing and
regulating body has proved incredibly useful, almost acting as a Human Resources
department for football in the UK by keeping clubs in line.
With 250 million people around the world playing football and 3.5 billion tuning in to watch
the world cup final, football is, without a doubt, the most popular sport in the world. The
exploitation of this popularity should be shunned from the sport, with people owning clubs
not as vanity projects or for profit, but for love of the game. Barcelona have shown faith in
their youth system and clubs in the UK should follow suit, investing their money in what
they have rather than spending tens or hundreds of millions of pounds on new players.
Nevertheless, football growing as a business is not purely negative. Stadiums seat more fans
than ever, meaning more fans are able to watch their club play in a comfortable, safe, clean
environment. With club revenue increasing, they now employ coaches for shooting,
goalkeeping, nutrition and more meaning players can develop their abilities better than
ever, making football more interesting to watch.
While it is easy to measure how much football has grown as a business by calculating
revenue growth and tracking the increase of transfer prices, measuring how much football
has grown as a sport is a matter of opinion. In my opinion, as a result of better funding,
investment in training and technological developments football has become more of a
spectacle than it was in the 1990s. Pitches in the Premier League are no longer more mud
than grass and shirts no longer hang loosely off players such as Theo Walcott. As a result of
this, I believe football is still more of a sport than a business but that is susceptible to
change in the coming years. Should owners of clubs allow them to be bought and sold to
already very wealthy business people and players be transferred for hundreds of millions of
pounds, football will become a business but today, in 2020, football is more of a sport than
a business.
PHOTO OF A SHIRT IN THE 90S VS SHIRT IN 2020 TIGHT AND LOOSE.