What is Multi-Club Ownership in Football?
Multi-club ownership happens when a single entity, such as an individual, a company, or a consortium, buys ownership holdings in multiple football clubs. These clubs could be in the same country or in different countries, which lets the owner set up a network of teams that they own. This idea is often used to make clubs work better together, help players develop, and take advantage of business opportunities in multiple locations.
The History of Multi-Club Ownership in Football
The idea of owning more than one club is not completely new, but it has become much more popular in the last few decades. Rich people or businesses may have bought more than one club in the past, but this was usually more of a status symbol than a strategic investment.
In the 1990s and 2000s, there were more organised ways to own more than one club. One of the first examples is the Red Bull Group, which owns many teams such as the New York Red Bulls in the US, RB Leipzig in Germany, and Red Bull Salzburg in Austria. The City Football Group is another well-known example. They currently own 13 clubs, including Manchester City in England, New York City FC in the US, and Melbourne City FC in Australia.
Rules on Multi-Club Ownership in Football
Several football governing bodies keep an eye on multi-club ownership to make sure the sport stays fair. As the governing body of football in Europe, UEFA has put in place special rules to avoid conflicts of interest and encourage fair play.
In order to follow the rules, clubs owned by the same company must not compete in the same event. For instance, if two teams from the same group get into the UEFA Champions League, one of them has to pull out to avoid a conflict of interest. National leagues have their own rules, which can be very different from one country to the next.
Examples of Multi-Club Ownership
Several well-known examples of people who own more than one club show the different methods and tactics that owners use:
- City Group - This is probably the biggest network. Manchester City (England), New York City FC (USA), Melbourne City FC (Australia), Yokohama F. Marinos (Japan), and many other teams around the world are owned by City Football Group. Their business model is based on their network sharing resources, scouting, and commercial strategies.
- The Red Bull Group owns RB Leipzig in Germany, Red Bull Salzburg in Austria, the New York Red Bulls in the United States, and Red Bull Bragantino in Brazil. The Red Bull Group is known for aggressively promoting their brands. Their main goal is to develop and promote young players within the club's management.
- The Pozzo family owns both Watford (England) and Udinese (Italy). In the past, the two teams have traded players and resources, which has helped both of them stay ahead of the competition.
- Evangelos Marinakis: Olympiacos, Nottingham Forest, and Rio Ave FC are all owned by the billionaire. News that he might take over the Brazilian team Sao Paulo FC shows how bold he is in his plans to become a global football powerhouse.
Pros of Owning More Than One Club
- Resource Sharing: Clubs in the same network can save money by sharing scouting resources, coaching staff, and training facilities.
- Player Development: The network can help young players get better by moving them through different teams and giving them experience before they make it to the main team.
- Business Opportunities: Owning more than one club lets your name reach more people around the world and gives you more chances to get sponsors.
- Market Entry: Club owners who own clubs in more than one country can reach a wider audience around the world by opening clubs in different countries.
Cons of Owning More Than One Club
- Conflict of Interest: There is always a chance of a conflict of interest, especially when teams owned by the same entity play in the same league or tournament.
- Problems with regulations: Laws vary from country to country, which makes it hard to oversee several clubs in different places.
- Fan Opposition: Fans of clubs owned by a multi-club group may feel less important than fans of the main or star club, which can make them angry and lead to protests.
- Financial Risks: If the plan doesn't work, all the clubs in the network could lose a lot of money.
The Future of Multi-Club Ownership in Football
As football becomes more globalised and commercialised, the trend of owning more than one club is likely to continue. Technology and data analytics improvements will make running several clubs easier, which will make the model even more appealing. But the sport's governing groups need to keep up with its growth to make sure it stays fair.
More and more new investors, mostly private equity firms and global multinational corporations, are interested in this approach. The world of football ownership will continue to change as these companies bring in more money and better ways to run their businesses.
Summary
Multi-club ownership is a big change in the football business that brings both possibilities and challenges. Stakeholders can get around this complicated situation better if they know about the model's history, laws, pros and cons. As the trend continues to grow, it will definitely have an impact on the future of football, making it a more global sport that can be supported by businesses.
