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What Cristiano Ronaldo tells us about the economics of football
Article

What Cristiano Ronaldo tells us about the economics of football



Editorial Rating

8

Qualities

  • Eye Opening
  • Overview
  • Engaging

Recommendation

Professional football clubs – soccer teams in American parlance – offer athleticism and entertainment, but they’re also major corporations. Turin football team Juventus made a huge capital investment when it signed Cristiano Ronaldo in July 2018 for €112 million ($130.2 million). Yet, as Stefan Hall of the World Economic Forum explains in this engaging read, the Italian club will have to carefully manage its new asset so that it generates profits both on and off the pitch. getAbstract suggests this quick primer on football economics to soccer fans everywhere.

Take-Aways

  • Football – or soccer, as it is known in the United States – is big business. 
  • Juventus’s €112 million [$130.2 million] acquisition of Cristiano Ronaldo in 2018 means the team will have to sufficiently cultivate its investment through various revenue streams to turn a profit.
  • The five main sources of income for football clubs are “broadcasting rights, sponsorship, matchday revenue, merchandise and non-sporting income, and player registrations.” 

About the Author

Stefan Hall is a project and engagement lead for the World Economic Forum’s Information and Entertainment System Initiative.