Planning vs. improvisation, self-management vs. intermediaries

A football club always operates in at least two dimensions: the business, which focuses on business management, and sportsfocused on achievements on the playing field. Both are deeply connected internally, even if the external perception is different. For most fans, the priority is for their team to win or play well, even if managing the business is difficult. However, it cannot be denied that, in the long term, sports results depend on solid business management.

Football clubs with a strategic vision implement actions to attract talent to key positions and use the most advanced management tools, as the best way to achieve sustainable results in both the sports field and business, in the medium and long term. However, there are clubs that prefer to rely on third parties to achieve short-term results in the business area, using that profit to reinvest in the sports field.

While external collaborations can sometimes be used to promote a particular project, help build an internal team or develop short-term business opportunities, these collaborations should provide solid knowledge , advanced technology, sufficient resources, territorial reach, communication strategies and influence on potential buyers or investors outside the direct reach of the club.

Also, working with third parties should not replace investing in good professionals within the club. In mind: 1) The main talent is to always stay at home, 2) accumulated knowledge and experience remain within the structure itself, 3) The representation of the club and the management of its external relations are in the hands of the best internal professionals, 4) networking is its own and does not depend on third parties, and 5) To maximize revenue, talent must be internal, as external agents often prioritize their own revenue through mediation.

What economic impact does the use of intermediaries have for a club? Let’s take an example: a part of the commercial department such as sponsorships that invoices 250 million euros annually. If the usual football business commission is paid, 10% (25 million euros), to external companies that facilitate this billing or, on the contrary, that can invest some 3 million With its own work group dedicated to business development and providing excellent service to sponsors, the decision will be clear: bet on its own talent and internal teams.

Now, let’s imagine that, as a big club, we manage to negotiate lower commissions, below the market, 5% (12.5 million euros). However, having an internal team to achieve those 250 million It could cost seven million, including opening offices in other continents with local talent, as well as professionals in our city. Although maintaining an internal team involves a fixed cost and managing so many people is not easy, a big club must prioritize retaining talent and internal knowledge as part of a long-term strategy. However, that requires vision, method, patience and consistency, key pillars to build a stable and sustainable structure.

Football clubs located in the top 10 in the world need to develop in between 130 and 220 million euros annually with only five sponsorship contracts: technical, shirt, sleeve, training and naming. So, why mortgage 10% of that income, that is, in between 13 and 22 million euros, to intermediaries, if it is only necessary to negotiate five agreements every three or five years? Wouldn’t it be better to have internal talent to manage these negotiations and provide direct service to partners?

Now, let’s extrapolate this reflection to the use of “short-term” intermediaries and not own teams in other areas, such as friendly matches, academies, selling hospitality or buying and selling players. The cost to intermediaries will be enormous. The key to good or bad management is not only how much we earn but what we do as an institution that allows us to invest in our own knowledge and talent which in the long run will determine the future of a football club.

In other words, if possible, having your own teams allows you to accumulate knowledge, consolidate strategic relationships and guarantees more control over key decisions. This is more efficient, both economically and operationally, than depending on intermediaries who, although they may be useful for specific projects, generate recurring costs and transfer value outside the club.