I am an ardent football fan, and I do watch both the local matches live and foreign matches. I often read foreign club financial statements and see profit made but can’t find any in the local league I watch.
The Nigeria Premier Football League is the tier 1 league in the Nigerian football league system with 20 clubs competing for the number 1 spot which is worth 200 million naira or $138,000.
Source
The weird part is the average football club expenditure in a regular season is around 600 million naira which is around $414,000. There is a huge deficit. This is why most of the Nigerian clubs are government owned. Out of 20 football clubs competing in the NPFL, only four are privately owned and just one has been consistent in making profit.
NPFL clubs struggle financially because their revenue model is not broad. They aren’t maximizing all revenue channels. Most of the clubs depend on government allocations, matchday tickets, occasional player sales and occasional sponsorship.
These revenue sources are unstable and insufficient to run a modern-day football club in any country topflight league. Modern football clubs survive by diversifying and maximizing all revenue sources. NPFL clubs can do the same with the right structures.
There are some key revenue paths that can generate income if maximized to the fullest
Strong Matchday Economy
Matchday in Nigeria is treated like an average event with B grade musicians pulling more crowd than what the teams pull. In cases where the stadium is sold out, the club does not maximize revenue.
Clubs can increase matchday revenue by:
- Selling branded tickets instead of plain paper tickets
- Offering season tickets at a discount
- Setting up merchandise stands
- Creating different seating categories (Regular, VIP, VVIP)
- Partnering with food and drink vendors for revenue splits
The matchday experience should look like you are entering a mall. Every fan entering the stadium must be seen as a potential customer.
Merchandise Sales
In 2018 when Juventus signed Cristiano Ronaldo, they sold over 520,000 jerseys in the first 24 hours of his signing. That generated about $62.4 million in revenue.
Merchandise sales are huge money for clubs, and it is something most NPFL clubs fail to key into.
They don’t have official stores where fans can buy authentic jerseys, scarves, caps, branded items or even customize.
Clubs should:
- Produce affordable, locally made and easily available merchandise
- Use e-commerce platforms or partner with existing ones like Jumia and Konga.
- Create limited-edition merchandise.
- Sell kits through partner stores in major cities
Go Digital
NPFL clubs underestimate the potential of going digital now. We are living in jet age and must act as one. Unfortunately, most clubs don’t even have a functional website not to talk of active social media accounts.
I seldom tweet but when I do, I have more impressions and interactions than most football clubs twitter handle. The same applies to other social media platforms.
Modern fans follow teams through:
- YouTube
- TikTok
- X (Twitter)
Clubs can monetize their socials through ads, social media monetization programs, sponsored content, and digital subscriptions.
This requires:
- Consistent highlights
- Player Profiles
- Training clips
- Behind-the-scenes footage
Digital audiences can create solid revenue if managed properly.
Membership Models
Clubs can have a membership scheme and earn from their fans
Membership schemes can include:
- Annual membership cards that come with privileges
- Exclusive events
- Behind-the-scenes access
This model works all over the world. Real Madrid is an example. Real Madrid is not owned by a single person but by its members, called Socios numbering around 90,000. They pay annual fees and all.
Corporate Partnerships and Local Sponsorships
A huge percentage of NPFL clubs lack solid sponsorship because they focus on big sponsors. You can easily get the same sponsorship amount from couple of local businesses.
My recycling company would be interested in partnering with most NPFL clubs in return for visibility and recyclables. Many businesses will be interested in the something similar.
Real opportunities exist in:
- Petrol stations
- Local supermarkets
- Real estate companies
- Transport companies
- Betting firms
- Restaurants
- Clothing brands
Youth Academy Development
The only profitable football club in Nigeria earns from its youth academy.
Source
A youth academy is a long-term money-making machine. Once it start printing, it continues printing for life
- Clubs earn money by:
- Selling players
- Receiving solidarity payments for players they developed
Fan Engagement and Loyalty Programs
Clubs can run:
- Fan clubs
- Monthly meet-and-greet sessions
- Paid fan experiences
- Fan travel packages for away games
Data, Analytics, and Scouting Systems
There is no solid data analytics system in any NPFL clubs. This isn’t the way to go if you want to generate more revenue. You need more visibility to attract higher transfer fees or even foreign scouts.
Clubs should always produce highlight reels, in-depth match analysis, and consistent performance ratings. This improves credibility and marketability.
Broadcasting and Live Streaming
The NPFL recently signed a broadcasting rights deal. Depending on the arrangement with the governing body, individual clubs can stream their matches independently.
Source
You don’t need to break the bank for this. You can make use of Youtube Live, Tiktok Live, Facebook Live. You can even make these streams for paid subscribers alone which is another income generating path.
These are several ways that every NPFL club can maximize for higher revenue.
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I wouldn't normally look at sports posts because organized sports here in Canada are very very expensive. Buying a jersey can cost well over $100. Buying a drink at the game $10. Parking is expensive, tickets are expensive, well, everything is expensive.
Hearing these teams aren't even hitting the basics of economic modelling is kind of sad. Not even a working website?
Imagine what they could do with a Hive account :)
You mention paper tickets. Ugh. Imagine if you are on Hive. A fairly simple setup and every ticket could be issued as an NFT. Cost for paper: Zero. Ability to keep the NFT as a keepsake, cool. Ability to resale the ticket to someone else if you can't make the game? Easy. Issue a premium NFT for a season pass or VIP seating. Easy. Keep the paper ticket of course but NFT tickets would give every person a souvenir and save the club money.
Of course that means everyone needs a Hive account to hold their NFT. Imagine they can just upvote their favorite players (or team) and get personalized responses from the players. Fun for everyone but even better....the team makes money from every upvote. They can also reward their loyal fans with upvotes :)
Of course loyal fans who happen to be business owners can sponsor a team. A big delegation lets you keep money in your wallet but also allows the team to make money by sponsoring fans. Everyone wins. You get advertising, team gets money and fans get rewards.
Then we need to get the vendors involved! Let vendors sell in the stadium with a portion of their sales going to the club. Of course to make things go faster offer electronic payment through HIVE rather than digging for change when dealing with Naira. Of course people can use Naira but if fans know they earn Hive by supporting their team and can spend Hive at the games...and vendors accept the Hive because its an easy way to pay the team. Everyone wins again.
ahh....
That was fun to think about :)
It is really achievable if they truly want to do it. Unfortunately, many of the clubs don't care.
The paper ticket is often torn into 2 if there is high number of fans.
It is quite funny and you wonder how they survive. Well, they rely on the government.
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