Soccer has continuously reigned as the most popular sport in the world. Globally, the one thing that each country has in common is passion for the sport. Being the most popular sport in the world however, does not necessarily mean it is the most profitable. Throughout the globe, the sport has impacted governments and economies but not because of any monetary power. Soccer's influence on a country mainly comes from the civilians' support and love for the game. A city's temperament can be solely dependent on the clubs prosperity or failure. However, soccer clubs do not thrive in the area of being a profitable franchise. From the amount of money spent on transfer fees to the lack of return clubs make on merchandise, the income of an average team is relatively low in comparison to actual businesses. .
Many have speculated and made claims that soccer means big business. Arguably, some of the most famous people in the world play professionally. Why should there not be a lot of money to be made when dealing with the world's most famous people let alone athletes? There is money to be made, but many mistaken the profits to be made directly through the club. The real money is made through endorsements. Soccer clubs merely serve as an "advertisement " of those athletes for companies such as Nike, Adidas, Puma, etc. to exploit. The players may make money, as well as the companies who endorse them, but none of this cash flow goes in the direction of the club. As a result, the theory that soccer clubs are big businesses is merely a misunderstood claim of how and where cash flow is directed. .
It should not be ignored that successful clubs do make a sizable amount of money. For example, Real Madrid leads the world in club revenues making around 480 million Euros annually according to Delloite.1 However, this number is based on how much the club sells, not how much the club profits. What this means is that those revenues are purely from commercial, broadcasting, and matchday sales.
