Although many see football as a beloved competitive sport, it is more than just a sport. Football has its feet deeply planted in the business world and generates billions in revenue annually. In fact, football is easily one of the most lucrative sports today.
Because football is a massive and booming business, it is easy to see why clubs sometimes sell or transfer players. However, sometimes transfers can be the most expensive part of the sport. Below we discuss the top five most expensive football transfers and how football manages to be lucrative.
How Football Became a Business
Football is an entertaining and competitive game that dates back to the 19th century. Although the 19th century was when modern football was first introduced, the concept of football dates back to the 12th century.
In 2022, the global football market was worth US$ 3.2 Billion. This figure is expected to grow at a compound annual growth rate of 4% from 2023 to 2028. By 2028, the football market is expected to reach US$ 4.0 Billion.
While the figures are undoubtedly impressive, football didn’t start as a billion-dollar market. There was a time in history when the interest in football was waning.
Although football existed as early as the 1300s, modern football was created in the mid-19th century. In those days, players were paid stipends compared to football salaries today. In fact, in the 1885-86 season, players were paid around £1 a week.
Things got better when TVs took an interest in the game. It started in 1960 when ITV paid the Football League £150,000 to air 26 games. This was quickly followed by BBC Sport, who also paid a modest amount to show air football matches. This money was usually divided between all 92 football league clubs.
However, things quickly turned around when Sky Television was interested in airing football matches. Noticing this, the top 22 clubs in the Football League separated from the league at the end of the 1992-1993 season. They formed the FA Premier League and arranged their television deals.
The Growth of Football as a Lucrative Business
Soon after the 22 leagues broke away to form the Premier League, they signed a whopping £304 million deal with Sky Television. This deal was for the live televised coverage of 60 Premier League games over the next five years. This marked the beginning of the growth of football as a business.
In 1993, the UEFA changed the format of the European Cup and renamed it the European Champions League. Soon, over a few years, there was an inrush of talented footballers from other countries. These players, including Gianfranco Zola, Ruud Gullit, Roberto Di Matteo, and Thierry Henry, came to play in the Premier league. As the influx of talented players increased, so did the payment requirements for player transfers.
Player Transfers in Football
The concept of player transfer was first introduced in England after The Football Association (FA). Before that, players could choose to play matches for any football club.
In football, a transfer involves the movement of one player from one club to the other. During this movement, the previous contract is terminated, and the player accepts a new contract from the new club.
According to a sports governing body, a player can only be transferred during a transfer window. A transfer window is when a country’s football clubs can recruit new players from other national leagues.
The transfer window is a registration period given by the global governing body, FIFA. It has a deadline during which deals and players’ registration can be completed.
Transfer window dates vary from country to country, depending on their seasons. For example, the Premier League transfer windows vary from that of Major League Soccer (MLS).
To facilitate this transfer, the ‘buying’ club pays a negotiated fee to the club that owns the player’s current contract. This fee is determined by a range of factors, including:
- The perceived quality or abilities of the football player
- The player’s future potential
- Current contract length
- Amount of salary owned
- Footballer’s commercial value
The Most Expensive Football Transfers Ever
Football transfers can be extremely expensive. They can be so expensive that they cost hundreds of millions. Below are the top five most costly football player transfers in the game’s history.
Neymar to PSG
Neymar is popularly known as the football player with the most expensive transfer in football history. His transfer from Barcelona to Paris Saint-Germain in 2017 cost a whopping €222 million (£200 million). Before Neymar’s transfer, Paul Pogba set the record in 2016 with a transfer worth €105 million.
Needless to say, Neymar easily set an all-time high record. Since that transfer ended the Brazilian player’s four-year stay in Camp Nou, no other transfer has come close.
Kylian Mbappe to PSG
PSG once again closed a jaw-dropping transfer deal, this time snatching Kylian Mbappe. This case of football transfer was famous for how expensive it was. However, it was also well-known as the first case of a “loan with an option to buy”
Kylian Mbappe was transferred from Monaco to the French team for €170 million in 2017. After the deal, he made headlines for being the most expensive teenager in football.
Phillipe Coutinho to Barcelona
In 2018, Coutinho transferred from Liverpool to Barcelona. His transfer was only a few months after Dembélé’s.
Phillipe Coutinho’s deal was worth €120 million. However, several variables in the contract raised the price to an impressive €135 million.
Ousmane Dembélé to Barcelona
Ousmane Dembélé kickstarted his professional football career in 2015. In 2017, Barcelona paid €135 million to Borussia Dortmund for Dembélé’s transfer. Although the base fee for the transfer was €105 million, bonus fees quickly increased to €135 million.
Joao Félix to Atletico
Before his transfer, Joao Félix played for Benfica. In 2019, Atletico Madrid bought Félix from Benfica for an impressive €126 million. However, after adding the solidarity €1.2 million payment to Porto, the transfer fee totalled €127.2 million.
Following this transfer, Joao Félix held the title of the second teenage footballer with the highest transfer fee.
Other Expensive Football Transfers
Some other expensive footballer transfers include:
| Football Player | Year | From (Club) | To (Club) | Amount |
| Enzo Fernández | 2023 | Benfica | Chelsea | €121 million |
| Antoine Griezmann | 2019 | Atletico Madrid | Barcelona | €120 million |
| Jack Graelish | 2021 | Aston Villa | Manchester City | €117 million |
| Romelu Lukaku | 2021 | Inter Milan | Chelsea | €115 million |
| Gareth Bale | 2013 | Tottenham | Real Madrid | €100.8 million |
| Cristiano Ronaldo | 2018 | Real Madrid | Juventus | €100 million |
How Does Football Make Money?
With football clubs splashing hundreds of millions on players, it is easy to wonder how football makes money. Football is an extremely popular sport with numerous means of making money. These include:
- Stadium naming rights
- TV deals
- Sponsorships
- Games and memorabilia
- Attendance and events
Stadium Naming Rights
Traditionally, stadiums are named after the cities they were founded in. However, big companies quickly discovered an ingenious way to gain exposure by getting stadium naming rights.
Companies soon started paying for their names to be mentioned during games. In 2004, the football team Arsenal closed a £100 million deal with Emirates Airlines for naming rights on their stadium for 15 years.
TV Deals
TV deals remain a great way for football teams to make money. In 2016 the Premier League signed a deal for £10.4 billion distributed amongst the league’s clubs. Out of this sum, £5.3 billion was to broadcast live matches.
Sponsorships
Major brands use clubs and players as an advertisement. They sign payment deals with winning clubs/teams and have the team represent them. Teams do this by printing the brand’s name on their jersey.
Games and Memorabilia
Thanks to the mass of football fans there are today, games and memorabilia are other streams of revenue. Football games are highly-popular and purchased in the video game sector. Fans also purchase football merchandise, such as jerseys and other sporting apparel, from their favourite clubs.
Attendance and Events
Football games pull large crowds, generating revenue for the clubs/teams playing. For example, Paris Saint-Germain made €132 million in matchday revenue in the 2021/22 season.
Final Thoughts
Football is a highly lucrative business that generates millions in revenue yearly. This revenue is amassed from various income streams and explains how teams can afford expensive player transfers.
Although player transfers can be extremely expensive, it is essential to note that the prices usually vary for players. However, as a rule of thumb, the more valuable the player, the more expensive the transfer fee is.