Investment in Scottish Football

Investment in Scottish Football.

I would love people to invest in Scottish football.

I think people need to be realistic about investment in Scottish football.

When people invest. They normally want to get the money back.

That is investment.

We need to find ways for Scottish teams being able to provide reward for investment.

There are three types of investors we could get for Scottish football;

 

1) People who want to put money in, and get more money back.

2) Owning a Scottish club as a status symbol. This would be like a billionaire or millionaire buying a fabergé egg

 or famous painting.

3) Charity to help the local community or club. This could involve investing in the club and investing in the surrounding town or area to develop the area.

 

 

To go into detail on these 3 justifications for investment.

1) People who want to put money in, and get more money back.

That is investment. If someone wants to invest 10 million euros or 100 million euros in a Scottish club. They would want the money back. But the only way they could get that money back is from two ways;

A) Qualifying for a league or trophy where you get that 10 million euros or 100 million euros back. At present the only way to do that is to finish high up enough in the Scottish League to qualify for Europe, and then qualify for the group stages. If a Scottish club got far in Europe they could get the money back. But Heart of Midlothian found that a difficult task. Even Glasgow Rangers tried that idea and did not manage to get enough success to pay back their spending,

I think if you put 10 million euros in any club other than Celtic or Rangers, you would still be smaller than the Old Firm in turnover and would likely finish behind them. So you would still have a realistic target of 3^rd place in the league. This would not get you into the UEFA Champions League Group stages. And that 10 million euros investment would only be a significant investment for a year. So the club would struggle to build on that, without yearly investments of 10 million euros a year.

B) Have a football genius who buys in great bargain players who have not been spotted by other clubs and sells them to bigger clubs for huge transfer fees. But this is a difficult thing to achieve. Lots of clubs have tried this and not been able to find great players. And if someone was clever enough to sign players worth tens of millions of pounds, then that football talent spotter would soon be signed up by a bigger club anyway. To be able to make money on signings all the time is soccer alchemy.

So would someone invest in Scottish clubs in the hope of selling players on for bigger deals?

 

2) Owning a Scottish club as a status symbol.

Some people invest in clubs as a status symbol. Lots of billionaires invest in the clubs in the bigger European leagues and then use it to show their wealth and status. It is like buying a priceless artwork, mansion, or castle. This could be like the way mega rich people buy up horse stables and develop high status purchases of yachts.

This also happens in American sports. Where billionaires buy up big sports sides to win major league titles and build a legacy.

Some wealthy people even invest for reasons for improving on their moral reputations.

Is it likely that many billionaires will buy up many of the Scottish sides?

Will billionaires invest in Scotland to improve their status?

 

 

3) Charity.

This can be done as a way of just giving your wealth to a club with no intent of making the money back. Some billionaires have even invested in the surrounding area, to develop not just the club, but also the surrounding area. This can be done for altruistic reasons. Or of just wanting to give back to the community.

There have been people who have invested in Scottish football for charity. But it is a stroke of luck when that happens.