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Buying a football club is a company deal with worse diligence

Same deal mechanics, less information, and an asset that can move a tenth of its value on a penalty call.

Sports and M&A · 3 min read · Morgan Harris

I have bought and sold companies, and I have bought and sold football clubs. The deal mechanics are nearly identical: valuation, diligence, structure, closing. What changes is the information available — and the temperament of the asset.

The diligence items that don't exist in a normal deal

  • Player contracts — who is locked in, who can walk, and what the release clauses say. A squad is a portfolio of short-dated assets with agents attached.
  • The stadium — owned or leased, who controls it, and what happens when the lease comes up. The ground is the asset; the lease is the risk.
  • League rules — promotion, relegation, licensing, spending limits. The regulator can change the value of your asset between signing and closing.
  • Transfer windows — how many of your best players are out of contract in June, and what it would cost to replace them in one window.

The parts that feel exactly like a company deal

Revenue concentration — one star player, one star sponsor — reads like a company with three customers. Key-person risk reads the same: the manager, the captain, the sporting director. And the same question applies to both: does the asset survive the founder leaving? A club that depends on the owner's personal relationships is a club with a valuation problem.

In M&A you diligence the business. In football you also have to diligence the weather, the referee, and the mood of five thousand people.

What I look for

  1. Wage discipline — costs set below the worst realistic season, not the best one.
  2. A stadium the club controls, on terms that outlast the current ownership.
  3. Contracts aligned with strategy — the players you are building around locked in, the ones you are selling free to move.
  4. A fanbase that trusts the ownership. It is the only asset a club owns that cannot be bought.

Why this matters if you never touch sport

The same mental model prices any agency or media business: locked-in contracts, a defensible position, disciplined costs, and something people will still care about when you are gone. Price the asset the way you would price the club — on what it is worth to a buyer who has read every line. Because someone will.

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