Why Can't I Invest In Nigerian Football Clubs

Am not a billionaire, at least not yet but i want to invest in my favourite football club in Nigeria.
But why can't i?

Nigeria's Captain, John Mikel Obi
Nigeria like many other African nations can be proudly tagged a football loving nation. If more than 80% of your youths discuss and follow football trends on a daily basis i think the title fits.

Since the introduction of professional football in Nigeria in 1990, football has gone from just an entertainment source to become an ethnic symbol, serve a political purpose and in large part provided profits to investors.

Its on the later function of football that i focus my energies today. Nigerian governments has been the main investor in the game of football in Nigeria. This some has seen as the reason behind the poor performance of the industry as the government has no business with football, if not for political reasons.

For or Against State Owned Clubs

Others nonetheless, are unconvinced with the call for the replacement of state ownership of football clubs with private investors. Odegbami in his argument pointed out that many privately owned clubs such as Abiola Babes FC, Rangers Bees, and Asaba Textiles amongst others have gone under due to their lack in finance.

But so you know their are some lot of State owned businesses that have gone under too examples like Bendel Insurance. The issue is not to say the government or the private sector has no expertise in managing a football club. But it shows the difficult terrain that football clubs and businesses generally has to mull with to succeed.

The Problem With A Nigerian Football Club

One major problem managing a football club is that of capital, football clubs often times lack to pay their players, and to run administrative activities even when the club is not returning profits to their owners.

Nigerian football clubs are not set up as a business unit; they lack the business structure and clear revenue model to make profit or maintain a break-even. Most times they expect to win the league and get the winning prize. But football is not mathematics and they most times don't win. Hence begins their path to failure.

Football clubs around the world, benefit from millions of dollars in sponsorship because they have the right brands, and are a sustainable business over time. Nigerian clubs though seek similar sponsorship deals lack the requisite structure to attract such.

Why Can't I Invest In My Favourite Club ?

As at now no Nigerian football club has been able to source for funds publicly or even to create an avenue for individuals to support our clubs by shares. This will

1. Give the football fans and supporters a feeling of ownership.

2. Help the clubs to raise the required funds needed to better brand and manage the club.

3. Give Investors an additional reason to invest in football clubs as they can garner a larger number of dedicated club fans.

As much as there are many advantages of taking a club public, this too has its risks and requirements that football clubs need to meet.

For those interested in making money from football from other means other than investing in them directly, the Nigerian sports betting provides another avenue amongst others.

There is no doubt that there has been remarkable improvements in the state of football clubs in Nigeria especially since the establishment of the League Management Company.

But we are not where we ought to be. Nigerian clubs should see themselves as business entities and employ the services of management professionals. They should rebrand their image and restructure their business models to make profit. So football fans can show their love by investing in their teams.

PS: i support Plateau United

👍 Thanks for reading

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