The earliest football teams were based on schools, universities and villages. However following the increase in urbanisation, it was soon found that the most successful clubs were located in the areas which could provide the greatest human and financial resources, that is the cities. Businessmen saw a financial opportunity in forming an association with the local team and this symbiosis between directors and fans continued until recent times. The directors or their descendants put in their money (for publicity, honours, love of football, standing in the community, etc) and the fans paid at the turnstiles (for entertainment, comradeship, love your team, hate the opposition, etc).
And then ....
- Some directors were unable/unwilling to continue pouring money down the football drain.
- Shareholders who had inherited their bits of paper found out that the shares could actually be sold for real money.
- Government decided that football had suffered one disaster too many and that the grounds must be changed.
- Mr Murdoch saw an opportunity to make money by showing live matches on television.
- The players (and/or their agents) decided yes, that's fine, as long as we can have most of the money.
- Wealthy businessmen bought clubs with the aim of making themslves even wealthier.
- In the top division, only a few clubs were able to compete for the prizes. For the rest, the struggle was to avoid relegation.
But then he was a 'mad' chemist!
Next time
Examining possible corporate structures for football clubs.
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