Chilean football business management model

Sports Value, aware of the moment of Brazilian football, with the legislative changes to transform football clubs into enterprises, begins a series of analyses on this issue.

We will present Latin American football business models influenced by what occurred in Europe and the USA, and that should be studied at this time of changes in Brazil.

This first chapter of the series will present the Chilean market, then it will be the turn of Colombia and finally Mexico.

We began with an interview with Daniel Duclos, doctor at the Pontifical Catholic University of Valparaiso and following a financial analysis of the Chilean football market.

Chilean football business management model

The Chilean market is a great unknown in Brazil. Profound changes occurred in the market structure in 2005. Today Chile’s professional football is the third force in the Latin American market, just behind Brazil and Mexico. That is in a country of 18 million inhabitants.

The 1^st, 2^nd and 3^rd division clubs together made more than US$ 180 million in 2019.

To understand what happened in Chile we invited Professor Daniel Duclos, professor at the Pontificia Universidad de Valparaiso (In Spanish). We talked about the changes from clubs to Corporations, concentration of wealth in the biggest teams, risks and benefits of legislative changes. A masterclass!

Following a financial analysis of the Chilean football market.

Chile shows power of business organization and potential to grow

Undoubtedly Chilean football benefited from the business management model created 15 years ago. The country can grow a lot, especially if you seek new international markets.

Revenue from first division clubs reached US$154 million in 2019. Bigger than Argentine and Colombian teams. On the other hand, money is well concentrated in the hands of the biggest teams in the country.

Colo Colo with revenues of US$ 24 million in 2019, Universidad Católica US$ 21 million and Universidad de Chile with US$ 20 million concentrate 42% of the first division revenues.

The second division made another US$ 34 million, with US$ 23 million from TV rights and the third division US$ 2 million. Absolutely transparent figures, also the result of new legislation and market maturity.

One point that caught the attention in the numbers, Corporations have more expensive operation than a club, it is not just a football team.

Higher administration and operation expenses require increased revenue generation capacity to grow solidly and healthily.