Soccer has been running for decades already. And In sports, we all have seen how athletes are getting paid per game. In soccer, it might look like it’s a dangerous sport and sometimes been considered unethical, but – it has a massive amount of money that is being transferred to both buying players and athletes. According to Forbes best-paid athletes for 2020, 3 out of 5 best-paid soccer players are Lionel Messi, Cristiano Ronaldo, and Neymar.
However, what makes soccer players pay so much? You might be wondering why their salary is high even though they’re softer than American football. Well, to explain, it starts with economic principles. Economic principles play a significant impact in making prices in soccer increase. Supply and demand are to blame for highly paid soccer athletes.
At first, it can be confusing, but we will dig deep to know why soccer players are paid tons of money. We will be explaining how economics and finance play a massive role in this matter. Defining these things can give you knowledge, and you can apply it to your daily life.
Soccer is the most essential sport globally.
What makes soccer highly paid?
Going back, what makes soccer athletes get massive tons of money? Here are some reasons why they are paid so well.
- Supply and Demand
We know supply and demand on our economics subject when we’re still at school. To help you understand and recall what it is, it’s the most fundamental theory of economics that enables you to know the markets around you. Supply and demand are the relationship between a player’s skill to become a pro for the best team globally and the club they got hired in. When there’s a little supply but a huge demand, prices increase. An extensive supply and a small demand mean the prices are low. On the opposite side, when there is a lot of something yet nobody wants it, the price decreases.
For soccer, there’s a massive demand for skilled soccer athletes. To simplify, big teams like Real Madrid, Bayern Munich are actively looking for players that can impact their team. Their supply is the players, which is very hard to search for.
In the rule of supply and demand, when the demand is enormous, but there’s a little supply, then prices increase. If a club finds a skilled player in soccer, they will have to pay them well because his talents are scarce and hard to find.
It explains why soccer athletes have high salaries. However, athletes don’t only earn money through their monthly salary. Other things contribute to why they are highly paid, specifically through sponsorships.
- Sponsorships
When you’re a pro player, your face will be all over the media. Most of the pro players’ money comes from multiple sources outside the sport. Advertisements, partnerships, and sponsorship add more to their wealth.
But how does it work? Well, audience. The more massive the audience is, the more considerable money the sponsor offers. If you don’t have enough audience, then more likely you’ll have a lower salary. A good soccer player example is Cristiano Ronaldo. According to Forbes, 40% of his wealth comes from endorsements. In soccer, he already made history on his own and is considered one of the best players in soccer history. But after the game, he is a supermodel, a businessman, a hotel owner, and a philanthropist.
Not only that – his audience is massive. Having 322 million followers on Instagram, he is the most followed person in the world. Think of it, how many millions do you think he charges someone for sponsoring on his account?
Soccer is different from other sports. Soccer sponsorship focuses on the number of their audience. The advantage of soccer is, soccer athletes are more versatile and flexible. Pro soccer players can promote soccer shoes, streetwear brands, luxury brands like Rolex. In the end, it all ends with the audience. The more massive your audience is, the higher your salary is.
- Audience Role
We all know that soccer has massive tons of audience. And the more the audience, the more money they get. More advertisements will reach more people. Salaries in sports are not based on the skill you need to play the game itself. Soccer is not the most complex sport to learn. It’s one of the simplest games to play. Even so, because it’s popular, younger athletes want to pursue becoming pro players. It might be an easy sport to play but to become a well-known soccer player? You’ll have to face more than simplicity.
In contrast, other sports are popular. Particularly in the United States, football dominates the sport in the competition. That is why it is much harder to become a pro. But if you’re interested, you’ll have to face a lot of training to become one.
- FFP (Financial Fair Play)
One thing you should also know is the financial fair play of the athletes. It’s the amount of money they get into the game. Many multimillionaire investors in soccer, specifically in the Middle East, buy big European clubs. One example is Paris Saint Germain and Manchester City. These clubs have unlimited resources to purchase and spoil their players as much as they please.
Billionaire investors often own the clubs and, most of the time, get criticized for it. The reason for that is they said those billionaires had given them an unfair financial advantage over the rest. Before, PSG and Manchester were just average clubs in Europe. But today, the two clubs are the vital protagonists of European football.
To avoid this unfairness, UEFA implemented the FFP. It’s a rule that obligates the clubs to spend less on what they earn. For example, if Manchester club makes 800 million in a year by multiple sources, they can only pay 800 million to buy players for next year. If the club breaches the rule of FFP, the club will likely get sanctioned and will be banned from playing the UEFA championship. However, Manchester City was sanctioned for disobeying FFP. Later on, UEFA overturned the sanction.
Now that we’ve discussed their source of income, you may be wondering right now if you want to become a pro player. Becoming a pro player will take tremendous effort and dedication. To earn as much as them, you’ll have to go through a lot of training. It’s blood, sweat, and tears that you will shed if you want to be highly paid like soccer athletes.
Sometimes, hard work is not enough to make it. That is why working smart is as vital as hard work. Get yourself a training program to help you get on your track. When you train yourself, you’re just simply improvising.
You don’t teach yourself medicine to become a together. Relying on others will make it easier. It’s not easy to become a pro. But if you’re dedicated enough to surpass the hardships – then you’ll be on your way towards your goal.
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