This article has printed in “Tejarat_e_Farda” magazine, Dated: Saturday, August 3, 2024.

https://www.tejaratefarda.com/fa/tiny/news-47409

How the Football Industry Profits from the “Evolution of Fan Communities”

Catching Gold

Vahid Namazi / Sports Writer and Journalist

The red devil with a trident, Manchester United’s logo, stands out on the glass of a red taxi cruising the streets of Kuala Lumpur to take us to our destination. Under the devil’s foot, a multi-digit number is written, and a shiny hologram confirms the sticker’s authenticity. The driver, a middle-aged man of Chinese descent whose ancestors came to Malaysia years ago, is now considered Malaysian, along with his family. As we talk, it becomes clear he’s a football enthusiast and crazy about Manchester United. The sticker bears the unique number of his official club membership, tied to a team 10,600 kilometers away that sets Old Trafford ablaze on match days, treating United fans to the pure joy of football in the “Theatre of Dreams.” The driver pays annually to renew his official fan sticker, gaining access to perks from his beloved club: discounts on tickets for pre-season friendlies in Malaysia and East Asia, discounts on fan merchandise, easier access to Old Trafford if he travels to England, and a range of exciting benefits tied to that unique membership code. The world’s most valuable football brand (alongside Manchester City, Real Madrid, and Barcelona) solidifies its lucrative empire through such deep connections in markets far and near, leveraging the immense power of “fan communities” to stack profits and conquer commercial heights.

Football, as the world’s most popular sport, has always held a special place in fans’ hearts. What was once a purely local passion tied to the geography of hometown clubs has now become a global phenomenon, crossing even the strictest borders without needing a visa, uniting its devoted fans. Manchester United has had countless registered supporters in Asia for decades. Its city rival, Manchester City, and long-time competitor, Liverpool, cash in on ticket sales for pre-season training camps in Asia. Watching Spain’s El Clásico in the U.S. before the European football season starts has become so routine that TV networks have secured broadcasting rights for several seasons ahead. Event organizers in the U.S. confidently anticipate hundreds of millions in revenue from a single match, driven by pricey tickets, massive advertising deals, and media contracts.

The Power of Football and Bonds Beyond Borders

Football is the sport of the “modern world” and, at the same time, a highly profitable business. This convergence of contemporary sport and commercialism has driven the rapid rise of this “global phenomenon.” However, football’s commercialization stems from its unique potential, a quality other sports lack to the same degree. The strength of this commercialized sport arises from characteristics that set it apart from all others. As Professor Reza Davari-Ardakani puts it, perhaps football’s most significant trait is that, like all aspects of modernity, it “embraces contradictions and tensions.” Football is a battle among friends, possibly even tempering the warlike and violent impulses of crowds. Additionally, its unpredictable nature and the occurrence of unexpected events distinguish it from other sports, keeping spectators glued to the action.

In a global statistical sample (excluding sports like cricket and rugby, which are limited to a few countries), no sport has matched football’s ability to draw tens of thousands to stadiums and captivate them for two hours. In the era of modernity, this need has emerged, fueled by accumulated interests and conditions that drive people, in their leisure time, to escape “alienating work” (as Marx described it) and seek refuge in one of the possible attachments of the time. As the manifestations of modernity have grown, football’s power has intertwined with them, enabling fan communities to break through geographical barriers in search of deeper, richer connections, dissolving the divisions among themselves. In the past, a fan’s bond with a football club was often tied to their proximity to the club’s home stadium. In today’s digital age, however, this limitation has vanished, allowing fans from all corners of the world to unite in their shared passion for a specific club.

This new connection transcends mere geography. Fans’ experiences, emotions, and knowledge are shared online, fostering camaraderie and erasing physical distances. Various commercial broadcast platforms, whose revenues depend on this global fanbase, provide live coverage of football matches worldwide. Fans, using real-time communication tools, can follow their favorite teams’ daily lives through digital receivers, mobile phones, and modern gadgets and apps. They discuss key match moments and the off-field lives of their stars, sharing in each other’s joys and sorrows. This global interaction has created cohesive, vibrant fan communities that are no longer confined to the borders of a city or country.

The “power of shared passion” best describes the greatest unifying force behind these communities, whose love for the beautiful game has brought them together, giving rise to diverse and vibrant global tribes in the digital age. The dynamic force of fan communities, which not only passionately support their clubs but also significantly shape the football landscape, is so influential that it impacts club decisions and policies. This leads clubs to increasingly heed the preferences and sentiments of their global fanbase, ensuring their sporting and commercial survival by meeting fans’ demands—from club ownership and player transfers to managerial appointments. Fan communities play a significant role in football’s revenue streams, and it is the collective voice of these global communities that shapes the direction of football clubs.

However, the impact of global fan communities extends beyond club-level decisions. They play a crucial role in fostering a global football culture that transcends borders, uniting fans from diverse backgrounds. These communities bring together individuals from different regions, each contributing unique traditions, customs, and perspectives to the sport. This fusion of diverse cultural elements enriches the football experience, creating a more inclusive and multicultural environment. Moreover, global fan communities are at the forefront of initiatives that promote inclusivity, tolerance, and unity through football. They celebrate the game’s universal appeal, bridge divides, and foster a profound sense of belonging among fans worldwide, resulting in a dual impact on club dynamics and the cultivation of a global football culture unbound by borders or colors.

The rise of fan communities on digital platforms aligns perfectly with the evolution of fandom. The modern digital era demands transformed, interconnected communities that mutually contribute to individual, social, and commercial growth. One of the most significant drivers of fan community evolution in recent years has been the rapid rise of digital platforms. These platforms have dismantled geographical barriers, enabling fans from all corners of the world to come together and form global communities—whether through fan-created blogs analyzing team performance or forums where supporters exchange merchandise. The digital age has revolutionized how fans engage with football, transforming not only their fandom but also their perspectives, making them more commercially minded alongside their passion. However, balancing global and local fan experiences remains a complex challenge. Clubs and football organizations strive to turn this potential threat into an opportunity by striking the right balance between catering to global audiences and preserving the unique traditions and experiences of local fans, thereby enhancing their commercial value and boosting revenues.

Iran’s Oversights and Regrets

However, our story fundamentally differs from much of the world. Regardless of the type of government, for over half a century, the prevailing macro-management perspective in the country, particularly in sports and football, has been rooted in a flawed mindset. This mindset has assumed that the difference and superiority of football in countries like England and Spain lie in their professionalism, mistakenly believing that a single decision or directive could instantly make Iranian football professional and perfect. Government interference in football and the involvement of successive administrations in club management—a practice with deep historical roots (financial support to prominent clubs like Persepolis, formerly Shahin, and Esteghlal, formerly Taj, dating back long before the 1979 revolution to today)—has created a so-called “professional” football entity that has never developed proportionately. Unlike modern global football, it is neither revenue-generating nor commercially viable. The “intellectual mirage of Iranian leaders,” who prescribed renaming the league as “professional” without addressing the need for structural and organizational development, was nothing more than an illusion—a fanciful dream, like many others in the underdeveloped world, that inevitably must be resolved.

This is despite the fact that football is undoubtedly the most popular sport in the country, with deeply rooted and influential fan communities in many Iranian cities (such as Tabriz, Anzali, Abadan, Bushehr, and more). However, the fundamentally flawed approach to club management and football administration has wreaked such havoc on the sport that so-called professional clubs cannot even cover their operational costs, let alone generate revenue through standard channels like television broadcast rights, stadium advertising, or merchandise sales. Beyond that, they are far from considering infrastructure development, tapping into accessible large markets (such as the untapped fanbases in Persian-speaking or neighboring Arab countries that follow Iran’s league), or establishing regional and international influence. Interestingly, wherever government and state interference in management has been minimal, development has occurred in remarkable ways (albeit without legal support or governance). Two small examples include the growth of unofficial but highly populous and unorganized fan communities on social media platforms and the thriving yet unregulated markets for fan merchandise, which operate without legal protections for intellectual property rights.

If the new government aims to transform football into a profitable industry in Iran, it must genuinely support the powerful phenomenon of football, rather than resorting to mere slogans, superficial privatizations, or shifting funds from one pocket to another while maintaining its heavy shadow over this potent “tool” of football. Economic reform cannot be achieved without legal reform and equalizing the rights of the private sector with those of the government (and certain state-affiliated entities). Until clubs’ rights to generate revenue from their product—football—are recognized, they will remain dependent on government handouts, with their managers seeking shortcuts to cover daily expenses, secure their positions, and keep their façade intact. There is no path forward other than striving for infrastructure development, facilitating legal and legitimate revenue streams such as television broadcast rights, and committing to legalizing intellectual property rights to enable commercial benefits. This is the only way to foster the commercial development of football, leveraging the immense potential of Iran’s young fanbase. Any other path will only deepen corruption, perpetuate backwardness, and add to the pile of missed opportunities and regrets—a pile created solely by the negligence of the government and the country’s leaders in ignoring this massive domestic market worth tens, if not hundreds, of billions of dollars.

An Evolved Community Generates Profit

Let us not forget that the digital age has revolutionized how fans interact with football. The rise of social media, online forums, and fan websites has connected supporters from across the globe, transcending borders and contributing to the integration of football’s vast market. Despite these global changes, the importance of local clubs remains paramount. These small, grassroots communities are the heart and soul of football. Traditions, history, and local identities are deeply rooted in these communities, forming the foundation of “evolved fan communities.” While the global experience becomes more accessible to football fans every day and every hour, local clubs continue to play a crucial role in preserving the sport’s authenticity and fostering a sense of belonging and interconnectedness within global fan communities. What is clear is that the evolution of football fan communities testifies to the enduring power of this sport to unite people, regardless of their geographical origins. This evolution also contributes to economic reform and the commercial development of football, directly and indirectly supporting grassroots football and infrastructure progress. This is the path that advanced countries have been racing down for years, reaping immense profits. Why don’t we join this high-speed train?