As professionalisation in football continues at pace, clubs are developing a more data-driven approach. Many are leaning on the adoption of Enterprise Resource Planning (ERP) systems to navigate financial and wider business complexities, meet evolving regulations, and unlock the full potential of club data. In the process, they are driving financial and operational excellence, paving the way for success both on- and off-pitch.
For many years. the football industry’s growth has excelled. In the 2022/23 season alone, revenue in the European football market soared by 16% to €35.3 billion and Deloitte predicts further growth to over €39 billion in 2024/25 season. Furthermore, a surge in investment in 2023 saw football rightsholders secure more than half of all sports investment deals globally.
This growth and influx of investment has prompted a new wave of professionalisation across football clubs as, for those seeking investment, strong governance remains crucial to investor interest. While for clubs with new investors at the helm, they are taking a more focussed approach to financial, commercial and organisational data, to enable data-driven decision making that will help them to ensure financial sustainability and ultimately better able to secure a return.
To support this transformation, many clubs are turning to ERP systems. These platforms provide a centralised hub for finance, human resources (HR), payroll, and other core functions, offering real-time insights, streamlined reporting and increased operational efficiency.
Beyond the Bottom Line: The Power of ERP
While investment may be providing the impetus to many ERP-system rollouts, its uses extend far beyond ensuring financial and operational performance. For instance including:
- Regulatory compliance: The Premier League's Profitability and Sustainability Rules (PSR) and other financial regulations demand greater transparency and cost control. ERP systems provide proactive monitoring and management tools to meet these reporting requirements.
- Environmental, social and governance (ESG) reporting: Leagues and governing bodies are increasingly focused on ESG measures. For instance, The Football Association (The FA) mandates diversity reporting, and the Premier League requires clubs to implement environmental policies by the end of the 2025/26 season. ERP systems streamline ESG reporting by tracking key metrics related to workforce diversity, environmental sustainability, and safeguarding measures on a single platform.
- Unlocking commercial growth: Deloitte's 2024 Future of Sport Survey revealed that global sports leaders see digital products and data as the fastest-growing revenue streams in the coming years. Clubs possess vast data pools; analysing this information, particularly regarding commercial activities, fan engagement, and matchday spending using ERP systems, can uncover untapped revenue potential.
- Transfer spend tracking: Recent transfer windows have witnessed record-breaking spending. ERP systems can inform a club’s transfer market analysis, support long-term financial impact assessments, and facilitate data-driven decisions on this crucial expenditure. Post-transfer, the platform streamlines contract management and tracks player performance.
- Ethical and sustainable procurement and supply chain: ERP systems enhance procurement processes by providing greater visibility into the supply chain, facilitating ethical sourcing, and supporting sustainability.
- Streamlined HR Management: ERP systems effectively support the management of an evolving workforce, tracking staff turnover, learning and development opportunities, and the availability of specialised skillsets (e.g., data scientists, technology leads).
The Winning Formula: Key considerations for ERP success
Successful ERP implementation requires careful planning and execution, focusing on four key factors:
- Leadership buy-in and vision: Securing commitment from key decision-makers as part of overall strategy is crucial for driving change across the organisation.
- Stakeholder engagement: Engaging stakeholders from all departments – finance, HR, operations, commercial – throughout the project ensures the system is designed with the necessary features and maximises adoption for a smooth transition.
- Data strategy and governance: Understanding what data is required to drive decision making, underpinned by robust data management practices are essential to ensure accurate and reliable information.
- Change management: Managing the people-side of transformation is paramount. Effective communication, training, and ongoing support are crucial for long-term success.
For more than 30 years, the Deloitte Sports Business Group has been a leading advisor to governments, investors, governing bodies and organisations across sport.
Contact our team to learn more about our experience in driving transformation for our clients, helping them automate processes, unify data, boost employee engagement, embed sustainability into their business plans, and achieve growth.