African football has long been a source of immense talent, passion, and cultural significance, yet its financial landscape has historically sometimes struggled to match other regions (such as Europe). This was due to structural challenges, limited investment, and obviously governance issues. However, in recent years a new wave of positivism came to the continent, supported by financial initiatives, foreign investments, and strategic reforms. While opportunities for growth are emerging, some significant interrogations remain. Understanding the financial revival of African football requires an in-depth look at the economic forces driving this transformation, the role of the different stakeholders and the challenges that could determine its long-term sustainability.
The Growing Investment Landscape
Recently, one of the most significant changes in African football has been the increase in financial investment, both from local institutions and international stakeholders. Historically, clubs and leagues across Africa have relied heavily on ticket sales, occasional government funding, and FIFA development grants to sustain their operations. However, these revenue streams alone have been insufficient to finance long-term growth, modernize infrastructure, and attract top-tier talent (which is the root of football development).
Over the past decade, international investors and football organizations have more recognized Africa’s untapped potential and the huge opportunities that can arise for all parts. European clubs have expanded their scouting networks and established academies in countries like Senegal, Ghana, and Nigeria, aiming to nurture young talent while indirectly benefiting from transfer market transactions.
Foreign companies have also entered sponsorship deals with African leagues and clubs bringing much-needed liquidity to the ecosystem. For example, TotalEnergies, signed an eight-year sponsorship deal worth $250 million with the Confederation of African Football (CAF) to sponsor key competitions such as the African Cup of Nations (AFCON) and the CAF Champions League.
The introduction of some private equity funds into African football is another promising development. In 2022, the South African Premier Soccer League (PSL) secured $50 million in commercial revenue, making it the most lucrative domestic competition in Africa. Meanwhile, a big move on the continent has been when Morocco’s government invested $200 million in football infrastructure as part of its Vision 2030 plan, strengthening its bid to co-host the 2030 FIFA World Cup alongside Spain and Portugal and position itself as a natural leader of African football. A huge project under this initiative is the construction of the Grand Stade Hassan II, a state-of-the-art stadium with a planned capacity of 115,000 seats. Set to be the largest football stadium in the world upon completion in 2028.
Broadcasting Rights: A Key Revenue Driver
A crucial factor in the financial growth of global football is the ability to monetize media rights. Africa is starting to capitalize on this revenue stream. In the past, local leagues struggled with inconsistent broadcasting deals, poor production quality, and low distribution reach, which limited the value of their offering. This, successively, made it difficult to attract large sponsors and advertisers.
In recent years, there has been an increasing push to commercialize broadcasting rights. Many local leagues have secured +50 million/year deals.
However, despite these advancements, monetizing broadcasting rights across the continent remains a challenge. Many local leagues lack the bargaining power that European competitions hold, resulting in undervalued deals. Additionally, piracy and poor enforcement of intellectual property (IP) rights continue to impact revenue generation, with estimates suggesting that African broadcasters lose over $100 million annually due to unauthorized streaming (IPTV being the most used illegal streaming technology).
Challenges to Sustainable Growth
While there is clear momentum in the financial growth of African football, several structural and economic problematics still challenge the long-term success.
Lack of Infrastructure
Many clubs and leagues struggle with inadequate stadiums and training facilities making it difficult to meet international standards. In Nigeria, for example, only three stadiums meet FIFA’s standards, leading to lost hosting opportunities for international tournaments.
Financial Mismanagement and Governance Issues
A significant challenge in African football has been financial mismanagement, corruption, and governance failures. Without stricter financial regulations and greater transparency, clubs and federations risk losing credibility among investors and sponsors. The implementation of better financial controls, external audits, and compliance frameworks are essential to ensure that revenues are reinvested efficiently. A clear example is when in 2018, the FIFA suspended the Ghana Football Association after corruption allegations.
Player Retention and Talent Drain
One of the biggest financial disadvantages African football faces is the export of top talent to Europe and other regions. While player transfers generate revenue for clubs, the inability to retain elite players weakens local leagues and reduces their marketability. In 2023, over 60% of AFCON players (Africa Cup of Nations) were based in European leagues, highlighting the difficulty African clubs face in holding onto their best talent. Creating stronger financial incentives, better contracts, and higher wages will be crucial for clubs looking to keep their best players or at least one part of them.
The Path Forward
The financial transformation of African football is well underway, driven by increased investment, improved commercialization, and strategic efforts to enhance the sport’s economic viability. However, for sustainable success, clubs and governing bodies must address persistent challenges related to governance, infrastructure and obviously revenue diversification.
With the right financial strategies, African football can move beyond its historical limitations and emerge as a major player on the global stage. All this should be done by ensuring financial sustainability, fostering local talent retention, and securing stronger commercial partnerships. African leagues and clubs have the potential to achieve long-term economic prosperity while, most importantly, maintaining the continent’s deep passion for the game.