Tips

Finance ideas from the world of sport

December 19, 2015

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Although the world of sport might not immediately seem like the most obvious source of financial inspiration, the numerous success stories in sport can all serve to show us how a little long-term strategising can help us with our own personal finances.

And it’s not just the massive sports stars and teams that can provide inspiration, as even the most humble local club or small instance of sports betting can illustrate how a little financial forethought can have surprisingly beneficial effects for your cashflow.

Plan for the future

The importance of having a long-term plan for your finances cannot be underestimated. By simply setting aside a small amount of money each week or month, the amount can quickly grow into a treasure trove that can prepare for any unexpected cost or pay for a once-in-a-lifetime opportunity.

Such thinking can be seen with the introduction of youth academies in many of Europe’s top football clubs. Although they can be costly, by aligning many promising football players with their club, they invariably provide a much cheaper alternative than engaging in the increasingly extravagant transfer system.

Risk strategies

Although introducing youth teams can go some way to safeguarding a club’s long-term’s future success, it’s always important for managers to anticipate unlikely events in their team. The unlikely success story of the Romanian footballer Hagi at the Italian club Brescia can illustrate how an uncertain investment can dramatically pay off in unexpected ways.

And similarly, the rise of sports betting sites such as Betway have shown that sometimes the most unfavourable odds can be worth a shot in this massively unpredictable game. But as these horrendous football signings show, there can be many adverse risks in such speculative behaviour too.

Avoid unnecessary expense

So like most areas of life, in order to survive the long-term game, many top sports managers will try and err on the side of caution when it comes to their financial activity.

A dramatically polarised example of this can be found in Scottish football where the once-mighty Rangers FC were suddenly liquidated and found themselves at the bottom of the football league as a result of financial mismanagement. Whereas the massively-successful Celtic have managed to sustain a profitable reign as kings of Scottish football as a result of some very thrifty transfer negotiations.

So whether it’s in business or your personal affairs, having a long-term plan, being thrifty and not being scared to take the occasional gamble are key to aiding your financial prosperity.