This summer, Kylian Mbappé didn't just play in the Euro and join Real Madrid. In July, he also became the majority shareholder of Stade Malherbe Caen (SM Caen), with an 80% stake. Since the takeover, the Ligue 2 club, which begins its league campaign on Saturday, August 17, against Paris FC, has strengthened its squad by recruiting former French international Yann M'Vila and the midfielder Lorenzo Rajot.
Is this already the "Mbappé effect"? For now, it's difficult to gauge his real influence on the team in Normandy. However, the French national team captain is part of a trend of players buying clubs to prepare for their post-career life, as sports economist Jean-Pascal Gayant explained to Le Monde.
Several football stars, retired or otherwise, have decided to take charge of a club in recent years, such as David Beckham at Inter Miami (US), Zlatan Ibrahimovic at Hammarby (Sweden), and Ronaldo at Real Valladolid (Spain) and Cruzeiro (Brazil). This new trend is in stark contrast to their predecessors' investments.
"Football players were paid much less 40 years ago," said Gayant. "To prepare for their post-professional careers, they usually bought restaurants or bars. Nowadays, those who have accumulated a lot of money naturally position themselves as investors and diversify their portfolios by buying real estate, shares in companies and investing in the sports entertainment industry."
However, the majority of footballers do not have the financial means to spend tens of millions of euros to buy a sports club. This type of investment is reserved for the wealthiest, explained Gayant: "Most active players remain focused on their careers and want to secure their next contracts first."
When Mbappé bought SM Caen for between €15 and €20 million, he paid off some of the club's debts, according to Le Parisien. The report by the National Directorate of Management Control (DNCG), the financial watchdog of French football, showed losses of more than €9 million in the 2022-2023 season. This is not an isolated case, seeing as most clubs are in the red, like PSG, which recorded a deficit of €110 million over the same period.
So why do some footballers make this unprofitable choice? According to Gayant, "it's not really the financial aspect that motivates them. There's likely a desire to contribute to the development of football. They envision the second phase of their career as a club executive rather than a coach. Some of them feel just as well placed as directors and presidents who sometimes come from a different economic environment and have never played football." According to the author of Economie du Sport ("Sports Economics"), "these recent club acquisitions by players show that they have changed their position in the world of football. They have invented a new way of managing the end of a career."
Although the majority of clubs are in deficit, the football economy is still profitable in other respects. "With the rise in club sales and revenue growth within these institutions, the sports economic sector remains attractive despite the limited profits investors gain. We live in a leisure society where sports entertainment, along with the commercial rights linked to clubs' or players' images, is commercialized."
Footballers who have the means to buy a club often wait until the end of their career or retirement to do so. By taking charge of SM Caen at the age of just 25, Mbappé once again stands out for his precocity. While he was surprised by this new acquisition, Gayant noted how "Mbappé has demonstrated business acumen and skill in the world of finance since the start of his career." The former PSG striker already owns several real estate companies. With his family, in 2017, he founded KEWJF, a company that markets branded merchandise, which generated €12.1 million in revenue in 2021. In 2022, he registered his brands, logos, and even his iconic statements, such as the one made in 2022: "Le football, il a changé" ("Football has changed") with the European Intellectual Property Office.
However, with the acquisition of SM Caen, the captain is looking ahead to a different role at the end of his sporting career. "He certainly thinks he's got what it takes to run a club, given his in-depth knowledge of football, his ability to detect future talent and manage player dynamics within a team," said Gayant. "He's also probably banking on his name to attract better players more easily and convince sponsors to support him in his project."
He’s not ruling out a safety net either. "Mbappé is perhaps cautious and aware that a serious injury could happen at any moment, ending his football career."
Mbappé has yet to comment on his investment in SM Caen. However, for Gayant, there are several possible explanations. "It's a club he can afford, and above all one with potential. There's a loyal following, a great stadium and an environment that likely appeals to him since it's not far from Paris."
The French international is not alone at the helm. Pierre-Antoine Capton heads SM Caen's supervisory board and holds the remaining 20% of the capital. According to Le Parisien, Ziad Hammoud, the former director of strategy and investments at BeIN Media Group now managing director of Mbappé's image management company, is expected to be appointed president of the club.
Gayant said Real Madrid's number 9 could also be considering a shorter-term strategy: improving the club's financial health, getting the team promoted to Ligue 1, and then selling it for a profit. This is what Colony Capital did in 2006, when it bought PSG from the Canal+ group, alongside the French investment fund Butler Capital Partners and an American bank, for €41 million. Having subsequently become a 95% shareholder in PSG, Colony Capital sold it for €70 million to Qatar Sports Investments in 2011. Since then, PSG's value has continued to soar, with a Football Benchmark report placing it eighth in the global top 10.
Translation of an original article published in French on lemonde.fr; the publisher may only be liable for the French version.