Many decades ago, my mother, who was a widowed in her early forties and had to bring up seven children on her own, used to tell us “money is not carob seeds”.
It wasn’t then but it is now as far as football is concerned.
The game of Association Football has developed into an exceptionally big industry with commercial and marketing managers, players’ and managers’ agents, shrewd operators − and all of them have one thing in common, namely that of continually thinking how to make a quick buck for themselves and all those they represent.
A few impressive figures
FIFA and UEFA are rolling in millions of euro. In 2008, UEFA made €317 million profit from the Austria-Switzerland edition. Poland and Ukraine spent billions on infrastructure and new stadiums and UEFA, apart from the big sponsors, helped them meet the financial burdens. UEFA will be giving €196 million in prize money to the 16 participating nations; the minimum is €8 million and the winning nation will receive anything between €22 and €23.5 million, while the beaten finalist is assured of €17.5 million. In South Africa 2010 that had 32 finalists, the figures were €6.4 million for those that failed from the group stages, to €16.8 million for the semi-finalists, €20 for the beaten finalist and €24.8 for the world champ. Spain took home €22 million for the Euro2008 edition and €24.8 million for World Cup 2010.
Surprisingly enough, UEFA went one step forward by making a purse of €100 million to be shared proportionately between the clubs that sent 368 players to Poland and Ukraine. FIFA will only spare something in the region of €55 million for the Brazil 2014 World Cup.
Each match in Euro2012 cost €42 million. Who pays? Sponsors and TV.
The Spain-Germany final of 2008 totalled €237 million, which could be improved on this time considering that the average for each match played is about €200 million!
Positive results do not always figure in this equation. Take The Netherlands’ poor performances in the tournament. Despite their impressive show in the World Cup in South Africa just two years ago and having a €120 million attacking quartet in Wesley Sneijder, Robin Van Persie, Arjen Robben and Klaas Huntelaar, they ended with zero points and were among the first to go home. There were reasons and excuses for such a poor show. The legendary Johan Cruyff blamed the star players who according to him didn’t deliver. He emphasised that midfield was the root of all evil for the disappointing performances because of sloppy build-up play and poor execution of easy passes. Then there was a reference to a mole when a prominent player in the squad hinted that their pre match tactics “were leaked to the press and ruined us completely”.
Only Ireland had an equally negative experience with three defeats, one goal in favour and nine against! But in the international football scene Eire is not The Netherlands
Salary cap?
In Europe and in China millions are flying everywhere. Sixty-four-year old Marcello Lippi signed a contract with Changzhou Evergrande that secured him €25 million in 30 months. Nicola Anelka is on $291,000 a week and was given £3.4 million to endorse an online game developed by Internet company The9, whose chairman, Zhu Jun, is chief investor in Shangai Shenlau for whom Anelka plays and who could be joined by Dieder Drogba who apparently agreed to play and earn £1 million a month!
A glance at the total paid by top clubs for players’ salaries make economists and accountants raise an eyebrow. In Spain, the clubs in the Premiera have debts totalling €3.53 billion, but clubs like Barcelona and Real Madrid still pay €241 million and €216 million respectively per season. They are not alone. For example, Chelsea fork out €210 million, A C Milan €206 million, Inter €190 m, the Manchester clubs pay a total €339m (City’s €170m is just a million more than Utd’s), Bayern €156m and Juventus €140.
Is this madness? Definitely TV rights and sponsors come to the clubs’ rescue but one must not forget that fans spend a great deal of money for match tickets!
It could well be that they will eventually agree on a salary cap, but will they?
Yes mum. In today’s football, they spend money as though it was carob seeds!
Tony Formosa is a former national coach