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The financial gap in football

The financial gap in football

It is no secret that football has undergone drastic change over the past decades, and this transformation is evident in almost every aspect of the sport. For example, long-time fans have witnessed a multitude of rule changes, which can occasionally lead to confusion (take the constant adjustments regarding handball rules, for instance). The economic dimension of football has also experienced consistent evolution. Player salaries and transfer fees continue to soar to unprecedented heights.

Over the last decade, in particular, we've seen previous limits shattered. However, the economic boom in football doesn't always favor the fans. To access all the games, you often need to subscribe to several streaming services. Some supporters may even try their luck at free online slot machines, like those available at Richard Casino free spins, in hopes of a fortunate windfall that would allow them to watch all the games via streaming while managing the associated costs.

As a result of this upsurge, which primarily benefits the already affluent clubs, the divide, both in terms of sporting performance and economic resources, between well-established and smaller clubs is expanding. FC Bayern Munich's ten-season championship streak serves as a prime example of this phenomenon. It's undeniable that this sporting dominance is largely a consequence of their substantial financial capabilities.

Smaller clubs, on the other hand, are not as fortunate and lack such financial muscle. The cynical saying among many fans that "money rules football" appears to hold some truth. While the top-tier clubs continue to ascend, others are engaged in a constant struggle for survival.

The elitism of the top-tier teams in the global football scene is further underscored by the proposal for a "European Super League," in which the best of the best would face off on a weekly basis. However, the reception of this idea differed greatly from what was expected in the higher echelons. Instead of being embraced, it faced swift and intense backlash from the fans, leading some of the initially participating clubs to reconsider their involvement.

Financial fair play

Financial Fair Play should ensure more justice on the market. This regulation came into force in 2012 by UEFA and actually serves to ensure that clubs cannot make unlimited acquisitions on the transfer market. Accordingly, clubs are only allowed to spend as much money as they earn back through sales. In theory, this should ensure more equality to a certain extent. Unfortunately, the reality is far different. Thus, the big clubs circumvent the regulations again and again - to the point of high indebtedness. The three leagues with the highest combined debt are the English Premier League, the Italian Serie A and the Spanish Primera División. To give you an idea: If you take the debt of all Premier League clubs from 2009 together, it resulted in a debt mountain of a whopping £3.1 billion. In 2015, the regulations regarding Financial Fair Play were relaxed again. So it's not really an effective system.

The Financial Fair Play was an interesting approach, but did not really bring much. Another much-discussed possibility is the introduction of a model like the one used in US sports. Here, each club is set a limit as far as the payment of salaries is concerned. This would mean that everyone could expect the same salary categories, which would ensure equality. At the same time, however, this would probably also mean a reduction in the rapid economic growth, which would probably not be in the interests of the shareholders.

The situation of smaller clubs

Clubs that have a lot of money have it relatively easy these days. After all, they can sign expensive players and pay them high salaries. This also makes the clubs more attractive from a sporting point of view and attracts more spectators to their stadiums. But what about smaller clubs that do not have such high financial resources, such as FC Bayern Munich?

There are always David versus Goliath stories in football. The truth is, however, that Goliath rarely gets the short end of the stick in the football world. The quality gap is usually too big. In Germany, the question of the championship is usually answered quickly with a yawn. The situation is different, however, when it comes to the fight against relegation. Here, clubs with similar financial resources meet on an equal footing, creating real excitement. Among other things, because there really is a lot at stake here. While the championship is often about another source of income and a lot of prestige for already big clubs, the relegation battle can be a question of existence.

Due to the departure of many players, there is always a rapid sporting relegation in the Bundesliga, so that the club has to completely reorganise itself. If this does not succeed, nerve-wracking times lie ahead for the fans. This also means a lot of losses in financial terms. Another factor is the Corona pandemic, which has hit smaller clubs much harder than economically more successful ones.

Arminia Bielefeld as an example of the power of solidarity

One ray of hope on how to overcome the sporting relegation and the associated financial problems is the case of Arminia Bielefeld. Currently, the club is in the second German Bundesliga after being relegated last season. Admittedly, the club slipped into a precarious debt situation due to the construction of a new main stand, while things went downhill in sporting terms. It was therefore no longer possible to compensate for the expenditure. With a mountain of debt of around 22 million euros, insolvency then loomed. The situation seemed hopeless. Then, at the beginning of 2018, an alliance of locally based companies, the Bündnis OWL, came to the rescue. This enabled the association to make a fresh start. In 2020, the club was promoted to the first league for the first time in 11 years.

It is not uncommon for clubs to be bought up by large corporations, and this is often criticised. In the case of Arminia Bielefeld, however, this is not the case. The supporters do not have a real say in club decisions. This is not a case of selling out a club, but of supporting locally based businesses. This model could also be interesting for many other small clubs in financial need. Of course, this can only work in regions that strongly identify with the respective football club.

Conclusion

Football lives from its fans. And in the crowd, many of them also support small clubs. Accordingly, they should not be neglected. If things continue as they are, it could well happen that more and more traditional clubs will face considerable problems in the future. The fact that the big associations like FIFA are gradually losing touch with their roots can be seen in the fact that the next World Cup will take place in Qatar.

As is well known, thousands of migrant workers died in the construction of the stadiums. Nevertheless, the big clubs are sending their players to the national teams for the tournament. Of course, it is impossible to say whether smaller clubs would do it differently, but it is certain that they are more popular. It is not only the money that counts. Football is a sport that is defined above all by humanity. This can often be found where money is not a matter of course.




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