Der Fußball in Europa hat sich sowohl im sportlichen wie im betriebswirtschaftlichen Sinne stark verändert. Unterschiedliche Entwicklungen in den größten Fußballligen Europas (England, Spanien, Italien und Deutschland) haben eine Auswirkung auf die internationale Wettbewerbsfähigkeit der jeweiligen Ligen und einzelner Fußballclubs. Durch eine detallierte Stärken/Schwächen-Analyse wird in dieser Arbeit verdeutlicht, in welche Richtung der europäische Vereinsfußball lenkt und wie damit verbunden die Zukunftsausssichten der jeweiligen Fußballligen einzuschätzen sind. Dabei findet zunächst eine individuelle Analyse der englischen Premier League, der italienischen Serie A, der spanischen Primera Division und der deutschen Bundesliga statt. Zum anderen werden die Profiligen in einer Bewertung miteinander verglichen. Die unterschiedlichen Entwicklungen, wie der Vereinsübernahmen durch Investoren in England, Korruption und Stadiongewalt in Italien, Politische Rivalitäten in Spanien und die gesteigerte Popularität des Fußballs in Deutschland, erfordern diese Analyse und Auswertung des europäischen Spitzenfußballs.
Index
1 Introduction
2 The English Premier League
2.1 Strengths – The financial wealth of English club football
2.2 Weaknesses – England and the investment in human capital
2.3 Opportunities - The Premier League and the success in the Asian market
2.4 Threats - Competition within the English Premier League
2.4.1 The loss of traditional values in English club football
3. The Italian Serie A
3.1 Strengths – Competitiveness of Italian clubs
3.2 Weaknesses – Corruption and hooliganism
3.3 Opportunities – Quality of Italian football and new campaigns
3.4 Threats – Competition between the major European leagues
3.5 The failure of the Italian club management
4. The German Bundesliga
4.1 Strengths - The benefits of the 2006 World Cup
4.2 Weaknesses - The issue of competition in German club football
4.3 Opportunities - Strategies of the German Football Association
4.4 Threats – Financial disadvantages of German clubs
4.5 Future directions of German club football
5. Spanish football – Competitiveness of the Primera Division
5.1 Weaknesses – Political divides of Spanish clubs
5.2 Opportunities – Reputation and tradition in Spain
5.3 Future directions of Spanish football
6. Conclusion
Appendix
References
1 Introduction
European football (soccer) is the most popular sport in the world. The so-called “World Game” was once categorized as the “only one world religion” by FIFA-President Sepp Blatter.[1] In fact, soccer has millions of supporters worldwide and can be named as a sport with an outstanding history and tradition. The Soccer World Cup, for instance, is the biggest single sport event in the world and its huge meaning has an influence even on politics, economies and a huge social significance. For a country like South Africa which will be the host nation of the World Cup in 2010 it can be a historic opportunity to strengthen the economy and the political situation in the country and to curtail the high crime rate. Only a big event like the World Cup is able to release these changes away from social, religious or political divides.
Soccer in Europe is special not only because the sport was established in Europe (England) but also because it is the place of the best domestic leagues and the home of various successful national teams. Due to the various countries on the continent football in Europe has a diversity of culture and tradition which is unique and extra-ordinary. Over the past years the sport has changed intensively. The quality of the game has improved and the sport has become much faster. Furthermore, the best domestic leagues which used to have a very similar level have led into a new era with significant differences. The reason for the change of European football is diverse but the core of the change needs to be found in the business of soccer. The money involved nowadays offers much more opportunities for football clubs and opened a door into a new level of football management and competition. New investors, the penetration of new markets and a higher level of merchandising and sponsorship are only a few examples of the wealth of European clubs. In 2007 the „European football market grew to 13.6 billion Euro which is an increase of 1 billion Euro.“[2]
In this paper I will focus on the four most competitive leagues in Europe which are the English Premier League, the Spanish Primera Division, the Italian Serie A and the German Bundesliga. Statistically 17 clubs out of the 20 richest football clubs in Europe are from the major four leagues (England, Germany, Spain and Italy). Only the two French clubs Lyon and Marseille and the Scottish club Celtic FC are not from those leagues.[3]
Each of the named leagues experienced a unique development over the past years. I will focus on the individual changes in each league, point out positive and negative effects on European football and will finally evaluate the four leagues individually and in the entire European context. The different directions of each league and its outcome are based on a SWOT analysis which identifies the major strengths, weaknesses, opportunities and threats.
Issues like the era of overtakes in England, the benefits of the World Cup for German football, hooliganism and corruption in Italy or the significant meaning of Spanish club football will be analysed in this paper. Moreover, it is necessary to consider the “globalisation of sport” which makes the competition in sports even more intense but also presents new ideas from other sports which can have a positive influence on European football. The analysis includes a future prognosis of football in Europe and its domestic leagues.
2 The English Premier League
English football has experienced significant changes over recent years. Not only the English teams became much more successful in European competitions but the clubs also got a new profile. Compared to other leagues in Europe the Premier League and its major clubs such as Manchester United, Chelsea, Arsenal or Liverpool have become global brands including high possibilities of investment. In business terms the English Premier League is the most competitive football league and adapted well to the changes of sport business. To maximize the number of supporters of the league seen as potential customers the management of the association and the football clubs in England realized the importance of entering new markets and promotion of the Premier League on a global scale as part of the so-called “globalization of sport”.[4] Unlike any other domestic football league in Europe the English Premier League faced new competitors from other sports on a high level which can have an influence on the number of customers/supporters of the league. Sports from the United States, for instance, entered the English market in the last two years by hosting league games in London. Either the American football league (NFL) and the North American ice hockey league (NHL) opened its season in London. Purpose for the management of these associations is to enter the English and European market and make more people outside the United States interested in these sports. For the English Premier League it means that the globalization of sport brings new competitors from overseas into the market but it also offers the penetration of new markets to maximize profits. More supporters, wider broadcasting, sponsorship and global merchandising are decisive factors for higher turnovers of the English Premier League and its football clubs. Clubs who realized the globalization of sport now have advantages due to higher profits. One of the clubs which has benefited most from a global strategy is Manchester United. The club is a global brand with the largest number of supporters worldwide and was rated one of the richest football clubs in the world in 2008.[5] In 2007 and 2008 United has not only dominated the English Premier League but the club also won the European Champions League in 2008 against rival Chelsea. The Champions League is the biggest European club tournament. The sporting success of Manchester United shows that the business aspect of each football club is fundamentally important to assure positive financial and sporting outcome. Therefore clubs like United are highly competitive in Europe.
2.1 Strengths – The financial wealth of English club football
In terms of player transfers and investment the English Premier League is ahead of any other football league in Europe. As mentioned the business of football in England is advanced and the four big clubs Manchester United, Chelsea, Arsenal and Liverpool experienced sporting success in Europe. From 2005 to 2008 there have been at least on English team in the final of the Champions League including Liverpool and Manchester United winning the trophy. It is evident that the business strategies of the clubs are successful and offers an advantage towards European teams from Spain, Italy and Germany. The reason for the advantage is first of all based on overtakes by investors. Since 2000 several English clubs have been overtaken which has positive and negative effects on the clubs.
The most obvious positive aspect is higher possibilities of investment in new players. After Russian investor Roman Abramowitsch bought Chelsea FC, for instance, the club changed completely. Not only the club structure changed but also the team was rebuilt.
Billionaire Abramowitsch made the club able to get one of the best players from England and all around Europe. Most significant effect of the investment was the fact that Chelsea won two English Premiership titles in 2003 and 2004 which were the first titles for the club since 1950. In fact, Roman Abramowitsch invested more than 760 million Euro into Chelsea between 2003 and 2007.[6]
2.2 Weaknesses – England and the investment in human capital
The investment in international and domestic players is one of the most important aspects of football management. Different strategies of clubs have certain consequences on the national team. There is a connection between the sporting success of the major English clubs and the issues of the English national team over the past few years. Usually the clubs and the associations like the Premier League and the English Football Association (FA) work together to invest in young English players to support the national team. Due to the overtakes of foreign investors who only see the profits and are not interested in the success of the national team, the investment changed from supporting the young English football players to the trade of international superstars. This strategy is proven by the issues of the English national team which was not able to qualify for the European football championships in 2008 and the international squad of teams such as Chelsea. Even though Chelsea has two English superstars with Frank Lampard and John Terry, the rest of the team is predominantly international. Players like the Portuguese Deco, the French Nicolas Anelka, German midfielder Michael Ballack, Czech goalkeeper Petr Cech or Didier Drogba from Ivory Coast are only a few examples of international squads in English club football. Therefore, young English players do not have the possibility to play for their clubs which is the reason for the issues of the English national team. Moreover, clubs become more powerful due to their financial strength which causes that the strategy of buying players from other international leagues will not change in the next years.[7] A lot of football associations in Europe are concerned about that development and the world football organization FIFA plans to introduce the so-called “6+5 rule” which requires a minimum of six domestic football players in each squad.[8] It means that a club like Chelsea, for instance, would have to have at least six English players in their starting team. This idea would support younger players and their ability to play for the national team.
Compared to England, there are countries in Europe who emphasize on supporting domestic players rather than trading international players. The Netherlands and their strategy is highly focused on supporting Dutch players and having an advanced scouting system. Due to the fact that the Netherlands have a much lower population than England, France or Germany they rely on such a system to be successful on a high level in European football. Especially the two major Dutch clubs Ajax Amsterdam and PSV Eindhoven have brought up a huge number of great players. The scouting system not only focuses on young Dutch players but also on players from South America. Past Brazilian superstars such a Ronaldo or Romario started their career in Holland and Dutch players like Robin van Persie, Dirk Kuyt or Rafael van der Vaart nowadays are examples for good consistent development of players in the Netherlands.
Although a lot of the Dutch players trade to clubs in stronger leagues in England, Germany or Spain, the national team highly benefits from it. After England did not make the Euro Championships the English football clubs and the association realized that young English players need to be supported to assure a long-term success of the national team. Young English players such as Theo Walcott, playing for Arsenal, now play in the first squads to give them experience on a professional level. For the English Football Association the Dutch strategy should be a benchmark to find a balance between English and international players in the Premier League. Therefore, the 6+5 rule can be seen as appropriate for European club football.
2.3 Opportunities - The Premier League and the success in the Asian market
In professional sports nowadays it is impossible to focus just on one market or one single target group. The mentioned globalization of sport requires a business strategy for sporting clubs which focuses on penetrating new interesting markets. The English Premier League is more known overseas than the Spanish, Italian or German football league. In North America European football is recognized but faces the issue of high competition of domestic sports such as American Football, Baseball or Basketball. Most English clubs have realized that the most lucrative market is located in Asia. Not only the large population in China, India or Japan but also the lack of other sports in that area offer clubs huge benefits by entering the Asian market. Most popular club in Asia is once again Manchester United. Statistically 83 million of the 139 million Manchester United supporters worldwide live in Asia which is connected to a gross venue of US$ 478.5 million.[9] The idea of the clubs and the Premier League is to create a relationship to new supporters. The Premier League organization started to host pre-season tournaments in Asia and Manchester United follows a player transfer strategy which not only implements the strength of the squad but also creating a relationship to new potential supporters. The Korean national player Ji-Sung Park, for instance, was traded to Manchester United not only to improve the team but also to create a relationship to the Asian market. It is evident that even player management can have business purposes to some extent. To my mind the Asian market is one important aspect for English football clubs to be one of the richest clubs in Europe. Clubs from mainland Europe face the issue that the English Premier League is more accepted in Asia which makes it easier for clubs like Manchester United or Chelsea to enter this market.
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[1] Jennings, Andrew (2006). The Beautiful Bung: Corruption and the World Cup. London: BBC 1 Documentary
[2] Deloitte & Touche LLP (2008). Annual Review of Football Finance. Retrieved on October 17th from http://www.deloitte.com/dtt/article/0,1002,cid%253D56148,00.html
[3] Cuddihy, Paul (2008). Celtic are one of the world’s top 20 clubs. Retrieved on October 17th from http://www.celticfc.net/news/stories/news_140208090337.aspx
[4] Chadwick, Simon Dr. (2008, p. 28). FC Barcelona: Victory On And Off The Field. Sport Marketing Europe
[5] Harris, Nick (2008). Chelsea climb into top five of world’s richest. Retrieved on October 13th from http://www.independent.co.uk/sport/football/news-and-comment/chelsea-climb-into-top-five-of-worlds-richest-781884.html
[6] Deloitte & Touche LLP (2008). Annual Review of Football Finance. Retrieved on October 17th from http://www.deloitte.com/dtt/article/0,1002,cid%253D56148,00.html
[7] Pfahler, Thomas (2000, p 82). Human Capital and Efficiency (Published in German language). Paul Haupt Verlag Germany
[8] FIFA (2008). Yes in principle to 6+5 rule. Retrieved on October 17th from http://www.fifa.com/aboutfifa/federation/bodies/media/newsid=684707.html
[9] CNN (January 11th, 2008). Man. Utd. Profits shoot up by 93%. Retrieved on September 26th from http://www.cnn.com/2008/BUSINESS/01/11/manchester.united/index.html