The gap between football rich and poor

It was only the third game of newly-promoted Burnley’s Premier League season.

They would be facing a team in transition – Manchester United.

United, England’s most successful club, had named British record signing Angel di Maria in their starting line-up as the Argentine made his debut after joining for £59.7m from Real Madrid.

Di Maria’s price, and the reservoir of funds United have at their fingertips, completely eclipse anything Burnley have spent in their 132-year existence.

The Tykes have only splashed £45m on transfers since their inaugural season in 1882 but, facing a Manchester United XI assembled for £214.2m they earned a creditable 0-0 draw.

With this level of spending, United are hoping they will tempt the best players in the world to the club so they can return to Champions League football – something they missed out on this season under David Moyes’ leadership in 2013-14.

Burnley’s shoestring budget illustrates just how difficult it is to compete with the big spending giants of the Premier League, despite receiving £48m over four years since their relegation from the top flight in 2010.

Not only this, the three promoted clubs in 2014 gained a £60m revenue boost – £55m of which is from broadcasting fees.

Despite this combined stream of £108m for ‘yo-yo-ing’ between the Premier League and Championship, Burnley – and most of the league – still can’t hope to match the biggest clubs in the transfer market.

UEFA, European football’s governing body, sought to help rectify the current imbalance by introducing Financial Fair Play rules, but so far only Manchester City and Paris Saint-German have been stung.

This financial ‘sting’ is mere peanuts when compared to their financial clout, but each team competing in either the Champions League or Europa League received a share of their fines, amounting to €265,000 going to each of the 70 clubs involved in European football this season.

UEFA, though, are profiting hugely from Champions League and Europa League broadcasting revenues.

They expect their revenues to rise a whopping 30% to €1.75bn in the 2015-18 commercial sales cycle.

This is partly due to the extortionate fees that broadcasting companies are prepared to pay in order to show the world’s finest club competitions.

In Britain, BT Sport paid an astonishing £897m for the rights to show live Champions League and Europa League football for three seasons from the beginning of the 2015-16 campaign.

UEFA have been criticised for not giving second, third and fourth tier clubs a proportionate share of these huge sums of money, but the reality is that they probably could.

Before the 30% growth forecast for 2015-18, their income stood at €1.3bn, with €900m of that being shared amongst the clubs who participated in the Champions League and Europa League.

Some financial experts have even suggested that UEFA will look to bring in even greater financial rewards for the clubs that qualify for European competitions.

That potential move is aimed at reducing the gap between football’s super-rich clubs and the rich ones – but it widens the gap between the rich and the poorer ones.

In effect, the move would create a vicious circle.

The clubs with the biggest budgets attract the best players and tend to occupy the top spots in domestic leagues, thus qualifying for European competitions and earning UEFA’s prize money.

This makes them even richer and makes it harder for clubs to break into the clique-like qualifying positions for Europe’s top club competitions.

In short, those clubs who do not and who cannot qualify for European football are being cut further adrift.

It is a problem that UEFA has failed to address and is leading to problems with grassroots football across a host of Europe’s major footballing countries, including England.

A large share of the blame must also fall on domestic leagues.

In England, the Premier League are often ridiculed for their distribution of broadcasting fees.

The most recent round of bidding generated £3bn in broadcasting revenue, with Sky paying £2.3bn for live coverage of 116 games a season and BT Sport paying £738m for 38 live matches each season from the 2012-13 campaign.

£1.1bn of prize money was given to the 20 clubs in the Premier League last season, with clubs earning an additional £750,000 per live game on TV.

Additionally, teams earned £1.2m in merit money for every place gained, meaning Cardiff earned £1.2m for finishing bottom and Manchester City earned £24m for winning the title.

That meant the total merit money distributed by the Premier League came to £252m last season.

In total, that means £1.5bn has been distributed by the Premier League – just half of the three-year cycle of broadcasting fees alone.

So, while Premier League clubs are quite well off, the disparity between the top two divisions – in England and indeed most countries in Europe – is substantial and growing further still.

The question is whether FIFA, UEFA or the domestic governing bodies will do something to address the problem?

For the minute, the current arrangements certainly seem to ensure the football rich get richer and the poorer stay poor.

  • You can follow me on Twitter @NeilWalton89
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