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Soccer and Money

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Soccer and Money

A paper submitted to Webber International University in partial fulfillment for the
Bachelor of Science degree in Business Administration

By: Vicente Munoz Date: April 15, 2014 Course: English Composition II Semester: Spring 2014 Instructor: Dr. Nancy Davis

1. Introduction:

My paper topic is money involved in soccer. I want to make everyone realize how big soccer is. How much money it moves and the most interesting is why the club pays that much money for a player. It involves hundreds of years of history and honor on a soccer pitch. I want to explain the basics of soccer, the different competitions and where it is play. Every summer are transferring players to other teams for a crazy amount of money. Why is this team paying that much money? I would like to explain why the club is paying, what he will make with that player and how much revenue the club will make. All this apart for the trophies, victories, new idols and icon on the city.

2. FIFA ( Federation International Football Association)

FIFA was founded on May twenty first on 1904, in Paris with the purpose of have an organization of the world biggest sport, football (soccer). One of the biggest purposes is to expand the sport and to increase the popularity on an international environment. The FIFA headquarters are established in Zurich, Switzerland. The player with most appearances is one of my favorite players, he plays for my team Real Madrid and he is from Spain, hi name is Iker Casillas. “51: Appearances as Spain captain was the new record set by Iker Casillas.” In the World are 5 continents so pretty much one of these have their own Conference except in America where there is two conferences. The most important conference , where all the good players play and where without are best salaries and where money is more involved in the European conference. The European conference is called the UEFA, which stand for Union of European Football Associations. Inside the UEFA exists a number of fifty-four national association members. Probably the biggest sport event in the world of soccer is the UEFA Champions League, which is the main competition of the UEFA. The best teams of every country play the Champions League and its every player dream to win it. Below the Champions League there is another competition from the UEFA that is called Europe League, this competition is not that big for the top teams but every mid table team will love to win it. The second best teams of every country played it and the winner of this two competitions will pay a final that is called Europe Super Cup but is not that big of a deal. In America there is two Soccer conferences which are consider basically at the same level. There are the CONCACAF and the CONMEBOL. The CONCACAF stands for Confederation of North, Central American and Caribbean Association Football. The most important league of the CONCACAF is the Major League Soccer (MLS) in United States of America. The CONMEBOL stands for SOUTHAMERICA CONFEDERATION of FOOTBALL where there are two major leagues, the Argentinian and the Brazilian Leagues.
There are three other conference in the FIFA which are the Asian Football Confederation (AFC), the Confederation of African Football (CAF) and the Oceania Football Confederation (OFC). These last three are consider a step below but the player still so good.

3. Europe

Without doubt the cradle of football is in Europe, is where more money is involved and where the best players want to play. The money the European Leagues are earning every year its absolutely ridiculous. The most valuable club in the world is Real Madrid Club de Futbol, from Spain with a value of 3,300 million dollars and revenue of 650 million dollars. After Real Madrid it follow the English team Manchester United with a value of 3,165 dollars and a revenue of 502 million. In the third position there is another Spanish team which is called Barcelona FC who have a value of 2,600 million dollars and with a 613 million dollars of revenue. After this three massive teams there is same amazing teams like Arsenal FC from England, Bayern Munich Fc from Germany and AC Milan from Italy. All of this clubs still above of the 1,000 dollars of revenue .There is five main leagues in Europe, we can consider 8 like the top leagues. The English Premier league earns a 3.0 bn of revenue, basically because the broadcast revenue accounts for 50% of league revenue. The English Premier League has some of the best clubs in the world like Manchester United, Liverpool FC, Arsenal FC, Chelsea FC and Manchester City FC. Every single club earn a lot of money and the have really big contracts. Manchester United is the biggest club in England and with some of the most expensive contracts in the world. “Manchester United ditched AIG for Aon in 2009, and the team will soon wear GM's Chevy brand for an average $80 million per year”. Manchester United has a total turnover of 538 million dollars, with a gate and match day income of 166 million dollars, 174 million dollars of TV and broadcasting and a 198 million dollars of commercial activities.

Manchester United is the third club with the highest wage bill in the Premier League of 272 million dollars and a net debt of 615 million dollar. Manchester United is by far the biggest club in England, they have a lot of followers around the world. You can go to China and everyone will know what Manchester United is or I’m sure they have heard before than name. There is a massive support of Manchester United, people doesn’t why there is such a nice support in Africa there is, they belief is because 50 years ago Manchester United did a tour for Africa and help a lot of small teams economically and financially, giving a lot of t-shirts away. Obviously there is more teams in the Barclays Premier League than the 5 important, the Premier League has 20 teams on the first division and 20 other teams on the division below. The first division in England has always been the Premier League but since 1993 Barclays Bank start sponsor them so now it’s called Barclays Premier League. This sponsorship gives a lot of money to the League.

The biggest league with the Barclays Premier League is Liga Nacional de Futbol Profesional, most known as Spanish La Liga. The Spanish league was founded in 1929 and it has a number of 20 teams. Since 2008 the LFP (Liga Futbol Profesional) is called Liga BBVA, the spanish bank pay a crazy amount of money for this sponsorship. BBVA spend 70 million Euros in sponsorship the Spanish league, around 97 million dollars. The biggest clubs in the world came from the spanish league , they are Real Madrid and Barcelona. They are probably one of the best teams of all time and the ones with more money. Real madrid has won 9 European Champions League, the most of all time and 32 Spanish Leagues the most in Spain. Real Madrid is the team who makes more money in the world. “Real Madrid dethrones Manchester United from top spot at $3.3 billion.” Real Madrid is consider the most valuable football brand in Europe by the BBDO and in 2012 was ranked the number one most valuable club in football and a study from Harvard University said that Real Madrid is one of the 20 most important brand names in the world. Real Madrid, along with Athletic Bilbao, FC Barcelona and Osasuna, probably the smallest team in this group, are organized as a registered association, by saying this I mean that this team are owned by its supporters who elect the club presidents. In addition to their success in Primera División, Valencia, Real Madrid, Barcelona and Atlético Madrid are four of the most successful teams in European competition history. All four clubs are the only Spanish clubs to have won five or more international trophies. Whilst, Real Madrid, Barcelona and Valencia are also in the top ten most successful clubs in European football in terms of total European trophies. In 2005–06, Barcelona won the UEFA Champions League and Sevilla won the UEFA Cup.

In 2014 La Liga has two Spanish teams on the semifinal of the Uefa Champions League which are Real Madrid Club de Futbol and Athletico de Madrid Club de Futbol. This makes the most of the four teams these years. In the Uefa Europa League we can see the same case with Valencia Futbol Club and Sevilla Futbol Club. All this means that La Liga is going on the right direction because we have 4 teams out of 8 in the semifinals in Europe. There is one german, one English, one Italian , one Portuguese and four Spanish teams. La Liga now and always will be the top league in the world. Now, the most competitive league is probably the Barclays Premier League because they have 5 really good teams that can win it. In Spain this year Atletico have a good chance to win the trophy but in the past years it was just Real Madrid Club de Futbol and Futbol Club Barcelona. That makes the league very bad because just two teas can win it. The question is that will Barcelona and Real Madrid will win the league in England, probably yes because they are the best teams in the world.
The Italian League it’s called the Serie A or most known as the common name of Calcio, there is three massive teams which are AC Milan, Inter Milan and Juventus Football Club. The forth best league in Europe which improves tremendously is the German League, it’s called the Bundesliga and the biggest team over there is Bayern Munich. Football Club Bayern Munich is considering one of the four kings in Europe. There is a lot of history affiliated with this club and a lot of money as well. In 2012 Bayern earn a revenue of 373 million dollars and FC Bayern current value is of 1.235 billion dollars. They are so rich that they currently hide Pep Guardiola and they are paying him the highest salary in the history of football. “Pep Guardiola is currently the highest-paid football manager in the world, with a yearly salary of $24.63 million, which is more than that of Lionel Messi.”

4. Top Salaries

Not always the highest paid player is the best player, normally is very close but also involved more factors. For example David Beckham has never being the best player in the world but he was always the one who make their team earn more so everyone want him. Real Madrid sign David Beckham with the purpose of earning money. We could say it was a economic sign because Real Madrid get the 50% of what the players make. David Beckham earn last year an amount of 40 million dollars, his team pay him 10 million dollars a year but he his deal with the brand adidas makes him earn way more. Cristiano Ronaldo, consider this year as the best player of the world by winning the Balon d’or is a Portuguese player who plays for Real Madrid. He makes 38 million dollars a year with contracts with Nike, Coca- Cola, Castrol, Armani and some more brands. Real Madrid pay him 12 million euros a year , almost 17 million dollars. After Cristiano Ronaldo it’s one of the best player of all history. This guy is the Argentinian player Leo Messi who plays for FC Barcelona. “(leo messi) The Argentine earns about $ 37 million” It’s hard to believe that Messi is not the number player in this listed but as I said is not always about how good the player is. For example Cristiano makes more than Messi because an adverb with Cristiano will give the company more revenue, CR7 is more liked wise and people like him more.
One of the most curious cases is Ronaldinho, he used to be the best player in the world, now he went back to brazil and live more calm in his nature land. Even he is on the Brasilian League he stil earn 24 million dollars a year. Ronaldinho is ugly so people doesn’t give him that much money for adverbs but in Brazil is consider a legend, he is an idol and people will give a lot of money to the business and companies that Ronaldinho is involved in. He is a happy player, always with a smile in his face so people really like that.

Normally in the MLS the salaries are not that high, the highest player paid is Clint Dempsey that earns 6 million a year. That quite a lot of money for being in the USA. 6 million is more than half of the teams in the MLS, with all the players together. The past 5 year United States of America is improving his soccer. But in USA there is a lot of money so even in second division the players are getting some good amount of money even if the level is way lowest. In the third division in Spain the level is so good but the club are really humble so they don’t have much money to play their players. But a lot of people is doing id trying to move to the MLS and leagues below, this will make the league better and also it will better for those players than don’t get enough money for a living back home and they will make a good amount in the USA. For a person making a living of soccer is very difficult, there is billions of people that play soccer and just a few to make it.

5. Conclusion:

It’s very clear that soccer is the most follow sport in the world and also the sport with more money involve. People pay to watch their teams, they pay to go to the stadium and to have the shirt of their idols. Player make a lot of money because they are heroes, they are what the little kids want to be in the future and companies take this idols and put them in their commercials, this makes their revenues go higher. It’s ridiculous how much money is involved in the soccer environment and this is because is the most follow sport in the world. I hope everyone have a clear understanding of how the most played sport in the world is organize and how much money moves in a year.

6. References
Dowding, Chris (2008), Is money ruining our beautiful game of football?.
Correspondent September 08, 2008, from Bleacher Report http://bleacherreport.com/articles/55533-is-money-ruining-our-beautiful-game-of-football

Harris, John (2011), Football: big money, big cubs, big problems? Retrieved
August 22, 2011, from http://www.theguardian.com/commentisfree/2011/aug/22/football-clubs-finance

Montero Gonzalez (2014). Why there is people winning a lot of money because soccer without playing it. Retrieved January 5, 2014, from
http://www.revistagq.com/articulos/juan-pablo-meneses-ninos-futbolistas-mafia-futbol-sudamerica/19402

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