7. Scotland in the sun: How La Liga’s problems are more than just skin deep

La Liga is in fine fettle - the arguments against

There is, of course, a strong case to suggest there is no need to be concerned about the health of the Spanish league.

For a start, Javier Tebas stated that he is confident of a resolution to the television deal. Currently, Real and Barca enjoy a 49% share of the money from broadcasting, although Tebas is optimistic that their portion will diminish to 34% by the 2014/15 season.

Tebas said: “We’re working towards a similar situation to that in England.”

In England the governing body, the Premier League, deal with the money from broadcasting rights and then distribute the monies in a more even manner. “In three or four years it will be like that in Spain,” Tebas affirmed.

Mind you, Tebas would say that. No lawyer would admit to having little chance of winning his case. Acknowledging the chances of victory are slim would only hinder his argument.

The former LFP vice-president also claimed that this period of dominance from the big two is nothing new. Historically, they are Spain’s two most successful clubs with 51 La Liga titles between them.

Tebas said: “It’s been 60 years that these two clubs have been at the top in Spain so it is not just because of the television money. Even throughout these years there have been occasions when the competition has been good and that someone else (other than the big two) have been at the top.”

Their supremacy is nothing new, but the distance between them and the rest has reached an unprecedented level. Never has the gap been so wide and it is showing no signs of abating. In the 2009/10 season they both recorded a record points haul and last season was more of the same.

In addition, they both reached the last four of the Champions League and, arguably, would have met in the final had they been kept apart in the draw. Of the three major trophies on offer to the top Spanish clubs (the Champions League, the Copa del Rey and La Liga), all ended up in the hands of Barcelona or Real Madrid.

Phil Ball, author of Morbo: the story of Spanish football, argues that Tebas will succeed as the rest of Spanish football demands it and, therefore, Barca and Real will have to respond to that demand. In turn, the fans will demand it too.

He said: “I think Tebas is right. In three or four years from now the money from television will be more evenly spread.

“Barca and Madrid can argue that, given that they generate all this (TV) money anyway, that they should have that amount (49%) of the pie. (But) I don’t see how you can sustain that argument over a long period because if the league continues, if the bridge continues (to widen), then by the nature of logic the league becomes less competitive and it messes up those who are at the top of it – Barca and Madrid. In the end they have a vested interest in the league being competitive.”

This would ring true in most other countries but in Spain things are a little different. Not least because the fans tolerate the dominance of the big two far more than in any other country due to what has been termed ‘second club syndrome’. This is where many Spaniards support one of Real or Barca in addition to their local club. And this devotion is evenly split which enables them to tolerate the lack of competitiveness within La Liga.

When asked to confirm the theory of ‘second club syndrome’, Grimsby fan Ball concedes: “That’s an interesting point. I had not thought of it like that because that’s definitely true. You can go to any pueblo (small town) in Spain and knock on the door and say: ‘who do you support – Barca or Real?’ and they’ll give you an answer. And the answer they give you is not always football based. It is a political, cultural answer. A lot of Spanish people won’t accept this argument but a lot of them do.”

Ball recognises that things have changed in recent years. He added: “Since the whole ‘galactico’ thing at the beginning of the century the face of Spanish football has changed. It was never like this (the gap between the big two and the rest) before. There was a feeling of democracy before but not now. You’ve got a three-tier league. There’s Barca, Real. Then there are those teams who aspire to reach the Champions League placings. Then there’s the rest.”

There is an equally strong argument that suggests it is just two tiers – Barca/Real and the rest. It is more conceivable that any of the other eighteen Primera Liga clubs reach a Champions League spot (finish in the top four) than it is that Real or Barca fail to finish in the top two. This is quite a statement. Could you imagine Norwich City or Wigan Athletic qualifying for the world’s most prestigious club competition? No? Well this illustrates just how unlikely it is that Barca or Real will finish outside the top two this coming season and for the foreseeable future.

Tebas argues that it is only the last two years. More importantly, he adds, Barcelona are dominating with an exceptional team that has been made largely through an astonishingly successful youth scheme and good management, not through spending huge amounts of money on transfer fees.

He said: “Looking at Barca, their big stars were not bought, they were made in Barcelona.”

However, this is ignoring the massive signing on fees Barca pay and a world record in the history of sport on wages.

For the first time in history a football team, or make that two football teams, have topped such a list. The average wage for a first team player at the Nou Camp is £4.94m annually, and at Madrid £4.6m. The average Yankee earns £4.2m a year. So it is not just impeccable grooming that keeps Barcelona on top.

Finally, Barcelona crushed Manchester United at Wembley this year to be crowned Kings of Europe. Surely this augments the belief that Spanish football is in rude health.

However, Pep Guardiola is constantly linked with a move to English football due to a craving for the competitive nature of the football and Mourinho regularly refers to the Premier League in wistful tones. In addition, Arsene Wenger urged Cesc Fabregas to ignore the overtures of the Spanish giants if he is a competitive footballer.

3. Scotland in the sun: How La Liga’s problems are more than just skin deep

Financial Matters
 

Spain has never had more people unemployed. Currently, that figure stands at five million.

Even Latin Americans who moved to the Iberian peninsular in search of work are seemingly desperate to return home, much like the Polish exodus from English shores in the last couple of years.

Government ministers insist it has reached a peak and that it won’t get any worse but the people of Spain are not convinced.

Football mirrors these troubles.

Spanish football writer Sid Lowe wrote on the website cbc.ca in 2010:

Luis Manuel Rubiales, the new president of the Spanish players union, the AFE, explained that 85 per cent of footballers in Spain's top three divisions either get paid late or not at all. Then there's the fact that the Spanish Football Federation, the RFEF, still owes the AFE €8 million.

According to Rubiales's predecessor, €100 million are still owed to footballers in unpaid wages.
The situation, Rubiales said, is the worst it has ever been.

Spanish football is in crisis according to José María Gay, Spain's leading expert on football finance and an adviser to Uefa: "La Liga is dying."

The Osasuna president, Patxi Izco, admits: "I fear a financial meltdown."

"Football," insists another director, "is seriously ill."

Real Madrid were saved from the threat of bankruptcy a few years ago only when the municipality of Madrid agreed to pay a large sum for the land on which their training ground sat.

The fact that the Spanish government and the country’s banks have helped Real is greeted with little more than a sigh from the other clubs in Spain. Can you really imagine the outcry in England if the government helped Manchester United stay on top or Barclays, at their customers’ expense, came in to rescue Liverpool from the oblivion of relegation? How would fans of Portsmouth, Leeds United and Southampton react to such news? These last three clubs have had to bite the bullet and accept their fate as they slid down the divisions due to the enforced sale of their best players, enabling them to stay in business. Manchester United would be expected to do the same. The Spanish government, seeing a similar fate bestowed on its most famous club, bought their training ground.

In England such actions are treated with a mixture of suspicion and bemusement. In Iberia, and perhaps throughout the Latin countries, it is treated as the norm.

Sid Lowe argues that it was in the country’s interests to help Real Madrid in their time of need, though he concedes it was not without some underhand tactics.

He said: "Institutional support in Spain is relatively normal but Real Madrid would argue the support is reciprocated as they do a lot of work for the community in terms of tourism and image. They would also argue that as the club represents the community they should get support."

And what about the deal whereby Madrid sold their training ground to the local government only to get it back again? "This is the big bone of contention. Real Madrid will say that the council got a good deal in terms of what they paid but it was Florentino Perez (the club President) who enabled the deal to happen. He, with the government, re-classified the land so that it was apt for construction.

"Perez is a construction magnate whose contacts are very strong in local government. This kind of tactic, though, is relatively normal. It has been used before and it will no doubt be used again."

Barcelona are not without their own problems on a financial front. Last summer they were late in paying the players’ wages and had to take out an emergency loan to help alleviate their difficulties in meeting their wage bill.

Sports lawyer Javier Tebas believed neither case was comparable to the troubles at the smaller clubs. "Barcelona and Real are a money making machine. They don’t have significant problems," he said. "Certain newspapers eight years ago said Real Madrid were going to go bankrupt and look at them now."

Well, with the government’s help and the aid of Madrid’s banks is it any wonder they survived?

"It was a help,” Tebas agreed, with a gesture suggesting inverted commas when he said ‘help’. "But with the help the competition can become distorted," he admitted

"The problem is not just that the big two have a greater budget than the rest," Tebas explains. "It is that all the other clubs have a lot of debt. There some smaller clubs where the interest repayments on their debts alone could pay for the salaries of Lionel Messis and Cristiano Ronaldo combined." In other words, €15 million in interest.

 

1. Scotland in the sun: How La Liga’s problems are more than just skin deep

The pie

“Well, you’re not looking at the whole pie Jenny,” David Brent muttered confusingly to his boss. “Wernham Hogg is one big pie, and if they’ve let me in charge of that one big pie, I’ll be in charge of the pie, and the people are the fruit, and I’m-”

“I don’t have time for the pie thing, David,” his boss retorted.

“...Pie thing...you don’t want it, no,” Brent realised.

These are the words of a failing manager of a paper merchants, based in Slough, in a fictional, satirical comedy. His boss, however, had had enough of the pie thing. 

Ricky Gervais has won worldwide acclaim with his BBC hit show The Office thanks to his creation of Brent and the hideous way in which he manages his work.

Brent’s boss is not the only one who has had enough of the pie thing. Sevilla’s president, Jose Maria del Nido, amongst others, is not happy with it either. This is the television money pie shared amongst the clubs in Spain’s top flight.

Only, this is no laughing matter.

As Barcelona and Real Madrid have accelerated ahead in the last few years, the rest of Spanish football trail in their wake, both on, and off, the field.

Barca and Real can argue that they generate all this money through their success on the pitch, with ticket sales and through merchandising, so they deserve such a large percentage (currently that share stands at 49%) of the pie but the long-term health of club football in Spain is at risk, with many clubs in financial disarray throughout the country.

Just last year former Almeria coach, Juanma Lillo, said: “The difference between Madrid and Barcelona and the rest is insuperbale. How can Valencia ever hope to keep hold of (David) Villa and (David) Silva? The rest of us have been turned into mere suppliers of players for them.”

If this was just down to gate receipts, good management and fine marketing then it could be tolerated. After all, there is little to be done about that, other than to be admired, and even attempt to match it elsewhere by applying similar strategies in an effort to catch up. The highest form of flattery is, after all, imitation.

Other big clubs around Europe are pushing these boundaries too, both in their domestic leagues, and in European competition, most notably Bayern Munich and Manchester United.

However, Spain’s top two have a distinct advantage over their rivals, both in La Liga and in European competition. This stems from the television deal they are able to negotiate. Last year their combined television revenue totalled €280 million. The other eighteen clubs in the country’s top flight earned a similar amount – between them.

In Germany, things could not be more different, as German football writer, Claus Melchior, describes: “The Bundesliga is more competitive than most of the other top European Leagues. I think it has quite a bit to do with the distribution of TV money. Whereas clubs in Spain have individual contracts with TV stations, Bundesliga rights are sold collectively. They bring less money than TV rights in Britain, but the money is fairly evenly distributed.”

Javier Tebas, sports lawyer and a central figure in the new television rights deal, claims part of the problem is mentality. He illustrates the difference between the Spanish and Anglo-Saxon perspective perfectly when he says: “The Anglo-Saxon philosophy is a lot different to the Italian and Spanish philosophy (in terms of promoting the competition). In the Latin world people always think: what can I get out of this? The Anglo-Saxon way is more long term: what can I give to this and then what can I get out of this later? What can I bring (provide) to the table? Then what can I take away. The Latin idea is much more immediate: what’s in it for me (as in right now)? Whereas the English idea is more long term. It’s the (difference in) mentality.”

The German way is not too dissimilar to the English. “They are like the Anglo-Saxons in their mentality,” Tebas added.

However, he could not conceal his contempt for his compatriots’ thinking. “The problem is with the Latins. It’s a problem because they always want immediate results. They have no patience. The Germans, but more the English, have lots of patience.

“In conclusion: the English and the Germans believe in their leagues and this philosophy but the Spanish clubs don’t believe in La Liga. This is the problem.”

And he had words of praise for the Premier League as he felt their mindset gave them a significant advantage over their Latin counterparts. “The Premier League is the biggest competition in the world and it’s not just by co-incidence. Ten years ago it wasn’t so big but they have put in a lot of hard work into the competition itself.”

Nevertheless, the differences can be attributed to more than just attitude. “This is because in Spain, the league doesn’t manage the TV rights,” Tebas opined. “In England, they do. And you have no power if you have no control over the main income source. This is the fundamental difference. The money in England is for the Premier League, then the competing clubs. In Spain this is different.”

When the Glazers took over at Manchester United they did so in the belief that the Premier League model had to follow that of its Spanish rival. The Americans were convinced that United would ultimately end up with a greater share of the television money.

The BBC’s business editor, Jeff Randall, confirmed to BBC Radio 5 live at the time of the takeover in 2005: "The key point of Glazer's business plan is football television rights. If United can break with the Premier League collective agreement and negotiate on their own then maybe they can jack up their income. “

The Premier League were quick to quell their ambitions. The League’s chief executive, Richard Scudamore, said in response to those ideas: “It's always proved impossible to break away. If they want to do so 14 of the 20 clubs have to do it and it is almost impossible to think that can happen.”

Today, that prospect looks even less likely and in 2010/11 the Premier League enjoyed one of its most competitive seasons since its inception nearly 20 years ago.

Surely the most outspoken advocate of change in the distribution of television money in Spain is Sevilla president Jose Maria del Nido.

“We demand a fair distribution of television rights,” Del Nido told Marca. “There cannot be much difference between them. The league is going to be s***. According to the current deal only Madrid and Barcelona benefit and in the coming season the same thing as happened this year will happen where they get 100 points, nearly thirty points away from third place.”

“You have to lay a fair foundation. Clubs have to be serious in this matter because, as it stands, it will end up with only Madrid and Barcelona having to face each other 19 times.”

Del Nido wants to see a more competitive league and would love to see La Liga offering up the kind of random results on offer in England.

He added: “Sevilla are championing the fight for a better deal. Look at the Premier League results. Manchester United win 2-0, Chelsea lose 1-0 and Tottenham beat Arsenal at home. That is a league!

“Not Almeria losing 8-0 or Athletic Bilbao losing 5-1 at the Bernabeu. That is not a real competition. I call on all football fans to fight for a settlement of equal rights so that competition can exist and not sell the league from the opening day to the two largest teams.”

In October 2010 a revolt was threatened but such a movement was merely no more than a threat, like the proverbial kid in the playground telling a supposed friend he wanted his ball back only to realise he had no hope as he was infinitely smaller than the thief.

The next set of TV rights for La Liga is almost certainly going to be sold collectively, rather than individually, as the clubs have recognised that they can make more money from this kind of deal. But don’t expect Real Madrid or Barcelona to lose out as a result.

The Guardian’s Spanish football writer, Sid Lowe, explains: “The new package will still enshrine the inequality because Real Madrid and Barcelona, within the league, have the power to say: ‘you want a league without us, go ahead’.”

The big two can say this because they know the broadcasting companies will be less attracted to La Liga without them and therefore the other clubs would solicit far less money from any future deal.

"The reason why clubs have accepted the new deal is realism," Lowe continued. "A club like Osasuna looks at this and thinks: ‘my overall amount of money will be better, I’m not going to win the league anyway, why not enshrine my inequality to make sure I protect myself.”

Barcelona and Real Madrid’s share of the pie may diminish with a new deal (from 49% to 34%) but their overall income will increase as the collective deal will be worth so much more than its predecessor. As a result, it is clear to see the advantages from their perspective.

For Barca and Real they believe this new arrangement can help them dominate the rest of Europe, as well as their domestic rivals.

Sid Lowe described the other winners and losers: "The teams that have some sort of pretension of challenging Madrid and Barcelona are the ones who’ve had a difficult decision to make.

“Atletico Madrid and Valencia are reasonably happy because they have been enshrined as 3^rd and 4^th in Spain by this new deal.

“Sevilla and Villareal, who aspire to those positions, are the ones who are furious. They’re saying this means Madrid and Barcelona are going to win the league forever more. Of course, they are absolutely right but they are slightly dishonest because they manoeuvred themselves to try and be those 3^rd and 4^th placed teams. They’re criticising Valencia and Atletico Madrid for enshrining their weakness against Real and Barca, but protecting their strength against the rest, whereas if they had been able to manoeuvre themselves into that position, they would have done exactly the same thing.”