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Page history last edited by PBworks 12 years, 2 months ago

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Soccer (football)


Why do soccer players cost the teams so much money:  three reasons:

  1. growth in TV revenues
  2. more investment from personal fortunes of owners (Russian oil magnates invest in Chelsea, for example)
  3. So-called "Bosman law" of free agency


Comparison of Europe & USA

In this environment...the most successful teams are often the richest (unlike US sports where there is a draft + salary cap)


In the US, the players new to ateam might come from any state....but in Europe...they depend heavily on the training and development programs, which aremostly local groups.   Teams like Real madrid, however, have made big investments in trying to expand their training and development camps internationally....how much success?  Little as compared to the US system.


cultural comments

Its strange that the US has the more "socialist" version of sports, but the more "capitalist" culture in general....but the Europeans accept that the richest team will be the best, but at the same time look for socialist practices in medicine, school, and less raw capitalism at work (pay structure, etc).


International marketing:


the most valuable brands are:  Real madrid, then manchester United.  but, in order to expand in the US and in Asia, they started doing way more international exibition matches...which leaves players more tired...and less willing to play for national team during world cup qualifiers.



Free Agency laws:


Bosman Law:  http://en.wikipedia.org/wiki/Bosman_ruling

Players began to take control of their own destiny when their contracts expired



Legal Status:


Most teams are run as "for-profit" businesses....except:  Real Madrid, Barcelona, and others....run as non profits, with a member-owned status.







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