Football boom cannot be stopped by crisis
Most of Europe´s famous and “richest” football clubs have high debts, but it does not effect in the boom in football business. When will the big bubble of debts explode?
Short look on different clubs and their debts, clubs which already overreached themselves and the connection to the economic crisis.
Manchester United, Real Madrid, Inter Milan, Borussia Dortmund, PSV Eindhoven, Sporting Lisbon and it would be easy to extend the list. Almost every club in Europe has debts or contracts debts. Manchester United can be called the champion of the debts as they have 446 million Euro liabilities. All Premier League clubs together have debts of 3.85 billion Euro. And this high amount is growing and growing.
In the Spanish “La Liga” the two biggest clubs Real Madrid and BFC Barcelona have liabilities of 125 million and 320 million Euro. In Valencia there is a special situation: The club wanted to build a new stadium, but as the costs became very high, the stadium was not finished. Valencia is not able to pay. Valencia has 450 million Euro liabilities, which is the highest number in Spain. The traditional Club UD Salamanca – home club of the Spanish national coach – got bankrupt and does not exist anymore.
In Italy the two clubs of Milan have both almost 200 million, in Germany Borussia Dortmund with 40 million and FC Schalke 04 with 170 Million have debts as well.
There are some clubs which already had to bear the consequences. The 54-time Scottish champion Glasgow Rangers was shut down and needed to start renamed in the lowest league. The Greek club AEK Athens is insolvent after the relegation in the last season and has to start new in the third league.
There are a lot of small clubs in every country which have the same problems. The UEFA already started to react and disallowed clubs, which disregard with the financial fairplay to take part in UEFA competitions. For example for the next season four Spanish clubs included CF Malaga, who last year have been in the quarter finals of UEFA Champions League and the big Turkish clubs Besiktas and Fenerbahce from Istanbul.
So why do clubs are still invest more and more millions for new players, if they already have that high number of liabilities? How can they justify that if the economic crisis in Europe is going on? Spain for example wants to get help from the European Union and at the same time the football clubs have not paid the taxes and have debts of around 1 billion Euro. So how could the Spanish government relief debts of the football clubs and at the same time the citizens have to carry a big saving program on their shoulders?
Smaller clubs in Germany are also saved from bankcrupt and they are getting these advantages, too. But how can you justify this to the citizens who have to count every Euro. Why should other countries of Europe finance the relief of the debts of other countries football clubs?
In my opinion it does not need a lot of time anymore until the growing bubble of liabilities is going to burst and many famous names will be deleted from the football map. It is needed to reduce the debts of football clubs as well. And the race of getting better without caring about money has to stop. Europe´s football clubs should maybe take Bayern Munich as an example to play on a high level football and have regulated finances. So this example shows that it is not impossible to finance, save and play on a high level.Sources: www.t-online.de/sport/fussball/id_61813896/bundesliga-rekord-umsatz-und-steigende-schulden.html www.fussball-tuerkei.de/index.php/nachrichten-leser/items/seria-a-schulden-schulden-schulden100512.html www.t-online.de/sport/fussball/international/id_16477096/fussball-international-premier-league-hat-fast-4-milliarden-euro-schulden-.html