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ACTIVE TRADING WEEKLY

BY RICARDO EVANGELISTA

www.activtrades.bs

Rooted in medieval ball games and distilled through the generations of English public school boys who have played it, football association, or just football as it is commonly known (unless you are American, in which case it is football) is at by far the most popular sport in the world.

The modern version of football originated in England sometime around the mid-18th century when several clubs worked together to standardize the rules of the game, prohibiting outfield players’ handling of the ball and hard physical chopping. These new rules eventually led to a break with those who continued to play in rugby school and eventually developed the rugby game we know today.

Sport is big business these days; Kearney, a management consulting firm, valued the global sports industry at $ 620 billion a year, with growth continuing faster than GDP. The business goes beyond the drama in the stadiums to include media rights, sponsorship, licensed products and infrastructure building. According to Kearney, soccer is still responsible for the biggest slice of that cake. The revenues exceed that of all US sports combined (including American football, basketball and baseball) as well as Formula 1, tennis and golf.

The economic weight of the game became apparent recently after some of the biggest clubs in Europe tried to break up and create their own league, which would have been dubbed the ‘Super League’. The 12 breakaway teams, including the top 6 from England as well as the main Spanish and Italian clubs, essentially wanted to start the only competition of their own members, with a few invited teams adding each year. Play among themselves without ever relegating or earning a promotion. The aim was to replace the existing UEFA Champions League, in which all participants have to qualify for each year.

Despite the astonishing numbers, in which the supporters of the “Super League” promised more than 4 billion euros a year, which would be generated from broadcasting and sponsorship deals and then divided among the participating teams, the plan looked up within 48 hours his announcement fails. In the face of fierce resistance and criticism from fans, players, managers and even politicians, the clubs withdrew one after the other from the project.

What the creators of the idea didn’t understand is that football is more than just a for-profit game. Football clubs are undoubtedly businesses, but they are also not-for-profit organizations. Billions of fans around the world support their teams, often from early childhood, with an unconditional passion that is occasionally rewarded with a heroic victory that reinforces the epic aura of the game and ensures the continuation of its popularity. This project would have undermined the competitive nature and tradition of the game based on the idea that any team, no matter how small, can win through effort and skill.

The lesson anyone looking to improve the profitability of a sport with deep social roots is to never underestimate or undermine the passion that underpins its success.