Skip to main content

"If you want some accessible but informative insight into football then I suggest you couldn't do better than the Political Economy of Football website, which is not only intelligible but comes with the added bonus of being written by Addicks fan Wyn Grant."
Ben Hayes - Charlton Athletic programme

South American Leagues

Share/Save

Pope's team is coming home

The football team supported by Pope Francis, CA San Lorenzo de Almagro, is to have a new stadium built on the one it was evicted from 36 years ago.   The picture above shows him displaying their traditional red and blue colours.

The path to political power through football

Argentina's new centre-right president Maurico Marci is the former chairman of leading club Boca Juniors. This is not a coincidence: he consciously used it as a route to political power.

In the Financial Times weekend magazine Simon Kuper revealed how Marci addressed a meeting in Oxford 14 years ago to explain how he planned to parlay his success with Boca Juniors into a political career.   He applied business principles, took a risk by getting rid of some popular players, and brought success.

Sports media agencies up their game

Intermediaries are never popular in any market, even though they make a market function better for all participants.   There is always a suspicion that they are increasing transaction costs and ripping off buyers and sellers (think estate agents).  

Being a successful intermediary means spotting an opportunity, seizing it and building on it.   Globalisation has created new opportunities in football.  MP & Silva, the only independent agency of the big three sports media agencies, started 10 years ago by signing deals with football clubs in Italy's Serie A.

Brazil cracks down on football debts

Brazil's government has intervened for the first time in the chaotic finances of its football clubs through a presidential decree.   However, they will have 20 years to pay off the $1.2bn of debt they have accumulated.

The government sees it as a strategy to modernise football.   Clubs will not be able to spend more than 70 per cent of their earnings on professional football.

Big deficit at Corinthians

Sao Paolo's Corinthians have seen a surplus of €330,000 in the preceding year turn into a deficit of €29.9m in the 2014 financial year.   The main factors appear to have been stadium construction costs and a big tax bill.

Brazil attempts to regulate clubs

The Brazilian FA is going to attempt to bring greater discipline and transparency to the financial affairs of its clubs by introducing new regulations.   The challenge will be to implement and enforce the new rules and stop them being evaded.

How to sell football shirts in Brazil

There is an increasing interest in the domestic football competition in Brazil, but the challenge for companies is how to do business with the leagues and clubs given their often chaotic financial state, They are frequently heavily indebted and run by huge boards mostly made up of sports enthusiasts rather than professional managers.

Brazilian clubs face big challenges

With the focus on the Brazilian national team, it should be remembered that the country's clubs face big financial and other challenges.   Flamengo claims to have the biggest fan base in Brazil of 40 million supporters, but the club has been close to bankruptcy after years of poor management and financial neglect.

TV revenue boosts Brazilian teams

Brazil's economy may be experiencing sluggish growth, but the country's football clubs are experiencing boom conditions. It's largely due to a growth in television revenues according to a study by bank Itaú BBA.

The revenues of Brazil's top 24 teams grew an average 32 per cent in 2012 to reach a total of almost $1.4bn. Since 2010 club revenue has grown consistently, on average at about 29 per cent a year.

Brazilian football getting stronger but challenges remain

Alongside the growth of the Brazilian economy, football in Brazil is getting stronger.  Club finances have improved and top players no longer need to go abroad to play.

Nevertheless, many challenges remain.   Like the growth of the economy, the overall picture is uneven. Some clubs still have big debts.   Attendances are poor with many fans priced out of the game. Corruption is stlll a big problem.