Slides for the presentation of the Sports Economics class in the Copenhagen Business School, corresponding to the Workshop 3 Question 7.

1. Workshop 3 Q7: Group B7 Marta Gómez-Guadalupe Izaguirre AnaEpalzaDiaz-Guardamino FélixBrezoFernández Peter Karsten Munch Christensen MadsØstrupChristensen

2. Is it possible in Europe to introduce the Financial fair play principles?

3. Even with the money earned from the Champions League, clubs still overspend. Right now, the debts between the clubs within the top leagues of England, Spain, Italy, Germany, and Franceis: 5.5 billion Euros

4. Financial fair play: Turn the dirty and relatively hidden debts into a clean balance in which youonly spend as much as you earn. If you don’t do it, you won’t get to play in European competitions. Theplanshavealreadybeenaproved. Underthe new rules, any club thatspends more thanitearnswouldbebarredfromEuropeancompetition.

5. MICHAEL PLATINI’s PLAN: no deficit by 2017

7. Building a new stadium, or investing in youth academies.

10. PROS Faircompetition Control of earnings and spendings Leverageonwages

11. CONS Unrealisticplans Notplanying? Whatwill happenwith fans?

12. Discuss some expectable pro´s and con´s from major stakeholders.

13. Who are thestakeholders? Players Local businesses Media Owners Fans Coaches

14. Owners Therewillnotbeunfaircompetition Great wealth would not undermine the competition

15. Local business Withoutrisk of disappearance, they willstillhaveincomesthematchdays

16. Players/coaches Wages would decrease: the clubs will not be able to cope with such high costs

17. Media More teamsfightingforthetitle Matcheswillbe more exciting Audiencemaypaylessattentiontonowadays ‘superteams’ games

18. Fans Risk of club disappearance decreases More spread victories Big teamsupporters couldbedisappointed

19. Is The European Leagues ready to apply financial fair play, maximum players salaries and other similar “American diseases”?

20. Themainstartingpointis: are thesemeasuresnecessary?

21. We can take a look tothewealthiestteams in termsof revenue…

22. Real Madrid andFCBarcelonaareTop 2 in Europe in terms of revenue (mill. €)

23. Can yourememberlastseason’s classification in theSpanish “La Liga”?

24. There is a difference of 25 pointsbetweenthe top2 and the 3rd in the table…

25. Thisyear’strendisthesame…

26. Almost 2 matches in 13 gamesplayed…

27. Anotherstat: maximum scorersin the league are…

28. Messi: Cristiano: 15 goals 16 goals

29. Noteveryoneiscompetingusing thesameresources!

30. Whatshouldbe done tofacethisproblem?

31. Balancingtherevenuesto boostenthetrue product…

33. 74% of revenues includingmedia and mechandising

34. In some countries TV rights are negotiated separately…

35. TV revenues in million € byteam / league

36. Tocreate a strongcompetition, clubs shouldthink as a whole

37. Is it of any significance, that a national league makes a profit or is not too unprofitable?

38. 4. Is it of any significance, that a national league makes a profit or is not too unprofitable? EU Maybe Structure of the league US Yes Structure of the league

40. Explain individually for the major leagues the different trends and why you think Broadcasting and foreign investors have become such an important aspect?

41. Q7.5 England Divides half of the revenues amongst the clubs The League with the highest broadcasting revenues Looking to increase their revenue by 70%, benefiting all the clubs, over the next three years

42. Q7.5 Spain Barcelona and Real Madrid are the two top money league clubs Accounts for most of the broadcasting revenues in Spain Are looking at a large increase in broadcasting revenues Able to negotiate their own (TV) deals.

43. Q7.5 Italy Able to negotiate individually More competition amongst television- broadcasters Must Pay 19% of a negotiation to the other clubs Typically Italia, everything is uncertain at the moment, do to political pressure for redistribution

44. Q7.5 Germany 40 % increase Redistribution among the clubs More money to the top clubs Earns less money then the top money league clubs Are dependent on money from Champions League and Commercial rights Has one of the highest match day attendance

45. Q7.5 France New Deal (Canal Plus) 60% money increase

46. Q7.5 The foreign legion A trend of higher earnings (Commercial, tv broadcast, Sponsor) Needs to control wages. “A Billionaires playground” Revenues is seen as a good incentive to invest, even though wages are astronomical (This report is made prior to the financial crisis!)

47. Comment on the article in the upload “Balancing the books SB 2010-08”.

49. Sponsorships come from all kinds of places (including the public).

50. Clubs need to activate their sponsorship better

51. Recognition rate to low