With the onset of the media and globally supported football
clubs emerging in the past 20 years, the role of the player has morphed from a
regular employee earning a salary into an important financial asset for the
club’s revenue stream. An asset is described as a value creating resource, and
thus players could be considered assets because of the revenue they earn for the
club in multiple ways.
A football club makes money in three ways: ticket sales, broadcasting
revenue, and commercial/merchandise revenue. The value of a player is important for
broadcasting revenue because a top-level player generates more hype and
therefore more money from broadcasting companies who are willing to pay more. On top of that, since a third
of a club’s income is based on merchandise/commercial revenue, the value of a player to his
respective club stretches farther than his skill level and ability to take his
team far.
In cases such as Barcelona, where a member owned club
inhibits private investors from making financial contributions to the club in
exchange for ownership rights, the merchandise sales from players’ jerseys and
gear heighten the value of a player as an asset to the club.
Nowadays, the majority value of a football club comes from
the value of the players as assets. Camp Nou would normally be considered the
biggest asset for Barcelona, but in reality the players generate more revenue
for the club than the stadium itself. The salaries of the players can be
compared to the operating expenses of any other business.
If the goal of any business is to create value by any means
then isn’t FC Barcelona’s club operations managed in the same way as any other
business trying to create value through exploiting valuable assets?
Kevin Lintner
At this point, there is no point in calling players of a big time club team just "players." They absolutely are business assets and more so, they are just big dollar signs. They play for the rich people who control the companies and can be moved at a moments notice for more or less money. They basically are chess pieces for the owners. It's at their digression whether they get moved or not so yes they are just business assets at this point.
ReplyDeleteI also think that they are business assets, because they are worth so much, but are useless if they are injured or out of form. Clubs look for players that are consistent and effective because they have the most return. But at the same time I believe that players that are brought up through the la Masia, have more cultural significance, like Piqué being one of the fan favorites. I believe that the club does look at players that become fan favorites and make a special effort to keep them, even if there are better players out there at that certain position. What do you think of that?
ReplyDeleteThanks for your inputs @BofSport and @MichaelWarner. It seems like you would agree with me that players are considered more business assets than players at this point in time. I would however say that players still possess a value to the club even when they are injured or in special cases even after they have left the club. For instance, since a major revenue source to each football club is merchandise sales, even when a player is hurt they are still producing income for the club. Likewise, a player can still generate revenue for a club after they have left the team, from leftover inventory of jerseys, posters or other merchandise that can still be sold after a player has left the club. Thanks for your inputs.
ReplyDeleteKevin Lintner
I agree with both Michael and BofSport in that players are certainly viewed as money-values or assets, but I think the degree to which it is true varies from player to player and club to club. In FC Barcelona for example, many of the star players like Iniesta and Messi have been cornerstones of the organization since their younger years, as they played through the ranks of the Barcelona academy. As a result, the players feel a sense of loyalty to their city/club and the club likely feels the same way. So although Messi and Iniesta obviously have high "pricetags", they aren't treated as such (a transfer or selling of either is highly unlikely, no matter the business implications).
ReplyDeleteOn the contrary, players of similar value who have moved around form club to club in their career, like Gareth Bale, are both viewed AND treated more as tradable assets that aren't untouchable on the transfer or selling market. This is arguably because the sense of loyalty or risk of fan-outrage or sentimentality isn't as high, and they aren't necessarily seen as a symbol for the club but instead a valuable chip at the table. Hence this why players that move once are bound to move multiple times in their career like Zlatan Ibrahimovic or Ronaldinho, despite being just as skilled/valuable as an Iniesta, Messi, or Wayne Rooney.
-James
Thanks for your input. I definitely agree that depending on the player and his loyalty (for whatever reason) to the club, his monetary exploitative value differs. I agree that players that moved up through the clubs' youth programs have a more intense feeling of loyalty to their club and this diminishes the risk they pose to leave the club. This translates into those top paid players who are loyal to their clubs having a disproportionate monetary value compared to other top paid players who bounce around between clubs.
DeleteKevin Lintner
in my opinion players are definitely seen as assets and looked at as a monetary value. There is a method to their success.As one of the most successful soccer clubs in history and it has dominated the world soccer scene for the past 10 years. Many would attribute this success to the rise of Messi, but in reality this is only a part of the story and the lion’s share of the rise of Barça stems from the exploitation of a business model that utilizes the club’s history. The players are used as financial means to gain control financially. More success means more money, that's why they recruit kids to their training academies from an early age, it reduces costs for recruiting and captures them at a very young age. It is now for financial reasons and for business reasons.
ReplyDeleteAgain, as commented on another post, it's hard to look and analyze any club as just a business, or just a club. Without good players, there would be no reason to have a club because there would be minimal fans to support the team. So while investing in good players seems like a great business strategy and makes the club seem like more of a business, I believe it contributes to both being a club and a business at the same time. For example, Derek Jeter, former captain of the New York Yankees, is somewhat similar to Messi. Both were (are) the face of their teams, but also incorporate everything the individual teams are about. Investing in players like these can also be seen as a good move for the club to invest in players that share their own set of values and beliefs. Both players just happen to be some of the best athletes in the world, which in turn brings in a lot of revenue from fans who want to watch them play, or buy their jerseys.
ReplyDeleteObviously it’s great that the players bring money from sponsorships, broadcasting, tickets and more but the main goal for every club to win matches and ultimately the UEFA cup. Winning in itself brings glory along with a lot of money. Obviously every well-established player will receive top of the line sponsorships, but that is because they are winners. As a football cup, I am sure FC Barcelona would be willing to decrease their salary revenue than to not win matches and the UEFA tournament. They are players first and financial assets second.
ReplyDeleteObviously it’s great that the players bring money from sponsorships, broadcasting, tickets and more but the main goal for every club to win matches and ultimately the UEFA cup. Winning in itself brings glory along with a lot of money. Obviously every well-established player will receive top of the line sponsorships, but that is because they are winners. As a football cup, I am sure FC Barcelona would be willing to decrease their salary revenue than to not win matches and the UEFA tournament. They are players first and financial assets second.
ReplyDeleteObviously it’s great that the players bring money from sponsorships, broadcasting, tickets and more but the main goal for every club to win matches and ultimately the UEFA cup. Winning in itself brings glory along with a lot of money. Obviously every well-established player will receive top of the line sponsorships, but that is because they are winners. As a football cup, I am sure FC Barcelona would be willing to decrease their salary revenue than to not win matches and the UEFA tournament. They are players first and financial assets second.
ReplyDelete