Cadernos
year 8 | nº22 | ISSN 19844883
FOOTBALL AND SOCIOECONOMIC DEVELOPMENT
FOR THE GAME, FOR THE WORLD JOSEPH BLATTER a foreword from the athlete of the 20th century PELÉ
INTERVIEWS with ALDO REBELO CARLOS ALBERTO PARREIRA Founder and First President Director Luiz Simões Lopes Cesar Cunha Campos
President Technical Director Carlos Ivan Simonsen Leal Ricardo Simonsen
Vice-Presidents Director of Control Sergio Franklin Quintella, Francisco Oswaldo Neves Dornelles and Antônio Carlos Kfouri Aidar Marcos Cintra Cavalcante de Albuquerque Director of Quality Francisco Eduardo Torres de Sá BOARD OF DIRECTORS Market Director President Sidnei Gonzalez Carlos Ivan Simonsen Leal Market Deputy Directors Vice-Presidents Carlos Augusto Lopes da Costa Sergio Franklin Quintella, Francisco Oswaldo Neves Dornelles and José Bento Carlos Amaral Marcos Cintra Cavalcante de Albuquerque
Voting Members EDITORIAL CREDITS Armando Klabin, Carlos Alberto Pires de Carvalho e Albuquerque, Ernane Galvêas, José Luiz Miranda, Lindolpho de Carvalho Dias, Manoel Pio Corrêa Júnior, Editor in Chief Marcílio Marques Moreira and Roberto Paulo Cezar de Andrade Sidnei Gonzalez
Deputies Editorial Orientation Antonio Monteiro de Castro Filho, Cristiano Buarque Franco Neto, Antônio Carlos Kfouri Aidar Eduardo Baptista Vianna, Gilberto Duarte Prado, Jacob Palis Júnior, Celso Grellet José Ermírio de Moraes Neto, José Julio de Almeida Senna and Marcelo José Basílio de Souza Marinho. Editorial Coordination Melina Bandeira
BOARD OF TRUSTEES Editorial Production Juliana Gagliardi President Manuela Fantinato Carlos Alberto Lenz César Protásio Graphic Design Vice-President Patricia Werner João Alfredo Dias Lins (Klabin Irmãos e Cia) Maria João Macedo Camila Senna Voting Members Alexandre Koch Torres de Assis, Angélica Moreira da Silva (Federação Brasileira de Collaboration Bancos), Carlos Moacyr Gomes de Almeida, Dante Letti (Souza Cruz S.A.), Bárbara Shultz Fernandes Edmundo Penna Barbosa da Silva, Heitor Chagas de Oliveira, Jaques Wagner (Estado Claudia Faria da Bahia), Luiz Chor (Chozil Engenharia Ltda.), Marcelo Serfaty, Marcio João de Andrade Delia Fisher Fortes, Maurício Matos Peixoto, Orlando dos Santos Marques (Publicis Brasil Comunicação Márcio Guimarães Ltda.), Pedro Henrique Mariani Bittencourt (Banco BBM S.A.), Raul Calfat (Votorantim Paulo Rossi Participações S.A.), Rodrigo Vaunizio Pires de Azevedo (IRB - Brasil Resseguros S.A.), Patrícia Franco Ronaldo Mendonça Vilela (Sindicato das Empresas de Seguros Privados, de Capitalização Rafael Freire e de Resseguros no Estado do Rio de Janeiro e do Espírito Santo), Rogério Caboclo Sérgio Ribeiro da Costa Werlang and Tarso Genro (Estado do Rio Grande do Sul). Rubens Figueiredo Soraia Fernandes Pereira Deputies Walter de Gregório Aldo Floris, José Carlos Schmidt Murta Ribeiro, Luiz Ildefonso Simões Lopes (Brookfield Brasil Ltda.), Luiz Roberto Nascimento Silva, Manoel Fernando Thompson Motta Filho, Translation and Proofreading Murilo Pinto de Oliveira Ferreira (Vale S.A.), Nilson Teixeira (Banco de Investimentos Derrick Philips Crédit Suisse S.A.), Olavo Monteiro de Carvalho (Monteiro Aranha Participações S.A.), David Del Vechio Patrick de Larragoiti Lucas (Sul América Companhia Nacional de Seguros), Patrice Wuillaume Rui Barreto (Café Solúvel Brasília S.A.) and Sérgio Lins Andrade (Andrade Gutierrez S.A.). Photos Headquarters Brazilian Ministry of Sports Image Bank Praia de Botafogo, 190, Rio de Janeiro – RJ, CEP 22250-900 or Caixa Postal 62.591 Fernandes Arquitetura Image Bank CEP 22257-970, Tel: (21) 3799-5498, www.fgv.br FIFA/foto-net O Globo Agency www.corbis.com Institution of technical-scientific, educational and philanthropic character, created on December www.shutterstock.com 20, 1944 as a legal entity of private law with the objective to act, broadly, in all subjects of scientific www.gettyimages.com character, with emphasis on social sciences: administration, law and economics, contributing for the socioeconomical development of the country. PERIODICAL PUBLICATION OF FGV PROJETOS
The testimonials and articles are of authors’ responsibilities and do not necessarily reflect the opinion of FGV Foundation.
This issue is available for download at FGV Projetos’ website: www.fgv.br/fgvprojetos Cadernos
May/June 2013 | year 8 | nº 22 | ISSN 19844883 CONTENT
EDITORIAL
06 Cesar Cunha Campos
FOREWORD TESTIMONIALS INTERVIEWS
08 Pelé 10 Joseph Blatter 22 Aldo Rebelo
A brief foreword on how the Brazil, as an increasingly Brazil will host the 2014 FIFA “athlete of the 20th century” views powerful economic and political World Cup and the 2016 Olympic the transformations in football force, is an ideal host for the 2014 and Paralympic Games. In this and the economy. FIFA World CupTM. It is a great interview for FGV Projetos, opportunity for Brazil on many Minister Aldo Rebelo presents the levels. There is debate over how challenges facing the Ministry of much of a boost such an event Sports at this time and explains gives to the host economy but, the role of the Ministry and the with careful planning, a lasting range of investments made to date legacy is within reach. and those still to be undertaken.
16 Celso Grellet 30 Carlos Alberto Parreira
In this testimonial, Celso Grellet In this interview, Carlos emphasizes the changes that Alberto Parreira reflects on have historically occurred in the the factors that bring success sports marketing field and in the when selecting teams and on sources of income of the soccer the administrative structures he teams, highlighting the new encountered in a career spent sports stadiums and the enhanced managing five Brazilian clubs treatment given to the fans, now and six national squads. seen as clients, as the main legacies. ARTICLES
38 Carlos Geraldo Langoni
Combining talent on and off the pitch: economic transformations and structural changes within football
46 Antônio Carlos Kfouri Aidar and Evandro Jacóia Faulin
The football business in Brazil
62 Daniel Hopf Fernandes
The new arena infrastructure and the 2014 FIFA World Cup: driving the entertainment business in Brazil
70 Marco Polo Del Nero
Infrastructure in Brazil and the 2014 FIFA World Cup
78 Fernando Blumenschein
The football production chain in Brazil
86 Pedro Rubim Borges Fortes
War and peace between organized supporters groups: the challenge of ensuring safety in football stadiums
96 Bernardo Buarque de Hollanda
Gilberto Freyre and the invention of football-art
CADERNOS FGV PROJETOS | FOOTBALL AND SOCIOECONOMIC DEVELOPMENT 6 EDITORIAL
Cesar Cunha Campos
ootball is the most popular sport in Brazil professionalization of clubs, while Carlos and one of the most popular in the world, Geraldo Langoni analyzes the impact of Fcapable of attracting large crowds from a recent socio-economic changes on Brazilian variety of countries and very different cultures. football and the challenges involved in It is not only an abiding passion, but today it has overhauling its management. The article by important economic and social aspects. Fernando Blumenschein explains the football production chain, stressing the importance of In 2010, three years after Brazil was confirmed understanding the dynamics for the effective as the host country for the next World Cup in functioning of the sector. 2014, we launched the first edition of Cadernos FGV Projetos on the theme of Football and In the area of infrastructure, Marco Polo Del Nero Economic and Social Development. At that time presents an overview of the challenges which there was still some discussion as to the best Brazil has been facing, particularly regarding model for organizing the event. to transport, with the hosting of the Cup as an opportunity for growth. Daniel Fernandes looks Now, with the imminence of the 2014 FIFA at the influence of the new stadium infrastructure World Cup in Brazil, we are deep into the on the football production chain, leading to preparations and implementation of the chosen opportunities for new undertakings and giving models, particularly in infrastructure, logistics, an impetus to entertainment in the country. stadiums and security. The rapid economic, social and cultural changes that Brazil has gone As important as discussing the holding of the through, together with enormous technological World Cup is talking about football as a sport changes at the global level, have influenced not and an activity involving not only the clubs, but only the planning of the world championships the fans and society in general. In this context, but football itself. the article by Pedro Rubim Borges Fortes looks at initiatives to diminish the violence Important testimonials from leading individuals between organized supporters’ groups both who have followed these changes has been in the stadiums and outside them. Bernardo supplied to us for this edition by Pelé, Joseph Buarque de Hollanda rounds off this edition Blatter and Celso Grellet. We present an interview by relating the history of the term football-art, with Aldo Rebelo, the Brazilian Minister of within a Brazilian social context, which would Sports, who discusses the efforts that have been culminate in the definition of Brazil as the made, the coordination between the various “country of football”. institutions and federal entities in this process, and the importance of ‘nationalizing’ the Cup, On the basis of this wide-ranging approach by so as to transform it into an opportunity for a team of specialists on the subject, this edition social and cultural inclusion. Carlos Alberto turns the spotlight on a discussion of questions Parreira, the technical coordinator of the relating to football as an activity and on the Brazilian squad, underlines the importance of place it occupies in the social and economic planning in the search for a successful team development of the country. FGV Projetos and reminds us that the preparation of a group hopes it will contribute to this moment of great requires a lot of advanced effort. importance that Brazil is experiencing.
Dealing with football as a business, the article by Antônio Carlos Kfouri Aidar and Evandro Enjoy reading! Faulin discusses revenue generation and the
Cesar Cunha Campos is director of FGV Projetos 8 FOREWORD
hen I was 15 years old I left my than anything during my time. These resources home town, Bauru (São Paulo), have been producing great wealth, and need Wwhere I had a very simple life. I to be used wisely so that it does not simply started to play football for Santos in 1956. lead to inflation in the world of football. My At that time people listened to the radio and dream is to see all these resources – material, the broadcast of games was still unreliable. financial and economic – used to produce To speak to my family, who remained in the improvements in the quality of football as a interior of São Paulo state, it took two days whole, which I hope goes well beyond just just to place the call. expensive equipment and high salaries.
I took part in a World Cup for the first time in The 2014 FIFA World Cup in Brazil is an 1958, in Sweden, and from then on the No 10 opportunity for what is new and good jersey became a reference, after being worn by in football management practices to take Pelé. Subsequently I travelled all over the world, root. In this context, this publication from and had the opportunity to witness the enormous FGV Projetos, which has always been at changes in both football and the economy. As the the forefront of efforts to modernize the “athlete of the 20th century”, I have been following management of Brazilian football, is a main and living these changes at close quarters. part and a catalyst for these changes.
Especially since the 1980s and 1990s, these My dream of seeing Brazilian football as great changes were very significant regarding beyond the pitch as it is on it can come true the management structure of the clubs, in with the hosting of the World Cup and all the particular considering the financial resources, obligations and responsibilities it entails. then allotted to football, at a level far greater 10 nations togetherandthatmanyBrazilianswillneverforget. Above all, the FIFA World Cup is a festival of football that brings development aswelleconomicandenvironmentalsustainability. economic terms.FIFA isworkinghardtoensurealegacyoffootball But wemustnotviewtheimpactofFIFA World Cupinpurely on Brazil’s brandandimage.Aninflux of visitorswillbringmoney. Brazil. Thereisevidencetosuggestwecanexpectapositive impact facilities indiversecitiesofferthepromiseofdevelopment across a lastinglegacyiswithinreach.Improvedinfrastructureandtourism such an event gives to the host economy but, with careful planning, for Brazil on many levels. There is debate over how much of a boost an idealhostforthe2014FIFA World Cup.Itisagreatopportunity Brazil, asanincreasinglypowerfuleconomicandpoliticalforce,is Abstract fourth termasFIFA President. Officer beforebeingelectedPresident.Heiscurrentlyservinghis Development Programmes,GeneralSecretaryandChiefExecutive body offootball,Mr. BlatterheldthepostsofDirectorTechnical before joiningFIFA inFebruary1975.Attheworld’s governing hockey andfootball.HealsoworkedinprivateindustryatLongines relations andthenwentontoworkinsportsadministrationice from LausanneUniversity. Hestartedhisprofessionalcareerinpublic graduated withadegree in BusinessAdministration and Economics an economistandqualifiedpublicrelationsprofessional,having and playedfootballatamateurlevelformorethan30years.Heis Joseph Blatterwasbornin1936theValais regionofSwitzerland FIF Joseph Blatter A President TESTIMONIAL 12 A for Brazil. Of course, economic benefits are just for Brazil. Of course, economic benefits arejust Cup cancreatesomelasting economicbenefits If handledtherightway, stagingthe FIFA World opportunity toredefineperceptionsofBrazil. sustainable, eco-friendlydevelopmentandthe opportunity tosetanexampletheworldin economy, theopportunityforsocialchange, in andtoattractinvestmenttheBrazilian bring opportunities–theopportunitytoinvest drama, entertainmentandskill.Itwillalso all continentsandapromiseoffourweeks world’s starsofthebeautifulgame,fansfrom The tournamentwillnotonlybringwithitthe Brazilians toshine. global spotlight.ItisachanceforBrazilandall The FIFA World CupwillputBrazilfirmlyinthe another strongandinfluentialeconomy. After BrazilnextyearcomesRussiain2018– the benefitsinmorewaysthanone. event. Asweshallsee,SouthAfricahasreaped capable asanyoneofhostingaglobalsporting showed thatemergingeconomiesarejustas successful tournament in South Africa, which We silencedalldoubtersin2010withahugely the magicoffootballtoallcornersourplanet. FIFA iscommittedtotakingtheWorld Cupand World Cup. sporting spectaclesontheplanet–FIFA should benextinlinetohostoneofthegreatest It isonlyfittingthatsuchadynamicnation ahead toanevenbrighterfutureofprosperity. influence ontheglobalstageandcansurelylook houses. Itenjoysanincreasinglybroadsphereof 1 sustentavel-impactos-socioeconomicos-da-copa-do-mundo-2014>. Brasil Sustentável: Impactos Socioeconômicos da Copa do Mundo 2014. world’s mostvibranteconomicpower already holditsheadhighamongthe dazzling anddiversenation,Brazilcan - According toanErnst&Young report the globe. accommodate football fans from every corner of demand andinvestmentintouristfacilitiesto transport systemstocopewiththeincreased the bestmatchexperiencepossible,improved stadiums and upgrades of existing arenas to give World Cupisconsiderable:new, state-of-the-art The internalinvestmentrequiredtohosttheFIFA matter ofharnessingthem. opportunities are clear for all tosee. It is just a But inspiteofthatdebate,themanyeconomic prove adisappointment. or whethertheycanbeadrainonresourcesand host cities-whethertheybringlastingbenefits impact sucheventshaveonthehostnationand There ismuchdebateoverexactlywhateconomic the otherbenefitslaterinthistestimonal. a globalsportingevent. I willexploresomeof one aspectofthepotentialrewardsfromhosting government ofBrazil. I knowthatthisistheambition ofthefederal solid platformforfutureeconomic opportunity. part ofaprudentnationalplan,willprovide will leavealegacywhich,ifmanagedwellas be happeningwithouttheFIFA World Cup.It various citiesacrossBrazilwouldarguablynot This investmentandinjectionofspendingin nearly BRL6billionforBraziliancompanies. extra visitorswillcreateanadditionalincomeof invested ininfrastructureandaround3million the population.Well overBRL20billionwillbe year andmorethanBRL60billionofincomefor 2010 and2014,generating3.63millionjobsper billion intotheBrazilianeconomybetween the World Cupcouldinjectanextra BRL142 A vaialble at:
13 14 infrastructure infosteringgrowth. Investment We talk oftheimportanceeconomic and toimprovestandards. football, togetpeopleinterested inthesport chance todriveforwardthe developmentof body ofthegame,FIFA World Cupisa Just asimportant,fortheworld’s governing month, theworldwillbe“allinonerhythm”. forgotten. Footballgivesusalift.Forone Memories canbemade.Worries canbe sporting festivalofalifetime. one month,thehostnation experiences the and toinspireanewgenerationoftalent.For together toshowcasetheverybestoffootball month, the greatest players in the world come as onetocelebratethebeautifulgame.For put aside their differences and come together For onemonth,peoplefromdifferentnations enduring poweroffootball. walks of life together through the simple but The FIFA World Cupbringspeoplefromall terms. should neverbemeasuredsimplyinfinancial on thehostnationandrestofplanet The positiveimpacttheWorld Cup canhave greater thanthesumofitseconomicparts. For FIFA, however, theWorld Cupisfar in publicandinvestorconfidence. inspire ameaningfulandlastingimprovement to believethataglobalsportingeventcan sustainable development,thereiseveryreason economy. Nevertheless,aspartofavisionfor should notbeviewedasamiraclecureforany underlying problems in aneconomy and it The FIFA World Cupcannotaddressany and buildaglobalbrand. big infrastructureprojects,drawintourists profound thanachancetospendmoneyon must berecognisedassomethingfarmore implications, however, and the World Cup We shouldnevertrytooverstatethese from aneconomicperspective. implications ofhostingtheFIFA World Cup Those aretheshort,mediumandlong-term For theGame. FortheWorld. the eyesofworld. is agoldenopportunityto rise evenfurtherin experience to savour with pride. For Brazil, it For Brazilians,itwillbea once-in-a-lifetime of thespiritualhomes beautifulgame. fans ofthegame,itisachancetovisitone to beablockbusteroftournament.For For football,theWorld CupinBrazilpromises of sporttheworldhastooffer. together enjoyingoneofthegreatestfestivals people fromdifferentculturestospendtime none morevaluable than theopportunity for The World Cupwillbringmanyopportunities, South Americancontinent. platform forfootballacrossBrazilandthe environmental sustainabilityandanenhanced World Cuplegacyofsocialdevelopment, FIFA isalso actively working to leave a lasting the bigleaguesofworld. Brazil willfindamoreprominentpositionin and thattheprofessionaldomesticgamein inspire moreyoungpeopletojoinlocalclubs their fans.We hopethetournamentwill facilities whichwillinspiretheirplayersand Host citiesinBrazilwillboastfantasticnew legacy fromthe2014FIFA World Cup. development ofthegame.Itmustbealasting in footballinfrastructureiscrucialforthe World. For the Game. the For CADERNOS FGV PROJETOS | FOOTBALL AND SOCIOECONOMIC DEVELOPMENT 16 clients, asthemainlegacies. stadiums and the enhancedtreatmentgivento the fans,now seen as sources ofincomethefootballteams,highlightingnew sports have historically occurred in the sports marketing field andin the Brazil canbringtofootball.Healsoemphasizesthechangesthat reflects on the long-lasting effects that holding the World Cup in was chosen to stage the event. In this testimonial, Celso Grellet arrangements havebeenontracksince2007,whenthecountry After 64years,theWorld CupwillbeheldagaininBrazil.The Abstract the InternationalCompanythatholdsallPelécommercialrights. and Member of the board and representative in Brazil of Sports 10, in 1987.CurrentlyheispartnerofPelétheCampusproject first MarketingDirectoroftheClubedos13whenitwasestablished and MarketingDirectoroftheSãoPauloF. C.footballteamandthe degree inlawfromMackenzieUniversity. HewasthefirstCounselor in BusinessAdministrationfromFGVFoundation.Healsohasa Celso Grelletholdsagraduatedegreeaswellpost-graduate Member oftheboard andrepresentative inBrazil ofSports10 Partner ofPelé intheCampusPelé project and Celso Grellet TESTIMONIAL
Maracanã’s first test event on April 27th 2013
CADERNOS FGV PROJETOS | FOOTBALL AND SOCIOECONOMIC DEVELOPMENT 18 I football wishestoprevailover otherformsof product footballandmustbe treatedassuchif The fanhasbecomea consumer ofthe entertainment industry. and transformeditintopartoftheso-called football more than just a sporting contest existing ones.Itwasarevolutionwhichmade preparation whichweredifferentfromthe in sportsmedicine,andmethodsofphysical marketing, withallitsparaphernalia,advances the positionradically. Initswakecamesports television bycableorsatellite,transformed as the arrival of television, particularly pay technological factorsoutsidefootball,such But thechangesbroughtonlargelyby without muchadministrativesophistication. when footballmeantmerelyasportingcontest was ofnogreatimportancebeforethe1970s, administration wasneveritsstrongpoint.This players, that is onthefield ofplay. Offthe field, all overtheworldthroughqualityofits Brazilian footballbecamefamousandadmired which willbeoverinlessthanamonth? football apartfrombeingasportingspectacle of thetournamentinBrazilmeanforBrazilian an absenceof64years.Whatwilltheholding 2014 World Cupwillbeheldin Brazilafter There is no point in arguing any more. The infrastructure whichwillnotbefulfilled. works andthepromisedimprovementsin Add tothese criticisms the delaysin provided entirelybypublicfunds. in thecaseoffootball–atenormouscost, requirements of the governing bodies – FIFA with modernfacilitiessoastomeetthelistof committed itselftoendowthehostcities because ofthecostsinvolved.Thecountry as theOlympicGamesof2016,particularly to stageatournamentofthismagnitudeaswell prepare. Therehasbeencriticismofthedecision No other country has had so much time to before theeventitself. FIFA World Cup–sevenyears,therefore, FIFA confirmedBrazilasthehostfor2014 n October2007theExecutiveCommitteeof Brazilian clubs.Avicious circlewasthus fees were the principal source of revenue for were muchhigherabroad, andtheirtransfer no longerplayedinBrazil, becausesalaries absence ofstarplayers.The leadingplayers football showedthemselvesprincipallyinthe between BrazilianfootballandEuropean was stillenormous.Theeconomicdifferences be practicedintheprincipalEuropeanleagues practiced inBrazilandwhatwouldcometo slowly. Butthedistancebetweenwhatwas began tobeemployedbyfootballclubs,albeit the sametimeandgradually, marketingtools from the Brazilian Football Confederation. At the clubsthemselveswithoutanyinterference television contractsetc.weredealtwithby the FederalCup,whoserules,sponsorship, leagues. The same year saw the holding of was laterachievedbytheprincipalEuropean was insomewaysapioneer, anticipating what management ofBrazilianfootballandwhich which wasintendedtomodernizethe recently formedClubdos13,anorganization In 1987,Iwasthefirstmarketingdirectorof football world. the changeswhichweretakingplacein clubs andfederationsfailedtokeeppacewith of theconsumer. Themanagement ofour were oldandillpreparedtomeetthedemands speaking, badlydevised,andourstadiums adopted. Ourfixturelistswere,generally without theaccompanyingmeasuresbeing Europe, eventuallyarrivedinSouthAmerica These changes,whichtookplaceprimarilyin reach ofthemajority. cost ofwhichhadfallen,becamewithinthe and sophisticated arenas and television, the changed; thestadiumsbecamecomfortable purchase TVsets.Subsequentlythispicture those whohadsufficientdisposablecapitalto on televisionbythehigherincomeclasses, lower incomegroupsandgameswerewatched Previously thestadiumswerefrequentedby traditional relationshipofpurchasingpower. and moremiddleclass,turningupsidedownthe arenas andtheircustomersarebecomingmore entertainment. Footballgroundsarenowcalled CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT for Brazilianfootball.However, the arenas are greatest legacyofthe2014 FIFA World Cup stadiums, isabigchange andperhapsthe This newtreatment,with thenewarena in thestadiumswheregamesareplayed. to betreatedasconsumersregardscomfort this opportunity. Finallysupporterswillbegin that itisdone,footballmusttakeadvantageof how muchpublicmoneywasinvolved.Now does notmatternowhowmuchitallcostand finally be adoptedas arequirement of FIFA. It concept ofspectator/consumercomfortwill those ofPalmeiras,GrêmioandMorumbi.The are beingrefurbishedorrenovated,suchas are beingconstructedfortheCupandothers in onlyoneitem:comfort.Twelve newarenas seem thattheWorld Cupwillmean achange the lowattendancefiguresinBrazil,itwould what couldbeexploited.Ofthosereasonsfor overseas ofstarplayers,amongothers.Thisis games, badlyarrangedfixturelists, theabsence numerous: lack ofcomfort, security, times of The reasonsforthelowaverageattendance are the Americanprofessionalfootballleague. example, thefiguresforMajorLeagueSoccer, more than20,000,asmallerfigurethan,for country’s principal competition,hasrarelybeen for theBrazilianchampionship,which is the generally verysignificant.Theaveragecrowd European leagues,ticketsalesinBrazilarenot the leastimportant.Asopposedtomain sales. InBrazilthelastnamedhasfiguredas for clubs:television,merchandizingandticket There arethreeprincipalsourcesofrevenue extraordinarily wide;ticketsales. But inone item the gap continues tobe almost exponentialratesinBrazilianfootball. and televisioncontractshavebeenincreasingat amounts fromshirtsponsorship,merchandising meant thatthegaphasbeguntoclosealittle.The Recently, changesintheeconomicsituationhave making moneywiththembysellingtheshow. to sell the rights to its characters, instead of stars andnottheshow. ItwasasifDisneywere created wheremoneywasmadebysellingthe a firststep. and thenewtreatmentofsupportersrepresent the process,inwhichnewsportingarenas the administrationofourfootballtocomplete facilities. Butitisalsonecessarytoimprove limited totheconstructionofnewsporting 2014 FIFA World Cupisforthemoment improve Brazilianfootballstartingwiththe The opportunity which is being offered to are verylow. terrible. Asaresult,ticketsalesatEngenhão and wherethesurroundingsaccessare games areheld,whichbadlyprogrammed software isEngenhão,wherechampionship of decenthardwarecombinedwithverypoor area surroundingstadiums.Agoodexample attention mustbepaidtotransportandthe in Brazilmustbekepthereetc.,andfinally given tothetimesofgames,starplayersstill contracts mustbebetterdrafted,withpriority lists mustbebetterorganized,television better qualityofinternalservices.Fixture Their contentmustalsobeimprovedwitha by themselvesarenecessarybutnotenough. necessary tolookafterthesoftware.Thearenas essentially thehardwareoffootball.Itisalso softw t It isalsonecessary hard essentiall the arenas are o l ook afterthe w are. are of y the oo tball.
19 20 CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT
21 INTERVIEW Brazilian Minister ofSports Aldo Rebelo and religiousorigins,butwithahighdegreeoftolerance”. social projectthatunitespeopleofdifferentnational,ethnic, racial be anopportunityto“showtheworldthatyoucanconstruct a be sharedbytheentirecountry. Inhiswords,theWorld Cup should with socialinclusionprograms,sothatthelegacyofevent will the World CupandtheOlympics,whichshouldgohand, inhand Taking ahumanistview, healsostressestheneedto‘nationalize’ range ofinvestmentsmadetodateandthosestillbeundertaken. of SportsatthistimeandexplainstheroleMinistry Minister AldoRebelopresentsthechallengesfacingMinistry will havetobecarriedout.InthisinterviewforFGVProjetos, the countryforeventsofthismagnitude,manystructuralchanges and the2016OlympicParalympicGames.Inordertoprepare In thenextfewyears,Brazilwillhost2014FIFA World Cup He hasbeenMinisterofSportssince31October2011. Department forPoliticalCoordinationandInstitutionalRelations. and the Law of Bio-Security. He was also Minister of State in the Rapporteur oftheSpecialCommissiononBrazilianForestCode Chamber ofDeputiesandtheCPICBF/Nike,aswellbeing career spanningmorethan30years,hehasbeenPresidentofthe federal CongressmanforSãoPaulo,duringsixterms.Inapolitical Aldo Rebelo was born in Viçosa, in the state of Alagoas. He was a Abstract
23 24 sports played by a small group of important by asmallgroup ofimportant played sports be justone more ofthoseAnglo-Saxon which helpedtopromoteit. Itwouldperhaps today without the participation of Brazil, Football wouldprobably not bewhatitis football hasalwaysbeen veryprominent. the event is taking place in a countrywhere So Brazil holding the World Cup means that the wayhepublicizedfootball. press astheBlackMarvelforhistalentand Uruguay and was knownbythe Uruguayan called Fausto, who went to the World Cup in man fromthetownofCodóinMaranhão celebrated forhistalent.Thiswasayoung one oftheirownrecognized,admired,and Brazil theirfirstcelebrities. Poorpeople saw 1930s. Footballgavepoorandblackpeoplein the poorerclassesincity1920sand of Italians,whoconstitutedthemajority suffered discriminationbecauseitwasaclub São Paulo,PalestraItália,nowPalmeiras,also they acceptedblacksontheirteams.Andin from theLeague,andFluminense,because Vasco daGama,whowereactually expelled well knowncasesinRiodeJaneiro,suchas part inthisworldoffootball.Therewere to poorandblackpeople,whofoughttake by theeliteofourprincipalcities,forbidden inclusion. It arrived in Brazil as a sport played and for ideas in Brazil, aplatform for social has alsobeenaplatformforsocialstruggles is adoredbytheBrazilianpeople–becauseit than asport.Footballhasputdownroots–it is veryimportantforBrazil;itmuchmore as amissionandalsochallenge.Football Minister A ldo Rebelo: Minister ofSpor personal challengeofbin Cup the la changes ha 2014 FIF in 64years,Brazilwillhost the FGV Projetos: F . Wha st timeBrazilhosted a A W t arey orld Cup ve occurred since or thefist time our views onthe t S a , andmany t thistime? Ilookonit Wha in England,itfounditsmostnaturalhomehere. because althoughfootballmayhavebeenborn one paysfootballmoreattentionthanwedo of pride.PeopleexpectthisfromBrazil:no World Cup in this spirit of responsibility and popular everywhere. We should accept the country, itmadeeasierfortobecome once itbecameverypopularinanon-European important partinthisuniversalizationbecause Football isuniversalandBrazilhasplayedan not asportwhichispopularallovertheworld. a verypopularsportinothercountries,butitis United States,butnotworldwide.Rugbyisalso football isasportwhichverypopularinthe it hastoday. ThegameknownasAmerican countries, butwithouttheuniversalappeal and 1970s. The clubs today are dealing with and 1970s.The clubstodayaredealing with almost artisanal activityofthe1950s,1960s is highlyprofessionaland nolongerthe amateur management,while footballtoday more than100yearsold, remainunder The clubs,whichareimportant institutions the statefromanyroleinthesebodies. return ofdemocracytothecountry:exclude to interfere.Thiswasdonebecauseofthe autonomous. Thestatelostitsability, itspower, the country, sportingbodiesbecamecompletely selectors’ call.Afterthereturnofdemocracyto players fromRiodeJaneirorespondedtothe had almostnoplayersfromSãoPaulo.Only national selection.Atthefirst World Cup,we obligatory forplayerstobeavailable and theBraziliannationalteam,itwasmade bonds betweenthestatefootballfederations period, when,inordertoestablishcertain government to football goes back to the Vargas >> regard to thesclubs the rolofMinistry with tha Brazilian clubs, ofthechangs the presentmana t ha The relationship of the Brazilian The relationshipoftheBrazilian t arey ve t our views on aken pl gement of ce, andof ? CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT Brazil totake steps inthisdirection. advantage oftheoccasion theWorld Cupin clubs, andofthenationalteam. We musttake greater valueontheimage offootball,our football greatercredibility and wouldplacea terms theycanserve.Ibelieve thiswouldgive served bythedirectorsand limit thenumberof not altered.We needtoplacealimitontheterms power solongasthearticlesofassociationare a waycalculatedtoensurethatitcontinuesin because todaytheboardofaclubiselectedin structure thatwillendureandbepredictable, connected withsportaninstitutional a matterofprovidingtheclubsandotherbodies are amongthemostimportantinworld.Itis the major clubs of mass support in Brazil, which clubs, thebetterexploitationofpotential with themanagementmodernizationof of theexistingchallengesareconnectedprecisely I thinkthisisanunacceptablesituation.Many football GDPcomparedtoEuropeancountries. championships, hasasmallshareinworld greatest strikerinthehistoryofFIFA football which hasthegreatestgoalscorerand football worldchampionshipfivetimes,and number offootballstars,whichhaswonthe the countrywhichhasproducedgreatest for footballitself,itisalmostascandalthat precarious. I believe that for the clubs,and in theirmethodsandstructuresarevery complex contracts, but the clubs are amateur the holdersofbroadcastingrights.Theseare contracts, playerandcontractswith market forces,andnegotiatesponsorship deficiencies. is t sec c perf c areas wherethe firs oppor Brazil withtw a These tw ould dobetter.The ountry isalready ctuall o overc ond oppor t is orming wellbut tunities. The y present o improve o event ome our tunity o s thing andthatwelivewith itsuccessfully. well. Brazil needs to show that this isagood world doesnotalwaysunderstand thisvery only a mixture of blood but of culture. The this miscegenation,mixture whichisnot good thing, we do not have a negative view of mixture ofindigenousblood.We thinkthisisa African country, anyAsiancountry;thereisa Brazilians whocouldholdapassportfromany passport fromanyEuropeancountry;thereare There areEuropeansherewhocouldholda degree oftolerance,whichisthecaseinBrazil. racial andreligiousorigins,butwithahigh unites peopleofdifferentnational,ethnic, that youcanconstructasocialproject the world.Itisimportanttoshowworld in Brazilornotasserioustherestof ethnic intolerance,whichareeitherunknown difficult timesofreligious,national,racialand and tolerance.Theworldispassingthrough its ownfutureandtocreatesocialharmony country thatismakingeveryefforttobuild about ourcountry–thatitisanoptimistic for sportandtosendamessagetheworld practice of sport, to create an infrastructure physical activity, toeducatethepeoplein advantage ofthistoencouragethepractice to itsbeingheldinBrazil,andwemusttake So theWorld Cuphasanextradimensiondue the mostviewedisBrazilianGrandPrix. example, outofalltheFormula1GrandsPrix, its environment,andnaturalfeatures.For has acertainfascinationbecauseofitssize, which isplayedhere,butalsobecauseBrazil among people, not onlybecauseofthe football being inBrazil,itcreatesgreaterexpectations event foranycountryinwhichitisheld,but, and greatexpectations.Itisanimportant in Brazilgeneratesgreatcuriositytheworld >> ha the grea How canwet ve duringthams The factthattheWorld Cupistakingplace t visibilityBrazilwill ake dv ant ? a ge of
25 26 workers for st during the Cup. People feel that they need to during theCup. Peoplefeelthattheyneed to will notbedirectly involvedinprovidingservices qualifications, evenonthepartofworkers who also importantandleadsto a searchforgreater cities. Sothepreparationof thislaborforceis demand fortheseservices, mainly inthehost workers becausetherewill beanincreasein and effortsarealsobeingmade totrainextra services. Therearevarious training programs sector, inbars,restaurants,andtransport training oftheexistinglaborforceinhotel Efforts arebeingmadeinthepreparationand Copa), andbythe states andthehost cities. Turismo), bytheMinistryofTourism (Pronatec Ministry ofLabor(Workers SupportFund–FAT the Cup,therearefullprogramsorganizedby As regardspreparingworkersforthestagingof This isalsoveryimportant. well treated, with a smile, gesture of good will. are alsolookingforawelcome:theywanttobe services, comfort,securityandhygiene.Butthey are lookingfordecentstandardsinhotels, intangible. Obviously, touristsandothervisitors Certain thingsarenotmaterial,they a kindofhostility. thinking thatthefacttheyareforeignersbreeds because sometimestheyarriveinacountry do notalwaysexpectthisfromothercountries, presence offoreigners,andIthinkthatforeigners We haveaveryopenattitude,wecelebratethe arrived therewereotherpeoplealreadyhere. arrived, andnodoubtwhentheindigenousfirst foreigners –theindigenouswereherewhenwe foreigners, because,inaway, allofusarehalf- provided awarmandembracingwelcometo to welcomevisitors.Ourcountryhasalways Brazil shouldalsotakeadvantageoftheCup violent fangroupsfromothercountries. the behaviorofthesepeople.Thesamegoesfor but wearegoingtotakeprecautionsrestrain the World Cup,therewillbenoplaceforthis, not toengageinconfrontations.Ibelievethatat sociability. Peopleplayfootballtogettogether, they resorttoviolence,arerejectingfootball, against anyformoforganization.Butassoon am notagainsttheseorganizedgroups.I of theso-calledorganizedsupporters’groups.I >> traing thep question ofpre and How arewet in midthehistory ofourf Are wep We havehadproblemswithcertainsectors ared for it ar a ticip ging theCup? aring and a ckling the ants and , bearing ans ? infra of pre Wha 2016 Olympics. projects forthe2014FIFA World Cupandthe concerned withsuchtrainingalsohavefull government, stategovernments,andinstitutions knowledge, orimproveotherskills.Thefederal in languageswhichtheyalreadyhavebasic learn anewlanguage,orimprovetheirskills urban mobility, whicharetheessential works There arealso theworksconnected with will alsobenefitbecauseit will sellthesurplus. pay foritsenergy, andthestateenergycompany will haveagreatadvantage becauseitwillnot Paraná -Copel).Thismeans thatthestadium company (CompanhiadeEnergia doEstado the excessenergywillbesold bythestateenergy be suppliedfreeofchargetothestadiumand in Paraná,forexample,wheresolarenergywill is more expensive, there are advantages such as profiting fromthisenergy. Althoughtheenergy as regardsabusinessmanagementmodelfor as regardstheuseofrenewableenergy, butalso are beingbuilttoadvancedstandards,notonly have wonprizesforsustainabilitybecausethey construction companiesofBrazil.Ourstadiums reason theyarebeingmanagedbytheleading and environmentalengineering,forthis projects of a very high level of excellence in civil works. However, wearedealing withurban but theyarenotthebiggestormostcomplex the mostvisibleandofgreatestconsequence, projects theyareresponsiblefor. Theymaybe and thestadiumsarenotevenmostimportant construction companiesareveryexperienced, are notthemostcomplexofconstructions.Our properly speaking,namelythestadiums,which A World Cuphasitssportinginfrastructure, mystery orasecret. goes intotheseevents,andwhatremainsisnota there isastandard.Therelotofworkthat under whichitisheld,butthereamodel, change becauseofchangesintheconditions Obviously, eacheventundergoesaprocessof So therearenosecrets,ismystery. The Olympicshavebeengoingsince1896. immediately followingthesecondWorld War. regularly since1930exceptduringtheperiod is the 20th World Cup, whichhas been held have alreadybeenheldmanytimes.ThisCup >> construction? with schedulsfor the The Cup and the Olympics are events which TheCupandtheOlympicsareeventswhich t isthecurrenst structure andcompl ara tion a s regards a te ying CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT as well as national interests. We are working well. government is to defendtheinterestsof the public look forasuitable solution,andtheroleof the there isanyconflictbetween theseinterests,we interests ofthepublic,national interests.When understandable. We intheMinistrylookafter interests ofthesponsors,which islegitimateand deals directlywithsponsors and looksafterthe is theCup.ObviouslyFIFA isaprivatebody;it with themostimportantfactorinmind,which When differencesarise,theyarealwaysdiscussed make theWorld Cupasgooditcanpossiblybe. organization, andwearecooperatinginorderto geopolitical challenges.Itisanefficientandcapable (UN), andisveryeffectiveindealingwith more membernationsthantheUnitedNations is aninstitutionthatveryrepresentative,with body andtheholderofrightsisFIFA, which Cup demandsamultilateraleffort.Thepresiding >> Itisarelationshipofcooperation.TheWorld of pre the CupandFIF L and other federalentitis,th between thMinistry ofSpor How isthecoordina and outside th government? Cup BEINGHANDLD, both within mana government ministries ofth e fderal are shdbetweenv many responsibilitieswhich Holding aW on schedule. been assuredthattheseworkswillbedelivered groups overseeingthetimetables,andwehave have talkedtotheengineeringandmanagement visited allthehostcitieseverythreemonthsand can bedeliveredaftertheWorld Cup. Ihave Matrix andtheworkwillcontinuesothatit withdrawn fromtheResponsibilityAssignment or cityadministrationrequeststheworktobe schedule. Wherethisisnotpossible,thestate in the12hostcities.Almostallofthemareon they willfacilitatetherealizationofCup Assignment Matrixbecause,iftheyareready, forward andhaveincludedintheResponsibility Growth Program(PAC) thatwehavebrought administrations, certainworks of the Accelerated the federalgovernment,statesandcity also, intheResponsibilityAssignmentMatrixof easy andaccessible.Butadditionally, thereare facilities thatneedmobilitytobeguaranteed, for accesstostadiums,hotels,airports– ocal OrganiznC gement procss fo r the ara tion? orld Cupmeans . How isthe A, interms ommittee for tion arious ts there is an additional program, which is the there isanadditional program,whichis the also stillthe works ofairportexpansion and scheduled fordeliverybyDecember. There are Cup –thereareonlysix; theothersixare over andwillnotbeusedfor theConfederations of thestadiums,whichhavenot yetbeenhanded for theWorld Cup,there is stilltheconstruction So theseplansarebeingpassed downtheline,and with stategovernments. of city authorities but which we support along transport, whichareessentiallytheresponsibility telecommunications, urbanmobilityand that needtobetakenintheareasofsecurity, also defined the responsibilities andsteps the ConfederationsCup.Thesemeetings the preparationsforairportoperationsduring information werepassedonwithregardto Belo Horizonte,inwhichalltheprogramsand de Janeiro,Fortaleza,Recife,Salvadorand We have already had meetings in Brasília, Rio meetings thatweareholdingatthismoment. we arecoordinatingamongthoseresponsiblein Defence, thestatepoliceandcivilpolice, between theFederalPolice,Ministryof Security, forexample,isasharedresponsibility cities), ANAC(NationalCivilAviation Agency). and local,whichoperatesineachoneofthe Civil Aviation Department,Infraero(national bodies andtheiragencies,theMinistry, the the Operating Plan: the federal government the realization of theWorld Cupin2014, into all thosebodieswhichhaveresponsibilityfor of theoperatingplansandintegration are atthefinalstage,whichisexecution >> done for theW Cup andwha decid for theC this connection, wha for theCup(CGCOP Plan for gov ernment a coordina The Ministry fo r Spo there aredifferencesofopinionorinobjectives. maintain arelationshipofcooperation,evenwhen the governmentwouldlike,andworkhardto have meetingstodiscussmattersandshowwhat relationship withthesponsors,whomwe again havealotofresponsibility. Andwehavea We alsoworkwiththecityadministrations,which responsibility regardingpreparationsfortheCup. state governments,whichhaveahighdegreeof Committee fortheCup.We alsoworkwiththe FIFA isrepresentedherebytheLocalOrganizing As regards the Confederations Cup, we As regards the Confederations Cup, we ting theS t remainsto be orld Cup2014? onfedera A 2014). In tra t ha t is tegic ction s been tions
27 28 2019 be anincreaseof0.4%intheGDPBrazilby invested bytheprivatesector, andthattherewill invested bythepublicsector, 3.4dollars willbe jobs fromthesetwoevents,thatforeachdollar who saythatBrazilcancreateupto3,600,000 for thispotentialinvestment.Therearethose investment. Thereisastudy great opportunitiesforthecountryintermsof >> effctivl this investment willbemad doing to gu Wha of the2014 FIF investment intheorganza Wha security plan. important aspects which are also included in the airports –ininfrastructureandcapacityare of passengers.Sochangesintheoperation bathrooms thatarenotuptotheexpectations delays inthedeliveryordispatchofbaggage, cannot operatesatisfactorily, iftherearequeues, receive more or fewerpassengers if the airports enough tochangethecapacityofairports improvement ofairportoperations.Itisnot it remains and has to be viable in the medium it remains and has to be viable in the medium party andafterwardsstore inawarehouse; is notacarnivalfloatthat youuseduringthe which lasts little more than a month. A hotel one buildsa hotel solelyforthe World Cup, making arenotdirectlylinkedtotheCup–no accommodations whichtheprivatesectorare of thecountry. Eventheinvestmentsinhotel se; theyareinvestmentsforthedevelopment Cup. ThesearenotinvestmentsfortheCupper be expandingthesubwaysirrespectiveof traffic routesinthebigcitiesandwewould of theCup.We wouldbeimprovingurban Brazil wouldbeinvestinginairportsirrespective curious tovisit,suchasManausorCuiabá. Janeiro, butinotherplaceswhichpeopleare destinations suchasSãoPauloandRiode without theseevents,notonlyinthetraditional investments whichwewouldprobablynothave industry isalreadylookingforwardtopossible that theCupandOlympicsoffer. Thetourist countries interestedinthebusinessopportunities have receivedvisitsofdelegationsfromvarious 2 1 A Study produced by Ernst &Y A vailable at:
29 INTERVIEW Technical Coordinator oftheBrazilian National Team Carlos Alberto Parreira and inothercountries. people thatinspiredhimthroughouthiscareerinfootball,Brazil that haveoccurredinfootballsincethe1958World Cupandabout clubs andsixnationalsquads.Healsodiscussesthetacticalchanges structures heencounteredinacareerspentmanagingfiveBrazilian bring successwhenselectingteamsandabouttheadministrative In thisinterview, CarlosAlbertoParreirareflectsonthefactorsthat the Braziliannationalteam. the 1994World Cup.HeiscurrentlytheTechnical Coordinatorof Kuwait, SouthAfricaandGhana.Underhisleadership,Brazilwon trained thenationalteamsofSaudiArabia,UnitedArabEmirates, and AtléticoMineiro)oftheBraziliannationalteam.Healso of footballteams(SãoPaulo,Internacional,Santos,Fluminense Physical EducationandSports. Heserved as Technical Manager Carlos AlbertoParreiragraduatedfromtheNationalSchoolof Abstract
31 32 pre a team,andwh influence thsucc ess of most impor possible to identifythe Cups. How doespre grea FGV Projetos: You ha this. We nowknow whatwewillbedoing we nowknowthatitisnecessary toplanfor winning theoff-fieldbattle isessentialand that allowseverythingto beplanned.So settled playingphilosophy, withobjectives, the games.Italsoinvolves theexistenceofa and theteams,friendlies, thepreparation, resources, selectingthetechnicalcommission There arethefinancialandadministrative with regardtothepreparationofateam. and coverseverythingyoucouldimagine which aimsfirsttowintheoff-fieldbattle So thechieffactorforvictoryisplanning, 1974 andagainin2006. In thesameway, itwasnosurprisewelostin was alsonotbychancethatitwonin1994. not bychancethatBrazilwonin1970andit same wayasinthetwosuccessfulones.Itwas certain factorsthatdidnotaidourworkinthe we lost were not well planned, but there were were themostsuccessful.Notthatones it istruethattheoneswerewellplanned with theBrazilianteaminfourWorld Cupsand through finalresult,whichisvictory. Iworked essential inthinkingabouttheworkupto prepare for the next Cup. This planning is At thatmomenttheteamalreadybeginsto begins whentheprevioustournamentfinishes. The workforaWorld Cuplastsfouryearsand or eveneightmonthsbeforehand,ifpossible. prepared planfortheCup,madesix,seven other waythanastrategicplan,verywell Carlos Alberto P wha t would itbe? ara t experiencenW tion isbest? If it is t ant f t ypeof arreira: a ctor, ara ve a orld tion
I see no I seeno
home andlost it, sothisisourturntowin. game andlost the other. We playedonegameat each hostedtwoWorld Cups. Theyeachwonone World Cup athome.ItalyandGermanyhave major playingcountriesthat hasneverwona We are theonlyteaminworldoutof plan B;wehavetowintheCup. We know from the beginning that there is no objective: towinthe2014FIFA World Cup. with awell-definedaim,focusedonsingle Our objectiveisexactlythis:toformateam tournament is wonbythe team as a whole. A single player can decide a game, but a imbued withthesame aims andobjectives. assembling ateam,ofunitingdifferenttalents just bringingtogetheragroup,itismatterof the serviceofteam.Because,morethan but it is important that this quality is used in The Brazilian team has never lacked quality, All thisispartofwinningtheoff-fieldbattle. important tofine-tunealltheseaspects. we canchoosewheretrain-,butitisvery Football Confederation(CBF)hasresources, the bestfinancialresources–Brazilian coach, thebestdoctor, thebest players, best physical therapist, the best goalkeeping way. You canhavethebestcoaches, are available.Selectionhappensinthesame financial andadministrativeresourcesthat angle onthis,bearinginmindthehuman, about teambuilding,buteverycoachhasan endless subject.Therearemanyconferences Planning andtheselectionofteamsare makes thegroupstayfocused. planes; thefood;and the motivationthat use; the travel arrangements; the chartered places wewillwork;theequipment each member of the technical commission; the commission, thestaff;whatweexpectfrom locations; themake-upoftechnical the accommodation,hotels,training in oneyear’s timewithregardtoplanning: CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT How istheps (South Africa,K mana Besides Brazil,y messages. Thishelpedconsiderably. some motivationaltalkswithimportant experience with Evandro Motta, who gave is themanager. In1994,wehadagood to haveamotivator, andthebest motivator histories. Ibelievethatwithateam,itisbest crisis, butwithpeopleverydifferentlife we arenotdealingherewithamarriagein of thepersonbeingmonitoredaswell.And and thistakes time and dedicationon the part necessary topenetratethecoreofaperson, process ofpsychologicalmonitoringitis made upofverycomplexindividuals.Inthe view, afootballteamisverydiversegroup, psychologists monitoringtheteam.Inmy the playershelpsalot,butwedonothave >> the group? Are thereps monitoring oftheteamdone? a report. The first andsecond yearswere to four-year pyramidwithregard totheteam, When IarrivedinJohannesburg, Imadea South Africanteamforalmost fouryears. >> mana Wha Arab Emi Arabia andtheThUnit I’ll giveyouanexample. I managedthe c Y physical therapis c the bes doct all theseaspect impor (...), butitisvery financial resources players, thebes Producing psychologicalprofilesof t differencesexist in ou canhave thebes oa oa ged four other teams ging onerother team? ches, thebes ch, thebes or, thebes t ant t goalkeeping tes) inW y y chologists in chological o fine- uw ou ha t ait orld Cups. t t t s. , Sa t ve tune , udi
t
without losing, up until tothe Cup. In more good atmosphere andwewentfor18games and tiedintheother. Thiscreatedavery and againstDenmark;we wontwogames we playedagainstColombia, againstBulgaria games, returningtoAfrica attheend.There the Adidastrainingcenter andplayedtwo to Germany, wherewestayedfor20daysat game andwewon1–0.Fromtherewent team. LocoAbreu,Alexsandro,playedinthis to RioplayagainstBotafogowithamixed that wewenttoParaguay, andthenreturned eight gamesanddidn’t loseanyofthem.After tour in Brazil, inSãoPaulo, where weplayed two importanttours.Thefirstwasa35-day the finalyearbefore World Cup,wedid with the World Cup in mind. Afterwards, in we hadayoungteamsoastogainexperience We playedinthefinalstagesanddidn’t win, preliminary gamesforthe Africa NationsCup. later, atatimenearertheCup,tookpartin at theirclubs.We expandedthesebasicsand – whichdidn’t interferewiththeirprograms in theafternoon,andwentbackevening players arrivedonMondaymorning,played There weplayedfriendlymatcheswherethe the seconddivision. together toplayagameagainstteamfrom FIFA. Onceamonth,Igot thelocalplayers so asnottodependjustonthecalendarof we organizedcompetitionsandtournaments players andtoplaygames.Atthesametime, basics oftheteam,andbegantochoose center. Gradually, webroughttogetherthe In SouthAfrica,everyone has atraining visiting theplaceswherewewouldbetraining. the structureofclubs,howtheytrained-, the style of football, the manner of playing, team –gettingtoknowthetechnicalaspects, were forbringingtogetherthebasicsof the pyramidwasWorld Cup.Theseyears to getknowfootballthere.Theapexof observe theplayers;itwasaperiodofstudy
33 34 You ha the bestplayers. bring astrongteamtogether, youneedtoget plans werecarriedouttotheletter.to But with thepyramidendinginapeak,andour against Uruguay. Thepreparationwasgood, than 20games,theonlyonewelostwas Which mana the nationalstadiumtoplaymatches. in Kuwait,butweusedtheclubs,and centers areexcellent.Therewasnostructure where thestadiumsaregoodandtraining worked, IshouldalsomentionSouthAfrica, Granja Comary. OutofthosewhereIhave setup wasalwaysverygoodbecauseithas Talking aboutnationalteams,theBrazilian long timeago,butnoclubtherehasone. we shouldalreadyhavehadatrainingcenter wonderful trainingcenter. InRio deJaneiro, Cruzeiro, andAtléticoMineiro– whichhasa Paranaense – which isverywellstructured– would alsomentionInternacional,Atlético Training Center. NoonehasthisinBrazil.I is saidtobeexcellent,andtheyalsohavetheir bureaucratic side.TheycreatedCotia2,which was SãoPaulo,ontheadministrativeand The bestclubstructureIencounteredinBrazil and Ghana. Kuwait, SaudiArabia,theEmirates,Brazil national teams,IhavemanagedSouthAfrica, Fluminense andAtléticoMineiro.Asregards >> and why? trainer, whodidanexceptional job.Ashort whole structure,laiddown byamarvellous job atBarcelona.Hetook advantageofthe is another. JosepGuardioladidanexceptional where hehasworkedinEurope. FabioCapello has wonchampionshipsin thefourcountries whom Iadmiregreatly, isoneofthem.He managers inEurope,andJoséMourinho, national teammanagers.Therearegood in theworldisZagalo.Ihavemetall >> strongest a teams doy in Brazilandabro structure y w during y a I wasatSãoPaulo,Internacional,Santos, In my opinion, one of the best managers In myopinion,oneofthebestmanagers s thebst administra ve beena our career.Which ou thinkwillbeth gers doy t theW ou experienced t v ad anwhich arious clubs orld Cup? ou admire tive
Brazil onlyimprovedwhen itstartedtoblock. to defend.Thesamehappened involleyball; was onlytheworldchampion whenitlearned you have to adapt and mold your play. Brazil and attacking.Thisistheessence offootball: necessary toseekabalance between defending you onlyattack,won’t wineither. Soitis only defend,youwon’t winanything; butif winning teamthatdoesn’t dothis.Ifyou and attackingtothemaximum.Thereisno is doingnow:defendingtothemaximum concept, andthisiswhatthewholeworld or 4x5x1isirrelevant.Itaphilosophy, a – whetherit’s 3x5x2,or4x2x3x1,4x4x2, football anddoesnotdependonthesystem Asia, SouthAmerica…Itistheessenceof men’s orwomen’s football,Africa,Europe, whether it’s first,second,orthirddivision, change forthenext100years.Itdoesn’t matter It is avisionary concept that will probablynot remember thatthiswaswritten60yearsago! defend with maximum effectiveness. You must first of them said that you must attack and I rememberafewarticlesthathewrote.The the creatorofGermanschoolcoaching. team atthe1954World Cup,isconsidered Sepp Herberger, thecoachof theGerman learned toplay. it’s time to play, you can see that they’ve really they know how to defend very well, and when come back.Everyoneispressingandmarking, for it–oneupfrontandsometimesallten lose possession,therearetenplayersfighting which isnotanoveltyforushere:whenthey forward. Englandhassomethingaswell, with apassinggame,notjusthoof defense, theycomeoutwithmorequality, players runafterit.Whentheycomeoutof characteristic. When theylosetheball,nine They are never going to lose this defensive mission istodefendandknowshowdoit. is lighter, freer, moretechnical;ateamwhose a verygoodjobofrenewal.It’s ateamwhich Italy isimproving.CesarePrandellidoing United States,withthreegoalsfromMessi. Quatar toagoalfromMessi.We lost4–3inthe off tohim.We haveseenthis.We lostagamein Messi isonform,wewillhavetotakeourhats Argentina, whichhassomeverygoodplayers.If The strongestteamsfortheCupareSpainand from Brazil. which Barcelonawonby8–0againstateam time agotherewasanunder-15 tournament CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT fitness trainern1970, is with thena Since y these threeoccasions Iwasattheforefront. the nationalteam onthreeoccasions,and on in fact,lifeislikethat.Iwas invitedtomanage use andlike:footballisagame ofmoments.And, >> between thv wha regardING t semi-finalists wereallEuropean. South American teams went out, and the four when we went out at the group stage. All the 1970, so much so that we lost the Cup in 1966 like this.We wouldonlychangeattheCupin and nobodychallengedthem.In1962itwas here inBrazilgottheball,lookedaround, incredible! Playerswhowereusedtoplaying to playandtheywon’t letme”.Now thatis was emblematic:“Please,professor, Iwant school andoursupervisor, something that was the“professor”atourphysicaltraining Europe. OneplayertoldErnestoSantos,who against Italyandplayedthreeorfourgamesin Before the1966World Cup,Brazilplayed has becomemoredifficulttoplayfootball. a lotandthespaceshavegrownless,soit intensity. Thespeedofthegamehasincreased prevails uptonow, withgreaterand and aclosingdownofspaces,thisiswhat it then?Anincreaseinthespeedofgame It was“playanddonotletplay”.What we cantalkabout before 1966 and after 1966. which changedfootball.Itisahistoricdate: versatility startedatthe1966World Cup, everybody attacking, this multi-functional This combinationofeverybodydefendingand and attackersonlyattacked. simply defended,midfielders justorganized, fore, techniquewastothefore–defenders very slowpace,individualqualitywastothe Because upto1962,footballwasplayedata in footballcameattheWorld Cupin1966. players running more. The tactical change if betterphysicalpreparationresultedinthe which improved the physical preparation, or So, Idon’t knowifitwastheneedtorunmore preparation, playershavestartedtorunmore. >> the most the thinga phy The coach of Spain used a phrase which I also The coachofSpainusedaphrase whichIalso sical pre With theimprovementinphysical t differencesdoy our fist experience , ornot? a tional team,a , ctical changes, arious W t ha ara tion perhaps s changed ee ou see orld Cups
s
? Really they created the so-called carousel, the prevented the coronationoftheDutch. It was a very good German team which Müller andMaieringoal, playingathome. but good.TheyhadHölzenbein, Beckenbauer, lost toaGermanteamwhich waspragmatic In 1974itwastheDutchrevolution, butthey playing a4x5x1. Tostão, andJairzinhowewerepractically was onlyTostão upfront,withPelé,Gerson, define Brazil’s formationatthisCup;there months oftraining.Itisevendifficultto and anexceptionalpreparation,almostfive In 1970wehadBrazil,withateameffort, all variantsof4x4x2. 4x3x2x1 or4x4x1x1whichweseetodayare which isstilldominanttoday. The4x1x4x1, long-lived inthehistoryoffootball,4x4x2, saw thecreationofasystemthatismost played hard,theEnglishmarkingwashard.It the ball, don’t let them play. It was football when youhavetheball,andlose start pressing;playanddon’t letplay. Play in everypartofthepitch–loseballand which wasthispressing.Sotherepressing Americans, thoughtupawayofstoppingit, match theindividualqualityofSouth Europeans, realizing that they could not “play anddonotletplay”appeared.The It was1966whichsawachange,when were notacticalinnovations. 4x3x3, and,aboveall,byexperiment.There was a consolidation of 4x2x4, reinforced by a Cup of1958.Itwasnotreallya4x2x4.Soit which he had also done, more or less, in the to helpNiltonSantosinmidfield,something old and clearly couldn’t run. Zagalo went back it verywell.NiltonSantoswas37or38years which changedto4x3x3,andZagaloexplains In 1962,itwastheconsolidationof4x2x4, define itsaid:thisisart. That waspureart;andthosewhocouldn’t playing theballonhischest,dribbling… playing, withPeléfloatinglikeaballoon, teams. When Brazil appeared with Garrincha to thoseheavy, robot-likeRussianandEnglish very well-knownnewspaper, thenaccustomed few people know. It began with L’Équipe, a to footballin1958,whichissomething football-art. Thistermstartedtobeapplied prevailed inBrazil.Itwasthebeginningof terms oftacticalevolution,individualquality 1958 sawtheconsolidationof4x2x4.In
35 36 make mistakes. made errors,andinaWorld Cupyoucannot most beautifulfootball.But inthatgamewe our teamwasthebestinCup,itplayed that game,Iwasthere.Itapity, because played animpeccablegameagainstus.Isaw team whichputitsstampontheCup.ButItaly individual qualityoftheseplayersanditwasa Obviously theyenchantedpeoplewiththe team andwerenottooeffectiveatdefending. the teamdidnothaveconsistencyofa world: Socrates,Falcão,Zico,Cerezo.But effort. Itwasindividualswhocaptivatedthe based onindividuals,notteam final tobecomechampions.Brazilhadateam pragmatic team.ItalybeatGermanyinthe in theCup,andwasalsoknockedoutbya In 1982,Brazilwasreallythebestteam playing 4x3x3.Theywereagoodteam. government towintheCup,whichtheydid it wasapointofhonorfortheArgentinian express themselveswasthroughfootball,and dictatorship andtheonlywaytheycould goose bumps. It was the time of the military Argentina! Itwasreallyfrightening,Ihad the peopleshoutingfuriously:Argentina, was inRosario,wewereRosario.We heard fear ofgettingkilledthere.Imagine,thegame Many peoplesaiditwasasell-out,but That gamewithPeruwasreallyfrightening. their fans…IwasatthisWorld Cup, myGod! support oftheirfans.Crazyfrom three attackers,playingathome,withthe attacking footballofMenotti,a4x3x3with who displayednothingnew. Theyplayedthe In 1978 the champions were Argentina, succeeded inimitatingthem. themselves neverrepeateditandnoone almost ready-made.AfterwardstheDutch times –itwasateamthatarrivedattheCup from AjaxwereEuropeanchampionsthree team asagoldengeneration.Eightplayers a lotofquality, whichstampedthatDutch rotation oftheball,thatversatility. Theyhad to dothat. scoring goals;we’realways goingtobeable as well.Becauseweknowabout attackingand being defensive,it’s aboutlearningtodefend on theCup.It’s notonlyaboutdefendingand ball, that’s whenwe’vealreadygotonehand ball. Themomentwelearntoplaywithoutthe in Brazil,togettheplayersplaywithout challenge. Andit’s forthemanager, especially get themtoactasateam;thisisthegreat molding, totakethesedifferenttalentsand The taskofthemanageristoachievethis got it,that’s themomentofrealization. difficult toachievethischemistry;whenyou’ve tactic, andyoudestroyeverything.Andit’s something quitesmall,aplayer’s position,a one away, youdestroyeverything.Change is thesame:you’vegot11players,ifyoutake this chemistry, it’s alook,gesture.Football have that chemistry. And youcan’t explain in life–love,marriage,work,ifyoudon’t this, thechemistry. That goes foreverything and Bebetogotthegoals.You need tohaveall Zinho was asweeper and a defender; Romario defender; Dungawasadefenderandsweeper; with oneaimincommon.Maurowasonlya abilities anddifferenttaskstoperform,but same withMauroSilva.Theyhaddifferent member andplayedwellinallthegames.The Márcio Santos,whowasnotevenafirstteam a perfectWorld Cup.AsdidTaffarel and themselves inanincredibleway. Aldairplayed At thisCup,certainplayerssurpassed games; theloserisout. group phase.Fromthenontherearefourrisk you gohome.You canonlylosea gameinthe is ashortcompetition;ifyoumakemistake, World Cupisnotaleaguechampionship, it motivational talksaimedatexactlythis:the and weinstilledthisintotheplayers.Those to bezeromistakesandmaximumefficiency the final. We cametotheconclusionthatithad hadn’t wonfor24years,hadn’t evenreached questions. Thebestfootballteamintheworld a lotofpressure,sowebegantoaskourselves team? We hadn’t wonfor24years,therewas In 1994,whatwasthegreatmeritofthat CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT the endof2006,theywere already renovating years ago.WhenIarrived in SouthAfrica,at up till not. We were chosen for the Cup seven built, norenovationworks havebeenstarted hope, becausenotasinglenewairporthasbeen As forurbanmobility, I’vealreadygivenup sequence ofproblems. you’ve stillgottheseroads.It’s acomplicated the problemoftransportfromairport, get stuckintraffic.Andlet’s sayyousolve Airport, therearethoseoldtaxiswhich choice. WhenyouleaveGaleãoInternational subway, bus,taxi,carortrain.Herethere’s no the center, youcanchoosewhethertogoby you? In London or Paris, if you want to go to But whenyouleavetheairport,whereare airports areready-rebuilt,renovatedornew. in Veja sometimeago.Let’s assumethatthe Carlos HeitorConywroteamarvelousarticle greater urbanmobilityandbetterroads. have betterairports,newormodernized, World Cup,Iwashappybecause wewould it’s airports.WhenBrazilwaschosenforthe just stadiums.TheCupisalsourbanmobility, The stadiums will beready, buttheCupisnot would remainforthefuture. It’s apity, becausethiswouldbealegacythat is becausetherearen’t anytrainingcenters. Januário, Engenhão,footballstadiums.This training. HeretheyaregoingtoprepareSão city, trainingcentersspecificallyforfootball there areeightortentrainingcentersinevery from abroad.InSouthAfricaandinGermany, center fortheteamswhichwillbecoming Cup, RiodeJaneirodoesnothaveatraining present, a year and a half away from the World precarious, even after these renovations. At developed countries because ours is very football, wewillalwaysloseouttothe >> W Brazil inthecontex ofthe infra How doy orld Cup? On thisaspectoftheinfrastructure structure SCENARIOin ou seethe W Can thef and it’s goingtobepracticallynothing. host cities–andI’vebeentosomeofthem think ofwhatthelegacywillbeforother city will benefit abit from thatevent. Now, I de JaneirohasgottheOlympicsafter, andthe compared withtherestofBrazil,becauseRio opportunity, notsobadforRiodeJaneiro it’s urbanmobility. We arelosingaunique area aroundthestadium,it’s theapproach, the Cupisnotonlyaboutstadiums,it’s the What willbegoodthestadiums,but good airport, but which became much better. Johannesburg airport,whichwasalreadya necessary toorganizeallthis. shows, exhibitionsofBrazil. Ithinkitis being consideredwhenthey createfestivals, We can’t missthisopportunity. Ihopethisis the advertisingisvirtually free, spontaneous. government shouldbeawareofthis.And to show. It’s auniqueopportunity!Sothe handicrafts, cooking,everythingthereis social side, the cultural side, the arts, music, We haveto show thegood things here– the here, the whole world press will be here. nothing bigger;thewholeworldwillbe show ourcountrytotheworld.Thereis >> Brazil andfor oufootball orld Cuplea It’s auniqueopportunitywehaveto we have t tha from thebeginnng World Cup. Wekno t on asingleobjctive: defined aim,f a teamwithwell exa Our objectiveis o winthe2014 FIF ; t hereisnoplanB; ctl a ct ofhosting the2014 y this: ve alg o wintheCup. used ocused o f orm c A y for w
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37 Combining talent on and off the pitch: economic transformations and structural changes within football AR TICL E
Carlos Geraldo Langoni
Director of the World Economy Center of the FGV Foundation and President of Projeta Consultoria Econômica
Carlos Geraldo Langoni holds a PhD in Economics from the University of Chicago. He was the youngest President in history of the Brazilian Central Bank. He is currently Director of the World Economy Center of the FGV Foundation and President of Projeta Consultoria Econômica, which supplies strategic consultancy services to major corporations and publishes the weekly Aide Memoire/Brazil Memo on central aspects of the Brazilian economy. He is also President of the Financial Committee of Flamengo football club.
Abstract
In this article, Carlos Geraldo Langoni reflects on the recent social and economic changes’ impact on Brazilian football. At the same time he discusses how the 2014 FIFA World Cup can contribute towards hastening structural alterations and changes in the management of the clubs after the period of the world championship. Finally he highlights the challenges which still need to be resolved in order to modernize our football. 40 B and football inBrazil Social andeconomic changes 1 labor market andby thisvirtuous process ofsocialmobility. consisting oflow development whileitsdomestic market remains fairly solid, withasignificant expansion secured by adynamic private family consumption hasbeen raised by 8%peryear. Therefore, itispossible to remark anasymmetric process inBrazil Brazilian dailylife.Thistrend showsthatit content andhavealready become apartof with TVsoapoperas,form partofthebasic Transmissions offootballmatches,along increase inpayTVaveraging20%peryear. grounds in recent years, there has been an the publicwhofrequentBrazilianfootball while therehasbeenstagnationasregards pay TV. Itisveryinterestingtonotethat, besides thekeencompetitionprovidedby structure problems(obsoletestadiums), (the formulaofthechampionship)and is areflectionofmanagementproblems live. Thispublichasnotincreased,which the footballgroundandwatchinggame the caseofBrazil,iscustomgoingto changes. Oneofthem,slightlydistortedin There aretwowaysofmeasuringthese general andfootballinparticular. leisure endsbybenefitingthesportssectorin consumption, agreatpartofthedemandfor In thissense,withthegrowthininternal continues tobethegreatnationalpassion. activities inthecountry. Football,however, diversified choiceofculturalandsporting exuberant nature,thereisagrowingand the privilege of enjoying the country’s increase inthedemandforleisure.Besides has alsoproduced,asaresult,natural growth andinanincreaserealincomes, which, besidesresultinginquantitative for aninternalprocessofgreatexpansion degree ofsocialmobilityhasbeenresponsible has calledthe“newmiddleclass”.Thehigh and aneconomistat the FGVFoundation, Affairs ofthePresidencyRepublic Neri, headoftheSecretariatStrategic the strengtheningofwhatMinisterMarcelo growth oftheBrazilianeconomy, especially important changes.Thefirstoftheseisthe It isinteresting to pointoutthat theBrazilian GNPhasshown quite alow development level for thelast two years, thoughthe which is the consequence of two through astructuraltransformation razilian footballiscurrentlypassing
domestic market which is steadily expanding. companies competefortheirshareofa mobility. MajorBrazilianandinternational growth, monetary stability and intense social economy startedonapathofsustainable especially inthelast15years,when the majornationalandinternationalbrands, trend isthecounterpartofemergence transformation ofBrazilianfootball.This is anotherdimensionofthestructural of expenditureonsportsmarketing,which The secondimportantchangeistheexplosion of revenueforBrazilianfootballclubs. in inequality. Itiscurrentlythebiggestsource social classesCandD,reflectingthereduction per-view phenomenon,which nowembraces the publicinstadiums but also the pay- demand forfootballbyconsideringnotonly is necessarytoanalyzetheevolutionin unsustainable indebtedness. at a global level, breaking the vicious circle of term, willmakeourclubs morecompetitive financial viabilitywhich,inthemedium in therecentpast.Itiswaytowards involving amountssignificantlygreaterthan the nationalteam,nowcountonsponsorship football. Theclubs,followingtheexampleof of massiveadvertising–andparticularlyin part, arousinginterestinallsportbymeans Sports marketingplaysaveryimportant cl model f management will makeanew spor the gro the World Cupand the occurrence of ubs manda t s marketing wth of or the t ory. 1 CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT source ofrevenue fortheclubs. – whichcouldreverttobeing animportant of expansionbothpublic andticketsales profiles soastostrengthen afuturetrend football groundsand diversifying their contribute towards bringing back fans to one ofthelegacies eventwillbeto important qualitativechange.Inthissense, the 2014FIFA World Cup,producingan the stadiumswillgetagreatimpetusfrom The movementtobringthepublicback football andchildrenarerarelypresent. etc.), the female public has stayed away from infrastructure (numberedseats,restaurants, difficulty ofaccessandlackbasic Brazil, duetoproblemsinvolvingsecurity, noticeable thatfamiliesattendmatches.In Japan, Germany, SouthAfrica),ithasbeen various World Cups(UnitedStates,France, will alsoundergosignificantchanges.At The make-upofthepublicattendingmatches reality theycomplementeachother. public atbigmatchesandtournaments.In no obstacle to the massive presence of the European way, wherepayTVcustomersare of thousandssupporters.We needtogothe does notarousethesameemotionsasnoise viewers, watchingagameinanemptystadium important part of the show. For television safety whichshouldbringinthepublic–an of stadium will offer standards of comfort and the United States and Europe. This new type a conceptwhichhasalreadybeensuccessfulin other sportsandculturalevents,reproducing which will host not only football, but also years wewillhavemulti-purposesportsarenas, do Suland Palmeiras in SãoPaulo.In future made by clubs, suchas Grêmio in Rio Grande There arealsotheinvestmentsthatbeing totally renovatedstadiums in thehostcities. in thecountrywillresultatleast12newor the stadiums. The holding of the World Cup Brazilian footballistheobsolescentnatureof infrastructure andtourism.Amajorflawin as itwillaffecttwobasicsectors:sports the impactof2014FIFA World Cup, Regarding football,weshouldalsoconsider Impact oftheW Brazilian football orld Cupon
becoming moreandcompetitive. salaries ofplayersinthedomestic gameare TV, thispictureisbeginning tochange– in Brazilian sport and the expansion of pay the interest of the major brands in investing Brazilian economyinasustainablemanner, young talent.Today, withthegrowthof the investmenttheyhavemadeintraining in turn does not allow clubs to benefit from unbalanced andveryoftenpremature,which are distortionswhichmakethisprocess option. In the case of Brazil, however, there the righttochoosebestprofessional from workingabroad,soafootballerhas brilliant doctor, aneconomistorengineer opportunities. Sojustasyoucannotforbida must havethemobilitytoexploitbest all, humanresourcesofwhatevernature atmosphere ofhealthycompetition.After of sporting talent couldoccur within an the criticalstageoftraining.Theexport of view, forthistrend,particularlyduring any reason,fromapurelyeconomicpoint players abroad.Currentlythereisnolonger of themassiveexodusleadingBrazilian the clubshelpstoexplainphenomenon past coupledwiththepoormanagementof The Brazilianeconomiccrisisoftherecent management oftheclubsthemselves. accelerate theprocessofchangein maximize revenuefromthesearenaswill the multi-purpose concept. The search to certainly moreefficient,especiallyasregards model ofprivatemanagementwhichwillbe from thepublicsector, willbesubjecttoa arenas, whereinvestmenthascomeprimarily the pointofviewmanagement.Thenew but, perhaps,someoftheworstclubsfrom a paradoxinthatwehavethebestfootball failed toreachitsfootballclubs.Thereis economy, withafewrareexceptions,has Brazil. ThemodernizationoftheBrazilian in themanagementoffootballstadiums Another consequence will be a revolution
41 42
attendance pergame. trend towards a worrying fall in the average public It isalsoasureformulafor reversing therecent newly linkedtothefinancial situation oftheclubs. scope forthegenerationof sponsorship revenue, round” increasespublicinterest andgivesmore an elimination basis. This so-called “elimination eight clubschosentodisputethechampionshipon at theendoftournament,therearefouror United States.Thisisasystemwhichmeansthat include play-offs,whicharewidelyusedinthe go inthedirectionofahybridsystemwhichwill of thePolicePacificationUnits(UPPs). leap inpublicsecuritypolicy, withtheinstallation perhaps thegreatestlegacywillbequalitative certain cities, however, such as Rio de Janeiro, schedule andmanywillnotevenberealized.In mobility andairports,arestillclearlybehind that otherinfrastructureprojects,suchasurban on largely by the timetable for the Cup. It is true speeding upofthesechangesisbeingbrought network, areincludedinthisprocess.The internet network,andparticularlythe4G installation andexpansionofthebroadband supply andasurplusofelectricalenergy. The holding ofaWorld Cuprequiresanassured benefited: energyandtelecommunications.The is concerned,twosectorswillbeparticularly for publicinvestments.Asfarasinfrastructure the governmentchangedmodelofbidding interesting tonotethat,fortheWorld Cup, in theareaofinfrastructuretobedone.Itis strict timelimitsforthecriticalpublicinvestment of the Cup results from the establishment of Another positivepointarisingfromthestaging against-all system, which isentirelybasedonpointswon,theall- into amixedsystem.Currentlywehavemodel important competitionfortheclubs,evolving the Brazilian championship,whichis the most will resultintheactualcompetitiveformatof to makeoptimumuseofthecapacityarenas will be managedbyprivategroupswho will seek for theclubsmandatory. Thefactthatthestadiums marketing willmakeanewmanagementmodel of theWorld Cupandthegrowth ofsports With specificreferencetofootball,theoccurrence groups behavior ofsupporters cl the modernization ofthe The challengesoffootball : ubs andachangeinthe vailable at: 3 and it is possible that we will anditispossiblethatwewill
CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT external audits. management, includingethicalattitudesand demand absolutelytransparentstandardsof indirect investmentinaclub,startsto Any company, evenwhenitmakesan improve theirfinancialmanagement. economic forceswhichobligetheclubsto Revenue Service. There are therefore active a club which owes money to the Federal institution, forexample,cannotsponsor and mostofallmajortrophies.Apublic demand fromtheclubperformance,results sponsors offootballclubs.Thesecompanies reasons forthisistheemergenceofmajor irrespective oftheWorld Cup,and oneofthe changes inmanagementmodelswouldoccur It isimportanttoemphasizethatthe resources effectivelyandarejudgedbyresults. need executiveswhoarepaidtomanagetheir volunteers, however well-intentioned. Clubs million peryear, cannotbemanagedsimplyby which nowhaveaturnoverofaroundBRL300 management andtime.Theclubs,someof inherited debt,whichwillrequireprofessional a longandpainfulprocessofrestructuringthe will becomplexandlong-lasting.Thereisstill supporters, etc.,thefinancialreadjustments through sponsorship,payTV, shareholder Even withrevenueflowsignificantlyincreasing alone thedebtisaroundBRL700million. by the clubs is a huge challenge. At Flamengo the weightyinheritanceofaccumulateddebt World Cup.Despiteamorepositive scenario, actual trendsinBrazilianfootballfollowingthe These changeswillhappenonthebasisof crea res f c increase revenues,c the priorityno financiall oo os rarely beendoneeffectively. in valueofafuturestar, whichup tillnowhas protecting yourprincipal assets –theincrease which demandsabasiclevelofcompetence: It isaquestionofcorporatemanagement and canrecordacapitalgainintheiraccounts. reimbursed fortheinvestmenttheyhavemade clubs whichhavenurturedtheirtalentare professional andfinancialopportunities, the clubs abroad orwhen they wish to seek new young talent,sothatwhentheyaresoldto need toestablishlegalbonds,especiallywith between different markets. It is the clubs who restrictions onthemovementofplayers It isnotamatterofcreatinganykind critical asset–qualityplayers. institutions, permittinginvestmentinthemost mechanism forthecapitalizationofthese of theclubs.Theyfunctionasanimperfect the counterpart of the economic weakness including byFIFA: theirdominantroleis intermediaries whichisalwayssocriticized, the currentdependencyonbusinessmenor Only inthiswaywillitbepossibletoreduce be competitiveandfinanciallysustainable. so as to createthe conditions forfootball to costs, and rationalize and restructure debt, now mustbetoincreaserevenues,control In summary, inthecaseofBrazil,priority tructure deb t tball s, andra te hec y sus o bec onditions f tionalize and w mus t ainable. ompetitive and t , soas t ontrol t be or o o
43 44 single coin–themagicoffootball. defeat areseenassimplythe two sidesofa of respect and discipline,wherevictory and of passion,butallitwithinanenvironment – toencourageacompetitivespiritandlot make the best ofthe educational role of sport directors, and ofgovernments in generalto It istheresponsibilityofclubs,their behavior ofthefans. Cup isthattheywilldemandachangeinthe the newstadiumsinperiodfollowing context, anotherimportantconsequenceof rationality andeffectivemanagement.Inthis retaining theemotion,itisnecessarytoinstill which cannotandshouldnotbestifled.Whilst There isanenormousemotionalchargehere club isreconcilingemotionandrationality. The greatchallengeofmanagingafootball public tothestadiums. and therebymakepossiblethereturnof be tomaximizeinterestinthechampionships championship), theprincipalaimofwhichwill competitions (principallytheBrazilianleague and alsototheactualformulafor to themanagement of thenew stadiums levels, startingwiththeclubs.Itwillproceed in Brazilianfootballwhichwillreachall forces arecompellingamodernizationprocess with competence away from it. Economic necessary tocombinethistalentonthepitch No other team has achieved this. Now it is Brazil hasbeenworldchampionfivetimes. CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT
45 THE FOOTBALL BUSINESS
emotion toenhance theirperformance. professionalization andthereconciliationbetween rationalityand and the generationof income, and finally suggest asa remedy the clubs inBrazil.Additionally, they approachthemanagementofclubs of theelasticitydemandand therelationshipamongcompeting present a short history of its development and the specific features This article takes football as a business. To this end, the authors Abstract Specialist at FGV Projetos Evandro JacóiaFaulin Director ofControl at FGV Projetos Antônio CarlosKfouri Aidar and projectmanagement. operational and financial), company valuation, projects and investments installation ofprocesses,businessplans(marketstudies,marketing, He is a specialist in the areas of agro-business, mapping, design and São PauloSchoolofEconomicstheFGVFoundation(EESP/FGV). director ofeditorialproductionfor‘Agroanalysis’Magazine ofthe in research methodology for the FGV Management program, and FGV Foundation.HeiscurrentlyaspecialistatProjetos, lecturer (UFSCAR) and a post-graduate degree inBusiness Administration at in productionengineeringattheFederal University ofSãoCarlos the StateUniversityofSãoPaulo(UNESP),tookamaster’s degree Evandro JacóiaFaulinisanAgriculturalEngineer. Hegraduatedat Control atFGVProjetos. the modernizationofBrazilianfootball.HeiscurrentlyDirector Football Association,hehastakenpartinpreparingtheplanfor Paulo FootballFederationandtheClubedos13.AtBrazilian clubs, andhasheldseminarsonfootballmanagementfortheSão EAESP/FGV. HehasdirectedprojectsatvariousBrazilianfootball been alecturerongraduatecoursesintheEconomicsdepartmentof Sports ManagementProgram(GVPEC/FGV).Since1977hehas Michigan StateUniversity, USA.HewasthedirectorofSpecial (EAESP/FGV) andholdsamaster’s degreeineconomicsfrom the São Paulo Business Administration School of the FGV Foundation Antônio CarlosKfouriAidargraduatedinBusinessAdministrationat
E TICL 47AR 48 T 1. TheOnl context certainfactorsshouldbementioned sociological, psychological,economic,etc.Inthis and international). their geographicalrange(local,national the strengthoftheirlinkswithcluband relationship withthenumberofitssupporters, The valueofafootballclubbearsdirect • • • • • “fan equity”. The construction of a stadium “fan equity”.Theconstructionofastadium 2 1 (coord.). Anova gestão dofutebol. RiodeJaneiro: E This article has used the following basic bibliography: Salomon Brothers. UK Football Clubs:valuable assets? GlobalEquity R extravagantly duringagame. cultural orsocialbackgroundbehavemost arouses the passions. Spectators from any The contest involved in a gameof football game; and a ballmadeofoldsocksareenoughfor require any equipment.Asmall area and Playing itisinexpensive.Itdoesnot are examplesofthisdiversity; biotypes, suchasMaradonaandSócrates, biotype. Athleteswithtotallydifferent Playing footballdoesnotrequireaspecific understand itsmechanics; a gameforthefirsttimewillimmediately of theoffsiderule,evenapersonwatching The simplicityofitsrules.With theexception contributory factor; it isplayedwiththefeet(imprecision)a in anyothersport.Certainly, thefactthat unexpected resultsisgreaterinfootballthan individual orteamsports,theoccurrenceof Compared withothersports,whether A highdegreeofunpredictabilityresults. world. There are arguments of every kind: world. Thereareargumentsofeverykind: football isthemostpopularsportin here has been much discussion as to why y W 2 orldwide Sport This value is known as Thisvalueisknownas ditora FGV, 2000. Aidar, 1 : Antônio Carlos Kfouri; Leoncini, Marvio Pereira; Oliveira, João José de ways ofattractingfundshadtobefound. caused bythelevelofsalariespaidtoplayers-,new to meettherisingcostsofsport–principally federations andclubs)cametorealizethat,inorder those inchargeoffootball(confederations, Starting inEurope,andlaterLatinAmerica, with sharestradedonthestockexchange. certain footballclubsbecomingpubliccompanies during the1980sand1990s,culminatingin companies, especiallyinEurope,tookplace profit sporting associations into commercial recent. Thetransformationofclubsfromnon- – the phenomenon of football as a business is and maintenanceofstadiums,ticketprices,etc. present –intheformofwages,construction Although economicfactorshavealwaysbeen Brazilian teamsaredevelopinginthisregard. are beingsuccessfulinworldfootball,andhow evolved inBrazil,themanagementmodelswhich shall alsoshowhowthefootballbusinesshas to therelationshipbetweencompetitors.We regard toelasticity–fromthepriceofdemand we shallsetoutitsspecificcharacteristicswith In ordertounderstandthefootballbusiness, the SantosofPelé. those whochangedfromtheirfavoriteteam: supporters, includingtherarephenomenonof to a“big”club,conqueringlargenumberof to havemadethedecisiveleapfroma“small” the footballworldrecognizesonlyoneteam unshakable. During the last three generations, towards asingleclubbecomesalmost Once established,theloyaltyofsupporters a club’s supporterstakesatleastageneration. However, toincrease thenumberandqualityof entire teamcanbepurchasedwithinaweek. takes generallytwoorthreeyears,whilean esearch: Leisure, November. London: SalomonBrothers, 1997. The size of the fan base is the main factor in 2. A Brief History determining In order to explain the importance of professional management in football, it is necessary to understand its development. In the earnings this analysis, the history of Brazilian football can be divided into the following phases: potential of • End of the 19th century until the 1960s:3 the introduction of football in Brazil. each club. Amateurism prevails, along with a slow transition to professionalism. Wages paid to players are very low and commercial relationships are informal. Revenues are low, coming entirely from turnstiles. During the first two phases – from the introduction of football in Brazil until • 1960 to 1987: a period marked by the 1987 – what might be called a subsistence strengthening of professionalism and by economy prevailed in football. As figures were the rise of television. Transmissions of insignificant – wages were low and commercial games are free, and later on available at relations were informal –, accounts were very low prices. Some funds begin to be balanced with the club directors’ own money. raised from sponsors. Wages are still low The business was similar to an undertaking and relations very informal. between friends, and was of interest because being the director of a club brought prestige. • 1987 to 1998: the rise of Club dos 134 In such a scenario there was never any risk marks the beginning of a new phase, in of a club going bankrupt. The Transfer Law which the clubs grew more powerful in gave a club the power to retain a player, who their quest for their own commercial had little recourse in the situation – he was a interests. Television becomes the most “prisoner” of the club. important source of revenue. Salaries increase. Europe is affected by the The figures in the table ahead show why clubs Hillsborough disaster (referred to below) survived even with amateur management. in 1989 and by the Bosman Law5 in 1995.
• 1998 to the present date: end of the Transfer Law (Lei do Passe), with the enactment of the Pelé Law (Lei Pelé), following the Bosman Law. Great increase in salaries. Revenue from television and the sale of sponsorship rights increases exponentially. Management professionalization becomes vital.
3 This first phase could be subdivided, but for present purposes this is not necessary.
4 An organisation set up to promote the political and commercial interests of the 20 supposedly most important football clubs in Brazil. One of its functions is to negotiate broadcasting rights for games with TV and radio companies. The name “Club dos 13” comes from the fact that it was originally formed by 13 clubs.
5 The case known as the “Bosman Law” (or the Bosman Case) in which a Belgian footballer sued his club which retained him at the end of his contract, on the grounds that the transfer rules of the Belgian Federation and of the Union of European Football Associations (UEFA) had prevented his transfer to another club. The case compelled UEFA to change its rules on the contracting and transfer of players, bringing an end to the retention system and introducing a free agency system.
CADERNOS FGV PROJETOS | FOOTBALL AND SOCIOECONOMIC DEVELOPMENT 50 Appro Source: Survey carried outby theauthors. *Figures updated by Consumer Price Index (CPI) Dario Pereira Sócrates Careca Falcão Player Player Zico Zico Pelé ximate figuresfor salaries and transferfees Internacional – São Paulo – Flamengo - Corinthians Flamengo São Paulo São Paulo New Y Guarani – Santos – Transfer Udinese Cosmos Napoli R Club oma ork TRANSFER FEES(US$MILLION) SALARIES (US$THOSAND) 1980s 1980 1983 1983 1987 Y Y 1974 1981 1981 ear ear Monthly salary Transfer fee at thetime at thetime US$ 10 US$ 10 US$ 4 US$ 4 US$ 4 US$ 6 US$ 2 US$ 1 Monthly salaryat today’s values* today’s values* Transfer fee at US$ 23.9 US$ 23.9 US$ 16.7 US$ 18.7 US$ 5.6 US$ 9.2 US$ 2.3 US$ 8.1 CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT moves atadifferentpacenowadays. Ronaldo orNeymar?The worldoffootball What istoday’s priceforMessi,Cristiano equivalent today of around US$19 million). Cosmos ofNewYork forUS$4million(the maneuver by Warners, was contracted by in 1974,and,asubsequentmarketing remembered that theKingretired from playing if conditionshadbeendifferent?Itshouldbe been transferredtoEuropeduringhiscareer that Pelé,theKingoffootball,wouldhave proper businessmodel.Doesanyonedoubt without professionalmanagementora years, footballclubsmanagedtosurvive This briefhistoryexplainshow, forsomany wants tosurvive. management becameindispensableifaclub these changes,theprofessionalizationof and amoderneraoffootballbegan.With in Brazil.Theplayersceasedtobe“slaves” Law. In1988,thePeléLawendedsystem to anendinEurope,asaresultoftheBosman In 1995,theretainandtransfersystemcame allotted forthispurpose. of Englishstadiums,withofficialfunding “Taylor Report”,requiredthetransformation an officialgovernment report,knownasthe non-compliance withsafetyrules.Asaresult, poor stateofmaintenancethestadiumand causes werefoundtobeovercrowding,the Forest, ledtothedeathof96supporters.The the gamebetweenLiverpoolandNottingham Hillsborough stadium,inEngland,during football arenaswerereborn.Theeventsat 1989 isviewedastheyearinwhich revenue ofteamsincreased. football. With that,andnewstadiums,the broadcasters begantoinvestmoremoneyin founded theClubdos13,andtelevision changed. Inthatyear, thebigBrazilianclubs In thethirdphase,startingin1987,everything Pelé earntoday? common. HowmuchwouldSócrates,Zicoor salaries inexcessofUS$250thousandare thousand permonth.Amongthe“stars”, big clubsofBrazilearnslessthanUS$40 Currently, noregularplayerattheso-called 6 Carlos Kfouri; Leoncini, MarvioPereira; Oliveira, JoãoJoséde(coord.). Anova gestão do futebol. Rio deJaneiro:E Aidar, AntônioCarlosKfouri; Leoncini, MarvioPereira. As leiseconômicas eofutebol: aestrutura donovo negócio. In:Aidar, Antônio and itwillbecomeinelastic as regardstheprice product, therecanbenosubstitute forthefan, If agameoffootballis treated asagood watch achampionshipfinal. buy milkfortheirchildrensoastobeable the headsofveryhumblefamiliesomitevento it. Brazilianfolkloreisfullofcasesinwhich passion andfootballfanscannotlivewithout Why? The explanation givenis that footballis the dreamproductofcapitalistsystem. elasticity inrelationtoincome.You thenhave low elasticityinrelationtopriceandhigh of demonstratingboththesecharacteristics: With goodmanagement,footballiscapable increase in theincomeofmiddleclassfamilies. show increased consumption when there is an abroad. Travel isoneofthefirstitems to led toahugeriseinthenumberofholidays country’s good economic performance, has recorded inrecentyears,asaresultofthe the increase in the income of Brazilian families in priceandearnings.Bywayofillustration, Demand hereishighlysensitivetovariations earnings. Atypicalexampleisfamilyholidays. elasticity inrelationtochangespricesand Non-essential goodstendtohavehigh increase significantlywithrisesinearnings. unit. Demandforthistypeofproductdoesnot limited totheordinaryneedsoffamily consumption ofthesamebasicproductis very muchasaresult.Ontheotherhand, price increases,butdemanddoesnotchange inelastic demand in relation to price. The Basic goods,suchassalt,normallyhavean only oneofthesetwocharacteristics. Generally speaking,goodsandservicesenjoy of priceandhighelasticityintermsrevenue. the productshouldhavelowelasticityinterms revenue. Ineconomicterminology, wesaythat time, demandincreaseswiththegrowthin its priceincreasesandforwhich,atthesame not subjecttofluctuationsindemandwhen The dreamofanycompanyistohaveaproduct elastic as regards revenue 3. Inelastic TO priceand ditora FGV, 2000. 6
51 52 within thegrounds. areas andVIPareas,aswell asthefoodsold solution liesindividingtickets betweencheaper cannot be excludedfromthegrounds.The marketing problem,because lesswell-offfans prices willgoup.This resultinanew With therefurbishmentofstadiums,ticket shopping centers,thiswouldnothappen. back. Inothersituations,suchasshopsor etc. Evenso,wewholovefootballalwayscome “minders”, thefoodservedisnotacceptable, respected, “car parks” are dominated by long, accessisdifficult,seatnumbersarenot returns! Queuestobuyticketsareextremely which thecustomerisbadlytreatedbutalways lack ofsecurity. Footballistheonlyinstancein facilities, shortageofparkingspaceandeven stadiums because of the lack of adequate toilet i.e. thefans.Manypeopledonotgotofootball – soastoaffordgreatercomfortcustomers, in Brazil, thanks to the2014 FIFA World Cup of allberefurbished–thisisalreadyhappening clubs. Forthispurpose,thestadiumsmustfirst will probablygeneratemorerevenueforthe of footballintoauniqueevent.“Eventgames” Effective managementcantransformagame on food in the stadiums, club merchandise, etc. increased revenue, supporters willspend more management will ensure that, along with Carlos). At the same time, effective marketing Ronaldo “thePhenomenon”andRoberto in the2010season(whenclubhadsigned the same club, which grossed BRL 29.4 million previous recordforticketreceiptswasheldby the pricewentupanddemandincreased.The and ferociouslydisputed–inotherwords, most expensiveticketsweresoldatBRL650 provided verylittleinthewayofcomfort, games, playedinPacaembuStadiumwhich club had never won. In the Libertadores da América, which at the time the miss outonseeingtheirteamplayintheCopa the amountchargedfortickets,fanscouldnot highest averageinthecountry. Irrespectiveof Corinthians wasinvolved24,000,the price, theaverageattendanceatgamesinwhich Brazilian clubs(BRL39.50).Despitethehigh ticket, which is the highest average price among a explain thisfigureisthepricechargedfor (BRL 35.8million).Oneofthefactorswhich ticket salesinthehistoryofBrazilianfootball 2012 theclubrecordedhighestfigurefor example, therecenthistoryofCorinthians.In of aticketorpay-per-view. Letuslookat,for 8 7 Fynn, A.;Guest, L.For love or money: Manchester United and England –the business of winning?E The demandfor seasontickets was abouttwo andahalftimesthesupply. Cup Libertadores Cup have alreadybeensold.Pricesforseasontickets commences, tickets for all championship games difficulties, becausebythetimeseason a BarcelonagameintheCampNouwillface At thepresenttime,anyonewhowantstosee institution ofadrawfortickets. were oflimitedmeans.Thesolutionwasthe not wishtoexcludethemostfaithfulfans,who in thepriceofaseasonticket,becausehedid Kenyon, statedthathewasagainstanincrease time, thethenCEofManchesterUnited,Peter most sophisticated,servedintheboxes.At match days,rangingfromthesimplestto serve sixthousandmealsatthesametimeon of ManchesterUnited)hashadthecapacityto Since 2000,OldTrafford inEngland(theground team. league ismeasuredbythestrength ofitsweakest Martin Edwards,usedtosay, thestrengthofa As theformerpresidentofManchester United, the keenerrivalry, thegreaterrevenue. club istotallylinkedtothe success ofitsrivals: their competitors,infootballthesuccessofone companies devisestrategiestoliterallyeliminate As opposedtomostothermarkets,where championships reviewed. needs tobereducedandtheformatofregional now atacriticalstage.Thenumberofgames aspect isperhapsthemostcomplicatedand excess of supply against a limited demand. This the specialcharacterofeachgameorcreatean games shouldnotbesogreatastodetractfrom the supporter as a customer. The number of The taskofeffectivemanagementistotreat of food. not bedifficulttoreachBRL1milliononsales stadium, withgoodfacilitiesforeating.Itwould the evening),with50,000spectatorsinamodern of aLibertadoresgame(atconvenienttimein easy toimaginetheincomegenerationpotential product, suchasagoodsoapoperaonTV. Itis access. Fanshavevariousalternativestosucha in astadiumwithpoorstandardsofcomfortand table isplayedat9:40pmonaWednesday night, football ofnosignificancetothechampionship in mind.Thisdoesnothappenwhenagameof football mustbemarketedbearingthecustomer price withintheirmeans.Onceagain,theproduct Fans mustalsobeofferedclubmerchandiseata in revenuemustbefoundfromothersources. of loyaltywillnotallowthis.Thus,anincrease could bemuchhigher, but,again,considerations 8 If over a number of years the same team Ifoveranumberofyearsthe sameteam d. Macmillan Publishers Ltd,d. Macmillan Publishers London, 1998. 7
CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT Pereira; Oliveira, João Joséde(coord.). Anova gestão dofutebol. RiodeJaneiro: E 10 9 marketing andsportsgoods companies-,itis leagues, federations,confederations and “consumption” in the field of sport – clubs, and institutionsrepresenting“practice” With allthecomplexityinvolvingagents and theclub. there isahistoricrelationshipbetweenthefans the fanbaseisrelatedtotradition,thatsay, Players andotherassetscanbepurchased,but determining theearningspotentialofeachclub. The sizeofthefanbaseismainfactorin 4. F products totheconsumer-fan. between theprincipalteamsandsupplyof a marketstructurewhichrequirescompetition elasticity inpricewithhighearnings, football areveryspecial,combininglow The economiclawsthatgoverntheproduct (competitors) toexistandbestrong. reduced tozero,becauseitneedsitsopponents to gobroke.Itseconomicvaluewouldbe sole clubinexistence,havingcausedtheothers club. LetussupposethatFlamengobecamethe a situationcouldneverbetheaimoffootball and itsshareholderswouldbeveryhappy. Such bankruptcy. Itsshareswouldincreaseinvalue of itscompetitors,therebyforcingtheminto its operatingsystemsweresuperiortothose that itfaces,andcreateasituationinwhich Microsoft weretogetroundtheantitrustlaws the rules.Asanexample,letussupposethat with anadministrativebodyinchargeof organized onthebasisofaleaguestructure, the biggestpartofsportsteamsactivitiesis to producewhattheysell.Thisexplainswhy industry, competitorsneedeachotherinorder In teamsports,asopposedtoanyother importance forthesuccessofaclub. in othermarkets.Rivalsareoffundamental in thefootballmarketisdifferentfromlogic Cup, etc.Inthissense,thelogicofcompetition a placeintheLibertadores,SouthAmerican the leaguehavetoberewarded,forexampleby will lose interest in football. Final placings in wins theleaguewithoutarealcontest,fans 11 Carlos Kfouri; Leoncini, MarvioPereira; Oliveira, JoãoJoséde(coord.). A nova gestão dofutebol. RiodeJaneiro: E Congresso Internacional EAESPdeGestão deEsportes heldby FGV Foundation. SãoPaulo, 1998. Aidar, AntônioCarlosKfouri; Leoncini, MarvioPereira. Asleiseconômicas eofutebol: aestrutura do novo negócio. In:Aidar, Antônio Aidar, AntônioCarlosKfouri; Leoncini, MarvioPereira. E Taylor, an Equity R. As dimensões sociais do relacionamento comercial entre os clubes de futebol e suas comunidades. Text presented at 1o 9 volução dofutebol noBrasil. In:Aidar, AntônioCarlosKfouri; Leoncini, Marvio exploited as,acommercialrelationship. suffering, whichcanbeconvertedinto,oreven an emotionalrelationship,inmostcasesoneof thus notaquestionofproductsatisfaction.Itis not existinthesamewayasfootball.Itis products orservicesinanyotherindustrydoes importance foritsmarketing.Loyaltyto loyalty toafootballbrand,isofthegreatest or relegationtoalowerdivision.Thisfact, club becauseoffailuretowinthechampionship We donothearofcasesfanswhochange of theclub. team, irrespectiveofthetechnicalperformance a wifeorhusband,butheneverchangeshis change job,country, materialpreferences,even immutable loyaltytowardshisclub.Hemay the supporterofaparticularteamhasan bonds ofidentification. With rareexceptions, them tiedtoonespot,therebyreinforcingthe the subjectofsaleorpurchase,whichkeeps to certaingroups,orbecauseclubsarenot whether throughtheiroriginswhichlinkthem best waytogivepeopleasenseofidentity: All overtheworld,footballfunctionsas business? Whoareitsmaincustomers? What aretheorganizationswhichgovernthis of theday, whatkindofbusinessisfootball? to betransformedintoconsumption?Attheend long termrelationship.Buthowaresentiments for clubsandnationalteamsisthebasisa of footballbodies.Thesupporter’s “passion” formation ofthemaincommercialrelationships is the supporter, who is the key element in the point fortheconstructionofthisnewmodel The amateurstagehaspassedandthestarting industry, ofwhichfootballisapart. which is compatible with the entertainment clear thatthereisneedforamanagementmodel • • • • following variables: which canbevaluedinthelightof The supporter-club relationship is an asset Demographic expansionof supporters. Intensity ofdevotionfortheclub;and Return toagame; Number ofclubsupporters; ditora FGV, 2000. 11 ditora FGV, 2000. 10
53 54 A nova gestão dofutebol. RiodeJaneiro: E Highest earningsfor cl United inEngland.Asaproofthatitispossible 10 timesmoresupportersthanManchester European clubs? Flamengo, for example, has power atleastequivalenttothatoftheleading 50 millionsupporters,donothavefinancial name buttwo,whichtogetherhaveabout clubs such as FlamengoandCorinthians, to Brazilian football.How is itpossiblethat market. This forms thefirstparadoxof to alossintheglobalvalueoffootball of thefanbasecanloseitsintensity, leading supporter andclubisforgotten,thepower When theprimaryconnectionbetween 12 Source: Deloitte *Excluding salesofplayers Flamengo São Paulo Corinthians Juventus Liverpool A Manchester City Arsenal Chelsea Bayern Munich Manchester United FC Barcelona R Grellet, Celso. Omarketing dofutebol. In:Aidar, AntônioCarlosKfouri; Leoncini, MarvioPereira; Oliveira, JoãoJosé de(coord.). eal Madrid C Milan CL HIGHEST EARNINGSEUROP HIGHEST EARNINGSBRAZIL UB ditora FGV, 2000. (IN MILLIONOFEUROS) ubs inEuropeandBrazil 2011/12 290 483 396 368 286 233 323 257 195 513 94 82 74 difference inearnings. there arebasicallytwoexplanationsforthis capita incomebetweenBrazilandEurope, Even takingintoaccountthedifferenceinper the major Brazilian clubs to increase receipts. the worldshowsthatthereisalotofroomfor A glanceattheearningsofbiggestteamsin and 2012, the increase in revenue was 398%. 2012. Ifwelookattheperiodbetween2007 its totalrevenueby83%between2010and the resultsarealreadyvisible,havingincreased started aprocessofmodernizationinwhich to changethissituation,in2010Corinthians 12 * CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT 1o Congresso Internacional EAESPdeGestão deEsportes heldby FGV Foundation. SãoPaulo, 1998. 13 for manyyears. dispute championships.Thismodelpersisted sport, withnootheraimbuttoplaygamesand setting upassociationsforthepracticeof way: groupsofpeoplegettingtogetherand Almost allfootballclubsbeganinthesame 5. Professional management identity. a senseofvictory, success,recognitionand of psychologicalnourishmentwhichimparts thousands ofyoungpeopleandadults,akind the sport.Footballconstitutesasafetyvalvefor of confrontingthesocialtensionsboundupin of potentialintoearningsinvolvesthechallenge business valueandfanloyalty, thetransformation Although thereisthisclearrelationshipbetween the CopaLibertadores. compared withitsSouthAmericanequivalent, goes fortheUEFA Champions League,when of theBrazilianChampionship.Thesame is farmoreefficientandeffectivethanthat organization oftheEnglishPremierLeague of whichtheclubs are members. The The secondexplanationistheorganization especially Englishclubs. are widelyusedbyclubsinthedevelopedworld, aim ofincreasingitsrevenue.Suchtechniques group techniquesamongitssupporters,withthe in 1999,carriedoutapilotstudy, usingfocus under themanagementofFernandoMiranda mentioning thatInternacionalofPortoAlegre, football treatsitsfansverybadly. Itisworth consumers ofaprofit-makingbrand.InBrazil, treatment, just like the treatment of the and consequentlygivesthemthe“redcarpet” consumers oftheManchesterUnitedproduct Manchester Unitedconsidersitssupportersas are treated.Taking Englishclubsasanexample, The firstreferstothewayinwhichsupporters 14 emotion reconciling rationality and people fromthestadiums. A nova gestão dofutebol. RiodeJaneiro: E Taylor, R.Asdimensõessociais dorelacionamento comercial entre osclubesde futebol esuascomunidades. Text presented at Grellet, Celso. Omarketing dofutebol. In:Aidar, AntônioCarlosKfouri; Leoncini, MarvioPereira; Oliveira, JoãoJoséde(coord.). 13 It is not possible, therefore, to oust the Itisnotpossible,therefore,tooustthe ditora FGV, 2000. , situation wouldbedifferent. providing forbadmanagerstobepunished,the are notchallenged.Ifthelawwerestricter, addition, thereisnoaccountability. Irregularities lose money, sothathecouldthentakepower. In a shareholderweretorootforthecompany vital fortheirreturntopower. Itisasthough failure ofthecurrentmanagementbecomes to prepare for the next elections, in which the who failedtowinthemostrecentelectionsstart In mostcases,thepoliticalfactionsofclubs which canbeseenasaparadoxofmanagement. clubs itleadstoadministrativedysfunction successful, whenitisusedinBrazilianfootball in mostdevelopedcountriesandisreasonably Although thisdemocraticmodelistobefound terms, sometimesallowingre-electiononlyonce. turn electtheirpresidentanddirectorsforlimited clubs electtheirconsultativecouncils,whichin parliamentary modelofpolitics.Membersthe in Brazil is carried out inasimilar way tothe The managementofalmostallfootballclubs and eventswererestored. overhauled, dozens of stadiums were renovated 1960s –inlessthanadecadetheclubswere embarked onthiscourseattheendof and Americanfootball,whichhadalready – suchasbaseball,basketball,icehockey Following American high-earnings sports poor quality, fallingticketsalesandlosses. past, whichledtoageneraldecline:stadiumsof its principalsport,ithasfacedproblemsinthe example, becauseinadditiontofootballbeing encouraged. Englandisagoodcasetotakeasan competitions, thatchangesinfootballwere and thecountrywasbannedfromEuropean the Hillsboroughdisastermentionedearlier, only after people died in stadiums, such as in In thecaseofEngland,forexample,itwas end up by forcing the managers of Brazilian end upbyforcingthemanagersofBrazilian planning andmanagementoveralongperiod A shorttermoutlookandtheimpossibilityof discouraging mediumandlongtermpolicies. are forshortperiodshastheresultof The simplefactthatmanagementappointments 14
55 56 CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT Maracanã’s first test event onApril27 th 2013
57 58 England, Penguin Group, 1999. the supporters, whoaretheendconsumers. team canleadtoaggressive demonstrations by the departureofatopplayer fromaleading its salesmanagerorleading scientist.But case wherethecompanyhas decidedtochange a customeroflargecompany protestingina part ofaclub’s business.Itishardtoimagine reason, expensesonplayersarethemostrisky their teamnearertowinningatrophy. Forthis Fans can be sure that better players will get or salaries. expenses onplayers–whethertransferfees the footballbusinessismanagementof technical performance.TheAchillesheelin involve bothabalancedcashbookandgood exists when,attheendofseason,results Efficient managementofresourcesonly necessary towinchampionships. in additiontogeneratingsurpluses,itisalso In footballthechallengeisgreater, because than simplymaximizingtheuseofresources. nature ofrevenuesources,meansmuchmore dependent disbursingofcapitalandthelimited cash flowishighbutirregular, with seasonally management ofresources,inanactivitywhere who worksfulltimefortheclub.Theefficient It is not enoughsimply to hireanexecutive and themanagementofasportingundertaking. divided betweentheirprincipalincomesource businessmen, industrialistsorfinanciers–are members ofclubswhoseprofessionallives–as should notbeconfusedwiththe“tophats”, In Brazilian football, professionalization nurturing ofplayers. smaller teamswhoseprincipalbusinessisthe competitor. Itshouldbesaidthat therearesome most importantcharacter, MickeyMouse,toa is asifDisneysoldtheownershiprightstoits The artistsaresoldbutnotthespectacle–it difficult toexploit,becausetherearenostars. Following this,othersourcesofrevenueare because therearenoothersourcesofrevenue. industry have to be sold to meet expenses, are important in terms of the entertainment lessens itsearningpotentialbecausestarswho This resultsinaviciouscircle,whichtheclub of funds,namelythesaletheirstarplayers. clubs togofortheonlyreallyreliablesource 15 Deloitte. Football Money League 1999;Szymanski, S.;Kuypers, T. Winners andLosers –The Business Strategy ofFootball. during the1990s at the end ofthe season. Studies carried out players withpolicieswhichproduceasurplus funds toassembleacompetitivesquadof club istoreconciletheoutlayofsufficient Thus, themostdifficultbalancingactfora football in Brazil. football inBrazil. for themorethan500clubs whichcomprise these featuresarealmost universally present security contributions.Separately ortogether, to the banks and failure to pay tax and social show aloss,whichculminatesindebtsowed clubs, itisclearthatBrazilianclubsregularly Comparing BrazilianfootballwithBritish of management. with profit,thedifferenceliesineffectiveness revenue and salaries, but has a fragile connection market whereperformanceisdirectlyrelatedto is vitalforthesuccessofthisbusiness.Ina new corporateclubs.Professionalmanagement launched bythemarketingdepartmentsof have themeanstobuylicensedmerchandise with payingtoseethegameslive:theywantand who seetheirteamwinningarenotcontent football groundsareworthmore,becausefans And eventhetraditionalsourcesofincomeat better sponsorshipandmerchandisingcontracts. most gamesappearsmoreonTV, whichleadsto the teamthatscoresmostgoalsandplays were interested in seeing the team in action. Today, from higherticketsales,becausemorepeople unbeatable teamwasthereceiptofmoremoney Decades ago,themaximumrewardforan balance betweenemotionandrationality. require rationality),footballdemandsthis In contrasttootherbusinesses(whichonly “the balanceofrationalityandemotion”. will notberecognized.Hencethesaying performance, managementachievements achieve results.Without agoodsporting to operate with a balanced budget, but still league positionisfundamental. It isnecessary pitch. Thisrelationshipbetweensalariesand determine theperformanceofteamon the marketforplayersisagoodguideto words: exceptionsoccur, butingeneral on salariesandleagueperformance.Inother of apositiverelationshipbetweenexpenses 15 confirm theimportance CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT before finally returning to Vasco. to becomethemainattraction ofFlamengo, who startedoutastheidolof Vasco, proceeded from SantostoitsrivalSão Paulo, orRomário, Paulo HenriqueGanso,who recentlymoved of theplayersthemselves,such asthemidfielder teams hehadmanaged)?Thisistosaynothing Flamengo, Santos,PalmeirasorCorinthians(all was Wanderley Luxemburgoasupporterof part ofthetechnicalcommission,forexample, already existsinfootball.Whenheformed should berememberedthatsuchaphenomenon with theirrespectivefanbasesseemsradical,it of administratorswithoutanemotionaltie be a supporter of his team. Although the theory accepted that such an executive does not have to clubs shouldbepaidatmarketrates:itis dedication, presidentsanddirectorsofcorporate basis. Obviously, inordertoensurefulltime who isfocusedonthejobafulltime a corporateclubdemandanadministrator The multiplefunctionsrequiredtodaytomanage calling himself“thecongressmanfromVasco”. federal congressmanwhowaselectedin1994 president ofVasco daGama,EuricoMiranda,a office, asinthewell-knowncaseofthenvice- clubs toacquirevisibilityandobtainpolitical administrators havemadeuseoftheirfootball in football.InBrazil,forexample,various within it,arepartofthedailyexperience exploitation ofaclub,orpoliticalmaneuvers the terraceswhodemandvictory. Thepolitical political rivalrieswithintheirwallsandfanson institutions with100yearsofhistory, containing Both inEnglandandBrazil,teamsare devised onthebasisofemotion. of whathappensinthevacuumstrategies be increasedwithanewplayer, areexamples exist –orwithoutcalculatingthatrevenuecan any budget–oftenbecauseitsimplydoesnot are made.Signingaplayerwithoutreferenceto rationality versusemotionatthetimedecisions managers haveinreconcilingthebalanceof expenses stemsfromthedifficultyBrazilian the inabilitytoproducemorerevenuethan strategies oftheclubs.But it isclearthat a consistent assessment of the management recent improvements,makesitdifficulttomake Lack of more transparent accounts, despite quoted company. football departmentswithaprivateorpublicly to be converted into companies or link their Law of1995)wastherequirementforallclubs in relationtothepreviouslegislation(theZico in Brazil.Amongtheinnovationsintroduced the socalledPeléLaw, whichregulatedfootball came tobeassociatedwithLawno.9615/98, corporate clubssince1896,inBraziltheterm there fromthebeginning,teamshavingbeen If inEnglandprofessionalmanagementwas (see therecenteffortsofFlamengo). seems to be the way forward for Brazilian clubs by experienced administrators. The second type Both typesinvolveprofessionalmanagement • • business modelswhichcanbementioned: At thepresenttime,therearetwosuccessful without atraceofamateurism. structure must follow that of a normal company, costs andwinningtrophies.Management and focusedonmaximizingrevenue,reducing board –awhichmustbepaid,fulltime, admitted thatpassionisforthefans,not football isdeadwithoutthepassion,itmustbe is worthwhile.Evenacceptingthepremisethat To summarize:professionalisminmanagement Bayern Munich. supporters’ councils,suchasBarcelonaor Those inwhichtheadministratorsreportto Manchester United;or management structureissimpler, suchas elected bythesupportersandwhere Those inwhichtherearenocouncils
59 60 which isalreadyinoperation. capitalist system,someteamswilldie–aprocess survival. And, as with every development in the intelligence of the fixture list will determine their become internationalbrands.Asfortherest, course ofthisprocess,someBrazilianclubswill the professionalization of management. In the on thepath,whetherforcedornot,towards the pitch–Brazilianfootballclubscontinue and stilldependentontheirperformance revenue, greater pressurefrom the government, In suchacontext–growingexpenditure,rising accounts ofclubs. started to be charged, or at least shown in the increasing taxreceipts.Taxes and contributions time, the government began to focus more on taps offinanceforfootballclubs.Atthesame programs bythegovernmentturnedoff positive realinterestratesandfiscaladjustment phase ofmacro-economicstability. Lessmoney, end ofinflationandthebeginninganew year theRealPlanwaslaunched–with transformation, culminatingin1994–the Brazil hasundergoneanenormouseconomic credit crisisofemergingnationsin1982, and deficitswereeasilyovercome.Sincethe years whencashsurplusesmadenodifference economic contextwhichisdifferentfromthe of sources,footballisexperiencingamacro- and revenues, as a result of a greater variety At thesametimeasgrowthofexpenses Brazilian scenebetween1993and1997. a singletrophytoteamwhichdominatedthe took theclubfroman18yeardroughtwithout agreement, signedsixyearsbeforethePeléLaw, Parmalat provides a good illustration. The between Palmeirasandthefoodmultinational of thepartnershipagreementsignedin1992 accounts keptby“weekend”clubs.Thecase of footballfartoocomplexfor“notebook” the previousdecademadeaccountingside players, on the other, had since the middleof expenses representedbythehighsalariesof sponsors, ontheonehand,andincreasein clubs, broughtaboutbythedemandsofTVand forces. Thehugeriseintherevenuesoffootball legal requirement,buttheoperationofmarket direction ofprofessionalmanagementisnotany However, whatforcesfootballclubsinthe CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT
61 The new arena infrastructure and the 2014 FIFA World Cup: driving the entertainment business in Brazil
Maracanã under construction for FIFA World Cup 2014 AR TICL E
Daniel Hopf Fernandes
Director-President of Fernandes Arquitetos Associados
Daniel Hopf Fernandes graduated from the Faculty of Architecture and Urban Planning at the University of São Paulo (FAU/USP). He is currently Director-President of Fernandes Arquitetos Associados, which is responsible for the planning of the Maracanã stadium and the Pernambuco Arena for the 2014 FIFA World Cup. Having worked on various infrastructure projects – the subway systems of São Paulo, Belo Horizonte, Salvador and Manaus, and Nacala airport in Mozambique, among others – he first worked on sport in 2005 with plans for the Pan-American Games. In the last five years he has developed feasibility studies and plans for another seven arenas in Brazil.
Abstract
The transformation of stadiums into sports arenas is a very recent trend, driven by the choice of Brazil to host the 2014 FIFA World Cup. This article deals with the way in which the new arena infrastructure affects the football production chain, giving rise to a demand for new products and services and representing an opportunity to realize the potential for new projects and associated business. Thus, the restoration of arenas as a catalyst for the growth and development of the whole chain connected with entertainment is shown as the principal legacy of the World Cup. 64 O 1 been happening inEuropeandtheUnitedStates. which is completely the opposite of what has out ofdate.InBrazilwehave witnessedaprocess itself –havegraduallydeteriorated andbecome decade, thestadiums–along withthefootball has virtuallystoodstill.Year byyear, decadeby concentrated anddirected investment, Brazil which was held in Brazil. Since then, as regards ago, preciselyatthetimeof1950World Cup refurbishment ofstadiumsoccurred60years concentrated investment in the construction or In generalterms,wecansaythatthelastmajor appearance ofsports arenas in stadium concepts: the Investment andchanges are stilltobefoundthroughoutthecountry. the Cup,whencertainfeaturesoriginatedwhich the picturebeforechoiceofBraziltohost production chain.Butforthiswemustrecall stadium infrastructureisaffectingthefootball we arefinallydiscoveringhow, infact,thenew six yearsafterthechoiceofhostcountry, economy hasbeenorwillbeaffected.Almost fields whoarequalifiedtodiscusshowthe predicted andthereareprofessionalsinthese consequences couldcertainlybemoreeasily an impulsetotourismandinvestment.These an eventofthissizecouldgenerate,bygiving or with“visibility”gainsforthefuturewhich for bothnewandoldinfrastructureprojects, on civilconstruction,orthepoliticalclimate I amnotconcernedherewiththedirectimpact most popularsportinthecountry. industry, itscultureandthe“business”of new stadiums,asitmightaffectthefootball of holdingtheCupandconstructing not knowpreciselywhatwouldbetheresults requirements. Atthattimethemarketstilldid recommendations setoutintheFIFA list of standards ofqualityinaccordancewiththe stadiums whichwouldreachthehighest on theresponsibilityforproviding12new games wereannounced.Braziltherebytook May 2009thetwelvecitiestohost See:
Suddenly no onetalksofstadiums any difference between anarenaandastadium? is repeatedlyasked:what, basically, isthe in factachangeofconcept. Thequestion simply aquestionofsemantics, butitis The first great change might seem to be undergone amajortransformation. other parties directly or indirectly involved have firms, suppliers,serviceprovidersandallthe industry. Architecture,engineering,construction a timeoflearningandmaturingforthewhole announcement oftheBrazilWorld Cuphasbeen The longperiodthathaselapsedsincethe meeting placesforthefans. profit, theywerejustthe“homesofclubs”or on thelistsofbusinesseslikelytoproducea football clubs.Stadiumssimplydidnotfigure enter intopartnershipsorjointventureswith or refurbishingstadiumspreparedto investors whowereinterestedinconstructing was highlyunlikelytocomeacrossprivate it isafactthatuntilshorttimeagoone Irrespective ofthecauses,whicharevarious, of supportersortothelacksecurity. some totelevision,theorganizedgangs The reasonsforthisdeclineareattributedby reached anaverageof90%. stadiums inEngland,HollandandGermany 41% average attendanceatstadiumswasjust Turkey (9,996)andUkraine(8,943).In2011, leagues, suchasthoseofBelgium(11,743), This figureisneartheaverageforthirdtier 12,983 in2012fortheBrazilianchampionship. spectators werepresent–toanaverageof Flamengo and Fluminense, when 194,603 the RiodeJaneirostatetournament,between at match–whichhappenedin1963,during an incredibleworldrecordforattendance national championshipfelldrastically, from attendance atstadiumsfortheprincipal structures werefallingtopieces,theaverage were arealrisktospectators.Whilethe loss-making structures,whichinsomecases revenue theyresultedinexpense,becoming municipal governments.Insteadofproducing real burdenfortheclubsandstate The stadiumsweretransformedintoa 1 ofcapacity, whilstthesamefiguresfor ccessed on16/04/2013. almost all the new projects more and all the new plans are for arenas. In fact, there is a big but subtle difference for arenas between the two. Stadiums are places almost exclusively for games of football, while or stadiums arenas are designed to host a large variety of different events. Even if football is the main envisage event, it is important to note that this does not necessarily mean that it will be the most profitable activity for the arena. other
This change, which has been adopted almost businesses. immediately on all sides, is linked to another concept which has still not been taken on board by most of the parties involved – the idea that football is not a sport, but, first and foremost, entertainment. This truth has had an extraordinary effect on ways of thinking about the new arenas, because the viability of a new arena does not necessarily depend on Planning the arenas: meeting the importance of the team, its position in the the demand for new products league or the size of its fan base – these are obviously important factors leading to the The arenas are becoming points of reference success of the undertaking, but they are not and attraction for new businesses and are conditions for the viability of a project. ceasing to be factors leading to decline and devaluation, as was the case earlier in the As regards the football clubs, it should be areas of practically all the existing stadiums. remembered that they will not be concerned The projects which have been developed for in the management of the majority of these the new arenas will even have a positive effect arenas. In some cases, the teams will share in the urban renewal and transformation of in revenue, but they will not control the the areas where they are constructed, leading administration of the arenas, at least for an to an increase in values in such areas and the initial period which may vary in each case. In entry of new businesses and projects. other cases, the clubs will simply be users of the structure under partnership arrangements The planning and construction of an arena with the owners. to current standards requires specialist skills and technology and, even more, demands Another extremely important change has been knowledge of this new business. It is not the perception that arenas, along the lines of possible to plan a new arena without defining the new model which is being developed, have the products which will be offered there, the potential to house associated projects, along with their practicability and viability, and that it is possible to achieve synergy and and without considering who is going to create added value through other businesses, generate content and administer the business such as event centers and trade fairs, offices as a whole. For many people, the mention of and commercial and residential real estate product may still sound strange. However, projects. The setting up of multi-functional a new arena basically comprises a variety projects with other businesses associated with of products, which are fundamental for its the arenas is still a cause of unease and concern viability. And each of these items requires a in some sectors of the market, especially the large number of highly specialized suppliers real estate market. But, generally speaking, and service providers, who until now did not this idea has been evolving rapidly and almost exist in most of Brazil. We are talking here all the new projects for arenas or stadiums of professionals in the fields of engineering envisage other businesses. and architecture, market research companies,
CADERNOS FGV PROJETOS | FOOTBALL AND SOCIOECONOMIC DEVELOPMENT 66 premium seats, boxes and business seats, Brazil. Thenewproductsinclude seasontickets, experiences andahistorywhich hardlyexistsin the target public involved and to look at past it isnecessarytohaveagoodknowledgeof regards quantities,contentandpricingpolicies, To definetheproductsforanewarena,as technology, audio,video,securityandturfing. occur inotherareas,suchascatering,seating, of knowledgeandtechnology. Similarsituations this jointworkresultedinanimportanttransfer involved insupportanddevelopmentwork, Brazil. ObviouslyBraziliancompanieswere involved initsinstallationcamefromoutside parts, wereimported,justasthekeypersonnel covering material,suchascable,membraneand tensioned membrane.Atthesametime,all and experienceofproducingstructuresin engineering firmsinBrazilwiththeknowledge in thistypeofstructure,owingtothelack was plannedbyaGermanfirmwhichspecializes being undertakenforthe2014FIFA World Cup, covering oftheMaracanãstadium,whichis a betterunderstandingoftheposition.The The examplewhichfollowsmayhelptowards and services)wereinitiallysoughtoutsideBrazil. created, thenecessaryrawmaterials(products To meettheimmediatedemandwhichhadbeen materials, equipmentandproducts. of content,andthewholechainsuppliers advertising, managementofarenas,direction of businessplans,brandexploitationand financial consultancyservices,development 2 guaranteed source ofrevenue.We arebasically because, once they aremarketedbecome a important whentheyarebased onfanloyalty, among otheritems,andthey becomemore These are ingeneral namesand products originating from Europe andUSarenas. Maracanã underconstruction for FIF A World Cup2014 2
events, and consultants with knowledge of the events, andconsultants withknowledgeof the which manage sportingandentertainment will involveoperatingcompanies, companies the contentofentertainment. Eachexample operation runbyacompany withexperiencein package, whichinturnwilldepend onanefficient small andlargeeventswill formpartofthe the games,acertainnumberofconcertsand more importantly, theircontent.Inadditionto involves theserviceswhichwillbeofferedand, research. Adecisiononprice,forexample, generated onthebasisofhighlyspecificmarket numbers, capacityandpricedependonsubsidies professionals andcompanies.Thedecisionsasto market priceinvolvesalargenumberofspecialist the number of boxes, their capacity and their It isacomplexsubject,becausemerelyfixing future projects. base, whichcanbeusedasabenchmarkfor some timebeforewehaveourowninformation commercial exploitation. It will therefore take focusing onthereturninvestmentand actually operatedbycompaniesorconsortia of newarenasandonlysomethemwillbe Brazil isonthepointofconcludingitsfirstbatch in ordertodefinequantitiesandsaleprices. market researchinthesekindsofsportingevents the investorsengagedfirmswhichspecializedin on theEuropeanmarket,andforthispurpose was giventonumbersandexperiencesbased regard tothesenewproducts,consideration For thefirstplansdevelopedinBrazilwith responsible forupto70%oftotalreceipts. of the total capacityof an arena, but could be sufficient tosaythatitrepresentsaround16% in ordertogetanideaofitsimportance,itis talking ofthepremiumpublicingeneral,and, CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT a whole series of weaknesses on the part of a wholeseries ofweaknessesonthepart of Cup and the 2016 Olympics in the face of offered by events such as the 2014 FIFA World The visibility, thescopeandopportunities chain ofbusinessconnected with entertainment. for thegrowthanddevelopment ofthewhole will be therestoration of the arenas as an engine Perhaps theprincipallegacyofWorld Cup chain: thewa Developing theentertainment undoubtedly oneoftheprincipalattractions. entertainment industry, ofwhichfootballis the nextfewyears,drivenparticularlyby which islikelytoexpandenormouslyduring areas. Thisisonlythebeginningofaprocess new personnel,whoaremigratingfromother purpose arenashavebeencreatedtotrainthese this area.Coursesinthemanagementofmulti- require abodyofotherpersonneltoworkin other countriesasmanagers,butwhichalso are lookingforexperiencedprofessionalsfrom entertainment, sportandcontent,mostofwhich other areashavestartedupnewbusinessesfor market. Inrecentyearsmanycompaniesin growth anddevelopmentofnewareasthe introduced withthearenasistherefore One consequence of the changes being developed inBrazil. reached agreementsforvariousprojectsbeen giant AEGintheoperatingsector, whichhas with foreigncompanies,suchastheAmerican through engagingorenteringintopartnership market. Oncemore,thefirststepswillbetaken y ahead
almost impossible tomoveforward. infrastructure. Without suchchanges itwillbe cultural changesresultingfrom thenewarenas this process,takingadvantage especiallyofthe market toseizetheopportunity andconsolidate the changes.Itnowremains fortheBrazilian to establishthemselvesright attheoutsetof note ofthisandaretakingdecisiveaction ahead. Foreigncompanieshavealreadytaken is abrightfuturefullofpromiseandpotential other hand,startingfromzeromeansthatthere as wasthecasewithEuropeanarenas.On 2014 FIFA World Cup,aprocessofevolution, to thechoiceofBrazilashostcountryfor not having experienced, during the 60 years prior We arecurrentlysufferingtheconsequencesof technological development. which havebroughtdowncostsandledto are todayassociatedwithBraziliancompanies, sell theirproductstotheWorld Cup arenas, who fouryearsagotriedwithoutsuccessto is currentlyverynoticeable.Manysuppliers, associations withlocalfirms,andthistrend success intheBrazilianmarketisbyforming have already perceived that the best route to Many foreignproducersofgoods and services much longertoreachBrazil. which, undernormalconditions,wouldtake possible accesstoproductsandtechnology time it is opening up new markets and making reinvent themselvesandtoevolve.Atthesame forcing Brazilianprofessionalsandcompaniesto creating amuchmorecompetitiveenvironment, competition withthedomesticmarketandis over theworld.Thisupheavalisincreasing number ofcompaniesandpersonnelfromall Brazilian industryareattractinganenormous
67 68 MARACANÃ PERNAMBUCO ARENA
69 Infrastructure in Brazil and the 2014 FIFA World Cup
Corinthians Arena under construction for FIFA World Cup 2014
CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT Vice-President ofCBF President ofSãoPaulo Football Federation and Marco Polo DelNero bring tothecountryinthisarea. which theworldfootballchampionship isbringingandcouldstill in thetransportationsector. Hethen proceeds to considerthebenefits country hasbeenfacingwithregardtoitsinfrastructure,particularly Marco PoloDelNeropresentsanoverviewofthechallenges the Cup inBrazilisanopportunitytobuildonthisgrowth.In article, increased its profile on the international scene. The 2014 FIFA World In recent years the Brazilian economy has grown and the country has member oftheExecutiveCommitteeFIFA. Committee oftheSouthAmericanFootballConfederation,anda Brazilian FootballConfederation(CBF),amemberoftheExecutive President oftheSãoPauloFootballFederation,Vice-President ofthe he specializedinCriminalLaw. Besidesbeingalawyer, heiscurrently Marco PoloDelNerograduatedinLawatMackenzieUniversity, where Abstract
E TICL 71 AR 72 E 1 inequalities. The growthinconsumerspending working classestogetherwith areductionin process ofincreasingaverage incomesforthe consumer spendingduring amuchlauded substantially inrecentyears, leveragedby public opinion.Theeconomy hasgrown by theauthorities, business andby This stateofaffairsisgenerallyrecognized Brazil isacountrywhichlacksinfrastructure. infrastructre inBrazil the challengesof The W Cadernos FGV Projetos, RiodeJaneiro, year 7, numberNovember 21, 2012. reach thetargetingoodtime. Committee andofFIFA indicatingthatwewill with the hard work of the Local Organizing but thedeterminationofauthoritiesalong country inthisfield.Therearemanychallenges, the Cupisalreadybringingandwillbringto part, thereisananalysisofthebenefitswhich especially inthetransportsector. In thesecond has beenfacingintheareaofinfrastructure, contains abriefoutlineoftheproblemsBrazil This articleisdividedintotwoparts.Thefirst importance withcompetence. and capableofmanaginganeventthis image ofacountrywhichisvibrant,organized sporting –wanttoconveytheworldan the country’s elites–political,businessand with theopportunitytostageaWorld Cup, its profileonthe internationalscene,and has grownandthecountryincreased art. InrecentyearstheBrazilianeconomy displays whichcouldbetakenforworksof the abilitytocombinevictories with sporting won theWorld Cupfivetimesandhasshown football. Brazilistheonlycountrytohave Brazilians areparticularlypassionateabout age” throughoutalargepartofBrazil. this willmeanaspreadofeconomic“lever the event.Twelve citieswillhosttheCupand new jobsarebeingorwillbecreateddueto take off.Itisestimatedthataround250,000 ment intheareaofinfrastructureisaboutto a majorstimulustotheeconomyandinvest- R eis, Manoel. “Logística einfraestrutura noBrasil. InInfraestrutura: investindo odesenvolvimento do Brasil. held inBrazil.Itishopedthatitwillbe 2014 FIFA World Cup,whichwillbe xpectations arehighwithregardtothe orld Cupand - article, perhaps themostcritical,Manoel Reis,inarecent Dealing with the areaof transport, whichis the problemoftaxationregulations (18.7%). the Brazilianeconomy(17.5%) behindonly situation wasthesecond largest problemin even showedthattheinadequateinfrastructure of researchcarriedoutatthetimeForum place outof144countriesanalyzed.Onepiece World EconomicForum,Braziloccupied58th for productivityandcompetitiveness.Atthe Brazil isalsopoorlypositionedintherankings boasts theseventhlargestGDPinworld, a strangesituation.Atthesametimethatit to generatehealthyinvestmenthascreated The lackofinfrastructureandtheinability of developmentalongwithsustainability. insufficient to guarantee significant rates 25% inChile.Thisamountisobviously against 48% inChina, 36% inIndia and Brazil investsannuallyaround18%ofGDP, Brazil isequallylow. Itisestimatedthat investment, the total level of investment in Quite apartfromthelowcapacityofpublic per year. Brazilian economyofaroundBRL160billion for anannuallosstotheprivatesectorin lack ofadequateinfrastructureisresponsible authorities in Brazil. Surveys indicate that the the investmentcapacitypossessedbypublic per year, thatistosay, morethanthreetimes GDP –orapproximatelyBRL225billion needs ininfrastructurewouldrequire6%of Base IndustryAssociation(ABDIB),investment According totheBrazilianInfrastructureand in infrastructure. approximately 13.4%ofGDPtoinvestment the highestgrowthratesinworld,assigns comparison, China,acountrywithoneof Product (GDP)peryear. Simplybywayof for about 1.6% of the Gross Domestic around 5,550municipalities)areresponsible Brazil (theFederalGovernment,27statesand calculated thatthe three tiersofgovernment in of publicauthoritiesinthisareaislow. Itis On theotherhand,investmentcapacity other services. greater useofenergy, communicationsand has also meant an increase in travelling and 1 liststhemaindifficulties asfollows: decreasing overtime,asTable 1shows. Cup, whileinvestmentinthe sectorhasbeen goods -,allofwhichwillbeheightenedbythe growing economy, increasingmovementof years –anincreasingnumberofjourneys,a fact thatmobilityhasincreasedoverrecent infrastructure in the area of transport is the classic exampleofthelackinvestmentin largest nationalterritoriesintheworld.A given thatBrazilisacountrywithoneofthe increase intravelling,particularlybyair, A World Cupwillleadtoanexponential • • • Waterways • • • • Ports • • • • Railroads • • • Roads Lack ofsignsandbuoys. Draught restrictions; locks; Restricted navigationduetoabsenceof Out ofdatesystemsportmanagement. Shortage ofreserveareasandberths; Restricted accessbyland(roadandrail); Limited accessbysea; Invasions ofright-of-waysattrackside. Lack ofbypassingsinurbanareas; Excessive numberoflevelcrossings; coverage throughoutthecountry; Insufficient networkextensionand developing regions. Inadequate natureofcoveragein regions; Lack ofnetworkcapacityindeveloped repair ofroads; Insufficient standardsofmaintenance and
73 74 Cup, canbedividedintofourlargegroups: be revitalizedwiththeapproachofWorld area of infrastructure. These areas, which will significantly invariousareas,notonlythe will movetheBrazilianeconomyforward good groundsforsuchabelief–thattheevent is believed–andtherearestudieswhichafford new place in the world order. Furthermore, it is developingingiantstridesanddeservesa “brand Brazil”,intermsofacountrywhich by aneventofthissorttoimplanttheidea take advantageofthe high visibilityguaranteed cycle ofinvestment,becauseitisimportantto infrastructure. The idea is to initiate a new the needtoincreaseinvestmentinareaof chosen tohostthe2014World Cupunderlined The announcementthatBrazilhadbeen Investment The W T • • • • of thecountryabroad. Improvement andconsolidationoftheimage 1. International visibility Source: OEstado deS.Paulo, January2013. able 1-Investment intransport as %ofGDP(1971-2010) technologies: fuels. Implementation andpublicizingofgreen competitive advantage; services, particularlythose witha Greater exposureforproducts and civility anddevelopment; Brazil, suchascompetence,organization, Addition of new attributes to the image of with afriendlyandhospitablepeople; Strengthening theideaofahappycountry, orld Cupand 1990 to 2000 2001 to 2010 1971 to 1980 1981 to 1989 YEARS INVESTMENTS AS %OFGDP • • • 4. Institutional improvements • • development. population, withthecreationofnewareas and anincreaseinthequalityoflife An improvementinthequalityofservices 3. Infrastructure • • tourism inBrazil,whichisverylowatpresent. Greater exploitationofthepotentialfor 2. Tourism 0,63 0,62 2,03 1,48 Strengthening ofprideinbeing Brazilian. the country; Greater integrationbetween theregionsof Better controlofpublicmanagement; stadiums. A leapforwardinthequalityofBrazilian More moderntechnologiesintransport; transport, etc. connected withhotels,restaurants, A leapforwardinthequalityofservices (such as São Paulo),among other features; large urbancentersforbusinesstourism the Pantanal,Amazonregion,and view oftourism,becauseithasbeaches, different attractionsfromthepointof of Brazil.Brazilisacountrymany Advertising the regional tourist attractions CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT According tothestudyBrasilSustentável, 2 • • economy by2019,madeupasfollows: add aroundBRL183billiontotheBrazilian Ministry ofSports,the2014World Cupwill Brasil Ltda,contractedbytheFederal According toestimatesfromValue Partners in majorevents. private security personnel who are specialists entertainment options,andthepresenceof boxes, quality and variety of foodand of other such as numbered seats, hospitality areas, services offeredtothepublicareconcerned, media professionals,etc.–butalsoasfar quality oftheturf,workingconditionsfor sporting events, visibility oftheplayingarea, infrastructure is concerned – easy access to there will be improvements not only as far as will dawnforBrazilianstadiums,because is that following the World Cup a new era in moredevelopedcountries.Theexpectation same standardofcomfortassimilarstadiums Brazilian stadiumsdonotcurrentlyofferthe Janeiro (RJ),Salvador(BA)andSãoPaulo(SP). (RN), PortoAlegre(RS),Recife(PE),Riode (PR), Fortaleza(CE),Manaus(AM),Natal (MG), Brasília(DF),Cuiabá(MT),Curitiba these stadiumsaresituatedBeloHorizonte increase: BRL4.62billion.Thecitiesinwhich amounting tomorethanhalftheestimated the directcostofFIFA World Cupof2014, 2010-2014. Stadiumsrepresentthemainitemof way intocivilconstructionduringtheperiod approximately BRL8.14billionwillfindits It isestimatedthatanadditionalamountof with communications. urban cleaning sectors)and services connected transport, electricity, gas,water, drainage and public services(includinginfrastructureinthe food anddrink,servicesprovidedtocompanies, according tothestudy, willbecivilconstruction, Cup inthecountry. Thesectorsmostaffected, indirect resultoftheholdingFIFA World into theBrazilianeconomy, asthedirectand additional BRL112.79billionwillbeinjected FGV Projetosin2010,itispredictedthatan prepared byErnest&Young Terco and A vailable at:
the competition itself,willbemetbyFIFA. cost of the 2014 FIFA World Cup, as regards maintain theiroriginalnature. Andtheentire private investment,theresults ofwhichwill concession ofthisnature.The sameappliesto the private sector, and no kind of exceptional There will be no transfer of public assets to public investmentremains publicproperty. words, everythingwhichisachievedthrough concessions, collectionoftaxes,etc.Inother source ofrevenuefromtheexploitation such investment,anditrepresents a potential and thetaxpayer, whowillenjoythebenefitsof their institutionalobligationstothecitizen in publicassets,andassuchcomplieswith from publicauthoritiesrepresentsanincrease funds”. Thisisnotthecase.Theinvestment the publicpurse,onbasisof“writtenoff cost of the World Cup as a whole is met by An unawarereadermaywellaskwhetherthe exclusively privateinvestment. financing oftheprivatesectorand12%from this latterfigure,10%willcomefrompublic 22% willcomefromtheprivatesector–of 78% ofthetotalinvested,whileother authorities willthereforeberesponsiblefor of thestateandmunicipalauthorities.Public and 22%willcomefromtheactualbudgets subventions tothestatesandmunicipalities, Budget, 33% will come from federal been allocatedfromtheFederalGovernment from Table 2.Ofthesetotalfunds, 22%have The amountoffundsinvestedcanbeseen telecommunications, securityandtourism. of urbanmobility, stadiums,airports,ports, Investment hasbeendividedupintotheareas sector wasnotdefinedasapriority”. Brazil, because of thedistancesinvolved,this road networkfortheWorld Cupof2006.In example, gaveprioritytoinvestmentinthe different ateachWorld Cup.Germany, for the investmentprioritiesofgovernmentsare the areasofinfrastructureconsidered,because do nothoweverleadtocompleteuniformityin The study also points out that “these criteria with previoussurveys.” other countries,makingthisstudycomparable assessing theeconomicimpactofCupin airports). Thisconceptwasalsoadoptedin accelerated orbroughtforward(suchas for example)andtheinvestmentthatisbeing be madeexclusivelyfortheevent(stadiums, considered tobeboththeinvestmentthatwill “investment fortheWorld Cupwas According totheauthorsofstudy,
75 76 T subs Source: Federal Government regions sessen tial. of themeropolit in theroad ne tw able 2-Amountofinvestment b Telecommunications Urban mobility t Stadiums Security Airports antial inves Tourism AREA Ports TOTAL INVESTMENT orks tment an y area(inBRLmillion) 6.805 8.544 1.879 212.5 7.031 675 371 CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT the fieldofpublic education. required forengineeringworks andservicesin of RDCtobiddingprocesses andcontracts Federal Governmentextended theapplication By Lawno.12722,of3October 2012,the • • • • • following sportingeventsandsituations: over Law no.8666,will be valid for the new rules,whichrepresentanimprovement incentives fortechnologicalinnovation.These the exchangeofexperiencesandatproviding public contractingandalsoatencouraging increasing theadaptabilityandefficiencyof Contracting (RDC),whichisaimedat of the Differentiated Regime for Public the institution,throughProvisionalAct, Another pointwhichshouldbestressedis the metropolitanregionsisessential. substantial investmentintheroadnetworksof passenger trainsarerare.Forthisreason, transport. Thesubwaynetworkissmalland Brazil doesnothaveatraditionofrail of 20km/hduringpeakperiods.Moreover, significantly, reachingtheextremelylowmark centers, theaveragetrafficspeedhasfallen boom ofrecentyears.Inthegreaturban increased dramaticallywiththeconsumer urgent. The numberof cars onthe streets has As regardsurbanmobility, investmentis Growth Program(PAC). Programs forming part of the Accelerated of theWorld Cup;and capitals upto350kmfromthehostcities contracting fortheairportsofstate Infrastructure worksandservices 2014 FIFA World Cup; FIFA ConfederationsCup2013; Olympic andParalympicGamesof2016; Let ushopeitwillbeso!It when thetournamentfinallykicksoff. the emotionsandpassionsthatwillbearoused combined. Allthis,withoutevenmentioning efficiency, dedicationandpoliticalwillare capable of,whentheelementsofcompetence, make thecountryconsciousofwhatBrazilis Organizing CommitteeandFIFA willcertainly state andmunicipalgovernments,theLocal The coordination of efforts between federal, managers andorganizers. on thefield,butalsooftheircompetenceas people willbeproudnotonlyoftheirdeeds football teams,ensuringthattheBrazilian the historyofworldcompetitionsbetween will be an event of special importance in involved assureusthatthe2014World Cup This spiritofrenewalandthecollectiveeffort and representsavisibleinstitutionaladvance. met theconcernsofpublicadministrators Law no.12722,referredtoabove,whichhas In addition,wehaveseentheenactmentof competition togosmoothly. towards theworkswhicharenecessaryfor significant volumeofinvestmentischanneled coordination betweenfederalbodies,sothata taking chargeofasubstantialeffortat the eventhasresultedinfederalgovernment image ofthecountryabroad.Thecloseness benefits fortheeconomy, infrastructureandthe and isalreadybringing–toBrazilunmistakable Thus, the2014FIFA World Cupwillbring–
77 The Football Production Chain in BraziL
Project Coordinator at FGV Projetos Fernando Blumenschein the valueofspecificentities production:thefootballclubs. outlines themonetaryflowsgeneratedbytheseproducts,emphasizing he identifies thesuppliers andconsumers offootballproductsand of and its end products. In describing the flows within thischain, the footballsector, describingthe kindsofentitieswhichitismade In thisarticle,FernandoBlumenscheinrevealstheproduction chainof is currentlySeniorEconomistandCoordinatoratFGVProjetos. Sustentável, producedbyErnst&Young andbyFGVProjetos. He FGV Foundation(EBEF/FGV).HecoordinatedthestudyBrasil Sciences oftheBrazilianSchoolEconomicsandFinance of SãoPaulo(FEA/USP)andintheHigherFacultyEconomic Economics and Administration Department of the University Economics fromCornellUniversity. Hewasprofessorinthe Fernando Blumenscheinholdsamaster’s degreeandaPhDin Abstract
E TICL 79AR 80 F 2 1 • • • • • the productionoffiveendproducts: of theseentitiescanbesummarizedinterms connected institutions.Theeconomicactivity stakeholders, stadiummanagementsandother federations, playersandtheiragentsor of professionalfootball,namelyclubs, the country’s organizationandadministration comprises entities which play a direct role in collectively as “football entities”. This group institutions whichcouldberegarded chain, thereisagroupofcompaniesand At theveryheartoffootballproduction Brazilian economy. the roleplayedbyfootballsectorin to beconsideredforabetterunderstandingof flows, wheredirectandindirectimpactsare chain ofproductionbringstolighteconomic of economicactivities.Ananalysisthis football ismadepossiblebyasignificantchain sumption ofactivitiesrelatedtoprofessional Brazil. Inthiscontext,thepracticeandcon- cannot bequantified underthepresent methodology. No account was taken ofincome from activitiesunconnected withprofessional football, suchasamateur sportorsocialclubs. Certain “products”, such asbrand exposure andbroadcasting onfree-to-air TVdonotrepresent monetaryflows and consequently (“stadium receipts”). day salesandsupporterprograms Turnstile receipts,profitsfrommatch Broadcasting rights;and Brand licensingrights; Sponsorship shares; associated agencycommissions; “Federative rights”andprospective ticular socialandculturalsignificancein ing activitiesintheworld,andhasapar ootball isoneofthemostpopularsport- - other, andnegotiatetransfers premiums. which purchase“federativerights”fromeach as wellthefootballentitiesthemselves– companies –mostlysportswear–, but alsofromTVtransmissions–andlicensed rights notonlyfromclubsandcompetitions, TV –,sponsors – who acquire sponsorship companies –principallyfree-to-airandpay and institutionsarecommunications institutions. Foremostamongthesecompanies goods, consumedbyothercompaniesand goods, theotherproductsareintermediate While stadiumreceiptsrepresentendconsumer produced bytheseproducts (Figure3). (Figure 2)andoutlinethe monetaryflows suppliers andconsumersoffootballproducts production chain,itispossibletoidentifythe On thebasisofthisanalysisfootball diagrammatic forminFigure1. of footballanditsproductsisshownina broadcasting rights.Theproductionchain rights” andtheexportofBrazilianfootball relate totheimportandexportof“federative external markets,themostimportantflows materials). Finally, intermsofinteractionwith textiles, butalsoplasticandotherindustrial materials foritemssoldunderlicense(mainly (principally foodanddrink)theraw products forconsumptionwithinthestadiums are particularlyimportant,namely, the groups ofsuppliersrawmaterialswhich chain” offootball.Thischainfeaturestwo various other sectors, constituting the “indirect of goodsandserviceswhichemanatefrom possible bytheintermediateconsumption The productionoftheseplayersismade known as“thefootballsector”. This groupofcompanies and institutions is 2 1
CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT Figure 1.ProdctionChaininthefootball sector
81 82 destination –concept u Figure 2.T destination –2009(BRLmillion) Figure 3.T production production Na Na tional tional Impor Impor TOT Licensed firms A Licensed firms Broadcasting Broadcasting ts ts L companies companies Sponsors able showing football productoriginand Sponsors able showing football productoriginand Football Football entities entities Federative Federative Football Football entities entities rights rights 278 257 21 0 0 0 al la Intermediate consumption Intermediate consumption Sponsorship Sponsorship Sponsors Sponsors rights rights 887 616 271 0 0 0 y out contracts and Commercial Licensing Licensed licensing Licensed rights firms firms 38 38 0 0 0 0 Broadcasting Broadcasting Broadcasting Broadcasting companies companies rights rights 673 673 0 0 0 0 Broadcasting Broadcasting merchandise merchandise Consumers Consumers exposure Licensed Licensed Stadium revenue Brand 1,233 294 378 561 0 0 End demand End demand Broadcasting Broadcasting merchandise Federative Exports exposure Licensed Exports Brand rights rights 348 348 0 0 0 0 TOTAL 3,456 2,148 378 910 21 0 CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT BRL 3.5billionannually. to theBrazilianfootballsectoramounts As seenabove,themonetaryflowsattributable broken downintofourgroups,asfollows: Specifically, clubsproductionfigurescanbe BRL 910millionannually. companies, whichaccountsforanestimated contribution arising from communications annually, nottomentiontheimportant responsible formorethanBRL2.1billion especially theclubs,whoseproductionis heavily concentratedamongfootballentities, degree ofinformality inthiscategory, which decreases theavailability ofinformation anditsaccuracy. 5 4 3 Figure 4.Prodctionallocation amongfootball entities Other clubs Divisions C/D Division B Total Division A GROUP It should be mentioned that the economic importance of “other clubs”, in particular, can be underestimated, because of the high Base year 2009. In accordance withthetablesfor the2009season. 5 3 NUMBER OFCLUBS Theseflowsare 683 783 60 20 20 • • • • state championships,asshowninFigure4. from the National Register of Clubs and from obtained fromfieldresearchanddata figures weresplitonthebasisofinformation Following thisclassification,clubsproduction Championship (“Otherclubs”). Clubs whichdonotplayintheBrazilian Divisions CandD(“DivisionsC/D”); Clubs playinginBrazilianChampionship Division B(“DivisionB”); Clubs playinginBrazilianChampionship Division A(“DivisionA”); Clubs playinginBrazilianChampionship (BRL MILLION) PRODUCTION 1.438,33 2.147,58 346,23 199,63 163,39 SHARE (%) 100.0% 67.0% 16.1% 9.3% 7.6% 4
83 84 and well-beinginthecountry. activity whichcontributestoeconomicgrowth value, and represents an important productive thus goesbeyonditssymbolicandcultural revenue aregenerated.Brazilianfootball around whichemployment,incomeandtax importance ofthefootballsectorasahub which shouldunderlinethepurelyeconomic the sectorinquantitativetermsissignificant, It shouldalsobenotedthattheimpactof progress ofactivitiesinthesector. components makefortheuninterrupted arrangements between its principal of theproductionchainandinstitutional with other important sectors. The structure the varietyofitsfinalproductsandlinks context, thefootballsectorisoutstandingfor the economyatsectoriallevel.Inthis monetary flowsdictatethedynamicsof activities asproductionchainsalongwhich importance ofunderstandingtheseeconomic In conclusion,itisworthhighlightingthe cultural val it thus goesbeyond Brazilian f s sym bolic and oo ue. tball CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT Brazil vRussia International Friendly Match -Brazil GlobalTour 25thMarch 2013
85 War and Peace between Organized Supporters Groups: the challenge of ensuring safety in football stadiums
suring apermanent changeofattitude. of awarenesson thepartoffansandfangroups arevitalstepsinen- in 2011,wasamilestone.The monitoringofconductandtheraising of Sports.Inthisprocess,theConduct AdjustmentAgreement,signed Associations ofRiodeJaneiro, theSportsCouncilandMinistry the civilandmilitarypolice, FederationofOrganizedSupporters cess whichinvolves,amongothers, thepublicprosecutingauthorities, have been made in Brazil with the aim of reducing this violence, a pro- In thisarticle,PedroRubimBorgesFortesdealswiththeefforts that all supporters,whethertheyaremembersoftheseassociations ornot. in Brazilandothercountries,harmsfootballgeneral hurts Violence betweenorganizedassociationsofsupporters, whichexists Abstract Commission forOverviewoftheWorld CupandtheOlympicGames. Prevention ofViolence inSoccerStadiums(CNPG/CBF), andtheInternal State ForumforConsumerProtection,theNationalCommission for Junior FacultyForum.AsaProsecutor, hasbeenamemberofthe international researcherschosenfortheprestigiousIVInternational lectured atHarvard,Stanford,OxfordandUCL,wasoneofeleven and Visiting ScholarattheGoetheUniversität(Germany).Hehas Oxford University. Hehas been Visiting Professor at WB NUJS (India) from StanfordUniversity, andiscurrentlyadoctoralcandidateat he holdsmastersinLawfromHarvardUniversity, inJuridicalSciences Administration attheCatholicUniversityofRiodeJaneiro(PUC-Rio), Law atFederalUniversityofRiodeJaneiro(UFRJ)andinBusiness and ProfessoratFGVLawSchool(DireitoRio/FGV).Graduatedin Pedro RubimBorgesFortesisaStateProsecutorinRiodeJaneiro Professor at FGV Law School(Direito Rio/FGV) State Prosecutor inRiodeJaneiro and Pedro RubimBorges Fortes
E TICL 87AR 88 I Russian armycommanders. the generalsofNapoleonBonaparteorby of Rio de Janeiro (FTORJ) as an important Federation ofOrganizedSupporters Groups suspension wasapplied,andrecognizedthe right toafulldefensebeforeanycollective regards theirsongsandbanners,ensuredthe the freedomofexpressionfangroupsas to arriveatafairagreement,whichpreserved took morethanthirtyhoursofnegotiations ensure thenewlawwascompliedwith.It Rio deJaneiroandreachedanagreementto with variousorganizedsupportersgroupsin the PublicProsecutor’s Officeheldmeetings Following thisandoveraperiodofoneyear, for amaximumperiodofthreeyears). or banningmembersfromfootballstadiums (with the possibility of requiring compensation attended); (c)makingfangroupslegallyliable marital status;profession;address;schools names; identity and social security numbers; of members(name;photograph;parents’ number of members); (b) requiring registration have articles of association,depending on the them tobeincorporatedbodiesand/or (a) organizingBrazilianfangroups(requiring underwent certainchanges,withtheaimof In July2010,theSupportersDefenseLaw behavior oftheirmembers. and donothavetheabilitytomonitor supporters groupsaredisorganizedinpractice manner. According to thislineof argument, sympathizers, who behave in an independent for themtoeffectivelycontrolmembersand similar terms,claimingitisimpracticable fans, theleadersofsuchfansalwaystalkin Curiously, inthecaseofBrazilianfootball to theordersissuedbyhighcommand. act ontheirowninitiative,oftenindisobedience come lostintheheatofbattleandsoldiers and strategictheideasarebeforehand,theybe- 2 1 Tolstoy, Leon. Guerra ePaz. SãoPaulo: Cosac Naify, 2011. Hart, H.L. A.The Concept ofLaw. 3rd edition.Oxford, England:Oxford University Press, 2012. impact of action plans decided on, whether by impact ofactionplansdecidedon,whetherby warns usonvariousoccasionsofthelimited n hismasterpieceWar andPeace,LeonTolstoy 1 However logical Howeverlogical involved inproblems,asshown byTable 1. to defytheauthoritiesand wererepeatedly instruments. Two groups,however, continued with shirts,flags,bannersormusical responsible afterabanonenteringstadiums punishments, butbecamemoreunitedand only changedtheirbehavioraftersuffering avoiding suspension.Threefangroups in confrontationsandfights,consequently altered theirbehavior, avoidinginvolvement of supportersgroupshavealreadyradically Since theTAC cameintoforce,themajority existence oforganizedfangroupsatrisk. who lovesfootball,theyalsoputtheactual damage tosportandBraziliansociety of vandalism,theynotonlycauseenormous groups continuetobeinvolvedinincidents rule oflawinmodernsociety. Ifthefan but isanessentialrequirementforthe effective behavior is not just a question of semantics, Hart putsit,theinnermotivationforhuman interests ofsociety. AsthephilosopherHerbert orderly fashion and to realize that they must behave in an just becauseofthepresencepolice cease to feel compelled to behave properly The ambitiousaimofthisTAC isforfansto group members. have thusbeguntobeinternalizedbythe groups weresuspended,andthenewrules fighting, vandalismorambush,supporters matches. Sincethen,witheveryepisodeof supporters groupwassuspendedfortwo arrested someofthefansandorganized supporters. Thepolicereactedquickly, of BotafogofanstriedtoattackFlamengo authorities alreadyfacedatest.Agroup At the first weekend following this, the Groups. Conduta, TAC) for Organized Supporters Agreement (Termo de Ajustamento de 36 groupssignedtheConductAdjustment between rivalfans.Finally, inJune2011, partner intheprocessofkeepingpeace
in theirowninterestsandthe 2 CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT T Groups inRiodeJ Y Fúria Jovem doBotafogo Força Jovem doVasco Torcida Jovem doFlamengo FAN GROUP União Vascaína Urubuzada Garra Tricolor Raça ubro-Negra Força Flu able 1–C oung Flu ollective S aneiro moderate offences 6 punishmentsfor moderate offences 5 punishmentsfor major offence 1 punishmentfor minor offences 2 punishmentsfor moderate offences 6 punishmentsfor major offence 1 punishmentfor PUNISHMENTS NUMBER OF moderate offence 1 punishmentfor moderate offence 1 punishmentfor moderate offence 1 punishmentfor minor offence 1 punishmentfor moderate offence 1 punishmentfor moderate offences 2 punishmentsfor moderate offences 4 punishmentsfor anctions Appliedto OrganizedF 25 gamessuspension 15 gamessuspension 6 monthsban 2 warnings 33 gamessuspension 6 monthsban TOTAL PERIOD 1 gamesuspension 2 gamessuspension 2 gamessuspension 1 warning 2 gamessuspension 5 gamessuspension 11 gamessuspension an
89 90 essential for providing logistical support. At essential for providing logisticalsupport. At (SUDERJ) andtheMinistry forSportare In addition,thestateSports Superintendence (GEPE) andcivilpolicesuperintendents. prosecutors, thestadium police commands and non-bureaucraticdialogue between Civil Police,anditisvitalthatthereeffective Prosecutor’s Office,theMilitaryPoliceand on thecoordinatedeffortsbetweenPublic repressing violenceinthestadiumsdepends committed byfans.Successinpreventingand the groundforanyinvestigationintocrimes of conflictandpotentialaggressors,preparing out intelligencework,mappingpossiblezones illegal acts.Inaddition,thecivilpolicecarry if necessary, photographingorfilmingany the groups,monitoringtheirbehaviorand, confrontations. Onmatchdays,policeescort and routestothestadium,soasavoid with thefangroups,definingmeetingpoints matches, themilitarypoliceholdameeting with public authorities. The day before groups havebeencarriedoutinconjunction combat theviolenceoforganizedsupporters two criminalacts.InRiodeJaneiro,effortsto twenty fanswhoweredirectlyinvolvedinthe investigated andarrestedatotalofaround of sixmonths.TheRiodeJaneiroCivilPolice supporters groupsweresuspendedforaperiod In responsetothesetwoepisodes,the of ForçaJovemdoVasco. had adisagreementwiththecurrentleadership alone andvulnerabletoattackbecausehehad leader oftherivalsupportersgroup,whowas the police,targetofattackwasanex- the attackonarivalsupporter. Accordingto was comingfromstate’s heartlandwasusedfor escape theattentionofpolice,abuswhich a supporterfromForçaJovemdoVasco. To Flamengo decidedtotakerevengeandkilled in hospital.InAugust,theTorcida Jovemdo assaulted, resultinginhisdeaththreedayslater the bus,buthewaschased,surroundedand saw thathewouldbeattackedandfledfrom to anoldsuburbanrivalry, thissupporter he livedinasuburbofRiodeJaneiro.Owing Flamengo, whowasreturninghometowhere and cameacrossafanfromTorcida Jovemdo fans from ForçaJovemdo Vasco boardedabus a gamebetweenVasco andBotafogo,agroupof Força JovemdoVasco. InMay2012,following members ofTorcida JovemdoFlamengoand The twomostseriousepisodesinvolved programs for the social rehabilitation of fans programs for the socialrehabilitationof fans with amulti-disciplinaryteam andaseriesof led by Aguinaldo Fenelon in Pernambuco, successful referencepointin Brazilistheproject courts aspartofthestate courts system.The Commission isthecreation ofsupporters One oftheinitiativesput forwardbythe rest ofthecountry. Senise inSãoPauloisalsoanexampletothe security in the arenas carried out by Roberto Gerais. Theworkofsupervisionandcontrol measure byJoséAntônioBaêtainMinas for example,wasadoptedasapioneering public authoritiesandorganizedfangroups, have been implemented. The TAC between groups, andalsotheresultsofpoliciesthat and thecontroloforganizedsupporters ways forthelicensingandregulationofarenas up, whosemembersdiscussandplanthebest the PreventionofFootballViolence wasset (CBF) in2007.ANationalCommissionfor and theBrazilianFootballConfederation National Council of Public Prosecutors (CNPG) on thebasisofacommitmentassumedby all formpartofanationalpolicycommenced initiatives havebeentakeninisolation.They It isimportanttostressthatnoneofthese when thefangroupissuspended. continue tohaveaccessstadiums,even of organizedfangroups,theirmemberswill no electronicturnstilesandunifiedregistration forbidden. Unfortunately, whiletherearestill banners, shirtsandmusicalinstrumentsare a groupissuspended,theirsymbols,flags, members ofabannedgroup.Currently, when from enteringthestadiumbecausetheyare individually those supporters prohibited groups, becauseitisnotpracticabletoidentify of collectivesuspensionorganizedfan been implemented,limitingtheeffectiveness However, thisidentificationplanhasstillnot identity cardstoobtainaccessthestadium. areas ontheterracesandwouldhavetousetheir organized fan groups wouldhavetheir own the principalstadiums in Brazil.Members of electronic turnstileswouldbeinstalledinall of allmembersorganizedfangroups,and would createaunifieddatabasewithdetails (Legal SupportersGroup)programwhich would bemadethroughtheTorcida Legal throughout Brazil.Identificationofsupporters project for the registration of supporters first, theMinistryforSporthadanambitious There is involved in violence. Besides having his case examined by specialist professionals, during the no magic period he is banned from football stadiums, the fan must appear in the supporters court during the hours when matches are being played and formula to take part in educational activities designed to raise his awareness of his obligations as a fan and as a citizen. The success of this supporters solve the court has led to its extension to other big events and an “on-call” court functions during problem of carnival in Olinda (Pernambuco) to resolve crowd conflicts which occur during the event, which sees two million revelers gather during hooliganism. the parade of the Galo da Madrugada block.
These courts currently exist within Brazilian stadiums at all matches with a large attendance, and have been essential in reducing violence in the arenas. Any fans involved in violence are immediately taken before a judge by the police, for a special hearing with a prosecutor and a out a rigorous analysis of these documents and public defender. Cases can be rapidly dealt with, requires appropriate maintenance, renovation with the imposition of a penalty (community work and safety plans. Throughout Brazil there service order, fine, ban on entering stadiums, have been various cases of matches played etc.) in a flexible procedure along the lines of before a reduced capacity crowd or even behind plea bargaining cases in the United States. This closed doors in order to avoid accidents, on the system, by itself, has drastically reduced fighting recommendation of prosecutors. within the stadiums. In Pernambuco, however, the success has been even greater, because the There remain problems with the fans commuting Supporters Court supervises the suspended fan to stadiums, as well as with their return home while he completes his punishment, and this after the game. At least in the case of Rio de procedure, which is important to prevent re- Janeiro, however, the problems occured in areas offending and encourage social rehabilitation, which are far from the places where the matches does not occur in the other states of Brazil. hapenned. Currently the main locations for conflict between supporters are in São Gonçalo The fact is that all the measures which have and in Jacarepaguá (which are, respectively, been adopted over the last decade have 30 and 20 kilometers from the main football significantly increased security within football stadiums in the city). Because there are criminals stadiums. Brazil has never experienced mass linked to the organized supporters groups, it is in fatalities caused by hooliganism within these suburban districts, according to the police, football stadiums, such as the tragedies in that violent confrontations can occur, because Port Said, Egypt (79 deaths in 2012), Accra there is only one route to the football stadiums. It in Ghana (126 victims in 2001), Hillsborough was precisely because of one of these encounters in England (96 deaths in 1989) or Heysel that the death of a fan occurred in May 2012, in Belgium (39 victims in 1985). But in when he was returning to Jacarepaguá by bus. 2007 there was a tragedy in Fonte Nova, in These tragedies are a stain on the reputation of Salvador, with people falling through a hole Brazilian football and have negative externalities in the terraces, leading to the death of seven for the organizers, the clubs and the sponsors, fans. One consequence of this episode was a in so far as potential customers are influenced change in the attitude of the CBF with regard by such news and stop going to matches. Media to the licensing of football stadiums, and it researchers in the United States, however, have is now necessary to produce current reports demonstrated the existence of a cultivation effect from engineers, fire brigade, military police among television viewers, who are affected by and health inspectors in order for a stadium to news of violence and end up by believing that be used. The Public Prosecutor’s Office carries we live in a perverse world which is more violent
CADERNOS FGV PROJETOS | FOOTBALL AND SOCIOECONOMIC DEVELOPMENT 92 CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT 4 3 than itactuallyis. 7 6 5 Foucault Office, quotingDisciplineandPunishbyMichel challenged theroleofPublicProsecutor’s the hearing,ex-presidentofYoung Flu eight yearsintheorganizedgroup.Onleaving supporter becameineligibleforaperiodof performances havebeenpeaceful.Theviolent in RiodeJaneiroandprotestsagainstpoor no supportersgrouphasthreatenedanyplayer from stadiumsforuptothreeyears.Sincethen, training sessions,underpenaltyofbeingbanned assault players,damagetheirpropertyorinvade signed acommitmentnottoharass,threatenor by thepolice.Inendsupportersgroup six months,anorderthatwasdulyenforced group wasbannedfromfootballstadiumsfor As aresult,thepresidentofYoung Flu their behavior, a public civil action was filed. fans refused to commit themselves to change the PublicProsecutor’s Office,andwhenthe to anotherclub.Thecasewasinvestigatedby play forFluminenseandrequestedatransfer psychological pressure,saidhewouldnolonger the caseatpolicestation,and,feeling was followed.Thefollowingdayhereported fan grouparrived,Fredleftthebarandhiscar of caipirinhas.Whentheleaderorganized Janeiro) in the small hours drinking a number after beingcaughtintheAstorBar(Riode group Young Flu.TheplayerFredwaschased by apresidentoftheorganizedsupporters there wasacaseofseriousthreattoplayer In additiontotheincidentsbetweenhooligans, quantify andisinpracticenotindemnifiable. to theactualimageoffootballisdifficult organized fangroupslegallyliable,butdamage Law setsoutobjectiveconditionsformaking view ofrealityformostpeople.TheSupporters a longwayfromthestadiumsprovidesfalse crimes andfightsbetweensupportersoccurring have neverbeensosafe,butthepublicitygivento addition, it is a pragmatic task, a daily exercise addition, itisapragmatictask, adailyexercise and thedamagecausedby violence.Andin acts ofviolenceandreducingtheriskstosociety but toregulatetheirconduct, minimizing the not seektoabolishtheorganizedfangroups, Office isnotrepressive,butregulatory. Itdoes In reality, theworkofPublicProsecutor’s imposed onorganizedsupportersgroups. Fortes, Pedro. Brazilian sportsfans statute: anintroduction for aBritishaudience. Entertainment andSportsLaw Journal, 2013, forthcoming. Ventura, Zuenir. Torcidas domal.OGlobo, 01/09/12. Murad, Maurício. Aviolêncianofutebol. SãoPaulo, SP:Benvirá. Foucault, Michel.Surveiller etpunir:naissance delaprison.Paris, França: Gallimard, 1975. Gerbner, George. Cultivation analysis: anoverview. Mass communication andsociety, 1(3-4),175-194, 1998. 4 in order to criticize the punishments inordertocriticizethepunishments 3 Inreality, Brazilianstadiums the mainchallengewillnot be inthestadiums, supporters fromothercountries. Moreover, to facethechallengeofdealingwithviolent During theWorld Cup,theauthoritieswillhave spectacle increasinglyrare. episodes ofhooliganismwhichmarthe vengeance betweenrivalgroupsandmake suspensions shouldinterruptthecycleof to be further reduced. Arrests and collective to bepermanentandforincidentsofviolence but itisnecessaryforinstitutionalcooperation results obtainedin recent yearsarepromising, returning homeafterwards.Theconcrete football stadium,attendingthematch,and standards ofbehaviorwhengoingtothe by supportersandtheneedtoensureadequate fine balancebetweenfreedomofexpression advocated the abolition of supporters groups, The journalistZuenirVentura, forexample, have alreadybeencriticizedforbeingtoomild. peaceful withfullaccesstothestadiums.We sanctions ontheviolentandrewarding in controllingcollectiveoffending,imposing abroad, todealwiththeproblem, from successful experiments, in Brazil and problem ofhooliganism.Yet, wearelearning There isnomagicformulatosolvethe responsible forthekilling. fans andtheorganizedsupportersgroupwere to killtheVasco supporter. Boththeindividual coming fromstate’s heartlandtookotherfans stadium under police surveillance while abus Jovem do Vasco, when theleaders were at the Torcida JovemdoFlamengoagainsttheForça for example,intherevengeattackby members tocommitcrimes.Thiswasthecase, rule, theleadersofgroupssendoutjunior collective nature of the group and that,asa social occurrencewhichisprovokedbythe should ignorethefactthatviolenceisa supporters groups. and isagainstthecollectivesuspensionof individual punishmentsforviolentfans, Professor MaurícioMuradfavorsonly We were also criticized for being too harsh. would endthesocialphenomenon. existence undertheillusionthatthisalone control thesegroupingsthantoprohibittheir but itseemsabetteroptiontomonitorand 6 Itisoddthatasociologist 7 seeking a 5
93 94 will provetobepermanent. in the behavior of the organized fan groups spectacle, wesincerelyhopethatthechanges over thelongterm.Forgoodof and theCivilPolicecanonlybeevaluated Office, theSportsCouncil,MilitaryPolice cooperation betweenthePublicProsecutor’s the organizedsupportersgroupsandof Conduct AdjustmentAgreementsignedby in theshortterm,effectivenessof Despite the success that has been achieved awareness oftheneedtochangeattitudes. members ofthemainfangroupsandraise has beenvital,wheretheleadersmeetwith process ofpacification,theroleFTORJ ideas oftheirleadersintopractice.Inthis organized supportersgroupsareputtingthe opposed tothesituationinWar andPeace, to contradicttheideasofLeonTolstoy. As the violenceinfootballstadiumsappears The experienceofpreventingandcombatting event inworldfootball. and whichwemustfollowduringthegreatest combatting theviolenceinBrazilianfootball that wehaveadoptedinpreventingand and practicalexperience.Thisistheattitude certain principlesmustyieldtopragmatism 375 Englishsupportershadbeenarrested.So the daysquarehadbeendestroyedand sealing offapublicspace,andattheendof would notcountenancethepossibilityof with rivalsupporters.ThemayorofStuttgart and as a platform for provocations and fights serve asameetingpointforthehooligans should be sealed off, because it would certainly the Germansthataflightofstepsinsquare game, theEnglishauthoritiesrecommendedto the hooligansfromtheircountry. Beforeone English policeofficers werepresenttomonitor the Fun Fests. At the World Cup in Germany, managing thecrowdsinstreetsandat concern oftheBrazilianauthoritieswillbe public attendingtheWorld Cup.Theprincipal the banonclubsymbolsandvariegated owing totheenormoussecurityapparatus, CADERNOS FGV PROJETOS | FOOTBALL AND SOCIOECONOMIC DEVELOPMENT Gilberto Freyre and the invention of football-art
Brazil Against England, 1963 CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT point where Brazil became universally knownas “the country of football”. bypassed, atthe symbolic level,social,racialand economicbarriers,tothe football wasoriginallyconsidered asa“refined”sport,itsdemocratization for consideringtheconnectionbetween sportandartinBrazil.Although the social formation of Brazilian society, his ideasarethus fundamental culture”. Taking sportasalaboratory fordemonstratinghistheorieson the peoplemostresponsiblefordefining themodernconceptof“Brazilian of Brazilianfootballers.ThetermswerecoinedbyGilbertoFreyre, oneof terms “mulattofootball”and“football-art”todescribetheplaying style In thisarticle,BernardoBuarquedeHollandalooksattheorigin ofthe Abstract and History at FGV Foundation (CPDOC/FGV) Professor andR Bernardo Buarque deHollanda regionalismo epaixãoesportivaemJoséLinsdoRego. do Rio de Janeiro and O descobrimento do futebol: modernismo, jornalismo esportivoeaformaçãodastorcidasorganizadasde futebol FGV). HeistheauthorofOclubecomovontadeerepresentação:o School of Social Sciencesand History at FGV Foundation (CPDOC/ in BrazilandFrance.HeiscurrentlyProfessorResearcheratthe he carriedoutcomparativeresearchonorganizedfootballsupporters scholarship attheCentreNationaldelaRechercheScientifique,where post-doctoral work attheMaisondessciencesdel’homme,witha at theÉcoledesHautesÉtudesenSciencesSociales,andundertook Catholic Universityof Rio de Janeiro (PUC-Rio).Heheldascholarship degree andPhDintheSocialHistoryofCultureatPontifical Federal UniversityofRiodeJaneiro(UFRJ),andobtainedamaster’s Bernardo Buarque de Hollanda graduated in Social Sciences at the
esearcher at theSchoolofSocialSciences
E TICL 97AR 98 I My effortshere revolve aroundtheseparation and historical, boththetruthandastereotype. in awaywhichwasatthe sametimemythic all overtheworldas“country offootball”, tournaments by FIFA, Brazil became known with theorganizationofthese international We all know thatduringthe20thcentury, of sportandart. dialogue toconsiderthevalidityofthislinkage They are important for the establishment of a and seekthefundamentalbasisforhisviews. their properfootballcontextinthe1930s what followstoplacetheideasofFreyrein In posingthesequestions,Iamproposingin aesthetic appreciationofafinepainting? episodes whoseeffectsaresimilartothe football isanart,ordoesitsimplyproduce of asportingphenomenon?Canitbesaidthat use ofartisticmetaphorsinourunderstanding ‘naïve’ artists?Onwhatbasiscanweacceptthe when heseesBrazilianfootballersasauthentic this writer from Pernambuco a little too exotic It isalsoworthasking:arenottheviewsof in theconstructionofthis“mythorigins”? Brazilians? Whatistheroleofsuchintellectuals images stillcorrespondtorealityfortoday’s style ofplay?To whatextentdosuchexalted images validintheinventionofBrazilian appropriate toask:upwhatpointaresuch For thepurposesofthisbriefarticle,itis style oftheBrazilianteam. Friedrich Nietzschetocharacterizetheplaying in theaestheticthoughtwritingsofyoung time, Freyremadeuseofcategorieshefound phenomenon on European pitches. At the capable ofexplainingthegreen-and-gold encouraged himtocreateartisticimagery and hisliteraryphilosophicaltraining his academiceducationintheUnitedStates While followingthegamesthatyearinRecife, come inthird. held inFrance,wheretheBrazilianteam of footballcameatthe1938World Cup, and culturalpointofview. His“discovery” the Brazilianfootballteamfromanartistic first Brazilianintellectualstocommenton Gilberto Freyre(1900-1987)wasoneofthe t is a little known fact that the sociologist he sharedthe concept of“materialculture”. ‘Annales’ school,FernandBraudel, withwhom historian ofthesecond generation ofthe author ofMaîtresetesclaves withtheFrench One shouldalsorecollect the closenessof Zweig, “Brazil,landofthefuture”. famous workbytheAustrianwriterStephan by Bastide, “Brazil, land of contrasts” and the history”, a play on words alluding to the book the historianLucienFebvre:“Brazil,landof Barthes, theFrencheditionhadaforewordby edited byRogerCallois.PraisedRoland and includedinaSouthAmericancollection Grande &SenzalawasmadebyRogerBastide In the1950s,aFrenchtranslationofCasa- of BrazilliesinhisreceptionoutsideBrazil. Evidence ofthepresenceFreyreinimage by sex in relationships of economic dominance. cultural aspect,andalsoshowedthepartplayed he studiedintheUnitedStates,emphasized of theanthropologistFranzBoas,underwhom and economiclines,Freyre,undertheinfluence Instead of a history along traditional political Brazil andtheirslavesofAfricanorigin. owners ofsugarmillsintheNorthEast blacks andindigenous, especiallybetweenthe of polygamousrelationshipsbetweenwhites, devotes himselftoshowingtheimportance family lifefromthecolonialperiod.Herehe from 1933andisa reconstruction of intimate of Freyre,Casa-Grande&Senzala,dates The bestknownandmostcontroversialwork “mulatto football”and“football-art”. of mixedraceandforinventingtheterms was oneofthoseresponsibleforthe adulation the modernconceptof“Brazilianculture”.He for the definition of what came to constitute Freyre wasoneofthoseprincipallyresponsible known books,theBraziliansociologistGilberto newspapers ofthetimeandinnotesforlesser because hisreferencestofootballappearin Although thereislittlediscussiononthepoint, in theconstructionofnationalimagination. imagery whichshowstheroleofintellectuality a historicalcontext,ofthe evolution ofsuch of the myth from history and the re-tracing, in CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT substituted “footballforfootball’s sake”. and forGustaveFlaubert’s “artforart’s sake” origin oftragedy”,madeuse artisticmetaphors Thus Freyre, a reader of the Nietzsche of “The a straightline. recently inventedWM)andpassingtheballin training, adherencetotacticalsystems(the others – based on team play, methodical Europe –CzechoslovakiaandPoland,among football, inparticularthestylesofEastern considered tobeEuropean“scientific” This stylewascontrastedwithwhat angular effectstracedbytheballcurvingpath. individual skill,theswerveorfeintand to provesurprisingandcreative,basedon style ofplay. Asweknowtoday, thisstylewas phrase “football-art”todescribetheBrazilian Gilberto Freyrewritesinthepressandcoins back of these events in Europe and inBrazil, tournaments inthe1920sand1930s.On idols, ashadhappenedwithSouthAmerican team turnstheplayersintoveritablenational The warm reception met with by the returning the team,knownas“theblackmarvel”. forward LeônidasdaSilva,thegoalscorerof tribute totheperformanceandcelebrates Despite onlycomingthird,thenationpays great enthusiasm by the Brazilian people. France, whichisfollowedontheradiowith appears atthetimeofWorld Cupin Five yearslater, in1938,the sameFreyre and originalcultureinthetropics. with blacksandindigenousproducedanew and adaptability, thePortugueseintermingled Africa andtherestofEurope.Showingflexibility time oftheDiscoveries,standingbetweenNorth Portuguese werethemselvesofmixedraceatthe England andFrance,Freyrearguedthatthe In contrasttothecolonialexperiencesofSpain, of thePortuguesecolonialperiod. democracy”, aswellanelegytothelegacy considered thebooktobeadefenseof“racial of the University of São Pauloat the time Brazil, by contrast, historians and sociologists If FreyrewaswellreceivedinFrance, typical ofthe1930s. connected withcertainaspects ofmigration be understoodinhistorical terms,whichare concession bythelocalelites. Theycanonly not, however, simplytheresultofabenevolent The transformationsoffootballinBrazilwere world offootball. at asymboliclevel,accordingtoFreyre,inthe social, racialandeconomicbarriers,atleast of society, democratizationbrokedown students fromthemostwell-heeled sections Originally a“refined”sportforforeignersand terraces totheheartofprofessionalfootball. the workingclassesfromsuburbsand popularization ofthesportinBrazilbrought the 1930sthatunexpectedspreadand It waspreciselyinthosefar-off daysof the footballfield. African origin,transplantedtotherectangleof more the simulation of dance patterns of therefore, not somuchphysicaleducation, The explanationofthephenomenonis, sport –toanaestheticbasisfinemovement. went fromanethicalbasis–educationthrough toe. ThedisciplinedgameofBritishschools football, asconceivedinEngland,fromtopto This style of playing transformed the roots of as sambaandcapoeira. have beenmoldedintopopulardances,such from AfricantraditionsandwhichinBrazil origins ofthese“bodilyskills”,whichdescend be explainedbypayingcloseattentiontothe Brazilian playersseeninFrancecouldonly Freyre usedtosaythattheabilityof perfectly workedoutofhistheories. through sportcametobeknownasthemost in thefuture.Thesocialriseof“mulattos” with potentialdevelopmentsinthepresentand concerned with past epochs frozen in time, but happening infootball.Hisoriginalitywasnot could beconfirmedifonelookedatwhatwas development ofBraziliansociety. Thesetheories he coulddemonstratehistheoriesonthe The authortooksportasalaboratorywhere
99 100 contributed to the morerapidgrowthoffootball. where immigration andsocialdevelopments had results andtitles.Thesewere bothcountries inferior toArgentinaandUruguay intermsof It shouldbeacknowledgedthat Brazilfeltitself be imitatedintermsoftechnique andtactics. developed thanBrazil,and a genuinemodelto in 1930. Argentina, also, was seen as more Games andhadalsowonthefirst World Cup already been victorious at two Olympic neighboring Uruguay?Thecountryhad What, incontrast,washappeningwith up to1938?Almostnothing. what hadBrazilwonattheinternationallevel Of coursethistheorycannotignorethequestion: to delightthespectators. an aimwhich,evenmorethanwinning,seeks present onthefieldofsportwhereverthereis in hisThirdCritique,andthatitsspiritis as definedbythephilosopherImmanuelKant action, without practical or utilitarian purpose This istheideathatartafreeanddisinterested this idea. mention istherhetoricalstrategyunderlying emphasizes competition,whatFreyredoesnot that emphasizesspectacleagainstastyle is contrastedwithscientificfootball,astyle This meansthatthemomentartisticfootball context oftheexpression. pay attentiontotheoriginandhistorical the term“football-art”isused,weneedto of theirownmixedraceorigins.Butwhen of FreyrebecameforBraziliansaselfportrait This being so, it will be seen how the theories mixed race,workingclassorblack. by playersfromthelowerclasses,whowere were inpartobligedtoreplacetheseathletes therefore facingavacuumintheirteamsand The traditionalclubsoftheelitewere in theWorld Cupof1934. and endedupwearingthebluestripeofItaly members of the Brazilian team, were recruited de JaneiroandSãoPaulo,whohadbeen Various playersofItalianorigininRio return ofemigrantswhohadplayedinBrazil. had repercussionsinSouthAmerica,withthe Italian government. The efforts of Mussolini in 1934,featuredthedirectinvolvementof Preparations forthesecondWorld CupinItaly, international level. football leadingtoawholeseries ofvictoriesat play asawhole,ofcollective skill,ofdelightful of isolatedepisodesbrilliance, butofthe The aesthetic effect was now the result not only was notonlypure,italso highlyeffective. World Cup victoryinMexico.Theartisticstyle football, culminatingin1970 with a third of whatwastermedtheGoldenEraBrazilian The victoryinSweden1958sawthebeginning onto thescene:Pelé. in 1938,whenanother “black marvel” burst Leônidas, the“inventorofbicyclekick” overcome twentyyearsafterthesuccessof This ambiguityremainedandwouldonlybe team onthefootballfield. Brazilian people,representedbyamixedrace which reflectedtheemotionalinstabilityof expression of a defective collective psychology, with thedefeatsof1950and1954seenas skill; oritcouldunleashfeelingsofinferiority, the abilitytoconjureupindividualflashesof could producepositivefeelings,resultingfrom There wereambiguitiesinsuchasituation:it or superiorintermsofgoldmedals. Brazilian teamwasfarfrombeingvictorious understood inahistoricalcontextwhenthe So theemergenceof“football-art”shouldbe art, playednottowinbutproducedelight. suppleness, which aimed to practice football- Carnival, theproductofacertainphysical Brazilian style,directlydescendedfrom It wasinthiswaythatBrazilinventedthe samba, salsa–andthesportofBretonorigin. links betweentheirlocaltraditions–tango, practices, SouthAmerican countries were forging century, asEuropewasexportingitssporting in LatinAmerica.Atthebeginningof20th music, danceandsportinvariouscountries Archetti who stressed theconnection between It wastheArgentineanthropologistEduardo but inmostcountriesoftheso-calledperiphery. sporting practicesexistednotonlyinBrazil, The relationship between cultural habits and the games. thousands ofEuropeanspectatorswatching to valuetheeffectofblackfootballerson ethnic differences,todespisetheresult,and saw verywell,wastoexploitthetechnicaland Brazil’s onlyadvantage,therefore,asFreyre CADERNOS FGV PROJETOS |FOOTBALL AND SOCIOECONOMIC DEVELOPMENT World Cupof 1970: FinalBrazil vs. Italy4:1
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