Prof. Dr. Timm Beichelt Viadrina Summer University Political Economy of Football Session I – 06.06.2012 Overview: Political Dimensions of Football on the Global, European, National, and Regional Level Program 06.06. Overview: Political Dimensions of Football on the Global, European, National, and Regional Level (session 1) 08.06. The EURO 2012: Political Tales of Two Countries (session 2) 11.06. Football and Nationalism (session 3, co-session with core course I) 13.06. Politics and Football in Democracies: Cultural Capital, Tycoons, and Free Riders (session 4) 18.06. Racism and the Far Right in Football (session 5, co- session with core course I) 20.06. Politics and Football in Autocracies: Economic Capital, Oligarchs, and Generals (session 6) Student presentations Date Session topic Topics of student presentations 06.06. Overview: Political Dimensions of • Football and Politics: FIFA Football on the Global, European, • Football and Politics: UEFA National, and Regional Level 08.06. The EURO 2012: Political Tales of • Football and Politics in Poland Two Countries • Football and Politics in Ukraine 11.06. Football and Nationalism (co- Student presentations by members of session with core course I) core course I 13.06. Politics and Football in • Football and Politics in Italy Democracies: Cultural Capital, • Football and Politics in England Tycoons, and Free Riders • Football and Politics in Germany 18.06. Racism and the Far Right in Student presentations by members of Football (co-session with core core course I course I) 20.06. Politics and Football in • Football and Politics in Russia Autocracies: Economic Capital, • Football and Politics Egypt Oligarchs, and Generals Student presentations Date Student presentations 06.06. Mathias Gerspacher (Football and Politics: FIFA) Oskar Jan Mross (Football and Politics: UEFA) 08.06. Dirk Andrews (Football and Politics in Poland) Olga Zhdanova (Football and Politics in Ukraine) 13.06. Ivo Bosilkov (Football and Politics in Italy) Sofia Elena González (Football and Politics in Spain) Patrick Stief (Football and Politics in Germany) 20.06. Khurshed Tojiboev (Football and Politics in Russia) Elena Bruckner (Football and Politics Egypt) a) short outline of major events that link football and politics in the given country, b) specific contribution of football to national identity (what elements/arguments/factors are involved) c) usage/ instrumentalisation of football by political actors. From there, we will start our discussions. Political Economy of Football; Basic Concerns • Interdependencies between the spheres of politics, economics, and football; in particular: 1. How are actors in football dependent on the economic sector? 2. How and where do political actors influence the football market? • Market qualities of football; in particular: 3. Does the loyalty of football consumers distort market mechanisms? 4. How do clubs/actors deal with the specific market qualities of football? Political Economy of Football; Basic Concerns • Interdependencies between the spheres of politics, economics, and football; in particular: 1. How are actors in football dependent on the economic sector? 2. How and where do political actors influence the football market? • Market qualities of football; in particular: 3. Does the loyalty of football consumers distort market mechanisms? 4. How do clubs/actors deal with the specific market qualities of football? Economic Dependence http://www.spiegel.de/fotostrecke/fotostrecke-73312.html English Premier League: Sheikh Mansour bin Zayed Al Nahyan (Arab Emirates) bought about 90% of shares of Manchester City in September 2008. Costs: about £200 million. Investment in club since 2008: about £700 million. Manchester City won the Premier League championship in 2012 (FAZ: “The most expensive title in the history of football”) Economic Dependence http://www.abendzeitung-muenchen.de/media.media.e272b8e6-47bd-44c8-8438-bd08bb246bda.normalized.jpeg http://www.waho.org/reports.asp?ID=SAUDI Economic Dependence Germany: Russian state controlled Gazprom is main sponsor of Bundesliga club FC Schalke 04 since 2007. Estimated amount of sponosoring so far: €125 Mio. Euro. http://www.schalke04.de/uploads/RTEmagicP_110518_gazprom.jpg http://365news.de/wp-content/uploads/2012/03/fc-schalke-04.png Economic Dependence Leonid Arnoldovich Fedun, partial owner of Russian Lukoil which runs as main sponsor of Spartak Moscow. http://sportemblems.ru/files/344.jpg http://www.football-shirts.co.uk/fans/wp-content/uploads/2009/03/spartak2.jpg http://www.aktuell.ru/russland/menschen/lange_biographie/leonid_arnoldowitsch_fedun_98print.html Economic Dependence Emirates (State owned Airline from Dubai, United Arab Emirates), Sponsor of FC Arsenal in British Premier League and one of the Official Partners of the FIFA Worldcups South Africa 2010. http://cache2.allpostersimages.com/p/LRG/18/1851/EV58D00Z/poster/arsenal-emirates-stadium.jpg http://arsenalfcblog.com/wp-content/uploads/2010/10/N_L_H86808Yy.jpg http://static.guim.co.uk/sys-images/Sport/Pix/pictures/2010/2/16/1266335800621/Emirates-001.jpg Economic Dependence Second League, Germany: Hasan Ismaik (Jordan) receives 49% of shares of TSV 1860 München for about €33 million in May 2011, saving the club from insolvency. Ismaik‘s H.A.M. deals with oil and real estate. http://www.kicker.de/news/fussball/2bundesliga/startseite/555344/artikel_schneide r-dementiert-ruecktrittsdrohung.html Economic Dependence US-American Real Estate Investor Stan Kroenke owns FC Arsenal London since 2011. At the same time, Kroenke also owns teams in the American NBA (basketball) and the American NHL (ice hockey). Arsenal is said to be the only profitable top club of the Premier League. http://www.ground-hopping.net/images/CLUB/orig/64e5351ee3081c019423f24d21345515.jpg http://i.dailymail.co.uk/i/pix/2012/02/24/article-0-11D6263F000005DC-479_468x368.jpg Economic Dependence Austrian entrepreneur Dietrich Mateschitz holds 49% of shares of Bull. In 2006, he bought the New York MetroStars (soccer) for 30 million US$. Red Bull is also main sponsor of Red Bull Salzburg (First Austrian Football League) and Red Bull Leipzig (German Amateur League) http://www.rockefeller-news.com/4828/red-bull- will-mit-mobile-sparte-weltmarkt-erobern/ Logo seit 2008 Logo 1996-2002 Economic Dependence http://www.cordialcup.com/de/verein/fc-red-bull-salzburg-1.html In 2005 Red Bull took over Austrian Salzburg (Austria) and renamed the Club Red Bull Salzburg. Economic Dependence Roman Abramowitsch (Russian oligarch) bought FC Chelsea in 2003 for about €210 million. Chelsea won three national championships http://www.thehardtackle.com/2012/andre-villas-boas-is-better-off-without-chelsea-not- vice-versa/ and, finally, the European Champions league trophy in 2012. http://www.emirates247.com/sports/football/getafe-deny-sale-of-club- complete-2011-04-24-1.384542 FC Getafe (Spain) is owned by the Royal Emirates Group of Companies (Dubai). Owner Sheikh Butti bin Suhail al- Maktoum is said to have paid between €70 und 90 million. The club is now named unbenannten „Getafe Club de Fútbol S.A.D. Team Dubai“ . Economic Dependence Florentino Perez, a real estate tycoon, has been president of Real Madrid from 2000-2006 and again since 2009. Perez is famous for the Galacticos strategy, attracting world stars like Zinedine Zidane (2001), Ronaldo (2002), David Beckham (2003), Michael Owen (2004), and Robinho (2005). • http://www.dailymail.co.uk/sport/football/article-1197114/Florentinos-fantasy-team--Kaka-Ronaldo-Benzema-Albiol-push-Real-Madrid-spree-200m--follow.html Economic Dependence: summary Aim of owners/ Aim of owners/ sponsors: social sponsors: financial capital revenue Corporate Manchester City Manchester United , sponsorship across FC Chelsea (Premier FC Arsenal (Premier national borders League) League), FC Schalke (Bundesliga) Corporate Spartak Moscow Red Bull Salzburg sponsorship within (Russia) (Austria) national borders FC Hoffenheim (Germany) „Sustainability or not? Bundesliga vs. Premier League Bundesliga Premier League Turnover €1.94 billion €2.7 billion Revenue from TV €470 million €1,19 billion sales National: €430 million National: €717 million International: €40 million International: €480 million Advertising/ €522 million €560 million sponsoring Debt €594 million €3,5 billion Wages of players €780 million €1,7 billion Visitors per game 41.100 35.400 Figures are for season 2010/2011. Frankfurter Allgemeine Sonntagszeitung, 13.05.2012, p. 19 Political Economy of Football; Basic Concerns • Interdependencies between the spheres of politics, economics, and football; in particular: – How are actors in football dependent on the economic sector? – How and where do political actors influence the football market? • Market qualities of football; in particular: – Does the loyalty of football consumers distort market mechanisms? – How do clubs/actors deal with the specific market qualities of football? Influence of political actors on football • Rules, Laws, Regulations on football (primary legislation) • Rules, Laws, Regulations on consequences of football (secondary regulation) • Building up social and political capital • Football as a stage of interaction for politicians Legal dimension, identity dimension, instrumentalisation dimension Influence of political actors on football Active football politics Passive football politics (Legal dimension, primary and (identity dimension, secondary legislation) instrumentalisation dimension) Global Level European Level National Level Regional Level Student presentations