For years in the
Spanish La Liga, Real Madrid and Barcelona have always dominated the allocated
TV rights money, leading to other sides in the league struggling to stay
financially afloat, or having to sell their best players on a regular basis.
This has led to the league being fairly noncompetitive and on times
predictable. Teams like Valencia in recent years have arguably been hit hardest
by this lack of fair TV rights money distribution. For example Valencia have
been continuously forced to sell their best players over the years such as Juan
Mata, Jordi Alba and David Villa in order to not stray near to administration.
Also clubs like Atletico Madrid have also been forced to sell star players such
as Fernando Torres and Radamel Falcao. On times it may be because a player
wishes to move on, however it is not a coincidence that it is
generally only Real Madrid and Barcelona who have the final say
on whether they want to sell their best assets. This is because
they possess financial domination within the La Liga, and yes,
they might be the most successful sides in the league, but a huge
portion of their income is from the unbalanced distribution of
the TV rights. However on the 27th April 2015 a legislation was passed which provided a definitive rule in which the money from TV rights that La Liga retains every year was from the 2016/17 season to be distributed evenly throughout all the leagues clubs.
The two Spanish giants. |
However this is all set to change, and clear
the way for a fairer and more competitive Spanish La Liga. From the 2016/17
season, the Spanish La Liga TV rights will far more evenly distributed to all
the sides within La Liga, and not just Real Madrid and Barcelona (The Guardian,
2015). The structure will be similar to the current method in which the Premier
League pays out finance from TV deals, and will be evenly distributed across
all 20 teams, no matter how popular or successful they are. For example Q.P.R,
the side who finished bottom of the Premier League in the 2014/15 season earned
more money from TV rights than
Atletico Madrid, who finished 3rd in
their division, Cardenal said (The Guardian, 2015). This reflects the in balance
in the way that the TV rights money in La Liga is distributed. Most clubs in
Professional football heavily rely on TV money in order to keep financially
stable. Without this financial stability within the La Liga, well performing
teams such as Malaga F.C, Villarreal C.F, and Real Betis have on time found
themselves relegated, due to not being able to keep their best players, as a
result of financial restrictions.
A revealing diagram showing the unbalanced state of affairs. (Euros) |
So how will this actually affect Real Madrid
or Barcelona in a negative way? When the legislation passes and gives equal TV
rights to all sides in the league it will leave Real Madrid and Barcelona with
roughly £120 - £140 million less a year. And considering financial fair play is
beginning to take effect, this could furthermore restrict the two Spanish super
clubs from spending big money, buying the latest ‘Galactico’, or poaching young
stars from within minnow clubs. Will this lead to cuts in wages or financial
power that the big clubs have in the transfer windows? It must, Barcelona are
already very careful with their distribution of wage, with only two players
within their respective squads who are above the £200k pay threshold, and a
majority of the players earn £130k a week or less (TotalSportek). Taking the imminent
TV rights implementation on La Liga this will lead to the two super clubs in
Real Madrid and Barcelona having to look elsewhere for that extra £100 million
that they would normally receive from the allocation of TV rights money. This will
result in further wage cuts, which could then have a huge impact on the players
who are at the top of their respective teams like Lionel Messi and Cristiano
Ronaldo. The modern day footballer is short of loyalty and if Barcelona or Real
Madrid cut their wages further and say they cannot make as many marquee
signings, the best players will up and leave.
In conclusion as a result of the imminent new
TV rights legislation's being implemented in the Spanish league, this could
provide clubs in England such as Manchester United, Arsenal, Chelsea and Manchester
City with an huge advantage going into European competition. It will also lead
to the La Liga becoming a more competitive and entertaining league, as most
football fans would not want to watch a game like Real Madrid vs Eibar, as they
know it will be like a training game. Clubs will be able to retain their good
players easier and therefore will be able to build decent squads, like the
clubs in the Barclays Premier league.