HE football This is one of the following Spain’s major economic sectors. Not because of its direct revenue meaning (more than 4,000 million Euros a year), but because of everything that revolves around it and the media speaker it has. For better and for worse. Fueled by the team’s victory in the Women’s World Cup one Sunday, the Spanish brand is deteriorating the following week due to the behavior of the President of the Royal Spanish Football Federation (RFEF) during the final. Luis Rubiales cried repeatedly, “I won’t resign,” after he kissed football player Jennifer Hermoso without his consent in his last hearing, where his resignation is expected. He said he would not resign because he represented “the best management in Spanish football”. So what does the federation actually manage and how much work does it do? Did it work as you say?
Cool numbers will support this argument. Rubiales became president in May 2018, ending the long tenure of Ángel María Villar. Planned by the latter and conducted by the former with the World Cup held in Russia, that year closed with some events. total revenue 180.4 million. Again with the appointment of Qatar, this figure has already risen to 347.8 million in 2022, the year of the World Cup. Although there was a slight decrease over the past year, the cumulative increase of 79% was gradual and with key moments explaining this increase.
In terms of profitability, total net profit for the last five years amounted to almost 58 million, Although it is focused on 2021 and 2022. The criticism of clubs is clear here: is the federation there to make money or to reinvest in the competitive pyramid? The final exercise could be completed positively as the initially budgeted aid and strategic investments for the football teams were cut. Rather, these reserves show they could be used for the latest project that Rubiales has announced: the construction of a Wembley-style stadium. It is an investment in line with the strategic line of his tenure, which is to restore the federation’s powers, expand the business and occupy a more dominant position in the Spanish football ecosystem compared to LaLiga.
conflicts of authority
Because what exactly was RFEF and what is it today? Contrary to what many people think, the federation is a private organization and yes there is a public delegation on the promotion of football. And it tends to create confusion because of the organizational system that mimics politics. The organization is mainly responsible for regulating this discipline in the country, transmitting the rules approved by UEFA and FIFA, and suggesting how the state competition pyramid should be. This is where the jurisdictional disputes that marked Rubiales’ tenure and explain the strong growth in business come into play.
RFEF’s sales are divided into two axes: the processing of chips and the provision of services such as arbitration, and the organization and commercial use of tournaments. There are no professional leagues among them, because Sports law since 1992 stipulates that these should be managed by clubs. In other words, the federation organizes and markets all state competitions that take place in Spain, with the exception of the First and Second Division (LaLiga) for men and, since 2022, the First Division (Liga F) for women. It currently features Cup and Super Cup in men’s and women’s football, as well as semi-professional football for men and women through the First, Second and Third Federations.
also futsal
Since 2019 he is also responsible for the First and Second League of national futsal and cup tournaments. It is a decision that also caused a division in the futsal world by dividing the clubs in the league between those who participated in the RFEF and those who continued to support LNFS, the association of clubs responsible for organizing the competitions until then. . Rubiales pledges futsal clubs to double TV revenue; But after five games, he was never able to meet the nearly $1.2 million annual contract LaLiga paid LNFS clubs for the audiovisual rights.
This is one of the biggest mistakes of his administration, because all the tournaments in which he regains his authority today, with the exception of the Spanish Super Cup, generate less revenue compared to when the clubs had them. the aid they received was increased by subtracting them from other items. Another question is that changes in the accounting of certain tournaments, or the increase in the value of some remaining rights that he did not manage, have caused the federation to reach record billing levels, and this has only been seen in Europe. Exceeded by the almighty England Football Association.
Let’s start with the audiovisual space, which has grown from 64 million in 2018 to 111 million in 2022. The big leap here was made especially in 2020. He managed to double the money he received from LaLiga due to RFEF’s audiovisual rights. The 2015 Royal Decree regulating the joint marketing of the First and Second matches reserved 1% of the amount for women’s and amateur football, but in 2020 this proportion, called the Viana Pacts, was increased to 2%. Contests can be restarted amid the pandemic. The figures for this concept increase from 17 million to about 35 million annually. To this we must add that it receives from UEFA and FIFA, which are tasked with selling broadcasts of national team matches, as well as the growing European Cup and World Cup broadcasts.
Finally, key to this increase in television revenue has been the withdrawal of the 2019 mandate from LaLiga to market the Super Bowl and King’s Cup. This deal provided a minimum of 10 million clean funds for the federation to reinvest in the base, and LaLiga was able to bring them to market for around $45 million a year. But since 2020, audio-visual market sources guarantee: The value of the two tournaments fell below 30 million per season Not being sold as a block with LaLiga. That is, RFEF has tripled the amount calculated by the publications for both designations, but the remaining net balance is below the aforementioned 10 million due to how legislation determines the distribution of money from the Cup.
Where the federation can hang the medal is the format change of the Spanish Super Cup and what it means. The two million he can get for his broadcast The tournament now generates 40 million revenue per yearThis was instrumental in the growth of ad and visual element from 33.9 million to 82.6 million between 2018 and 2022. This leap has come despite the fact that the pyramid of sponsors accompanying Red has shrunk compared to the 2018 boom. He won victories at the 2010 World Cup and Euro 2012. Although the list of collaborators today is quite long, only Adidas, 3D Factory, Iberia, Halcón Viajes, Cervezas Victoria and TCL have sponsor status.
Revenue from sports activities also increased significantly, growing from 32.39 million in 2018 to 70.21 million in 2022. This includes a smaller portion of Super Cup revenue, as well as Sports performance payments made by UEFA and FIFA for their tournamentsand their participation in different European Cups, World Cups and qualifiers exceeded 10 million per year. But it also includes an extra item of growing LaLiga funds for the social protection of women and amateur football, which has nearly tripled over the past five years to 8.5 million. Another determinant in this improvement is not new income, but the change UEFA has made regarding who will manage the solidarity funds for teams that do not compete in the Champions League, Europa and Conference League. This 12 million previously went directly to LaLiga clubs, but since 2020 it has been the RFEF that has recorded this revenue, but it only acts as an intermediary in transferring this money to teams with infrastructure academies.
more for licenses
Here comes the income of a regulator, which is no less than 80 million annually. Although the number of federal enforcers has remained relatively stable, the rise in prices means: Revenue from player licenses increased 69% between 2018 and 2022This number, up to 17.5 million, is mostly undertaken by both male and female professional clubs. Similarly, the quotas paid by these teams increased by 64% and reached 1.2 million. Teaching activity, such as courses to become referees or coaches, contributes another $1.6 million to the 810,000-euro sales of sporting goods.
But if there is a notable and strong increase in the federation’s administrative work, it is in arbitration. Clubs pay 125% more today than in 2018It went from 18.35 million to 41.36 million. The increase was gradual and almost entirely borne by LaLiga; This year LaLiga has demanded that the arbitration group stop being dependent on the RFEF and become an independent body and be more obedient to professional football, which pays the bulk of the bill. . In fact, as with UEFA’s help, the regulator acts only as an intermediary and redistributes this money among the members.
This is the last front Thebes has opened as a result of repeated criticisms of the lack of common criteria or the mistakes of VAR, a pulse they think should be listened to, because for the money they pay for this service, The 18 million transferred to the federation with the coordination agreement is added to this. and all the bills they pay annually. In fact, they are responsible for about a third of all business between LaLiga and their clubs; 2% of television rights, coordination agreement, administrative services and arbitration payments, with approximately $130 million per season.
That hasn’t stopped the federation from trying to get a bigger share of the professional football pie, as it has been sued against LaLiga for three years of Friday and Monday games. Despite the positive attitude of the Supreme Sports Council (CSD) on the competition, The regulator continues to charge an additional $15 million per year in exchange for allowing use of this time slot.. His multiple conflicts with the central government as referee were also transferred to the F League, where he tried to stop his professionalization so as not to lose control, and now wishes to retain half and a stake in his business. significant price increases in arbitrations, licenses and fines.
More money for ‘staff’
Because, without the Saudi Arabian Super Cup and the increase in the amount paid by professional football in this period, it was almost impossible to make a breakthrough in the distribution of aid. The money received by clubs rose 120% to 88.7 million between 2018 and 2022, excluding Super Cup payouts and part of the Copa del Rey for professional football. Yes definitely, It is always an amount that remains around 20% of the expenses.The weight of regional aid, on the other hand, decreased by almost half and remained stable at around 35.5 million.
What is rising personnel expensesoutgoing From 14 million in 2017 to 34.5 million in 2022. More workers, better salary (10.5 million) for team staff and also a significant increase for the chairman. According to the latest information available on the RFEF transparency portal, from €150,000 gross for Villar to €657,000 for Rubiales in 2022. “I will not resign,” he said last Friday, before being suspended by FIFA.