Capitalist Soccer and Socialist Football

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Former congressman
and star quarterback Jack
Kemp
once said that "…a distinction should be made that
football is democratic, capitalist, whereas soccer is a European
socialist sport,” in a
June 19, 2006 column Kemp recanted
(well, sort of). His new
view is that "…I love soccer, but it's still boring. Oops,
there I go again." In actuality, I rather liked Kemp's column.
It's witty in a tongue-in-cheek sort of way. But is there a kernel
of truth in his musings (both old and new)?

Let's consider
the economic issues first. Granted, Europe is generally more socialistic
than America, but it is not the case in professional team sports.
Here are just a few distinctions:

  1. Revenue
    sharing and salary caps.
    Both are essentially wealth redistribution
    programs aimed at guaranteeing similar outcomes. Imagine Toyota
    and GM sharing revenues with Ford and Nissan! The latter example
    would be unthinkable in most industries yet it is the norm in
    football. On the other hand, there is no revenue sharing in European
    soccer. The most profitable soccer teams in the world, such as
    Manchester United, Real Madrid, and Milan, do not share revenues
    with soccer minnows. Nor are there any salary or spending caps.
    Russian billionaire Roman Abramovich purchased Chelsea, a middle
    of the road English soccer club, and proceeded to turn it into
    a European powerhouse by spending prodigious amounts of money
    on star players such as Frank Lampard, Didier Drogba of Ivory
    Coast, Michael Ballack of Germany, and Andei Shevchenko of Ukraine.
    Many in England complained bitterly and still do, but as long
    as Mr. Abramovich has cash to spend no one can do anything to
    stop him.
  2. Draft.
    Another program aimed at equalizing outcomes. In football, as
    well as in other American team sports, weaker teams are subsidized
    by allowing them to sign up the best young players at below market
    prices. Think Vince Young, LeBron James, etc. There is no draft
    in soccer. Any club is welcome to join in the bidding for any
    player it wants and jack up the price — the sky is the limit.
    Not so in American sports. Consider the following example: It
    is reported that Cleveland is prepared to offer LeBron 75 million
    dollars for five years, which is the maximum allowed amount. Just
    imagine if there were no salary caps and any team could offer
    LeBron any amount it saw fit. A hundred million, anyone? Two hundred
    perhaps? Instead, the current system subsidizes team owners at
    the players' expense (yes, I know that LeBron plays basketball,
    not football, but the system is similar).
  3. Promotion/relegation.
    Team owners in the NFL belong to a very exclusive, private club.
    To gain entry, one must not only be very rich but get the members'
    consent as well. It is much easier to become a team owner in soccer.
    First, since there is no revenue sharing, small market teams cost
    many times less than big market ones. Second, there is the promotion/relegation
    mechanism. This is how it works. There is usually more than one
    soccer league in any country (there are four in England). Every
    year, a few top lower-league teams (usually two) are promoted
    to a higher-league, while the same number of bottom higher-league
    teams are relegated to the lower-league. Lower-league teams are
    much, much cheaper than higher-league teams. One can buy a lower-league
    team, hire a good coach, invest money and eventually see it promoted
    to the top league. Since it is easier to become an owner of a
    soccer team, there is more competition than in football — does
    this sound socialist to you?

Other issues:

  1. Soccer
    is a European sport
    . Soccer is not just European. The top
    dog in soccer is Brazil. Soccer has been the sport of Latin America
    for a long time. It is also the top sport in Africa. Ghana just
    beat the Czech Republic and the U.S. at the 2006 World Cup in
    Germany. The African dream nowadays is to become a star soccer
    player, move to Europe and make a lot of money. Many fine African
    players now star at top clubs in England, Spain, France, Italy,
    and virtually everywhere else in Europe. Soccer is on the rise
    in Asia and even the U.S. It is the only true world team sport.
  2. Football
    is a democratic sport.
    First, there is much coaching in football
    during games. Since offence and defense are played by different
    players, coaches have many chances to direct the game. Soccer
    is more fluid. Coaches have fewer chances to influence the game.
    There is only one break and the game has no long pauses. Second,
    a quarterback calls every offensive play in football. There is
    no such top-down management in soccer.
  3. Soccer
    is boring.
    I agree with Jack Kemp up to a point. Yes, soccer
    is boring to a novice since it is indeed a slow and low-scoring
    game. But, to an avid fan, there are many other things worth looking
    at. On-the-ball skills, dribbling, deft passing, fearless tackling,
    movement of players without the ball — a thousand little things.
    Soccer is boring to many Americans for the simple reason — lack
    of understanding of subtleties. If you invest time and effort
    in figuring out these little things, soccer will amply reward
    you.

June
24, 2006

Sergei
Boukhonine [send him mail]
is a native of Ukraine. After getting an MBA from the Rochester
Institute of Technology, he worked as a CFO in Moscow for seven
years. Currently, he is a PhD candidate at the University of Houston
in management information systems.

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