Every couple years, owners grumble that the rise in player salaries and transfer fees outstrips the rise in revenue. This is true of all major sports, not just football, and owners have become adept at envisioning new revenue sources. I wanted to discuss the advancements made in each sport and come up with some best practices. Forgive me for speaking in generalities - I don't have the time or access to the right data to precisely quantify my insights.
Baseball
Though broadcast rights are negotiated collectively, the Yankees found a pot of gold when they started the YES network in 2002. Though YES does not have rights to live Yankee games, it shows other team content as well as minor league games.
American Football
American football not only has a salary cap, but contracts are not guaranteed. If a player is waived (due to injury or poor performances) he essentially becomes a free agent!
European Football
European football has made two significant innovations in this arena: first, most leagues allow teams to sell advertising space on their jerseys. No American sports do this. Second, they tap into foreign markets with lucrative summer tours. The NFL and NBA are just starting to do this with early-season games in Europe, though they seem more like a publicity stunt than a focused moneymaking effort.
Having reviewed innovations in each major sport (and the absence of basketball and hockey is simply because those sports have made zero contribution to this discussion), it's time to give advice. For football teams, the uncharted territory would seem to be in television. FC Barcelona already creates special content on their web and loosely calls it Barca TV. Why not launch a cable channel and earn revenue from subscribers and advertisers?
American sports could learn from soccer, too. Why not sell advertising on jersey space? It gets cluttered if you go to the lengths of South American teams where every inch is filled, but one or two sponsors isn't too tacky. And, more importantly, why not launch summer tours of in-demand markets? Teams like the Yankees, Red Sox, and Dodgers are incredibly popular in Latin America. Having a piece of spring training there would be a major moneymaker for them. The NBA is also gaining popularity as the league globalizes, though not to the extent of MLB.
To be continued...
Thursday, May 26, 2011
Wednesday, May 18, 2011
The Underrateds
First off, congratulations are in order for FC Porto, who claimed the UEFA Cup with a 1-0 victory in the All-Portuguese final against Braga. Porto is one of the more enjoyable European sides to watch due to their vibrant style of play, a continuous march of young stars (Deco, Maniche, Bruno Alves, and Lisandro Lopez, just to name a few) and an underdog mentality.
I reserve special affection for the Porto player Hulk because I feel he is vastly underrated. He's the football version of Lebron James; when he runs at defenders, they get this look in their eye like they want to go home to their mothers. Built like a truck, he should be a plodding central defender, but he's got silk to go with his power.
Writing about Hulk has me thinking: who have been some other underrated players in the world game, and what has been their fate? So, without further adieu...
Andres Iniesta
When Underrated: Into 2006, Iniesta was still considered a squad player. Though he influenced games and scored the occasional goal, he was thought of as a solid but boring alternative to Ronaldinho or Deco.
Since Then: Has confirmed himself as one of the game's greats with match-winning midfield dominance and timely goals for club and country.
Luca Toni
When Underrated: Considered a fluke even while scoring buckets of goals for Palermo from 2003-2005.
Since Then: Finally earned big time moves to Fiorentina and Bayern Munich, proving his class at each stop.
Diego Milito:
When Underrated: Wherever Milito goes, he scores goals. The lack of transfer buzz following stellar seasons at Zaragoza and Genoa surprised me.
Since Then: Like Toni, he chance at the big time came way later than it should have, but he took advantage of it. Many pundits spoke of his dream 2010 season with Inter as a revelation, but it was the same Diego as before.
Mikel Arteta
When Underrated: In the first half of 2008, Arteta was legitimately the best player in the Premier League, performing at a Beckham-like level with free kick goals, dangerous crosses, and midfield marshaling. Yet a Spain call-up never materialized, not did transfer rumors.
Since Then: Injuries have slowed him down, but Arteta will still go down as the best un-capped Spanish player of his generation. Unlucky to 1) play outside of Spain, and 2) mature at the same time as so many other great midfielders.
Yossi Benayoun
When Underrated: At every stop in his career, Benayoun has de-stabilized defenses and turned games on their heads. But he seems to ignored while very similar players like Luka Modric earn (deservedly) endless praise.
Since Then: Was probably the third best attacking player for Liverpool in 2008-2010 - behind Gerrard and Torres - but was never given a permanent first team place or star wages. Moved to Chelsea in 2010 but has only made 6 appearances due to injuries.
Darren Bent
When Underrated: Scored plenty of mop-up goals for Tottenham from 2007-09, but was not seen as providing enough link-up play.
Since Then: Has continued to score the same types of goals for Sunderland and Aston Villa. Pops up in the right place at the right time and rarely misses his chance. When you look at Tottenham this year, wouldn't they have benefitted from this type of player (not to mention his results)?
Damian Manso
When Underrated: Led unfancied Liga de Quito to a Copa Libertadores and thoroughly confused Manchester United in the subsequent Club World Cup.
Since Then: Has still not played in a major European league. This one I understand, though. By the time he emerged for Quito, he was pegged as a journeyman nearing the end of his prime. It's a shame he didn't coordinate seasons like the two in Ecuador earlier in his career. His skills are reminiscent of Messi.
Diego Forlan
When Underrated: Even while leading Villarreal to a Champions League Semifinal and two top-four league finishes (with a healthy dose of Juan Roman Riquelme at his best), Forlan couldn't live down his 'failure' tag from Manchester United.
Since Then: Atletico Madrid's 20 million euro move for him was seen as a risk in 2007 but Forlan now has a major European cup to his name and led Uruguay to a credible semifinal appearance at the 2010 World Cup. Redemption for sure.
To bring the post to a close, why does it often take so long for underrated players to get the transfer that their talents and performances deserve? For one, big teams want to buy young - Arsene Wenger and Alex Ferguson have said it over and over again. Secondly and more importantly, big teams are suspicious of players who don't have a prestigious training pedigree. Players are more likely to have acquired skills in the youth system of a big team than in a lower division or backwoods European league. The reality is that for every Diego Milito and Luca Toni, there are 10 Nery Castillos and Eduardos.
Nonetheless, if I were a big European club I'd be looking seriously at Hulk - despite his inauspicious early career.
I reserve special affection for the Porto player Hulk because I feel he is vastly underrated. He's the football version of Lebron James; when he runs at defenders, they get this look in their eye like they want to go home to their mothers. Built like a truck, he should be a plodding central defender, but he's got silk to go with his power.
Writing about Hulk has me thinking: who have been some other underrated players in the world game, and what has been their fate? So, without further adieu...
Andres Iniesta
When Underrated: Into 2006, Iniesta was still considered a squad player. Though he influenced games and scored the occasional goal, he was thought of as a solid but boring alternative to Ronaldinho or Deco.
Since Then: Has confirmed himself as one of the game's greats with match-winning midfield dominance and timely goals for club and country.
Luca Toni
When Underrated: Considered a fluke even while scoring buckets of goals for Palermo from 2003-2005.
Since Then: Finally earned big time moves to Fiorentina and Bayern Munich, proving his class at each stop.
Diego Milito:
When Underrated: Wherever Milito goes, he scores goals. The lack of transfer buzz following stellar seasons at Zaragoza and Genoa surprised me.
Since Then: Like Toni, he chance at the big time came way later than it should have, but he took advantage of it. Many pundits spoke of his dream 2010 season with Inter as a revelation, but it was the same Diego as before.
Mikel Arteta
When Underrated: In the first half of 2008, Arteta was legitimately the best player in the Premier League, performing at a Beckham-like level with free kick goals, dangerous crosses, and midfield marshaling. Yet a Spain call-up never materialized, not did transfer rumors.
Since Then: Injuries have slowed him down, but Arteta will still go down as the best un-capped Spanish player of his generation. Unlucky to 1) play outside of Spain, and 2) mature at the same time as so many other great midfielders.
Yossi Benayoun
When Underrated: At every stop in his career, Benayoun has de-stabilized defenses and turned games on their heads. But he seems to ignored while very similar players like Luka Modric earn (deservedly) endless praise.
Since Then: Was probably the third best attacking player for Liverpool in 2008-2010 - behind Gerrard and Torres - but was never given a permanent first team place or star wages. Moved to Chelsea in 2010 but has only made 6 appearances due to injuries.
Darren Bent
When Underrated: Scored plenty of mop-up goals for Tottenham from 2007-09, but was not seen as providing enough link-up play.
Since Then: Has continued to score the same types of goals for Sunderland and Aston Villa. Pops up in the right place at the right time and rarely misses his chance. When you look at Tottenham this year, wouldn't they have benefitted from this type of player (not to mention his results)?
Damian Manso
When Underrated: Led unfancied Liga de Quito to a Copa Libertadores and thoroughly confused Manchester United in the subsequent Club World Cup.
Since Then: Has still not played in a major European league. This one I understand, though. By the time he emerged for Quito, he was pegged as a journeyman nearing the end of his prime. It's a shame he didn't coordinate seasons like the two in Ecuador earlier in his career. His skills are reminiscent of Messi.
Diego Forlan
When Underrated: Even while leading Villarreal to a Champions League Semifinal and two top-four league finishes (with a healthy dose of Juan Roman Riquelme at his best), Forlan couldn't live down his 'failure' tag from Manchester United.
Since Then: Atletico Madrid's 20 million euro move for him was seen as a risk in 2007 but Forlan now has a major European cup to his name and led Uruguay to a credible semifinal appearance at the 2010 World Cup. Redemption for sure.
To bring the post to a close, why does it often take so long for underrated players to get the transfer that their talents and performances deserve? For one, big teams want to buy young - Arsene Wenger and Alex Ferguson have said it over and over again. Secondly and more importantly, big teams are suspicious of players who don't have a prestigious training pedigree. Players are more likely to have acquired skills in the youth system of a big team than in a lower division or backwoods European league. The reality is that for every Diego Milito and Luca Toni, there are 10 Nery Castillos and Eduardos.
Nonetheless, if I were a big European club I'd be looking seriously at Hulk - despite his inauspicious early career.
Tuesday, May 17, 2011
Homage to Man United's Golden Generation
Watching the 1999 Champions League Final between Bayern Munich and Manchester United confirmed the transcendent talents of Ryan Giggs and David Beckham, part of Alex Ferguson's golden generation of home-grown players in the 1990's.
Manchester United dominated the entire match despite Bayern scoring first. They controlled the ball effortlessly and would have troubled Oliver Kahn's goal much more if not for the ineptitude of strikers Andy Cole and Teddy Sheringham. The entire offense was essentially Giggs and Beckham. Giggs flashed across the pitch covering huge swaths of ground with the ball at his feet, playing in the strikers time after time only for them to stumble and lose possession.
Meanwhile, the variety offered by a young, fit, and fast Beckham was stunning. He could stop on a dime and play a 70 yard diagonal ball, or he could just as easily orchestrate a quick triangle to get out of trouble. I think part of his effectiveness was that the defense never knew where he was headed: downfield, crossfield, or one-two. He kept his head down but always knew where his teammates would be.
Beckham's energy was incredible in this final. He took all the free kicks and corners and was unfailingly available in midfield. "Beckham is the only name I'm mentioning!" exclaimed the ESPN Deportes announcer at one point. It was so true that United #7 even tried - and almost succeeded - to score directly from a corner kick towards the end of the first half.
I've watched Giggs and Beckham play often in the 2000's, but the opportunity to watch them devastate a top class opponent while in their primes was a privelege. The fact that both are playing today is a testament to their talent and work ethic.
Quick comment on another thing I took away from the 1999 CL final: the sportsmanship. There was no diving, play-acting, or groveling. Players were felled in the penalty box and got right back up. When fouls or offsides infractions were whistled the guilty player immediately gave the ball to the other team. It is sad that in such a short time we have seemingly lost these professional ethics in the European game.
Manchester United dominated the entire match despite Bayern scoring first. They controlled the ball effortlessly and would have troubled Oliver Kahn's goal much more if not for the ineptitude of strikers Andy Cole and Teddy Sheringham. The entire offense was essentially Giggs and Beckham. Giggs flashed across the pitch covering huge swaths of ground with the ball at his feet, playing in the strikers time after time only for them to stumble and lose possession.
Meanwhile, the variety offered by a young, fit, and fast Beckham was stunning. He could stop on a dime and play a 70 yard diagonal ball, or he could just as easily orchestrate a quick triangle to get out of trouble. I think part of his effectiveness was that the defense never knew where he was headed: downfield, crossfield, or one-two. He kept his head down but always knew where his teammates would be.
Beckham's energy was incredible in this final. He took all the free kicks and corners and was unfailingly available in midfield. "Beckham is the only name I'm mentioning!" exclaimed the ESPN Deportes announcer at one point. It was so true that United #7 even tried - and almost succeeded - to score directly from a corner kick towards the end of the first half.
I've watched Giggs and Beckham play often in the 2000's, but the opportunity to watch them devastate a top class opponent while in their primes was a privelege. The fact that both are playing today is a testament to their talent and work ethic.
Quick comment on another thing I took away from the 1999 CL final: the sportsmanship. There was no diving, play-acting, or groveling. Players were felled in the penalty box and got right back up. When fouls or offsides infractions were whistled the guilty player immediately gave the ball to the other team. It is sad that in such a short time we have seemingly lost these professional ethics in the European game.
Tuesday, May 10, 2011
Philadelphia Union Finds A Winning Formula
The MLS put out its annual salary release this weekend and it struck me to notice that the Philadelphia Union has the highest MEDIAN player salary in the league, but is in the bottom half for TOTAL salary. We must examine these facts in light of the Union's very positive start to the season, which has them sitting in 3rd place in their conference as of this writing.
First, the Union chose not to sign a Designated Player. There are two emprical advantages to this choice.
First, the Union chose not to sign a Designated Player. There are two emprical advantages to this choice.
- You preserve dressing room chemistry because all of the players have roughly the same earning capacity. The fact that some DP's, like Beckham and Henry, earn 50 times as much as other regular players, definitely generates friction even if teams are reluctant to admit it.
- You don't have to alter your tactics to accomodate a player whose skills may actually be diminished in certain areas.
The next part of the Union's strategy is key. Because they have a high median salary and a low total salary, we can infer there is not much variation. This means they are shelling out top dollar to get high quality players in all positiosn. Look at the Union median relative in particular to all the teams that don't have a designated player. The next highest median is 25k lower. Quite a gap indeed.
Sources:
TBD
TBD
Why Barcelona's La Liga Dominance Will Continue
Taking a gander at the Segunda-A tables in Spain this year (as I am wont to do), I have consistently observed Barcelona's B team hovering near the top of the table. As of this writing they are in 3rd place, though by rule they cannot be promoted to the same division as the senior team. Such results at this late stage imply a definite quality in the ranks.
It is not suprising that B-team results are a leading indicator for the senior team. The last time a B-team finished in the Top 3 of the second division was Real Madrid in 1983, anchored by none other than the famous Quinta del Buitre. In 65 appearances with the B-team over 2 seasons, culminating in 1983, Emilio Butragueño scored 37 goals. Promoted to the senior team in all together the following season, the quintet won 5 league championships and two Uefa Cups in the 1980's.
Normally, B-teams are not even good enough for Segunda. Real Madrid's B-team is currently in the next division, Segunda-B. Their last trip to Segunda proper was in 2006, propelled by talents like Esteban Granero, Ruben de la Red, Alvaro Negredo, Roberto Soldado, and a promising goalkeeper named David Cobeño who apparently is about to lead Rayo Vallecano back into the Primera. Castilla spent only 2 years in Segunda-A, getting the drop after the players named above had moved on to bigger and better things.
Many of Barca B's players are ready for for prime time, and some - notably Thiago Alcantara - regularly travel with the first team. But with players like Bojan unable to get much game action, the stalwart B-team players have been asked to remain with the B-team for the duration of the season. In the short term, they will likely have to go on loan to get regular top level football. But in the long term, there are players seen as potential replacements for Xavi and Puyol.
Note: Villarreal B is also in Segunda-A, which is a fantastic achievement for such a small club who, until 1999, didn't even have a reserve team. I'd like to delve into the management of the club in a future post because it is really a shining example of how to succeed despite limited resources.
It is not suprising that B-team results are a leading indicator for the senior team. The last time a B-team finished in the Top 3 of the second division was Real Madrid in 1983, anchored by none other than the famous Quinta del Buitre. In 65 appearances with the B-team over 2 seasons, culminating in 1983, Emilio Butragueño scored 37 goals. Promoted to the senior team in all together the following season, the quintet won 5 league championships and two Uefa Cups in the 1980's.
Normally, B-teams are not even good enough for Segunda. Real Madrid's B-team is currently in the next division, Segunda-B. Their last trip to Segunda proper was in 2006, propelled by talents like Esteban Granero, Ruben de la Red, Alvaro Negredo, Roberto Soldado, and a promising goalkeeper named David Cobeño who apparently is about to lead Rayo Vallecano back into the Primera. Castilla spent only 2 years in Segunda-A, getting the drop after the players named above had moved on to bigger and better things.
Many of Barca B's players are ready for for prime time, and some - notably Thiago Alcantara - regularly travel with the first team. But with players like Bojan unable to get much game action, the stalwart B-team players have been asked to remain with the B-team for the duration of the season. In the short term, they will likely have to go on loan to get regular top level football. But in the long term, there are players seen as potential replacements for Xavi and Puyol.
Note: Villarreal B is also in Segunda-A, which is a fantastic achievement for such a small club who, until 1999, didn't even have a reserve team. I'd like to delve into the management of the club in a future post because it is really a shining example of how to succeed despite limited resources.
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