Messi shortly before scoring a goal against Getafe (Photo credit: Wikipedia)
Perhaps it is their desperation for cash due to the country’s dismal economy and declining tax revenue. Or perhaps they have decided that rules are rules–no exceptions. For whatever reason Spain’s regulators are going after players and teams in La Liga, the country’s top soccer league, in such a punitive manner that the league may soon be at a disadvantage to their English rivals.
Today, El Pais reported that the Council of the National Commission on Financial Markets and Competition (CNMC) was fining Real Madrid and Barcelona, two of the best teams in the world, and the broadcaster that has their domestic television rights, Mediapro, for having a a four-year deal, a year longer than regulations permit. Mediapro is being fined $8.8 million, while Real Madrid and Barcelona are being red-flagged for $5.2 million and $4.8 million, respectively.
This does not bode well for La Liga, whose current deal with Mediapro expires after the 2013-14 season, and is looking to close the television revenue gap with England’s premiership. Thanks to new domestic and international broadcasting deals the Premiership now averages $2.6 billion a year. La Liga’s currently gets $850 million a season, with Real Madrid and Barcelona combining to grab about half the bounty.
Maybe the teams and broadcaster did break the law. But by the same token CNMC has sent a loud message to the La Liga and whichever broadcaster gets the next deal: we are going to comb through the fine print of your contract and look for any technicality to grab some of your loot.
Players are also in jeopardy. Barcelona’s Lionel Messi was targeted by prosecutors for tax fraud in June and reportedly settled with the Spanish authorities by paying $6.6 million in September. Messi is an icon. He broke the 39-year record for most goals in a European club season in 2012 with 73. He also became the first player to score five goals in a Champions League match and is a three-time FIFA Player of the Year. Yet the Spanish authorities had to drag him through the mud for a few million bucks.
Why are Spanish authorities going after soccer? As the famous bank robber Willie Sutton said when asked why he robbed banks: “That’s where the money is.” Real Madrid and Barcelona are ranked first and third among the world’s most valuable soccer teams.
That is bad news for Spanish soccer. But could be good news for their rivals in England and Germany.
*http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFib5zO6fQczhG_GLOGDC6gC6EzQQ&url=http://www.forbes.com/sites/mikeozanian/2013/12/02/by-targeting-real-madrid-and-barcelona-regulators-could-put-la-liga-at-disadvantage/
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