Soccer Champions League

Disaster At Parma FC Could Have Been Avoided

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By @adamdclifton

Getty Images

Getty Images

The Italian Serie A is one of the biggest leagues in the world of soccer.  Teams like Juventus, Inter Milan, AC Milan and AS Roma shine on some of the biggest stages in the sports.

To say life is different at the bottom of the Serie A table would be an understatement. Forbes estimated the value of Juventus to be approximately $850 million in 2014, a stark comparison to Parma FC, who cannot afford to play a game or pay their players wages due to a “lack of funds.”  However, there is a solution.

In all sports, there is a discrepancy between the best teams and the smaller organizations. It is unrealistic to suggest that the Italian Serie A should implement a program that forces teams to split revenue evenly. However, there must be a way to share revenue to prevent situations like the one in progress at Parma.

The NFL utilizes a revenue sharing model in which all of the revenue generated by the league is divided evenly among the 32 NFL teams. For 2013, $6 billion in revenue was generated in the NFL and each team received approximately $187.7 million. This revenue is not comparable to the Italian Serie A and while the structure of the league is not exactly the same, a similar model would help.

Teams like Juventus receive high-profile sponsorships, television contracts and financial compensation for competing in competitions like the UEFA Champions League. However, part of the incentive to perform well in domestic leagues is the financial rewards associated with the UEFA Champions League and Europa League. Juventus has built a legacy in the sport and should reap the financial benefits of this achievement.

However, if a cash cow like Juventus, along with all other teams in the league were forced to contribute to a revenue sharing model, disasters like postponed games could be avoided.

A key to this model would be ensuring teams near the bottom of the table remain motivated to perform well, qualify for UEFA tournaments and build a bigger club. However, teams in the Serie A are not competing on a level playing field. Due to the legacy of the major clubs and their large fan bases, Italy’s biggest clubs receive extensive television coverage and lucrative contracts from television companies.

Smaller clubs do not receive this benefit and only receive broadcasting opportunities when they face the biggest clubs in their league.

A model must be developed to rectify the issue. The key to this process will be to keep the incentive for teams to grow and improve, without the threat of closing their doors.

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