Arabia vs. USA vs. Europe: A Soccer Clash That Won’t Go Away
By Carlos Diaz
As we witness European teams denouncing PSG for their lavish signings and disregard for UEFA’s financial fair play regulations, we observe several players, some with several prime years ahead, making their way to Arabia and the United States. But why? When European soccer has historically generated higher television rights revenue, how did it start losing players, and what has changed?
Let’s break down this global football shift, examining its parts and its implications on different competitions.
The Consequences of COVID
After the pandemic, most teams struggled to honor the contracts they had signed with players. Income sources were disrupted due to rescheduled matches, games without spectators, and the necessity for sponsor companies to renegotiate their advertising agreements. This led to several teams requesting salary reductions from their highest-paid employees: the footballers. This created a discord between the parties involved.
The latest consequence was Gabri Veiga a young player who had to go to Arabia because his club could not reject the offer they received and there was no European team capable of making a similar offer.
The Solution?
Even after more than a year, many clubs haven’t fully recovered from the pandemic crisis. Salary reductions persist, while some teams face challenges maintaining a competitive pace in the transfer market. This created an opportunity for wealthy Arabian clubs seeking to bolster their local leagues to attract European players who couldn’t find enticing prospects in their home continent. Consider Neymar, a player with an exorbitant salary but plagued by injuries and inconsistency. His former club, PSG, was reluctant to keep him, and only a few European clubs could afford his transfer fee along with his salary. This is where Al-Hilal stepped in, offering a colossal $110 million annual deal, potentially reaching $190 million through commercial agreements. Neymar earns $342 per minute. The figures are mind-boggling.
And the USA?
Years ago, we witnessed Beckham, with his career ahead, moving to the USA. Why? It was an unprecedented project that allowed him to claim ownership of his current club, now the reigning champions of the Leagues Cup. However, the USA isn’t the same as Arabia; it doesn’t possess limitless funds. Yet, they convinced Messi, Jordi Alba, and Busquets to join a struggling team at the bottom of the MLS table. The unique aspect of this league is demonstrated by Messi’s deal: Apple recognizes his value by sharing broadcasting revenue. This means a portion of Messi’s earnings are paid by every team he competes against. Other MLS teams are, in essence, shooting themselves in the foot, as this arrangement elevates the profile of the entire league.
The Aim?
Beyond having a prominent face for the 2026 World Cup, the goal is to boost revenue for the local league. Ticket prices have surged by 1000%, with the price of a ticket for the Cruz Azul vs. Inter Miami match jumping from $29 to $329 after Messi’s arrival. This trend is reflected in broadcast rights and match attendance. Sales on StubHub tripled since Messi’s entrance.
What’s Left for Europe?
I believe countries like England aren’t in jeopardy—yet. The Premier League generates substantial revenue, albeit until potential restrictions on betting company advertisements come into play. However, other European leagues, like La
Liga, are feeling the strain. Faced with restricted spending and increased player sales to comply with stringent financial fair play regulations, they will be the most affected. La Liga has transitioned from boasting stars like Messi, Ronaldo, Neymar, and others to relying on players like Lewandowski, De Jong, and Carrasco. Even Modric and Kroos, while exceptional, are no longer the core players they used to be due to age. Europe’s only recourse is to enhance its youth academies. At the current pace, Arabia will be the destination for any ambitious player who values money over football—sadly, there seem to be more such players than initially thought.
Next transfer market will show us if the Arabian monopoly is here to stay or if Gabri Veiga is the latest surprise we see flying to Arabia.