Spanish soccer goes on global offensive


  • Markets
  • Wednesday, 25 Jul 2018

This comes after La Liga loses Cristiano Ronaldo

LONDON: The Spanish soccer league, whose clubs reign supreme in Europe’s biggest competitions, is staging a counter-attack in the clash for global reach and riches off the field.

La Liga has been trying to promote itself overseas by opening marketing offices in the Far East and hiring a former Netflix executive as its new head of communications.

After losing two of its biggest stars in consecutive seasons – first Neymar to France and now Cristiano Ronaldo (pic) to Italy – president Javier Tebas is considering taking matches to another country in the way the NFL and NBA play in London. The US is a likely destination.

“We would like to do it once or twice a season,” Tebas said in an interview at his office in Madrid last week. “I’m convinced that over the next few seasons we will play outside Spain. It’s not easy because we have fans in Spain, but I hope we can do it in the next year or two.”

For all the supremacy of its top clubs –Spanish teams have won the Champions League and Europa League nine times out of 10 competitions over the past five years – the country plays second fiddle to the English Premier League when it comes to generating money. Revenue from broadcasting rights was €1.5bil in the latest annual report by consulting firm Deloitte, less than half that of the English league.

But Spanish revenue is catching up. When Tebas took over in 2013, broadcast rights were negotiated by individual clubs. Now television deals are done centrally by the league. Spain has overtaken Germany’s Bundesliga as the highest revenue generator after the Premier League.

In the latest round of bidding, Telefonica SA trumped its main rival Mediapro in June for the lion’s share of broadcast rights, paying €2.9bil for three seasons. The price dropped in the most recent Premier League deal. “We are bridging the gap,” Tebas said.

Now to build on the rapid growth in global rights sales, which Tebas said have quadrupled to €800mil compared with 2013.

The next phase is to become a larger entertainment brand with a loyal fan base watching soccer rather than shows on Netflix.

That would also help make it less vulnerable to players defecting to other leagues, Tebas said. Ronaldo, 33, left Real Madrid for Juventus, though his perennial rival for the position of La Liga’s biggest star, Lionel Messi, remains at Barcelona.

“It would be irresponsible if we didn’t prepare ourselves for when a player isn’t in the league,” he said. “We are about entertainment. Our competition isn’t only other soccer leagues, its other sports, like motorbike racing, and things such as Netflix. Our biggest rival is the remote control, because people can change channels.”

Tebas might also face challenges with his goal of taking league games abroad.

His Premier League counterpart, the departing Richard Scudamore, couldn’t pull it off.

He proposed a similar idea 10 years ago, but withdrew the plan after a backlash from local fans.

European clubs play pre-season tournaments in the US and Asia instead. — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , La Liga , Spain , league

   

Did you find this article insightful?

Yes
No

Next In Business News

Fitch sovereign rating revision due to Covid-19, political developments
Fitch downgrades Malaysia to BBB+
INIX signs MOA to buy stake in a glove producer�
Singapore picks Grab, Ant Group, others for four digital banking licences
Widad bags 5-year contract to manage ferry terminals in Perlis, Kedah
Trading volume on Bursa at 2-week high of 14b shares
Activist funds scupper Singapore firm's merger in rare victory
Oil prices jump after Opec+ inks supply compromise
Boilermech sees 20.64m shares traded off-market
Japan Credit Rating Agency affirms Maybank A ratings

Stories You'll Enjoy