Economics on Either Side of the Atlantic
Stereotypes about economic policy on either side of the Atlantic are as follows: Americans are intensely capitalist while Europeans embrace socialism. As with all stereotypes, there is a grain of truth in this one. You need only look at the degree of inequality in both places to see this difference: the American economic boom has largely benefited the wealthy while countries such as Norway use their wealth to establish a strong social safety net.
Ironically, the Americans=capitalists, Europeans=socialists stereotype is turned on its head in relation to soccer. In several ways, Europeans have embraced incredibly cut-throat, money-focused policies in the way they run soccer. I will focus on two areas here that epitomize the difference in approach among American sport bosses and their European counterparts.
1. Advertising on Uniforms
A recent article in the New York Times discusses MLS’s attempts to place advertisements on the front of their team’s uniforms. What is shocking is not that this is happening, but that MLS, in the year 2006, is the first American sports league (I’m not counting NASCAR) to sell sponsorship on uniforms. As Jack Bell points out in the Times, European teams have been plastering their jerseys with advertising for over 30 years.
When Real Salt Lake players run out next season with Xango (a mangosteen juice, whatever that is) on their chests, they will be the first athletes in this country to do so. What is even more incredible is that other American sports are not showing any interest in this money-making ploy. Indeed, American team owners resent the idea of doing putting Sony, Ford, or Cheerios on their jerseys. Bell quotes Dave Checketts, owner of Real Salt Lake and the NBA’s Utah Jazz saying, “There is something about a city name on the jersey that seems sacred to [owners].”
Yum, mangosteen juice …
When was the last time you heard the idea of something being “sacred” and off-limits to American corporate interests? European soccer teams have, ironically, been much more eager to accept the idea of sponsors’ names being placed on their uniforms and for one simple reason: money.
2. Salary Cap
If you’ve watched the English Premier League in the past few years, you are aware that the biggest change has been the rise to prominence of once moderately successful Chelsea. Chelsea has become successful for no reason other than the riches of its owner, Russian oligarch Roman Abramovich. Since he bought the West London club, they have spent over 540 million dollars on new players.
What is amazing in a continent with high rates of redistributive taxation is that there has been very little attempt to limit the spending of uber-rich clubs like Chelsea. The contrast with the NBA and NFL, both of which have strict salary caps, is marked. In Europe, the rich clubs remain rich and are successful (Real Madrid’s consistent success over the past half-century is an excellent example). They spend what is necessary to buy the best players and pay whatever salaries they demand because there is nothing limiting them from doing so. Smaller teams can occassionally compete for a short time but then melt back into obscurity (see Leeds’ decline from Champions League semifinalists in 2001 to their current struggles to avoid relegation from the League Championship).
Europeans accept a degree of ruthless economic dominance in soccer that they would never accept in society. And Americans who deplore government interference in their personal lives love the fact that the Detroit Lions have a chance to actually win a few games next year. It’s all because of economic policies that break the capitalist/socialist stereotypes of Americans and Europeans.
January 22nd, 2007 23:42
[...] MLS announced at the end last year that in the 2007 we would see advertisements on the fronts of team uniforms. This is common practice among most European teams, though surprisingly has never been tried in uber-capitalist America. While only Real Salt Lake has announced a deal on shirt advertising (the “mangosteen” beverage company Xango), speculation has been rife about which teams would follow. [...]