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The Soccer Industry in Europe - Assignment Example

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The paper “The Soccer Industry in Europe” evaluates international football, which has blossomed into a multi-billion dollar industry. Its tag ‘the world’s most popular sport’ is suitably vindicated by the huge number of people who play and view the game…
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The Soccer Industry in Europe
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Download file to see previous pages A wage cap is defined as the maximum sum of money a soccer team can spend on wages to players. It can take two forms; representing a limit on the wages per player, or it can be the total limit on wages paid to all players in the team.
Wage caps are a regular feature in North American sport. The wage cap was $ 46 million per team during the 2005 National Basketball Association (NBA) season; in the current 2006-7 season, it is $ 102 million per team in the National Football League (NFL), AUD 6.47 million per team in the Australian Football League, C. $ 3.8 million per team in the Canadian Football League, and $ 44 million per team in National Hockey League (NHL) {http://en.wikipedia.org/wiki/Salary_cap}.
Wage caps are actively being considered in European soccer. In 2002, a BBC report claimed that beginning from 2005/06, the G14 group (AC Milan, Real Madrid Club de Futbol, AFC Ajax, Borussia Dortmund, FC Barcelona, FC Bayern Munchen, Juventus FC, Liverpool FC, Futebol Clube de Porto, FC Internationale Milano, FC Manchester United, Olympique de Marseille, Paris Saint-Germain, and PSV Eindhoven) among 18 top European soccer teams (the other 4 being Arsenal FC, Bayer 04 Leverkusen, Olympique Lyonnais, and Valencia Club de Futbol) have agreed to limit total team wages to 70% of the team’s income (http://en.wikipedia.org/wiki/Salary_cap).
Fixing wage caps will ensure that rich teams cannot perennially dominate the competition by just buying all the best players in the sport. This effect is undoubtedly the single major sought-after change in the present European soccer scene (http://en.
wikipedia.org/wiki/Salary_cap). In soccer, as with other spectator sports, competitive balance is vital because, other things being equal, doubtful results on the pitch creates interest among watching fans, besides increasing demand for viewing matches both at stadium level and television audiences (subscription and pay-per-view).  ...Download file to see next pagesRead More
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