1. Football tournaments: The battle for the revenues - Club football vs. the FIFA World Cup Harry Arne Solberg Trondheim Business School, Norway

2. Motivation Conflicting interests between Europe and other continents Africa/Asia/Carribean supporting Blatter Europe wants to get rid of him Comparison of patterns in Club Cootball and FIFA revenues

3. Some patterns: Media rights the dominating revenue for those at the top of the value chain (tabs) Club football: The “Big-five” more dominating than ever before Revenues from exporting TV football increasing Displacing domestic football in the importing nations? FIFA revenues equally distributed (development programmes)

4. Total revenues (€-million) 2013/14 Media rights: percentage of total English Premier League3 89854% Germany Bundesliga2 27532% Spanish La Liga1 93349% Italien Serie A1 69959% France Ligue 11 49840% Netherlands Eresdivisie43918% Belgium Jupiler League28429% Austrian Bundesliga 16118% Denmark Super League 14918% Scottish Premier League 14731% Swedish Allsvenskan* 13316%

5. 1998-20022003-20062007-20102011-2014 Media rights: Europe464 (46%)589 (45%)1289 (54%)1167 (48%) Asia / North Africa 536 713 504604 South / Central America329356 North America / Caribbean211245 Rest of the World7254 Total media rights:1000130124052426 FIFA total revenues 1812262941895718 FIFA revenues and sources

6. Media rights – Big 5: From Domestic / International markets (€- mill.) Period 1Period 2Period 3Period 4 England 800 / 311 (72% / 28%) 796 / 591 (57% / 43%) 1299 / 908 (59% / 41%) 2211 / n.c. - Spain 435 / 65 (85% / 15%) 471 / 123 (74% / 26%) 532 / 235 (75% / 31%) n.c. / 650 - Italy 793 / 70 (91% / 9%) 817 / 91 (89% / 11%) 858 / 117 (88% / 12%) 1150 / 215 (84% / 16%) France 642 / 8 (99% /1%) 668 / 17 (97% / 3%) 607 / 33 (95% / 5%) 727 / 80 (91%/ 9%) Germany320 / 18 (94 % / 6%) 322 / 53 (85% / 14%) 470 / 71 (83% / 13%) 534 / 160 (77% / 23%)

7. The spendings on media rights from big- five as percentage of domestic leagues

8. Asian Markets Malaysia900% India800% Thailand700% Korea300% Japan100% South America Latin America21% Top-5 European markets France16% Italy2,7% Germany1,3% Spain1,3% UK1,2% Other European markets Nordics77% Holland70% Greece39% Belgium22% Turkey5%

9. The revenue of the average club compared to an average club in Premier League and Bundesliga English Premier LeagueGerman Bundesliga Netherlands12%19% Belgium9%14% Austria8%13% Denmark6%10% Scotland6%10% Sweden4%6%

10. Why? Technology innovations in media => increased capacity Economies of scale advantages Low transmission costs High degree of sunk costs in production of live sport Favourable for those that have the products of best quality – which in club football are the “big-five” Market forces “ruling” in club football

11. National team tournaments Democracy: One nation – one vote Not transparent Distribution of FIFA funds favouring the poor members Financial assistance programme: Equal distribution Goal project: Favouring low income members The majority of FIFA members have low revenues The Media Voter Theorem

12. Media voter theorem applied on the distribution of FIFA revenues Preferences Subsidising poor nations Equal distribtion Unequal distribution More unequal distribution Market-forces distribute VoterMedian voter in FIFA = somewhere here

13. Summary Two different distribution models Market forces distribute the revenues in club football Democracy, in national team tournaments (such as FIFA World Cup)