European Super League against the world.

How FIFA and UEFA leverage their power to prevent new competition

If you are a football fan (soccer in the US) you probably heard about the new European Super League. The Super League is selectively picking the top teams in Europe to compete, disrupting the existing UEFA Champions League and potentially domestic football leagues.

By taking the best “products” or clubs off-the-shelf existing competitions are left with tier 2 teams which on a pareto distribution account for less media viewership, game tickets and licensing deals. FIFA, the governing body for world football and UEFA, the European delegate of FIFA, have executed a perfect defense of how large incumbent monopolies protect their existing influence and market share from new entry.

First off, while FIFA is technically a monopoly and has a fair amount of public scandals and mischief, their mission is to spread football around the world. The main strategy to spread the game is by hosting world cups in different countries every 4 years, funding youth academies and rural clubs, and building football venues in underprivileged communities. Looking at the big picture, they might be the lesser of two evils with respect to the sovereignty of the game.

Here is a list of how FIFA and UEFA are making their case for every stakeholder in the game:
1. Club owners: Media campaigns painting club owners as greedy investors who do not have the well-being of the club or fan base as a priority. Historically clubs were owned by unions, community donors and aristocratic families doing the public good rather than the new wall street hedge fund owners who favor the bottom line profit and brand over all.

2. Players: Participating in the Super League will disqualify players from taking part in national games in the World Cup or Euro. Retired players and coaches are fully opposing the notion of a new league and are influencing players and fans via media outlets to oppose this change.

3. Governments: FIFA has large influence on governments given their long term partnerships. The British government has been clear on its stance and has threatened to deter game permits, police security for games and various opposing notions that drastically raise the barrier of entry for a new association.

4. Clubs: All clubs outside of the 20 lucky winners will not benefit from having a Ronaldo or a Messi in their town which could be the only reason why anyone would watch their team play. They are the biggest losers as their media rights for broadcasting will tank. The saying “But can they do it on a cold rainy night in Stoke” will not be applicable anymore.

5. Fans: Covid-19 has already prevented fans from going to stadiums and the new League will push games further from home since your English team will be mostly competing all over Europe rather than the neighboring county. Fans of clubs not in the top 20 list will have worse teams with less access to capital to buy players or invest in the clubs, many small clubs will close shop.

By attacking on all fronts FIFA and UEFA have already made a strong case and there are already doubts and pressures that the breakout league will be able to move forward. If by some miracle the Super League comes to fruition, the future of football will be changed forever. There will be a consolidation of capital in the top 20 teams, more club bankruptcies across the globe reducing the local presence of small teams and youth players which inevitably will reduce the number of football players. Professional football will become something like MMA which is operated by independent organizations (UFC, Bellator, ONE championship etc.) where fans can probably name 20 fighters at most and never really get to watch any of the others.