About

Fernando Giannotti is a writer, economist, and comedian from Dayton, Ohio. He is a member of the comedy troupe '5 Barely Employable Guys.' He holds a B.A. in Economics and History and an M.S. in Finance from Vanderbilt University as well as a B.A. in the Liberal Arts from Hauss College. A self-labeled doctor of cryptozoology, he continues to live the gonzo-transcendentalist lifestyle and strives to live an examined life.

Thursday, September 12, 2024

Revitalizing Italian Football: A Plan for Serie A to Compete with the Premier League

    Italian football, once considered the pinnacle of world soccer, has seen its dominance wane in recent years as the English Premier League (EPL) has become the most lucrative and powerful football league globally. In the 1990s and early 2000s, Serie A boasted some of the best teams in the world—clubs like AC Milan, Inter Milan, Juventus, and Roma routinely competed for European championships and featured many of the world’s top players. However, as the Premier League secured increasingly lucrative television contracts, its financial superiority allowed it to attract and retain the best talent, leaving Serie A struggling to compete at the same level. While it is unlikely that Serie A can surpass the EPL in the near future, there is no reason it cannot position itself as the second-best league in the world, both financially and in terms of overall competitiveness. By taking strategic actions and leveraging unique advantages, Serie A can once again rise to prominence. This solution revolves around three critical pillars: modern stadium ownership, world-class academy and analytics systems, and capitalizing on Italy’s cultural appeal.


Modern Stadium Ownership and Revenue Maximization

One of the most important steps Serie A teams must take to compete financially with the Premier League is to own their own stadiums. Many clubs in Serie A currently lease or rent stadiums from local municipalities, limiting their control over match-day revenues and preventing them from upgrading facilities to meet modern standards. The inability to add seats, build luxury boxes, or cater to corporate clients severely restricts the revenue potential for these clubs. In contrast, EPL teams own their stadiums and have maximized their income from match days, corporate events, and luxury experiences.


Juventus offers an excellent example of how stadium ownership can revolutionize a club's financial standing. The club’s new stadium in Turin, despite having a smaller capacity than its predecessor, features more luxury boxes and corporate seating, allowing Juventus to significantly increase match-day revenue. Additionally, owning the stadium gives Juventus the flexibility to rent it out for concerts and other events, further increasing income. Serie A teams should follow this model and build modern stadiums with future expansions in mind. By designing stadiums that can be easily upgraded or expanded, clubs will be able to continually increase revenue as demand grows in the coming decades. Owning and maximizing stadium revenue is a critical step for Serie A clubs to close the financial gap with the EPL.


Academy Excellence and Advanced Analytics

The second step in Serie A’s path to competitiveness lies in creating the best academy and player development systems in the world. Acquiring top-tier talent in the transfer market has become prohibitively expensive, particularly when competing with the cash-rich EPL clubs. To succeed, Serie A must focus on developing talent from within. Italy is already known for producing world-class coaches and tacticians, giving its clubs a natural advantage in fostering player development.


Investing in youth academies will not only help clubs develop elite players for their first teams but also generate significant revenue. Under current accounting rules in European football, the sale of academy graduates is considered pure profit, as there is no initial purchase price to deduct. This financial incentive makes investing in academies a smart and cost-effective strategy for Serie A clubs. Developing homegrown talent can also help clubs perform better on the pitch without the need for massive transfer spending, as players from the academy are more likely to stay loyal to the club.


To further enhance their academy systems, Serie A clubs should invest heavily in building top-tier analytics departments. Advanced analytics can provide clubs with a competitive edge by helping them make better decisions on tactics, player development, and even player acquisitions. Serie A clubs should consider recruiting talent from American sports analytics firms, which are known for their innovative approaches, to strengthen their departments. By combining excellent coaching with cutting-edge analytics, Serie A clubs can create a development pipeline that rivals any in Europe.


Leveraging Italy’s Cultural and Geographical Appeal

One of Serie A’s greatest advantages is its location in Italy, a country admired around the world for its culture, cuisine, history, and Mediterranean climate. Millions of tourists flock to Italy each year to enjoy its attractions, and Serie A clubs should capitalize on this by making Italian football an integral part of the country’s tourism appeal. Clubs could package match tickets with hotel stays, merchandise, and cultural experiences to attract tourists who are visiting Italy for other reasons. European football clubs like Real Madrid and Bayern Munich have successfully combined tourism with football, and Serie A has the opportunity to do the same—perhaps to an even greater extent given Italy’s popularity as a destination.


Additionally, many European clubs have started investing in hotels near their stadiums, creating all-inclusive experiences for fans. Serie A teams should explore this option, offering themed hotels or luxury stays that attract both local supporters and international tourists. Italy’s appeal as a destination gives Serie A a significant advantage over the EPL, particularly when compared to cities in northern England, which lack the same cultural and climatic allure. By emphasizing the unique “Italian football experience,” Serie A can attract new fans from abroad who may return home as dedicated viewers, helping to boost the league’s global television appeal.


Long-Term Growth and Financial Competitiveness

Over time, these three strategies—stadium ownership, academy excellence, and leveraging Italy’s appeal—will allow Serie A clubs to grow their revenues and compete more effectively with the Premier League. As revenues increase, Italian clubs will be able to afford better players and retain the stars they develop. Stronger teams will, in turn, create a more competitive league, which will make Serie A more appealing as a television product. While it is unlikely that Serie A will be able to match the Premier League’s television contracts in the near future, improving the quality of the product on the pitch will put Serie A in a stronger position during negotiations for future TV deals.


Serie A executives should look to the NFL in the United States for inspiration on how to structure and negotiate television deals. The NFL’s television contract is more lucrative than that of the Premier League, and it could serve as a model for Serie A. Serie A should also consider expanding its television partnerships, potentially working with multiple networks to increase revenue. Additionally, Italian clubs should tap into the large Italian diaspora in North and South America, marketing Serie A to these populations to increase its global fanbase.


Conclusion

While the English Premier League may currently dominate the global football landscape, Serie A has the potential to reclaim its status as one of the top leagues in the world. By focusing on modern stadium ownership, investing in world-class academy systems, and leveraging Italy’s cultural appeal, Serie A can position itself as the second-best football league globally. Although these changes will take time—perhaps decades—the long-term benefits will enable Serie A to compete financially and on the pitch with the Premier League, ensuring that Italian football remains a force to be reckoned with on the world stage.


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