Vicente Calderón's Trampled on Dream

Last week in a glitzy ceremony to the world’s press Atlético Madrid president, Enrique Cerezo, with players in tow, unveiled the long awaited plans for the club’s new state-of-the-art stadium, La Peineta, located in an area known as San Blas in the east of the Spanish capital. Presumptuously named El Estadio Olímpico de Madrid when it was originally inaugurated by the Madrid council in 1994, the ground has since been acquired by los rojiblancos after Spain lost out to London and then Rio de Janeiro in successive bids to host the Olympics Games.

What La Peineta will look like

As Spain’s third most supported club you would expect moving from a ground with a capacity of 55,000 to 67,500 would make sense, however, seeing as the average attendance in the current stadium is a lowly 40,000, it’s hard to justify the move on the grounds of expansion alone.

Perhaps the vast infrastructural improvements the new stadium will offer is a better road for Cerezo and the club’s CEO, Miguel Ángel Gil Marín to go down. The Vicente Calderón has seen better days since it’s opening in 1966. The glass façade that encases the side overlooking the Manzanares river is in clear disrepair, with more than a few holes and missing window panes noticeable from quite a distance away, while inside the stadium the neglect immediately becomes apparent upon walking through the turnstiles, where the leaking stands above the entrances ensure that the pallid cement walls and staircases that greet you upon entry are accompanied by a inauspicious dampness. Toilet facilities, while not exactly Trainspotting-esque, are far from desirable and the comfort level provided by moulded plastic pews is nowhere near comparable to the pin-up example of a world class amphitheatre it’s domineering neighbour boasts, the Santiago Bernabéu.

Opinion among fans is split on the relocation, some arguing that it is a necessary change that symbolises the club’s intent to recapture it’s once revered status as a footballing powerhouse, while others object to moving away from the south side of the capital, where the fan base is especially rife, and insist that it is nothing more than a megalomaniac desire by both Cerezo and Gil to rewrite their murky history within the sleeping giant: chants of “Gil, cabrón, fuera del Calderón!” (Gil, you arsehole, get out of the Calderón!) are commonplace on match days, regardless of what is happening on the pitch.

El Calderón The current mecca to mediocrity

Whatever the feelings towards the move are, the fact is that it’s forthcoming – beginning the 2014/15 season - and the once highly regarded Vicente Calderón will become another victim to progress, left behind as a mere footnote in the history books, much like the president after whom it was named.

A self-made businessman from Leon, Calderón was instrumental in the construction of the current ground and oversaw things at the club during it’s most illustrious period ever, in which it won four league titles, four league cups, one Intercontinental Cup as well as coming runners up in the European Cup. His massive success was to be his undoing in the end, eventually dying of a heart attack in 1987 while still in office.

Calderón’s visionary outlook for Atleti was quickly undone by his successor, the peerless Francoist and openly racist, Jesús Gil y Gil (father of Miguel Ángel). Gil’s appointment was the beginning of a downward slide for the club, and the lavish spending by the former mayor of “Costa de la Crime” hotspot, Marbella and his self-appointed successor, Cerezo, has seen the success supporters had become so used to during the rojiblanco heyday be replaced by a perpetual sense of disappointment.

Fair enough, winning two European titles two seasons ago under “Gilifato” stewardship cannot be denied - when Diego Forlán was the difference against Fulham in the Europa Cup final and then José Antonio Reyes and Kun Agüero were at hand to dispatch of Inter Milan in the UEFA Super Cup - but these triumphs have to be taken into context.

Angry bedsheets make their feelings about Gil Marín and Cerezo known

Firstly, Atleti’s path to Europa Cup glory came after being spectacularly humbled in the group stages of The Champions League and, finding itself in the tournament’s less glamorous counterpart, via the backdoor, only to stumble it’s way through the competition, winning only two out of eight games before facing Roy Hodgson’s south London team in the final. It’s also worth remembering that the team finished an unremarkable ninth in the league that season.

Not only has the current administration come under scrutiny for the club’s failings on the pitch, it has also felt the fans’ wrath for the appalling handling of the books.

El Pais journalist, José Marcos revealed the extent of the club’s financial woes on Wednesday in an eye-opening article which, among other things, pointed to a glaring €215 million los colchoneros owe to the Spanish taxman. Not surprising when the costs are put into perspective. An average of 14 new faces have graced the red and white dressing room each season since 1998. This eagerness to welcome in new players at such a frequent rate understandably carries with it a hefty price, approximately €600 million in fact.

This revolving door policy is not only reserved for the playing staff, the management team is just as transient. In the same time Sir Alex Ferguson has been manager at Manchester United, Atleti has seen it’s bench change hands a whopping 51 times, and this figure looks set to rise very soon going by Gregorio Manzano’s disastrous return to the club.

Of course with players coming in others have to go out, and this past summer the changeover worked in Atleti’s favour, at least from a revenue point of view: saying fair well to Kun, De Gea, Forlán, Elías, Julio Alves, Ujfalusi and Ibrahima generated enough money to offshoot the value of the new acquisitions and leave €12 million to spare. However, that was an exceptional batch of players and the chances of repeating that success in the transfer market in the near future looks slim, as their most valuable player, Falcao, doesn’t even belong to them fully, due to a deal shrouded in secrecy with the ubiquitous agent, Jorge Mendes.

However, despite all the transfer money coming in, the club still managed to record a loss of €5.9 million for last season.

Needless to say the repercussions of not having played in Europe last year have affected the budget. According to Marcos’ report the club’s purse strings have been tightened by over €30 million in the past year, from €122.8 million in 2009/10 to €90 million this term. Nonetheless, the overriding overhead, wages, has increased from €52 in 2009/10 to €53 million last season and is expected to climb to €61.5 million this season. Adding fuel to this growing figure is the increase in player bonuses to €8.7 million. A strange decision by Cerezo and Gil considering how below par the team has been performing, and one which has not gone unnoticed by other members of the board, “This increase of almost €2 million is incomprehensible. How can it be that the stimulus for good results is greater now than it was during the season in which the team won the European Cup in Hamburg, the club’s first international title since 1974? It’s preposterous given the team has not qualified for Europe and only finished seventh in la Liga.”

Europa Cup winning team 

Maybe the decision to butter the players up was a way of deflecting attention away from bonuses elsewhere. The report also pointed to Gil’s own annual wages over the last few years, €1.2 million, €1.35 million and an expected €1.05 million for this year is a tidy sum by anyone’s standards, even more so considering the club’s statute states that a salary can only be drawn if the club makes a profit.

The financial crisis in Spanish football is not only affecting Atleti of course, but the extent to which the red and white club’s stubbornness to face up to the facts is unmatched by anyone else. Of the €694 million owed to the Spanish government in unpaid taxes the Madrid club’s bill makes up a third of the total.

Whether the move to La Peineta spells a new, brighter chapter for the Madrid club remains to be seen. One thing’s for sure though, the refurbishments currently being carried out on it will require an awful lot of wallpaper to cover up the glaringly large fiscal cracks the Gil legacy has caused. 

Crickey, this Financial Blight is Mighty

Sadly in this current climate of financial hardship the world finds itself in, most of us are now well versed on the importance of living within our means and ensuring that whatever goes out is offset by a greater (or at least equal) amount coming in. Those of us who for whatever reason find ourselves in the red, quickly come to realise that austerity is a crucial component to survival-a run in with a debt collecting agency for example will quickly instil this respect for solvency in us.  Basic economics, right?

Well you’d be mistaken to think that financial creditability is simply measured in terms of surpluses and deficits everywhere. For there is a magical place where over zealous spending is not only free from punishment but is effectively encouraged.

I speak about Spain of course, more specifically the confines of Spanish football. From this curious realm of illogicality, clubs that adopt a frugal approach to purchasing are more often than not the ones who suffer, while those who prefer to burn holes in their pockets are allowed to do so with very few repercussions.

In contrast to any other European league, in Spain defaulting does not carry with it the penalty of not being able to compete. So why even bother hiring an accountant?

Let’s look at Zaragoza’s acquisition of Ikechukwu Uche, which highlights this bizarre relationship between contract law and football. The Nigerian international was signed from Getafe in 2009 for a reported €5.5 million, which was to be paid in three instalments. Getafe only received the first payment, effectively selling the player for roughly €2 million.

Appeals by Angel Torres, Getafe president, to either have the Romerada club go into administration, as would happen in any other major European league, or for his club to be compensated with players of equal value to the amount outstanding, were met with resounding silence from the LFP.

The Madrid club was forced to remain a creditor to its league rival and could only renegotiate their so-called “agreement”, while Uche continued to strip out for his new employers.

Getafe is by no means the only club enraged by Zaragoza’s actions. At least Torres’ team remains in the top division. Unlike Deportivo la Coruña, who’s valiant efforts to keep their heads above water, both financially and in terms of league status, were met with failure. Although it can boast creditworthiness, bitterness must be the over riding feeling for the Galician club as Zaragoza who, according to Coruña president Augusto Lendorio also owe his side money, fight another season in La Primera Liga.

But Zaragoza is not the only offender in this debacle. When it comes to balancing the books, the general mentality of Spanish clubs is totally warped. 22 clubs in the top two divisions have filed for bankruptcy, Santander the most recent. Of the three promoted teams to La Liga this season (Rayo Vallecano, Real Betis and Granda), not one can claim financial soundness, which is rather telling of the problems that both leagues face, from a credibility stand point.

Professional football clubs in Spain are in arrears of  €4 billion. This frightening statistic could probably be expressed more eloquently but the impact would be compromised.  And is it any wonder, when you consider that, in contrast to any other European league, in Spain defaulting does not carry with it the penalty of not being able to compete. So why even bother hiring an account?

Well unfortunately much like the figurative bursting of the construction bubble, which has devastated the Spanish economy of late, this particular state of delusion will eventually have to come undone as well.

Real Mallorca has already felt the wrath of UEFA’s financial criteria in this respect. The Palma team finished the 2009/10 season fifth, thus earning a place in the Europa League. However, due to the unresolved matter of €2 million which was owed to a rather disgruntled Athletic Bilboa for a certain Atriz Aduriz (who had signed for Mallorca two years previously) Villarreal was instead called upon to take the coveted European spot. Despite the inevitable protests that followed this decision, UEFA’s requirements were clear: clubs that withhold money from other clubs are not eligible to compete in the competition.

Not vying for European glory is not the only consequence of poor budgeting, however. Not settling your transfer fees in a timely fashion is one thing. Not paying your overheads is another. And just like any other business, football clubs’ electricity and gas bills pale into insignificance when compared with their wage bills.

This year’s season got off to a no start as the players’ association (AFE), along with 110 players, announced a strike. Their grievance related to wages of course.  Over 200 of the professional players making up the 42 teams in Spain’s top two divisions, or 20%, were aggrieved owing to contracts not being honoured.

The LFP, which the season before put aside a guarantee fund of €40 million for such circumstances, came under scrutiny by the AFE for not taking the issue of late payment seriously enough. The matter was resolved in time for match day two with an increase to the parachute fund of €10 million and reassurance from the governing body that club/player agreements would be treated with the legal weight they deserve.

All well and good, but from an outsider’s perspective this farce can only be seen as damaging for the leagues’ credibility. And how can much can players really trust assurances from a league body which allows roughly 50% of it’s clubs to essentially play while broke?

Surely the equal distribution of TV money will have to be properly considered if Spanish football is to weather this current financial storm. The true nature of the competitiveness of the league is basically a joke now. Even with the realms of possibility stretched to their furthest capacity, any chance of a team outside the top two winning being crowned champions is laughable-let’s just assume Levante will eventually drop off at some stage this season. The simple fact is that the dispersal of image rights, or the lack of it, is creating a massive gulf between “the haves” and “the have not’s” in Spain. Top dogs, Barca and Real Madrid, reaped a staggering €140 million this season in telly rights alone, while their closet rivals (for want of a better word) earned a pittance in comparison: Atletico Madrid 42 million, Valencia 40 million and Villarreal €33 million. Below these teams the other 15 scrap it out for the remaining €205 million.

The effects of not having a system of collective bargaining in place, and allowing the disproportionately steady growth of two giants to continue without any attempts of halting it, are already apparent.

Formerly big clubs are no longer able to attract or hold onto the big names they once could. Just look at what happened this summer where, with the exceptions of Real Madrid, Barca and Malaga, La Liga witnessed a mass exodus of some of it’s finest players: Atletico lost Forlan, Kun Aguero and De Gea, Valencia waved goodbye to Juan Mata and David Silva, Villarreal had to depart with Cazorla and Valencia could only watch as Malaga ransacked it’s dressing room of Joaquin and Isco.

The current TV deal expires in 2014. Until then fingers need to be crossed, candles lit and prayers answered to ensure that the disparity between clubs doesn’t spiral even further out of control.