The Decline of LaLiga: Loss of Appeal and Market Value Compared to Premier League

Since the departure of the likes of Cristiano Ronaldo and Messi, the competition has seen a worrying decline compared to other European leagues. | @EP

LaLiga faces a loss of its appeal due to the departure of emblematic figures in the last five years. From Cristiano Ronaldo’s departure from Real Madrid in 2018 to Messi’s departure from FC Barcelona in 2021, the competition has experienced a 16.25% decrease in value, in contrast to the 21% growth experienced by the Premier League.

According to Transfermarkt data, the 20 LaLiga teams have seen their market value fall from 5.66 billion in 2019 to 4.74 billion in 2023, while the English league has managed to increase its value from 8.38 billion to 10.12 billion in the same period. Of all the European leagues, only Ligue 1 has managed to increase its value, going from 2,930 million before the pandemic to 3,510 million today, an increase of 20%. On the other hand, Serie A and the Bundesliga have suffered a devaluation of 6% and 4.6%, respectively.

These differences in the valuation of the clubs are due, in part, to the different investment strategies carried out by each league. While the Premier League has exceeded 1,000 million euros in transfer expenses since 2014, investing close to 2,069 million in the 2022-2023 season, LaLiga has only allocated 46 million in transfers during the same period. This superior investment capacity of the Premier League is due, in part, to the financial contributions made by its shareholders.

However, this long-term investment strategy can have its consequences, since all investments have associated costs. In addition, the UK Government has taken steps to address this situation. A report on football club governance reform says “inefficient” regulation is jeopardizing the sustainability of English clubs, who rely heavily on these injections of funds to stay afloat.

In response to the pandemic, which affected all the major leagues, LaLiga partnered with CVC Capital Partners in 2021. This agreement allowed an injection of approximately 2,000 million euros from the private fund, which would be distributed among the teams over three years. , allocating 70% to infrastructures, 15% to previous debts and another 15% to signings. So far, LaLiga has received three payments, which add up to around 1,440 million of the agreed total.

However, LaLiga is not the only competition that has sought agreements with private funds to promote its development. The French league also signed a contract with CVC last year, receiving around €1.5 billion to invest in soccer. Likewise, the Bundesliga chose Deutsche Bank as a partner to promote its audiovisual rights.

Despite the decline in financial value, LaLiga continues to be recognized for its contribution to world football. The competition has the largest number of Golden Boot winners, with 15 award-winning footballers. In addition, 12 of the last 13 Ballon d’Ors have been awarded to LaLiga players, highlighting the success of Real Madrid and FC Barcelona in this category. In terms of the Champions League, LaLiga leads with 19 titles, surpassing the Premier League’s 15.

2023-07-16 11:11:18
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