In preparing for the K League Financial Telephone System, the Korean Professional Football Association studied many examples from other leagues. This is because many leagues around the world are also trying to stabilize their clubs’ finances.
The situation is no different in the Premier League (PL), one of the most flush with funds in the world. In addition to the financial regime implemented by the European Football Association (UEFA), the PL has had its own financial regulations since 2013. The rules are pretty straightforward. The league can’t have a cumulative deficit of more than £150 million (about $16.87 billion) over a three-year period.
In reviewing the practices of other leagues, the federation focused as much as possible on directions that could help the sustainability of the league and its clubs. There were a number of factors to consider, starting with the revenue structure of clubs, addressing overspending on player costs, and ensuring financial health.
The Spanish La Liga was a league that was similar to the federation’s ultimate goal and direction. La Liga has tried to ensure the sustainability of the league and its clubs by introducing a system called economic control. There were points in the economic control that could solve the problems that the federation was also struggling with.
Background on the introduction of Economic Control in La Liga
Before we talk about the relevance of economic control in the context of the K League Financial Stability Mechanism, it’s important to understand when it was introduced in La Liga. In 2013, when Javier Tebas became president of La Liga, the financial situation of La Liga clubs was very serious. So many small and medium-sized clubs were on the verge of bankruptcy that it was a wonder the league was still operating.
Tebas attempted to normalize the financial situation of La Liga clubs through an “economic control” system, and the effect was dramatic: clubs that were on the verge of bankruptcy are no longer in financial trouble. From the 2014-15 season to the 2019-20 season, the total wealth of La Liga and La Liga Hypermotion (second division) clubs increased by a whopping 250%. 무지개토토 도메인
Debt to public authorities, which was a major concern, has plummeted from €650 million in 2013 to €23 million in 2021. The problem of unpaid player salaries has also been virtually eliminated, with the amount outstanding in 2013 reaching €89 million (KRW 125.2 billion) and dropping to €1.5 million (KRW 2.1 billion) in 2021.
La Liga’s “economic control” was most evident during the COVID-19 pandemic, when the league was the only one of Europe’s top five leagues to post a net profit in the 2019-20 season, when the rest of Europe was also canceled. That season, Premier League and Championship (second division) clubs had a combined deficit of €1 billion ($1,407.3 billion), and the rest of Europe was in the red.