In two years from now, football will revolve around MLS, Premier, Spanish League and Italy. Others will be suppliers, which is not bad, we just have to focus in the role that they play in this market.
● Football factory
● Clubs and Leagues enhancement
● Marketing and merchandising
● Change of perspective about football business
● Next World Cups: USA- England, Spain- Italy. Two headquarters and 48 teams, as intended
by FIFA’s president Infantino.
I will ask for your attention to this sustainable and genuine project in order to avoid cases like Salamanca or Reacreativo de Huelva and more than 60 other clubs that are on the verge of default, not mentioning South American clubs, which most of them have their accounts in red and do not learn the lesson. Argentina is no longer the world seedbed it used to be; now we have to talk about the development of Chile (where I work with two clubs) and of Ecuador, with its simplicity of actions.
Would you be interested in generating between 5 and 25 genuine million euros by investing 200 thousand euros (230 thousand dollars) per year? Regardless of television rights, social contribution income or football tickets; just add to what you already have. This is what this project is about. If it is being read by a club that has a large budget and value its players in millions, just add another zero at the end.
Is this project useful to a club that is on the verge of default? Yes. I just need a year’s time of creditors plus agreed interests, in order to get fresh air and reestablish the club without going bankrupt. It is not that difficult when a club represents a region.
To sum up: the best plan to optimize resources and to achieve the most difficult success, the one that does not come by mere fortune.
It is worth reading for both Provincial League and UEFA Champions League, you just need to change the aims and the final zeros, but the project fits within both big and small league teams. Today people talk about Leicester, but this is a huge club, therefore is not fair to put it as an example. Instead, we could mention Alaves or Sevilla, clubs that understand their own staff replacement and the selling of their reserve players to big clubs.
A professional club cannot make mistakes by infringing Article 19 from the FIFA Regulations on the Status and Transfer of Players, however, Barcelona FC, Atletico Madrid and even Real Madrid have failed to comply with it.
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It is easy to comply with the previous mentioned article and to earn money through solidarity mechanisms. An European club sets free an average of 20 players a year; players on which it was invested 7 years of training, but of course that 20 new contracts per year cannot be made, it is not viable. But why set them free? It can be agreed with other clubs with not good seedbeds and to loan those players. In Spain, Italy, Portugal, minor european leagues, USA, Oceania and Latam, the football zone of influence is changing: Australia is the chosen one by Premier, MLS and the A series to place there their football factories in an academy format. The owners of MLS have percentages of Premier clubs ( Fulham was bought by the owner of a MLS franchise).
To move forward, I invite you to read the next 10 pages knowing full well that my work is developed within the framework of the Club and as a part of the Sports Management. Professionalism is what I offer: Knowledge of Sports Law, hours in FIFA courses, ten thousand pages of books and Codes read, Marketing and an increase of 40% in income with the same structure but modernizing the ways- I fix the price to televise my team or either I broadcast it on my own Channel.
If you think that I cannot have a place in your institution with my commandments, ideas, ways and structure without any expense (payment of my fees is the product of my work) I appreciate the reading but I clearly failed to reach the recipient.
Pablo José Sciutti Racic, Argentina Mobile: +54911 3851-1178
globalsportllc@outlook.es
Part 1. Project development
Part 2. Curriculum vitae and degrees.
PART 1:
Europe Seedbed: Sports strategy, marketing and positioning.
Designed to be implemented in your club. Economic and sports sustained growth. “The greatest sporting success is developed in a desk, outside the pitch’s lime line”
The introduction to this text must clarify that this project arises from an experienced football-based platform as well as years spent in the Sports Authorities, knowledge of current income, crisis and expenditures of argentinean, spanish and italian teams, the MLS emergence as the new power, nourished of university talent and economic capitals that were able to see the niche market. This project is applicable to a zonal club of any european city or USA with a future vision as well as for big, strong and formed teams which can have an army of people working for them but that fail in a crucial moment, losing their focus. And in that precise moment, their adversary discover their weaknesses. This is applicable in less extent in argentinean clubs due to a societal legal issue: clubs there work under the supervision of a non-profit civil association, which does not allow a fierce control of activities, balance or expenses. The majority wins, governs and informs while the minority pays the dues- there is no responsibility or backup in operations, and managers are not asked to show their personal income. Clear rules should be the foundation of these negotiations. Today, everyone can read the different transfer figures of Neymar Jr and to suspect of Sandro Rossel, Barcelona FC President. Let me give my opinion: I trust Rossel, because I know first hand southamerican vices and drains in those transfers. This project is overcoming and its goal is to strengthen a club structure from the professionalism of a big multinational enterprise by offering an unique product with an unlimited growth.
Development. Chapter 1
Higher income, lower expenses, better inversions and sporting success. Four aspects to sustain a business directly vinculated to sport, like a club.
What is the difference between a Marketing and development plan designed for Coca Cola, that expects this (to earn more money spending less) as it happens in other 100 other profit-seeking companies? And the answer is simple. Passion.
Would you pay 80 euros (90 dollars) for a t-shirt with the Mcdonalds or Coca Cola logotype? The answer, in all cases, would most probably be no. However, it is likely you pay that amount for a t-shirt that has your club’s shield. That is the passion and the difference on which I will expand on.
Football Factory. Chapter 2
Messi was born in 1987. In 1997, at the age of 10, the value for Messi as a football player was of 0 ARS. At the age of 12, it was unlikely that he became a football player. Value: 0 ARS.
Only a year later, in 2000, Barcelona FC saw this chance and Messi, with only 13 years, arrives to La Masía. His value is no longer 0 ARS, but 5 years later he is valued in 100 million euros. How much money did he leave only in sponsors for Barcelona FC? How important is his participation in his team achievements? To buy Messi nowadays whoever wants him (and if he wants) should, at least have in his cheque book no less of 280 million euros only for the exit clause. There are opportunities every
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day, you just have to make the right choices, be patient, take care of the product and to know the right time to sell it (in case of clubs offering training). Do you think that Barcelona FC wouldn’t have paid 10 million euros for a 15-year Messi playing in Sabadell? Of course it would have. This is the key point in my job: I do not want to be the Barcelona of Messi- I want to be the one who brings the future Messi’s at zero costs, to train and to sell them. When I write I do it in singular, but I think in plural. I want to do it together, me, you and the club.
How to be competitive in an economic inequality
If Atletico Madrid and Sevilla intend to compare themselves to Real Madrid or Barcelona they would most probably get lost along the way, and it could be the beginning of the end. By knowing how to occupy the place that was given by the economy, the position and marketing they should start planning and a few years later they may place themselves in that hierarchy. If it was a pyramid, Barcelona, Real Madrid, Manchester United, Chelsea, Juventus, Roma and Bayer Munich would be at the top. From there to the bottom, each of the other clubs should know their place, build a solid shield, supply the market, win customers as well as sponsors’ trust and set out reachable and credible economic and sporting objectives. Which is the the zone of influence? Your city? No.The whole territory, with weekly tests in different places, with campus training groups that show them something different. Academies in partnership with regional and district leagues. The best project of Rayo Vallecano de Madrid could be now playing Indoor soccer in La Coruña or vice versa.
With a diverse dynamic than the current one, youth football should give half of sustenance. If we wait for football scouts it will be too late. Nowadays we have to be one step ahead and examine all markets, trying to look for older players for one simple reason: that they only need one year playing in Juniors and in a selected group (a team that is made of players that can make their debut at any time). Here there is the need of making the first explanation: on one side there is a group that will continue to recruit children and juniors; and on the other hand there is a group that will recruit players from 15 to 18 years as a business unit: to anchor their rights, make them debut in Premier League and try selling their signing to earn cash income or a trade for more experienced players coming from clubs that can pay future signings. Talking about clear numbers, let’s say we recruit,in the first year, 10 players plus other 5 from the youth squad that are about to decide whether to be football players or to follow another path.
3 out of those 15 players are sold on an average of 500 thousand euros each; other 3 are on loan to a minor league in order to add minutes and be part of the squad. The rest, out. So now we have 1.5 million euros, 3 players in professional training and 2 that allow us to save those signings on the squad. We now have 7 players left on an average of 50 thousand euros the loan or the transfer. More or less we have now 1.85 million euros. Of course that while in training, we always hope to find the one that makes a difference, the one that later we could sell for 50 million; but is known that they do not grow on trees, we have to find him as a little boy, train him and wait for him. That is why we need
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to balance the bills to use our own training and later selling of those players valued under 500 thousand euros to pay for the search for those before mentioned “different players”. It is all about being profitable and to gain prestige, players and to earn money- money that did not exist one year ago. The first 3 years are fluctuating and of low numbers, but the next ones, when the market starts to look the club as a “trainer” one, signings triple their value and you won't have to make the calls anymore, just answer them. It is a strategy that can be explained with a few words but that is applied with a little more of merit. Communication and Management Strategy.
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Here is a rhetorical question. Who and why would pay 500 thousand euros for a 18 or 19 year old player with only one year experience in a promotion league? Simple: about 90 clubs that move the market and that have hundreds of scouts all around the world, which makes them potential clients since deal with the teen adaptation, his choice to be a professional and to have seen him playing by a trusted scout for a whole year and not in video but in real time. To make this clear: a person buys an Audi and does not need to see its function or read forums- but if the car is a chinese one? Let’s say he would prefer watching his neighbor buy it, fill the tank, go on a roadtrip, and after a year, ask him about the car’s performance. An Audi costs 35 thousand euros. A chinese one, 6 thousand euros. There is the need of somebody to do the same in football, somebody that takes the tests, makes the choices, shapes those choices and then, fixes the price. The buyer pays the test, quality and the
neighbor’s work. It is the production chain, to name this business. The secret relies on the contract, the repurchase and future sales.We also need to be careful in the case the player goes to a Champions’ team, if he plays more than 20 matches in a season and if he scores. Pros are always welcome, but if not, a sale for a considerable amount of money is a good choice. Football factory never closes. The MLS is the Mecca in America, today NPSAL is the entrance door and one of the most important leagues in America from North to South. College leagues (USL) are the football factories and academies are the ones where we need to emphasize and focus the effort, and USA can certainly be a player supplier worldwide. You may be wondering where to get these players. 40% natives, 40% legal immigrants and 20% agreements with undeveloped countries. The final numbers: million dollars a year. Only in Florida and Texas it can be played 12 months per year without inclement conditions. The Stars League should be, in 5 years, one of the most important events of the year, with 18 of the best clubs playing one month in USA and to gain players by means of agreements for its affiliates. In Wall Street money never sleeps, nor do chances in football.
With a plan like this, maybe in 5 years, finances in clubs like Rayo, Sabadell or Spanyol (today run by chinese capitals that place them in a good position) may be healed and with a bonus: to play UEFA or Champions. And for the others, to achieve promotion and stability in the league they play. Monchi in Sevilla did not discover football, but how to be efficient and successful.
A sport change brings a change of paradigms in the club’s marketing because this will make
members to buy the official products of the registered trademark. To be well known causes big brands wishing to be in the sponsors’ list. A good image is a magnet for brands in need of massive diffusers of sport products. For instance, there is a case in Argentina which I’ve been following closely and worked into it several times, and it is the case of CAI (www.caicr.com.ar) . CAI is a club was founded less than 20 years ago which was initially created as a football school. Such was its success that CAI played for 8 seasons in the second category of the argentinean football, being the most southern club (it is located in Patagonia) to dispute these competitions. It was a player builder and a market supplier in both national and international scope. The goalkeeper Romero (Manchester UTD and Argentinian National team),Ulloa (England), Pablo Barrientos (Italy) are some of the examples of players born in that club, a club that managed to sell more than 200 players, some of them internationally valued in several millions, other were sold in Argentina’s home market, some others in Chile’s League and has another 200 in reciprocal agreements around the world. A clear example of how to emerge in an inhospitable place but knowing the true North. When the club started, it was a rented shed. Today, the club has its own premises all around the country and its market value exceeds 50 million dollars. 60% of the Buenos Aires clubs that play in first league don’t have that market value because they lack of future actions, cash on hand and a systematic plan. This match played outside the field makes the difference and shows that if there is a will there is a way. Everything is possible if we activate the right mechanisms together, evaluating the market and not waiting for success to appear by chance; in this stage we have to conquer it, go after it.
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How many times did Barcelona or Real Madrid played vs Getafe? How many 105-minute global supporters do you think Getafe gets in each of those matches just for being the weak to the economic power? 2 million? May be. What if we take each match to make a temporary approach in order to obtain at least 500 supporters attracted by that mere action? In a season, speaking of only these teams, that is to say, 4 matches, following these numbers, Getafe would have about 2000 supporters per year at zero cost taking advantage of social media, transmission in any format and the club’s brand. If of those 2000, half of them buy a merchandising product of about 100 euros each (consisting of a football tee, a scarf or a tee signed by a player) sold in a club’s own platform, we are talking about 100 thousand extra euros; money that nowadays is lost and represents a net profit in a financial period. 100 thousand euros may sound as a small amount of money, but with this amount you can pay the training, food and guesthouse for 5 potential elite players for a period of 2 years. If only one of them is sold for 1 million, the profit of those 100 thousand euros in a year would be of 900 thousand euros. In a 5 year future forecast it can be multiplied by 9 (in the worst of the cases).
For this purpose, I have a realistic, systematic and applicable plan that is part of my portfolio, and whoever hires my service has complete access to it and immediate implementation.
Each club has its own budget and position and there is a plan for each club. A club with a large budget can buy not a 16 year old player but one who has already made his debut and played 20 matches in a first league of Argentina, Brazil or Uruguay. The case is symmetrical since you will pay only the 20% of what will be his price in the market just by stepping one of the top leagues and wear the most followed club tee. Everything can be improved and we have to be updated constantly; yesterday is late today due to media blooming.
I beg you pardon if the guidelines seem orientated to football only since it is applicable to any sport that develops in a club. It would be surprising to many of us to know the money that cricket players earn in India as well as would be for the Hindu community to understand the football leagues and the amount of money a player earns.
We have to know the market and divide the club into percentages to face the plans with accuracy and success: 60% football, 15% handball, 20% basket and 5% other sports. With this projection, marketing and development unnecessary costs would be avoided.
Marketing and Communication: Economic sports project.
● Introduction.
Know the key strengths and weaknesses as well as future projections and goals. Here we divide them into sports, managerial, administrative and financial.
● Situation analysis
To be honest, realistic and objective. Go through failures more than the success since they can be temporary, accidental or forced. Mistakes, instead, are usually repetitive.
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● Mission, values and perspective.
Mission is the entity’s fundamental purpose, the reason of its existence.
Values are those ethical judgements about imaginary or real situations to which we feel more inclined for personal and social benefits.
Perspective refers to what the organization wants to create; its future image. How the project would be when it has reached its complete maturity.
● Brand Strategy
The club’s brand should be in each place, and the entity should be recognised for its logotype, shield, colours and values. I can get followers, supporters and fans by an important brand and marketing action.
● Working areas
a. Marketing
Should be a professional team available 24hs. An analogic website is no longer useful it has to be a digital one, with immediate answer and the possibility of buying from a ticket to a t- shirt from smartphones.
b. Press
A fluent communication. Boost our players, success and advertise them by traditional and social media.
c. Sponsorship
Should not be mistaken with publicity. If we get that, we win the first point.
● Work structure
It goes according to the plan. I can adapt myself with the current club team if they understand the concept of company and are not afraid of it.
● General activity schedule
Daily meetings. Every area manager must have his digital portfolio updated as well as be to able to answer from the intranet if required.
● Budget
a. Sport marketing is the commercial exploitation of a distinctive element (name, logotype,
shield, pet, etc.) of a sports entity whose attraction of customers is based on the notoriety and popularity of its brand’s image, which helps to sell products and services that do not have a straight or evident connection with sport.
b. Player's’ transfers.
Federative vs economic rights.
Players developed in the club lower division. Players bought to other clubs.
c. Percentages and source of income (Argentina 2018).
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Argentina during 2009/2015 with national irruption:
TV income: 70% (financed by government)
Sponsors: 10% (this is why t-shirts look like showcases) Earnings: 8%. Members do not pay tickets or passes.
Player’s transfers: 10%. Football and development got stalled. Other variables: 2%.
Having read this, aren’t you afraid of ending up like in Argentina? Clubs there owe 10/12 million euros and 4 months of salaries on average. There is no economic fair play or club bankruptcy because of political decisions, because, otherwise, only 3 teams would be able to play the tournament.
Paradigms change depending on the social and macroeconomic framework. This is how a pie- chart should be for a non deficient football.
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This is why my plan adds and wins money. We could discuss about an inversion to adapt the working office, that with 15 thousand euros (17 thousand dollars free tax) can have the efficiency of any of the UEFA, Conmebol or FIFA, with the right mechanisms and more than 150 cities and towns in a 1000 km2 radius where to find players. There is also people that invest 300 thousand euros and it is worthless. Actions go beyond inversion. Yes, I have clear my goals, bonus and labor fees: they will always be only the 10% of the club’s profit. And if I want to earn 2 million euros per year, the club will earn 20 million. This is only a parameter of the work I offer and intend to do. So what is the cost? I insist. Zero cost. Here I should stop and explain the zero cost. It is for sure that in your club should exist no less than three paid areas that are being wasted, so let’s find them, optimize the resources, redefine tasks and let those obsolete spaces without effect. So then there is my place and the only thing we did was to move some piece of furniture and to relocate people that was not giving their 100% potential. Maintaining players in training is not an expense, is a 10 thousand euros investment per year for each player in case we do not have a training building, bedrooms, etc. For the club is not a big expense and I know how to do it, because from the moment the player or the player’s father signs a power of attorney to an agent, it is my task to advise the player on any claims based on his rights. I make the agent pay the expenses, who later in the player’s career, doubles those euros invested.
How long it takes to see the results? 12, 24 and 36 months in a gradually and increasingly way.
How my intended actions settle and recover Amateur football players’ training costs
Incurred expenses from the player’s entry to professionalism
❖ Acquisitionexpenses
❖ Medicalcare
❖ Food
❖ Clothing
❖ Education
❖ Accommodation
etc.
At the end of an accounting period, we should prorate the following:
Capitalizable as an incorporation expense for the first contracts signed as a professional player.
Charge to the results for those first contracts that could not be carried out. Players purchased from third parties.
Acquisition expenses
Transaction -related expenses Agents’ fee
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*Football clubs’ main income
● Image rights and sponsorship
● Marketing and publicity
● TV rights
● Merchandising
● Transfer of players
● Fundraising from sports events
● Social contribution
● Special events
Source: FIFA CIES, Sports University. 8. In conclusion
I have a plan,I have implemented it and I know in depth each of the Spanish, American and Italian, where I will settle to work 100% involved. I know key strengths and weaknesses, nothing surprises me, and I know I can place the club in the League stability, turning point to never stop growing. Just remember which club played the UChL final on May 25th, 2013: It was Dortmunt, after defeating Real Madrid. Dortmunt was about to disappear, to go bankrupt- it did not have money, clothing, a strong brand or loyal fans. A rational plan motivated by passion took Dortmunt to both economic and sporting success. Do you know what is the difference between Dortmunt and your club? A simple decision, and that is to take action now to motivate the passion and the reasoning and to understand that you have a product in your hands that no football company could develop in 5 years- you have the identity of a city and the support of a sport that is more than 1000 years old. A league that is watched in 5 continents has its opportunities and risks, and I’ve just minimized the risk to zero; do not
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miss the chance. I look forward to hearing from you soon. My email address and phone number can be found below.
Paul José Sciutti Racic. Curriculum Vitae
Date of birth: December 10th , 1971 in the city of Quilmes, Buenos Aires, Argentina. Marital status: divorced with 2 kids
Phone number: 5411 38511178
E mail: globalsportllc@gmail.com
Degrees:
Lawyer, University of Lomas de Zamora Auctioneer and Broker agent
Mercantile expert
FIFA Master programme. Litigation cases in TAS-CAS, Lousanne, Switzerland.
FIFA CIES Sport Management’s Master- Catholic University.
Master in Sport Law , University of Lomas de Zamora, Julio H. Grondona’s chair (AFA)
Sports management training course, Presidency of the Argentinean Nation, Sports secretary’s office. Youth Sport Manager in Quilmes Football club -2006- (from this management players like Francisco Cerro, Enzo Kalinski, Claudio Corbalan and Damian Musto appeared) In 2007 a professional and complete team was formed for the first time in over 50 years, and playing the last 7 matches in Argentina’s first division tournament.
Quilmes Youth football financial manager (AFA)
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Organizer in Copa America Tournament , 2011.
2009-2012 AFA’s Secretary Youth teams project
La Florida football club (amateur league, Quilmes, Bs.As). Club valued and certified in AFA
Languages
Spanish
English (beginner)
Professional sports education
Quilmes football club ex manager. Periods: 1990-2004, 2004-2006, 2006-2010, 2010-2013. Assembly member.
Hockey Adviser at Quilmes Athletic Club 2007-2010
I was part of Quilmes Club’s most important management, as for example the building of the new stadium “Nuevo Estadio Centenario” (1988-1995). Until that moment, Quilmes played in a wood stadium. The new one doubled its capacity.
Construction of the youth team venue: a personal project run by me, 2008.
Two promotions to first category with a 40% of the team made of lower division, 2003-2010
Copa America tournament participation
Campaign leader in the members and season ticket conscription campaign in the worst club crisis, making 9.000 new members and 4.000 stalls (in Argentina, a member enters to the stadium with only its fee paid). Historically, the club associated 2.000 people per year and it sold 1350 stall tickets for a 28.000 people stadium, 6.000 seats in stalls and 22.000 in stand without seats.
Labor history
CADE S.A Imports & exports 1991-1995, Buenos Aires-Montevideo
Classic Cars S.A, plant manager. Product coordination between Detroit and Buenos Aires (Porsche) 1996-2000, Buenos Aires- USA
President of Del Plata Consulting firm 2000-2012. Patagonia, Argentina- Chile
Content and sports events production company, Marketing, Real estate. Professional exercise in each and every aspect.
SMD Sport manager, 2012- today. Sports Consulting firm, Argentina-USA
Consultant attorney at law in LATAM, professional football league.
Goals:
To develop sports and economic training projects in an European club to sustain football and to avoid that it depends only on tv rights. In a crisis situation, sales fall and has a direct impact on the club, but
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if we are solid we can endure the storm. Nowadays I see many european stadiums half empties which is not a good symptom at all.
In a personalized project progress, I will present my CV with the official documentation that supports each degree and action before mentioned, which I’d rather deliver in person or in another safer way.
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