Key challenges

Opinion article by Liga Portugal's President, Pedro Proença, on this Monday edition of A Bola, O Jogo and Económico newspapers.

"The day on which the Annual Report of the Portuguese Professional Football is presented, already in its third edition, serves as a launching point to do a balance of an absolutely atypical and challenging season. This is an important management tool that Liga Portugal, a pioneer on this type of studies in our country, developed in partnership with EY, which is provided to the Clubs and all those who are interested on measuring the impact that the Football Industry has currently on the Economy of the country. And how significant this is already!

In 2018-19, Liga Portugal and the Sports Societies generated 851 millions euros in turnover, 244 million euros more than the previous season, having contributed with around 549 million euros to the Portuguese GPD. An increase of 40% (!) in relation to the homologous period, representing 0,27% of the national GPD.

Today, Professional Football is much more than just a game, but also a business activity in which 34 societies contribute more than 150 million euros in taxes to the State Budget. This approach to Football as an Industry, as we have always defended, was further strengthened with the affiliation of Liga Portugal to CIP, to whom I leave a word of thanks to its President, António Saraiva.

The impact and the way in which football engages with the Portuguese economy, as it is well demonstrated in the data of our Annual Report, reinforces our ambition that the football industry becomes under supervision of the Ministry of Economy, under a double tutelage between the Ministry of Education and the the State Secretariat of Youth and Sport.

The entrepreneurial extent of Professional Football entails - on the other hand - greater responsibilities to Liga Portugal as organizer and regulator of this activity. It is in this sense that we have conveyed, over the last 5 years, a path guided by demand, rigor and transparency not only of Liga's management, but also of the licensing process for participation of the Sports Societies in professional competitions. The Manual that envisages the financial, legal and structural assumptions had a steady increase in rigor and demand, as well as in the wage control, now evaluated four times per year. Both determining, by expressed intention of the complying Sports Societies, a stricter sanction regulation that cannot fail to be applied.

However, in the name of transparency, a swift review of the current Legal Regulation of the Sports Societies is urgently needed. In order for the sporting bodies to have the necessary competences for a greater scrutiny of potential investors prior to their intake in the share capital of the Sports Societies.

Season 2019-20

We concluded the sporting season, two months later of what was initially planned, after a smooth resumption process, but that was only possible through an exhaustive work from Liga Portugal and its clubs, alongside with the Directorate-General of Health (DGS) and the Portuguese Football Federation (FPF).

From the very first hour, and despite all the uncertainty that the pandemic has caused, we were convicted of the conclusion of the season within the pitch. We took a stance.

It was worth it not to give up. Now that the season is over, it is imperative to share a word of heartfelt gratitude to all Sports Societies for also believing on the resumption of the competitions, for always being open for dialogue and looking for solutions, even with different views, as it is the hallmark of any democratic debate, and with an attitude that was essential for its completion in the field, and in almost all stadiums, during the 34 Matchweeks of the Liga NOS 2019-20.

The way this whole process was carried out and how the compliance with the protocol was defined, made professional football as a strong example of Responsible Conduct to the entire Portuguese society, something that made me deeply proud.

New challenges

The conclusion of the Liga NOS season allowed us to lessen the financial disaster for the clubs, with financial losses of 318,5 million euros, had the season not been finished. Still, we have to mention that, with the absence of fans in the stadiums during the remaining 10 matchweeks, the expected income losses of around 127 million euros.

An immeasurable value that reveals a vulnerability that, in 2020, the Portuguese Professional Football should not have! Covid-19 emphasised some of the existing vulnerabilities in the sector, denoting, at the top of the list, the obligation to move forward for the adoption of recognized international models, without which the competition regulator may remain inoperative in the search for solutions that safeguard the financial sustainability of the Sports Societies and the lowering of the asymmetries between clubs of the same competition.

The season that now begins, comes with a clear goal for Liga Portugal and its President: to bring fans to the stadiums!

Making it clear that public health will always be the priority, it is incomprehensible that Sport, as an entertainment activity, is being marginalized in relation to all other cultural activities.

We need to hear the chantings and feel the warmth and the passion of the fans in the stadiums!

We cannot remain silent when we see that every cultural activity, including bullfighting (!), have been allowed - comprehensively - to open doors to the public, while keeping a different criterion for sporting events, with the financial impact that is entailed to this industry.

The 2020-21 season is perhaps the one that has raised more questions and challenges in its preparation than any other. At a sporting level, we are dealing with a demanding and very concise calendar, which required, at the time of its planning, a lot of deliberation and adjustments, as is the example of the reduction of Allianz Cup from 45 games to 7 for this season. It is now time to stabilize our current competitive frameworks, while protecting and enhancing the participation of Portuguese team in the European competitions.

Governance model

The management path of Liga Portugal shall take a more entrepreneurial approach, centered on a President and an Executive Board, with specialized departments in a hierarchy of competent and professionalized services. The advisory body shall include a Board of Presidents, however it is up to the administration of the "company" (Liga Portugal) to manage its activity.

A new and more modern approach that will help Liga Portugal to stand alongside with the major European leagues. Notwithstanding this personal conviction, I have to give a word of appreciation to the representatives of all Sports Societies who have been making this journey with me over the last five years. The new season has begun, our convictions are renewed and we will move on together!"