State Bails Out Argentine Football

It had to happen sooner or later: a government bailing out a financially inept football industry dissatisfied with its television contract. And what was the betting that it would happen in Argentina, a fanatical football nation where presidents know they have to engage in crowd-pleasing populist politics? Nevertheless, this is quite a step even for the country’s populist First Family, president Cristina Fernández and her husband and predecessor Néstor Kirchner.

It had to happen sooner or later: a government bailing out a financially inept football industry dissatisfied with its television contract. And what was the betting that it would happen in Argentina, a fanatical football nation where presidents know they have to engage in crowd-pleasing populist politics? Nevertheless, this is quite a step even for the country’s populist First Family, president Cristina Fernández and her husband and predecessor Néstor Kirchner. The president ended a two-week delay in the start of the football season by signing a $155m a year deal to broadcast league matches on state television, replacing an existing and far less generous cable contract. Matches will now be available on Channel 7, a terrestial station which is free to air. Ms Kirchner portrayed this as a blow for the poor. Fans may be grateful that the season has at last started and she may be able to recover some of the loss of prestige she suffered in a legislative election in June when her government lost its majority in the lower house of Congress. It is also perhaps convenient that one of the main partners in the discarded cable contract is Clarin, a Buenos Aires media group with a daily newspaper of the same name that has been increasingly critical of the Kirchners.

Clarin intend to sue and political opponents have pointed out that in a recession there were better things the money committed to the 10-year deal could have been spent on. However, the underlying issue from a football perspective is the state of the game in Argentina. The country produces some of the best players in the world, but most teams are on the financial rocks with deep and growing debts, the result of poor management, corruption and a weakening international market for star performers. Many clubs have been unable even to pay salaries and together they owe the government $100m in unpaid taxes. Even though fewer Argentinian stars are now making the move to Europe, there are still many that play there for bigger salaries so many clubs field teams made up of a mixture of youth players and veterans.

Argentina is the classic case of a potentially rich country ruined by its politicians. The damage spills over into football because this is a country where football and politics is inextricably linked. Winning the World Cup in 1978 gave the military junta then in charge a much needed popularity boost and it has even been alleged that they bribed an opposing team to ensure Argentina’s progress. The junta went to the lengths of abolishing relegation to build support when popular teams were threatened with going down to a lower division. Mauricio Macri, the mayor of Buenos Aires, built his reputation by successfully running Boca Juniors, the capital city’s biggest club alongside River Plate where the club presidency is currently being contested. Such jobs are keenly sought despite the financial problems and whoever wins may have a bigger pot of television money, seemingly provided by the Kirchners, but actually by the taxpayer.