Brazilian teams are dominating the Libertadores. What can be done about it?
Brazilian clubs have won the last 5 Copa Libertadores. Flamengo and S.E. Palmeiras twice, and Fluminense Football Club last year. In 4 out of these 5 finals, both teams were from Brazil, and if we go back to 2010, Brazilian teams have won 10 out of 14.
When one market is so much bigger than the others, it is hard to see any way out of this competitive problem. Brazil has a population of over 215 million people, nearly half of South America’s 442. Brazil’s economic stature and massive internal consumer market allows for a much higher ceiling for most industries when compared to its neighbors. Brazilian clubs generate significantly higher revenues, through TV deals, sponsors, matchday, etc, allowing them to sign top-class players and improve their operations at a rate that others simply cannot keep up.
Add to this the fact that the country hosted the FIFA World Cup in 2014, which brought with it 12 new or renovated world class stadiums. Only 3 out of these 12 stadiums are privately owned, meaning a hoist of clubs are able to play in top-level venues without having to carry the burden of building or maintaining them. In the case of the privately owned stadiums, their owners, Sport Club Corinthians Paulista, Club Athletico Paranaense and Sport Club Internacional either received a brand-new arena or had their old stadiums entirely renovated. This makes a big difference! In today’s Serie A, the majority of teams are able to play in large, safe stadiums that make their match days significantly more profitable.
However, there are a few things that can be done to close this gap, at least in part. Even though Brazilian clubs have been signing several renowned players in recent years, this is not always done in a fair way. Implementing a Financial Fair Play system is an urgent measure that needs to be taken. This would prevent the “financial doping” that we see, where poorly managed clubs with terrible financial situations sign one expensive player after the other. Clubs will delay salary payments, will not pay other clubs for signings, but keep doing business. One day, it all collapses, but until then, they are really hard to beat!
On the other hand, it is not just a matter of what Brazilian teams do, it is also about the rest of the continent. Governments, leagues and clubs must invest in infrastructure heavily. Most Argentine first division stadiums look like what we see in the Brazilian second and third divisions. Another aspect that would help bridge the gap are foreign investments. Just as City Group or John Textor have done in Brazil, clubs from other countries must present themselves as viable options for investors. This has already started with City Group’s participation in Montevideo City Torque and Club Bolívar, but this sort of movement must be more widespread. Euros and Dollars can go a long way in leveling the playing field.
Source: The World Bank
