Austerity Hits Soccer Fans, and Clubs

Most of Europe’s professional soccer clubs were on slippery financial footing even before the sovereign debt crisis hit. Only a few, such as England’s Arsenal or Germany’s Bayern-Munich, have the national fan base, broadcast rights, and star players to make them profitable. Tightened bank lending and cash-strapped fans have made a bad situation worse. Case in point: Sporting Lisbon, a 106-year-old club that has had its moments of greatness. Its farm club developed Real Madrid star Cristiano Ronaldo. And in March the club eliminated Manchester City from the Europa League playoffs.

The win against Manchester City (which is still vying for the English soccer title against Manchester United) was especially gratifying because the English club is owned by Abu Dhabi investors who spent heavily on players. Weeks before that match, an auditor’s report found that Sporting Lisbon was “technically bankrupt” after losing money for 12 of the past 13 years and accumulating debt of €375 million ($495 million), borrowed in part to acquire more than a dozen new players for some €30 million. Club President Luiz Godinho Lopes says he’s looking for an investor to ensure the team makes it through this season and next. He has traveled twice to Angola to see if he could find a backer.