Given the success with the public and the connected profits deriving from very diversified sources, the American model of sport business is certainly the most attractive one for those who decide to invest in today's disastrous Italian football. What is not known, however, is how important the public hand is in the growth of this model in the US. A public hand which plays an important role primarily from a bureaucratic point of view, giving certainty of the law (think, for example, of the problem of counterfeiting in Italy) and removing the obstacles which, in general, confront the growth of a business . Furthermore, and beyond what one might think, there is a lot of public money that ends up in US sport, especially in the construction of stadiums. According to Bloomberg reports, the total interest rate on city bonds issued to build sports facilities for professional clubs is $146 million a year. Out of a total of $17 billion in relief and debt accumulated since 1986, with the last bond due in 2047, total taxpayer subsidies to clubs for the construction of their stadiums amount to $4 billion.
Is that all (so to speak)? Not exactly. Professional clubs and entertainment companies (AEG, Disney, etc.) are very good at getting financed by the local authorities, thanks to their ability to ensure an adequate return on the local economy and because they know how to do their job certainly better than the authorities themselves. Authorities that in Italy not only do not finance anything, given the country's economic situation, but have not even shown themselves capable of resolving the considerable bureaucratic impediments for the construction of new sports infrastructures. The latest example in this regard comes from Disney, owner – among many other things – of the ESPN Wide World of Sports Complex, in Orlando, where AS Roma will stay until next January 2nd, with which Disney has stipulated a multi-year deal last March.
Disney and the Central Florida Sports Commission have been working for some time to make Orlando a hub for football lovers in America and beyond, which is why, after the departure of Roma, the "Soccer Spring Training Program” who will see six Major League Soccer clubs fly to 18-day training camps at various sports centers in central Florida. Also included in the deal is the tournament Disney Pro Soccer Classic which will be played right at the ESPN Wide World of Sports Complex, with on the pitch Columbus Crew, DC United, Montreal Impact di Alexander Nesta e Marco Di Vaio, Philadelphia Union, Toronto FC eSporting Kansas City. At least 15.000 people are expected for the event.
Disney has also scheduled a dozen side events for the same period, half of which will be held on the ESPN campus, including a matchup (a series of training sessions) for college players seeking pro contracts, a President's Day “soccer festival,” and a 7-on-7 soccer tournament. Behind all these initiatives is a $1 million grant from the Florida Legislature, obtained by Disney following well-executed lobbying during a Legislature that saw in Florida cuts for hospitals and universities. In reality, Disney had aimed much higher, presenting together with the Speedway Corporation (owner of the Daytona International Speedway) a bill that would have allowed the two companies to get tax breaks of up to $20 million a year for new investments, also passing through the establishment of time-limited free zones – defined as “Sports Tourism Economic Development Zones” – for any entertainment complex over a certain area. A plan that would also have had beneficial consequences for stadium owners. However, the project stalled with the end of the legislature, also due to the controversy it aroused, but the Disney lobbyists have already restarted their assault, and they will certainly weigh the significant campaign funding disbursed.
All this to make you understand the difference in terms of planning between those who operate in sport as a business, and who instead – as in Italy – largely lives on improvisation and often tends only to lament, without any preparation with a view to growth. The million disbursed by the State of Florida will serve in part to subsidize the expenses of the 6 MLS teams (about $30,000 each) and – voucher model, from $50 to $125 each – of the holiday packages that the fans follow the teams. This will give each franchise the opportunity to earn up to an additional $75,000 depending on the packages sold. Just to give an example, Sporting KC – winners of the 2012 US Open Cup – should be accompanied by at least a hundred fans this year.
Actually more than incentives, to attract MLS teams to Central Florida, as confirmed eg. from Sporting Kansas City, it's certainly the climate, besides”to the quality of the technical center, the excellent level of competition and the beautiful environment, which allowed us to prepare very well for the excellent season which ended in November". There are a number of commitments for all participating clubs, beyond the single participation in the Disney Pro Soccer Classic tournament. In fact, they will have to send at least one chief scout to attend six days of tryouts open to players looking for contracts, and a three-day match-fix dedicated to college players. Both events will be hosted by ESPN Wide World of Sports. Furthermore, each team will have to send two starting players plus the coach or his deputy to a reserved event in which together with "Soccer Mickey” they will have to meet and take pictures with the fans. Similar commitments characterize the contract between Disney and Roma, contract of which, however, the details have not been disclosed. Some indiscretion only came out a few months ago on the Sports Business Journal: according to the alleged terms of the agreement (6 years), Roma would have the possibility to exploit the resources present at the facility, use the reception clinics, play an annual friendly and bring its youth team to the tournament which Showcase Disney Soccer takes place. In exchange, AS Roma will pay Disney a share of the rent while maintaining the right to sell tickets and television rights for the friendlies that will be played each year. The first will be against Orlando City SC (USL Pro) on January 2nd.
So no public money for Rome; public money that not even all will go to the MLS teams. Kevin Coulthart, vice president of marketing and events at the Central Florida Sports Commission, said about $250,000 will go towards marketing and administration costs. But precisely on this last item Disney worked a lot at the lobbying level: just think that during 2012 managed to persuade members of the Florida Legislature to increase tourism marketing expenses (with inevitable positive fallout on Disney) up to $54 million. One wonders if the Serie A teams, or the League as a whole, have ever taken action on this front to ensure that at least a part of the millions of tourists who visit Italy every year can attend a few games…but maybe something will soon change, also because the alternative for Italian football is endless mediocrity.
In fiscal 2012, Disney generated $5,7 billion in profits. When the numbers speak for themselves.
