Economic impact considered in football violence debate

The economic value of football in Italy industry will be in the minds of politicians and sports administrators when they meet on Monday to discuss long-term measures to curb fan violence at Italian soccer games.

The Italian soccer federation postponed all games over the weekend following rioting at a Serie A match in Catania that resulted in the death of a policeman.

The federation also cancelled Wednesday’s friendly between Italy and Romania, and has threatened to extend the game suspension.

The meeting gathers interior minister Giuliano Amato, sports minister Giovanna Melandri, Italian Olympic committee president Gianni Petrucci and soccer federation commissioner Luca Pancalli. It is being held at the premier’s office in Rome.

According to Italian news reports, measures that are being considered include barring organised groups of fans from following their teams at away games, stiffening penalties and limiting the number of fans allowed in stadiums whose security measures are considered lax.

Officials are also considering extending the suspension of league play to next weekend, reports said.

Amato has said that the violence must stop, or the games will. But the economic impact of not allowing a quick return to play could be huge.

AC Milan and Juventus are the third and fourth biggest clubs in the world by revenue according to accounting firm Deloitte.

During the 2004-05 season, along with rival powerhouses Inter Milan and AS Roma, the clubs generated more than €756.7mthrough match-day receipts, broadcasting deals, sponsorship, and merchandising.

“This is among Italy’s most important industries, and it needs to continue,” Antonio Matarrese, the president of the Italian soccer league, was quoted as saying in Monday’s editions of La Repubblica. “We are saddened, but the show must go on.”

“Unfortunately, deaths … are part of this huge movement, which law enforcement officials still can’t control,” Matarrese was quoted as saying.

Milan draws on average 64,000 spectators to its stadium for Serie A games, while Juventus boasts a fan base of 14 million.

It is impossible to imagine that either club will allow the 10-20% of its revenues that comes from ticket sales to be eroded for long, while the bureaucrats draw up new plans.

All four clubs also have broadcast deals with Mediaset SpA, which provide 50-60% of their total income.

Mediaset is already suing the Italian soccer league following a match-fixing scandal, which, it claims, has lessened the prestige of Italy’s Serie A.

A lengthy suspension of soccer itself is likely to make Mediaset seek further legal action to recoup its investment.

The Italian government itself has a vested interest in soccer.

A news agency specialising in the betting market estimates that the government receives €3m in tax revenues from legal betting each weekend from soccer in Italy’s top three divisions.

Agipronews reports that €22.7m is bet each weekend on Italian soccer matches in a total sports betting market which produced €302.6m in tax revenues for the government in 2006.

“We will take appropriate measures, we will make these people understand that it is over,” Amato said in yesterday’s edition of La Repubblica.

“They cannot go to the stadium with bombs and with bars. We will stop them even if we have to end soccer.”

A funeral for the dead policeman, 38-year-old Filippo Raciti, is scheduled for today in Catania, Sicily.