Football clubs’ €11 million budgets not enough to clinch European glory

Maltese football clubs’ budgets are still low compared to their continental counterparts, and that is one of the main reasons behind their failure in European competitions this year, MFA President Bjorn Vassallo said.

“Unfortunately, sometimes we get carried away and people speak about our clubs reaching the group stages in Europe when the structures are not yet in place.

“You only need to compare the budgets of our clubs with those of their opponents in European football. Where the budgets are lower, our teams are generally better and more competitive but, when the opposite is true, we are weaker, and only the technical aspect and on-pitch events can reverse things but that is not always possible,” the association president told MaltaToday.

This year, no Maltese club in Europe has managed to advance beyond the second qualifying round.

On paper, Ħamrun Spartans did not have an impossible draw against Lincoln Red Imps of Gibraltar in the first qualifying round of the UEFA Champions League, but the significant changes in their squad and the apparent budget adjustment may have been a factor.

In the UEFA Conference League, Floriana did what was expected of them, beating Tre Penne, of San Marino, but bowing out with dignity against a stronger Portuguese team, Vitoria SC.

Marsaxlokk made a contest of their two-legged tie against Albania’s Partizani. They were unlucky not to play extra-time in the return leg and possibly survive penalties.

Sliema Wanderers found the going tough against Armenian club Noah in the second qualifying round of the UEFA Conference League, especially in the match away from home when they were beaten with the score of 7-0.

This scenario has inevitably rekindled the question – will a Maltese club ever advance to the group stage of a UEFA Club competition?

“It is crystal-clear that the budgets are still low to enable our clubs to compete on a European level even if the outlay has increased,” Vassallo said. “It is estimated that between €11 to €12 million is spent by clubs in the Maltese Premier League every season.

“This may not seem a small amount but when divided across the entire league, it becomes very insignificant at European level,” Vassallo added. “Therefore, this has been a strategic objective the Malta FA had initially presented in 2019 and one we want to conclude by the end of this year.”

Reforming club structure

Vassallo said the MFA is striving to address shortcomings related to club structure. “We are shifting from a status of sui generis (clubs owned by the members) to a private business (clubs owned by private investors), adopting the models of Cyprus and Latvia, to mention two, who introduced a professional football league already some time ago.”

He said the new initiative will necessitate a drastic change in the legal framework of the biggest clubs on the island but this will also give them the autonomy and greater resources to implement football-commercial philosophies as they will be able to attract foreign investment, multiple club ownership, as well as partnership ownership.

“The Malta FA is not reinventing the wheel but mainly replicating best practices from other countries. We have the benefit of having four teams qualifying for UEFA Club Competitions on a yearly basis and that alone is an enticing opportunity,” he said. “However, one has to understand that the process to change the regulatory framework is laborious and time-consuming.”

He said the MFA presented a draft basis of a legal notice to the government after internal discussions with clubs and external presentations and negotiations with the Malta Business Registry, the Ministry of Economy, Enterprise and Strategic Projects, and the Ministry for Education and Sport.

“A discussion was also held with representatives of the Opposition, and politicians have indicated their willingness to support it. We look forward to seeing the proposed draft approved by the end of this calendar year to bring football operations in Maltese football in line with the realities of small to medium countries in European football,” the MFA President said.

A new era for Maltese football

As part of wider restructuring, he also spoke about the Malta Premier League, which he says will empower clubs at a sporting and financial level.

“It’s not rocket science, but rather adopting the same principles which have seen leagues convert into business models, in the process increasing professionalisation and income streams. This aligns with our efforts to help the country’s top-tier clubs become more independent and open to foreign investment,” he said.

“Nevertheless, a degree of caution is called for. These initiatives should help to inject fresh money into our clubs but it does not mean that all will be straightforward and successful.”

He said that without right strategic planning, prioritising a proper business model, defined football philosophies, the right development pathway, investment in player welfare and football infrastructure and expertise in human resources, the whole set-up is unlikely to reap the desired rewards.

“We clearly have a long way to go but the Association is clearly embracing these challenges and by setting the wheels in motion and giving the clubs the tools to be more professional,” Vassallo said.

“Only then we can start speaking of rued missed opportunities. As yet our clubs are still not at par with opponent teams from Cyprus, Latvia, Azerbaijan and Finland to mention a few. As much as we want otherwise, this is the honest truth.”