Is Turkey poised to achieve Saudi Arabia-like prominence in the world of football?
In the vibrant world of Turkish football, the big three clubs – Galatasaray, Fenerbahce, and Besiktas – have been making headlines for their ambitious spending sprees, attracting international stars and rivaling regions like Saudi Arabia in the transfer market. However, this financial prowess is not without controversy, as these clubs are deeply intertwined with the country's political landscape.
According to economist Ozgen, these clubs serve as political projects, with significant financial backing from the government. Clubs like İstanbulspor, Basaksehir, and Kasımpasa, which represent districts or constituencies that support President Erdogan, receive such support to solidify the government’s political influence and appeal to local electorates through sports [1].
The financial support extends to the big three clubs as well, which are heavily indebted, collectively owing over €1 billion. Despite these debts, they continue to spend on high-profile players. This lavish spending is enabled by government-enabled financial mechanisms like rights issues approved by the capital markets board and debt restructurings by public banks [1][3].
However, this financial mismanagement has not gone unnoticed. The Turkish Ministry of Sports has yet to respond to a query on how clubs have been able to continue borrowing, despite a law meant to curb the practice [2]. Some believe that the government tacitly supports increased spending on football transfers as a means to distract the public from economic problems like high inflation and unemployment [4].
Economist Aksar argues that excessive borrowing by the big three clubs is allowed deliberately to ensure their compliance with the government [5]. This compliance can be seen in the fact that fan groups, traditionally vocal critics of the government, have been notably absent from street protests since the arrest of Ekrem Imamoglu, the presidential candidate of the main opposition CHP party, in March 2023 [6].
Critics argue that the ruling party uses this law as a means to control football clubs and fan groups. The law allows for prison sentences for officials who drive their clubs into debt, but clubs can borrow up to 10% of their previous year's gross revenue [2]. This leniency has led to concerns about the long-term sustainability of the big three clubs' spending spree, as there is a massive gap between their income and spending, shrinking broadcasting revenues, and limited matchday and merchandising income [7].
Ozgen sees the big three clubs' pursuit of becoming "the Saudi Arabia of Europe" as a fantasy, as there is no oil revenue, only debt and bloated wage bills [8]. Despite this, the big three clubs continue to attract international stars such as Victor Osimhen, Leroy Sane, and Jhon Duran, making headlines with record-breaking transfer fees [3][7].
In summary, football clubs in Turkey are deeply intertwined with the government’s political strategy, serving as vehicles to bolster Erdogan’s support through financial means. While this creates prominent clubs with lavish spending, it also saddles them with huge debts often covered by state mechanisms, highlights economic strains, and feeds into broader public dissatisfaction that can contribute to political protests. However, direct, widespread protests uniquely focused on these football-government financial links have not been clearly documented in the provided sources.
- The government's financial backing of clubs like İstanbulspor, Basaksehir, and Kasımpasa, in line with their political allegiances, is a strategic move to further strengthen President Erdogan's political influence within the European continent.
- The Turkish government's tacit support for the big three clubs' lavish spending on football transfers is a deliberate distraction tactic, aiming to divert the public's attention from critical economic issues like high inflation and unemployment.
- Economist Aksar suggests that the ruling party manipulates laws concerning football clubs' financial management, using them as tools for maintaining control over these clubs and their fan groups, thereby quelling potential opposition and protests.
