The European Super League is the perfect metaphor for global capitalism

From elite football to tech giants, our lives are increasingly governed by ‘free’ markets that turn out to be rigged writes Larry Elliott in The Guardian

‘The organisers of the ESL have taken textbook free-market capitalism and turned it on its head.’ Graffiti showing the Juventus president, Andrea Agnelli, near the headquarters of the Italian Football Federation in Rome. Photograph: Filippo Monteforte/AFP/Getty Images


Back in the days of the Soviet Union, it was common to hear people on the left criticise the Kremlin for pursuing the wrong kind of socialism. There was nothing wrong with the theory, they said, rather the warped form of it conducted behind the iron curtain. 

The same argument has surfaced this week amid the furious response to the now-aborted plans to form a European Super League for 20 football clubs, only this time from the right. Free-market purists say they hate the idea because it is the wrong form of capitalism.

They are both right and wrong about that. Free-market capitalism is supposed to work through competition, which means no barriers to entry for new, innovative products. In football’s case, that would be a go-ahead small club with a manager trying radical new training methods and fielding a crop of players it had nurtured itself or invested in through the transfer market. The league-winning Derby County and Nottingham Forest teams developed by Brian Clough in the 1970s would be an example of this.

Supporters of free-market capitalism say that the system can tolerate inequality provided there is the opportunity to better yourself. They are opposed to cartels and firms that use their market power to protect themselves from smaller and nimbler rivals. Nor do they like rentier capitalism, which is where people can make large returns from assets they happen to own but without doing anything themselves.

The organisers of the ESL have taken textbook free-market capitalism and turned it on its head. Having 15 of the 20 places guaranteed for the founder members represents a colossal barrier to entry and clearly stifles competition. There is not much chance of “creative destruction” if an elite group of clubs can entrench their position by trousering the bulk of the TV receipts that their matches will generate. Owners of the clubs are classic rentier capitalists.

Where the free-market critics of the ESL are wrong is in thinking the ESL is some sort of aberration, a one-off deviation from established practice, rather than a metaphor for what global capitalism has become: an edifice built on piles of debt where the owners of businesses say they love competition but do everything they can to avoid it. Just as the top European clubs have feeder teams that they can exploit for new talent, so the US tech giants have been busy buying up anything that looks like providing competition. It is why Google has bought a slew of rival online advertising vendors and why Facebook bought Instagram and WhatsApp.

For those who want to understand how the economics of football have changed, a good starting point is The Glory Game, a book Hunter Davies wrote about his life behind the scenes with Tottenham Hotspur, one of the wannabe members of the ESL, in the 1971-72 season. (Full disclosure: I am a Spurs season ticket holder.)

Davies’s book devotes a chapter to the directors of Spurs in the early 1970s, who were all lifelong supporters of the club and who received no payment for their services. They lived in Enfield, not in the Bahamas, which is where the current owner, Joe Lewis, resides as a tax exile. These were not radical men. They could not conceive of there ever being women on the board; they opposed advertising inside the ground and were only just coming round to the idea of a club shop to sell official Spurs merchandise. They were conservative in all senses of the word.

In the intervening half century, the men who made their money out of nuts and bolts and waste paper firms in north London have been replaced by oligarchs and hedge funds. TV, barely mentioned in the Glory Game, has arrived with its billions of pounds in revenue. Facilities have improved and the players are fitter, stronger and much better paid than those of the early 1970s. In very few sectors of modern Britain can it be said that the workers receive the full fruits of their labours: the Premier League is one of them.

Even so, the model is not really working and would have worked even less well had the ESL come about. And it goes a lot deeper than greed, something that can hardly be said to be new to football.

No question, greed is part of the story, because for some clubs the prospect of sharing an initial €3.5bn (£3bn) pot of money was just too tempting given their debts, but there was also a problem with the product on offer.

Some of the competitive verve has already been sucked out of football thanks to the concentration of wealth. In the 1970s, there was far more chance of a less prosperous club having their moment of glory: not only did Derby and Forest win the league, but Sunderland, Southampton and Ipswich won the FA Cup. Fans can accept the despair of defeat if they can occasionally hope for the thrill of victory, but the ESL was essentially a way for an elite to insulate itself against the risk of failure.

By presenting their half-baked idea in the way they did, the ESL clubs committed one of capitalism’s cardinal sins: they damaged their own brand. Companies – especially those that rely on loyalty to their product – do that at their peril, not least because it forces politicians to respond. Supporters have power and so do governments, if they choose to exercise it.

The ESL has demonstrated that global capitalism operates on the basis of rigged markets not free markets, and those running the show are only interested in entrenching existing inequalities. It was a truly bad idea, but by providing a lesson in economics to millions of fans it may have performed a public service.

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The Straw Man and The Great Indian Kitchen

By Girish Menon

In the introduction to his book ‘How to win every argument’ Madsen Pirie writes:

Sound reasoning is the basis of winning an argument. Logical fallacies undermine arguments…Many of the fallacies are committed by people genuinely ignorant of logical reasoning, the nature of evidence or what counts as relevant material. Others however might be committed by persons bent on deception. If there is insufficient force behind the argument and the evidence, fallacies can add enough weight to carry them through.

The Malayalam film The Great Indian Kitchen is one such exercise in fallacious reasoning. The film maker sets up and destroys a Straw Man in the form of some highly conservative Sabarimala devotees who are male, upper caste and Hindu­. In such households, the film argues, the women are perennially confined to the kitchen and subject to male whims. Some women have bought into the system while the female protagonist and her mother-in-law take up the feminist cause of subversion and rebellion.

A Straw Man, Pirie writes, is a misrepresentation of your opponent’s position, created by you for the express purpose of being knocked down. This is usually done by over-stating an opponent’s position. If your opponent will not make himself an extremist, you can oblige with a Straw Man.

The Straw Man is fallacious because he says nothing about the real argument. Its function is to elicit, by the ease of his demolition, a scorn which can be directed at the real figure he represents.

This writer carried out a straw poll (not representative at all!) among those who supported the filmmaker’s thesis and not one of them stated that they were aware of such instances happening to people known to them. Instead, most of them pointed their fingers to North Kerala where apparently such practices are rife. I did ask a former resident of North Kerala if such things happened there and his response was that ‘Women everywhere were the same North or any part of Kerala’.

Some feminists I know took up cudgels on behalf of the female protagonist even though their own life experiences did not match the film’s heroine. They quoted some sisters who were treated badly by their husbands, but added that these husbands also wanted to live of their wife's earnings. However, they were not willing to question the failure of the female protagonist, who is depicted as educated and modern, to carry out due diligence before entering into the marital contract.

In this writer’s view, the creation and destruction of the Straw Man is the only protest available to progressives and feminists. Because, despite the Supreme Court’s progressive decision in the Sabarimala case, even the progressive left government has declared its inability to implement reforms to Sabarimala rituals. This is because the majority opinion which includes many Hindu women want to maintain the status quo and are unconvinced by the feminist rhetoric.

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