Mind the teeth
Statement from Liverpool Football Club:
We deeply regret the behaviour of Luis Suarez during the club’s recent match with Chelsea, and announce that the club has terminated its contract with Mr Suarez with immediate effect.
This is what Liverpool actually said, from Liverpool FC managing director Ian Ayre (with my emphasis):
I think the most important thing is that we acted swiftly yesterday. Luis issued his apology and then we spoke with him last night and then again this morning. We’ve taken action to fine Luis for his actions. Brendan has spoken to him and I’ve spoken to him, and Brendan will be working with him further on his discipline. You can see when you speak to him how sorry he is about it and he’s certainly shown quite a lot of contrition to us – and as part of that, he’s also asked we donate the fine to the Hillsborough Family Support Group. I think he felt like he let a lot of people down yesterday. We’ll work with Luis – Brendan particularly – on this side of his character in his game. Hopefully that puts the matter to rest from our point of view and we’ll wait and see if there’s any further action from the football authorities.
If, like me, you are wondering what a footballer has to do to get fired from their job, then read on. UPDATE: Suarez was banned for 10 games. Liverpool said they were “disappointed”.
Footballers don’t really get fired, whether it’s for biting another player, racially abusing another player, or beating people up. In any other profession you would probably lose your job, especially if this wasn’t the first time. (Note: Suarez has biten another player before, but for a different club. The racist abuse was at Liverpool).
It’s all to do with how clubs view players. They aren’t employees, they are assets. The reason why they are assets is that they can be sold on to other clubs.
Some quick sums. Suarez is paid around £6.25m per annum. He is on a 5 1/2 year contract. Excluding bonuses that will make his total pay just over £34m
That sounds like a lot. And it is. But Suarez was bought from Ajax in the Netherlands in January 2011 for £22.8m, and given his performances for Liverpool, his value will be a lot higher. Of course, towards the end of his Liverpool contract it will decrease given he will have fewer good years in him. He could even leave as a free agent in 2016. But if they sell him in the next 2 years, a transfer fee well upwards of £35m is not unlikely – more than his total salary over his contract.
In other words, Liverpool would effectively have to writedown an asset of approx £40m in value over a pitch incident. Never mind that in any other walk of life he would face criminal proceedings. This isn’t about discipline. It’s about business.
There is also the question of his value as a player in scoring goals. Liverpool aren’t going to fire 10 per cent of their starting outfield lineup, and one of the best players in the league with 30 goals so far this season.
Of course, if that asset starts to affect shirt sales or gate reciepts, you can bet that the equation changes. But that is not going to happen, or at least it will not be noticeable (which in this case is the same thing).
Which brings us to the moral hazard. Suarez knows that, whatever stupid thing he does, in all likelihood, he will simply get fined, his manager will shout at him, other players and opposition club fans may give him a hard time. But that’s it. So what? Where are the true consequences of his actions?
Losing his job? That might make him – and other players – think twice.
But until football scraps the transfer system and treats players as employees, we have a case of pure moral hazard, where a club will not sacrifice an asset and players can get away with criminal behaviour. It’s not a very nice sport, is it?