The Russian Premier League has recently seen its first club bankruptcy and a case of alleged referee bribery. Are these signs of a crisis or, conversely, a cleansing of the sport from corruption? And why are salaries in Russian football often perceived as higher than in European leagues?
In an interview, Maxim Mitrofanov, General Secretary of the Russian Football Union (RFU), addressed these pressing issues, providing insights into the league`s financial health, fan engagement, and efforts to maintain integrity.
Club Financial Stability and Bankruptcies
Mitrofanov distinguished between the cases of FC Khimki, which went bankrupt after the previous season, and Krylia Sovetov, currently facing financial challenges. He explained that the RFU conducts an annual licensing procedure to ensure clubs meet minimum standards, including financial solvency, to participate in professional competitions. This process aims to guarantee that clubs can complete a season. However, he noted that clubs` operational management during the season remains their responsibility.
Regarding Khimki, bankruptcy occurred because the RFU did not issue them a license for the subsequent season, leading to a loss of professional status and a lack of desire from shareholders to continue funding. Krylia Sovetov`s situation is different; they have a long-standing debt to a Rostec subsidiary. While they have made periodic payments and sought extensions, Rostec recently became unwilling to wait. Mitrofanov confirmed that Krylia Sovetov provided sufficient guarantees and new funding sources to the RFU, assuring their ability to complete the current season and enter the next in a stable financial position.
Revenue Streams and Financial Independence
The RFU aims for clubs to achieve greater financial independence, reducing reliance on subsidies. Mitrofanov outlined the four primary income streams for professional football clubs: sponsorship and advertising, centralized media rights sales, matchday revenues (tickets, concessions, merchandising), and transfer activities (player development and sales). He stressed the importance of balancing these sources for successful development.
A significant achievement highlighted by Mitrofanov is the substantial growth in media rights revenue. Through joint efforts by the RFU and clubs, revenue for the Russian Premier League has increased fivefold since 2021, the Russian Super Cup by 14 times, and the Russian Cup by 16 times, which also includes commercial advertising rights.
Fan Engagement and Fan ID
The introduction of Fan ID initially led to a decline in attendance, as it represented a new administrative step for fans. The average attendance for Premier League matches dropped to around 9,000. However, Mitrofanov reported a recovery, with current average attendance at approximately 12,500 people per match. The RFU`s target KPI for the Russian Premier League is 16,000 average attendance, which matches the best pre-pandemic season (2018-2019).
Mitrofanov emphasized that the Fan ID system is becoming more convenient for fans and has significantly improved safety at stadiums, almost eliminating правонарушений (offenses). It also facilitates easy ticket acquisition, transfer, and combating scalping. Leading clubs in Fan ID adoption include Zenit, Krasnodar, and Rostov, while Spartak leads among Moscow clubs. Ticket revenues are also growing, with major stadiums generating over 100 million rubles in ticket sales for top matches, contributing billions annually to clubs, despite high operational costs. Overall, clubs are moving towards profitability.
Player Salaries and Market Dynamics
The perception of higher salaries in Russian football compared to Europe was addressed. Mitrofanov acknowledged market competition among clubs as a factor in salary growth. He pointed out that top Russian national team players like Golovin, Safonov, Miranchuk, and Zakaryan play abroad for comparable or higher salaries. The Russian Premier League is Europe`s sixth-highest-earning competition in terms of club revenue, though significantly behind the top five leagues.
The historical «legionnaire limit» (restriction on foreign players) did contribute to inflated salaries for Russian players. However, changes introduced in 2021 by the RFU and Ministry of Sport have created a more balanced championship, with foreign and Russian players having an approximate 50/50 split in playing time. This has mitigated the «crazy money» phenomenon for top Russian players seen in the mid-2010s, though strong domestic players still command high values due to competition.
Sponsorship and Financial Fair Play
Mitrofanov refuted the «bubble» theory, which suggests state corporations and companies with state participation inflate salaries and operate outside of European financial fair play norms. He stated that sponsor incomes have largely stabilized year-on-year, without annual increases from most sponsors, especially state-backed entities. All expenditures are within existing legislation, including tax and advertising regulations. Companies choose professional sports for marketing based on their objectives, within established financial barriers.
Russian Cup`s Commercial Value
Responding to FC Dynamo`s CEO, Pavel Pivovarov`s comment that their participation in the Russian Cup yielded only 100 million rubles in commercial benefit, Mitrofanov clarified the Cup`s dramatically increased value. In 2019, the Cup`s total budget was 60 million rubles; it is now around 3 billion rubles, with 1.6 billion rubles distributed as prize money annually. He emphasized that the 100 million rubles for Dynamo was their prize money based on their sporting result, not the total commercial benefit. For instance, CSKA earned 300 million rubles as the current season`s winner. Clubs also retain rights to realize about 30% of advertising time through their own contracts. Therefore, the combined income from participating in official matches, including ticket sales and merchandising, is significantly higher than just the prize money.
The Role of Betting Companies
Bookmakers play a significant role in Russian football`s finances. Mitrofanov stated that Russia has the largest betting market globally, surpassing the USA, Germany, and the UK. As betting is primarily tied to sports in Russia, bookmakers are invested in sports development, quality broadcasts, and the integrity of the game (unpredictability of results). This has shifted the model for TV rights sales; betting companies are willing to pay for matches to be shown on publicly available channels, benefiting both television broadcasters and clubs/organizers.
Revenue from betting companies is used by clubs for infrastructure development, youth football, player acquisitions, and salaries. The RFU primarily invests its share in developing youth sports and maintaining national teams.
Combating Corruption and Refereeing Integrity
Mitrofanov addressed recent high-profile cases, including FC Torpedo and FC Sochi player Vladimir Pisarsky, who was found to be betting. He believes the RFU`s collaboration with law enforcement has led to a «cleansing of the industry,» demonstrating that corrupt practices will be uncovered and punished. He noted that club officials and referees now understand they face severe consequences, including criminal liability, beyond mere suspension.
While acknowledging that referees will always make mistakes, Mitrofanov stated that the number and seriousness of errors are decreasing annually. New technologies like VAR (Video Assistant Referee) allow for correction of on-field errors. Regarding specific controversial decisions, he differentiated between an expert commission`s judgment based on rules versus emotional fan perception, noting the ongoing global debate on subjective rule interpretations, such as handball. He highlighted the Torpedo case, where a referee reported an attempted bribe, which was then corroborated by law enforcement, leading to Torpedo`s exclusion from the Premier League and relegation to the First League. While some consider this a lenient punishment, Mitrofanov stressed the severity of losing professional status and the significant financial implications, arguing that the club, now under new management, has been «cleansed» of the individuals involved in misconduct.
