Monday, April 6, 2015

Globalization of the English Premier League



Earlier this week The New York Times posted an article discussing globalization of the English Premier League (link here). For those of you not well versed in international soccer, the Premier League is the top league in England and arguably one of the most successful and popular leagues in the entire world. The article states that "economists have long held up soccer - which has become one of the most globalized markets for skilled labor - as a shining example of the benefits of open borders".


The Premier League, however, is attempting to close those borders by making it more difficult for non-English players to enter the league. This fear of immigrants taking jobs is unfortunately a common sentiment during economic crisis and is a sentiment not just found in England but also in the United States. Greg Dyke, chairman of the Football Association, England's governing body for soccer, argues that the Premier League is not giving enough preference to domestic players. 

Mr. Dyke has proposed "new limits on the supply of foreign players, by making it harder to get work permits. He also wants to limit demand for them, by persuading teams to reserve more of their 25 roster slots for homegrown players. The effort is a version of what economists call “import substitution” — raising barriers at the border to encourage the development of domestic industry. It is a strategy developing nations have used with success — including, once upon a time, Britain and the United States, and, more recently, China." 

While the article states that immigration is a very controversial issue in England, I can't help think that these concerns are somewhat driven by the current state of the economy in England and the European Union as a whole. I don't often think of soccer as a commodity, but ultimately the Premier League is one of the most profitable leagues in the world and therefore the management of the league is effected by the current economy. Increasing the number of domestic born players on Premier League teams works to keep profits from flowing out of England but may also make the League less popular globally.


10 comments:

  1. This is an interesting article. The first thought I had was will the Premier League become less popular by not allowing as much foreign talent in thus, becoming a less skilled league, or will the exclusivity of the league make it even more desirable to watch?
    I found the comparison between chairman Dyke's ideas to change the future of the league by restricting foreign players, with developing nations discouraging immigration to protect or promote growth within domestic industries to be fascinating.

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  2. I agree that this is a very interesting article. When I first saw this article I had the same initial questions of whether the Premier League would become less popular due to a lack of international players within the league and also how would this effect the skill level of the league as a whole. I believe that there is a connection between the fear of losing jobs to immigrants in the UK and the Premier League.
    This is because it was originally it was dominated by home grown players.years they have seen a move towards bringing in foreign players to help increase the skill within the league as well as globalize the game.

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  3. There's absolutely no way the Prem League would become less popular. Requiring 25% of your roster to be "homegrown" still allows for a huge amount of foreign talent, meaning you'll still have plenty of foreign followers. On the flip side, I can understand why the FA would want more English players in the League...as the name of it is the "English" Premier League. The connection between foreign workers in the normal job market in England and the soccer market is an interesting one...

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  4. There's absolutely no way the Prem League would become less popular. Requiring 25% of your roster to be "homegrown" still allows for a huge amount of foreign talent, meaning you'll still have plenty of foreign followers. On the flip side, I can understand why the FA would want more English players in the League...as the name of it is the "English" Premier League. The connection between foreign workers in the normal job market in England and the soccer market is an interesting one...

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  5. As an international student seeking a job in the U.S., I can "relate" pretty well with this article. I feel that my opportunity is very low, given the current economic situation. Plus, the whole visa process is very complicated and sometimes random too, which really discourages companies to hire internationals (unless I'm a super genius, which I'm not).
    Knowing that the chances to get a job are rare in the U.S. will affect the number of internationals who want to get an education here, and I think will eventually affect the U.S. economics too.
    This link might be helpful for those interested in this subject http://www.dispatch.com/content/stories/local/2014/01/20/cap-on-visas-could-hurt-recruiting-of-foreign-students.html

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  6. As an international student seeking a job in the U.S., I can "relate" pretty well with this article. I feel that my opportunity is very low, given the current economic situation. Plus, the whole visa process is very complicated and sometimes random too, which really discourages companies to hire internationals (unless I'm a super genius, which I'm not).
    Knowing that the chances to get a job are rare in the U.S. will affect the number of internationals who want to get an education here, and I think will eventually affect the U.S. economics too.
    This link might be helpful for those interested in this subject http://www.dispatch.com/content/stories/local/2014/01/20/cap-on-visas-could-hurt-recruiting-of-foreign-students.html

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  7. This is a really interesting article. As an individual who grew up watching the premier league in Nairobi Kenya, I think that implementing these rules would discourage international fans from watching as well as supporting this league. Soccer is considered to be an international sport and, this is definitely evident in the players' roster as well as during the FIFA world cup when you have players of various ethnic backgrounds representing a country that may not be of their heritage. Also, I don't think that hiring foreign players hinders the chance for an English player to be hired by the premier league. I think if anything, it is harder for a foreign player to get the opportunity to play for the premier league. I disagree that hiring a foreign player increases profits outflow from England because to some extent spending on goods and services within the country occurs.

    This is just a friendly question, but Aleksis i am curious as to what you mean by "I can understand why the FA would want more English players in the League...as the name of it is the "English" Premier League"? Because, the UK is a every diverse country and, there can be citizens who identify as English by nationality but are of a different ethnicity.

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  8. Definitely an interesting read. I agree with Aleks that the League will retain its popularity. Rosters requiring 25% domestic players are not absurd by any means, as still allows for foreign talent, and slightly favors the English players (who should admittedly have some preferential treatment).

    As for Farhiya's question, I think that distinctions between race, ethnicity, and nationality may become quite the issue. However, in my mind, any English "born and raised" citizen, regardless of race or ethnicity, has just as much a claim over preferential treatment by the League as the next. The resistance seems to be letting in people who come to England for the specific purpose of playing soccer/football.

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  9. I agree that the league would not become less popular but I think it would become less skilled by making this limitation. It is interesting how the article refers to soccer players almost as if they are a "good" not humans. For example, limiting supply and demand for them, or that this is effort is an example of what economists call import substitution. Will this limitation ultimately be more profitable? Otherwise, I don't really get why they would want to limit foreigners other than the fact that they want to keep it domestic because of the technicality "English" Premier League.

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  10. Interesting article! I thought the same thing about the less popularity of the league when I first read the article. It is already hard for foreign players to get in the premier league(work permits are difficult to get in England), so implementing this regulation will just make things harder for foreign players. Also, I don't believe that this regulation will positively impact the English economy.

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