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Cluster Family Office Blog

Social Exclusion and Show Business (and 2).

Continued from Social Exclusion and Show Business (1).

Against this tragic backdrop, in which social hardship is beginning to overwhelm countries such as Spain – a former contender for the title of the world’s eighth-largest economy (sic) – and in which the situation PIIGS, falls into the abyss of its own excesses, at the very heart of an EU that is more turbulent, strained and under scrutiny than ever before. Against this backdrop that we have outlined, we suddenly see news stories from the world of show business such as the signing of two footballers for €158,000,000, which nor do they guarantee sporting success. Excesses that must to make one reflect to any human being, and which I personally find inconceivable, inappropriate, immoral… unbelievable. Just as reprehensible as any other financial or sporting excess, of any colour, in the current climate of social constraints and a bleak outlook.

Even in the absurd world of the showbiz, there are different ways of keeping oneself entertained in times of depression, suffering and social exclusion. It has been shown that that you can achieve everything by developing footballers from the grassroots up, and in the current climate it is more important than ever to invest in productivity and in-house R&D, as well as in the search for sporting talent. It is not just a matter of avoiding a further increase in the debt bubble (the club owes 562 million euros), as you can see in this excellent article from GurusBlog and which is also wreaking havoc the finances of many clubs. But also of having, or at least pretend to, a certain awareness of the difficulties facing Spanish society and humanity as a whole. This is donate, today more than ever, far more than 10 million $ to an organisation such as UNICEF in five years, and of course to stop completely to promote the betting and to siphon off and squander 158 million owed within five weeks. It’s all about entertainment in the world of showbiz without overstepping the boundaries of ethics, which social deprivation is serving to highlight and define, even though many continue to look the other way.

Absurd excesses are reaching record levels these days, as reported by *La Voz de Galicia* in this article:

«Florentino Pérez, who during his first spell as Real Madrid president (six seasons) spent 499 million euros on transfers, has already spent 159 million, a figure never before reached in a single season by the club and which exceeds half of the 300 million that, as he announced, he would obtain through loans.»

Other prominent figures such as Xavier Sala i Martín, faced with the figures showing such waste, they ask themselves:

«…Someone will have to give them the money, and it would be good if they could explain how. How is it possible that a football team is being given all that money, given the country’s current economic situation and the credit restrictions that all the banks are imposing…»

Real Madrid have been responsible for the four most expensive signings in the history of football (Cristiano Ronaldo, Zidane, Kaká and Figo). The objection is, to say the least, an ethical one – at least whilst the Titanic remains afloat under its own steam, without covert aid or preferential corporate treatment. But the fact that the first and third signings took place in the midst of a global recession and against a backdrop of unprecedented social decline in Spain is far more than just ill-timed.

For those who are socially excluded, there will always be the madness of the show business to escape their bleak reality, but this economic and sporting madness – whatever its political leanings – in the midst of a social debacle strikes me as morally reprehensible. That’s not it, no. Entertainment like that? No.

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