In its race with market leader Nike, adidas, the world's No. 2 sporting goods maker, "is stumbling," according to Boston & Germano of the WALL STREET JOURNAL. Adidas' obstacles range "from a faltering expansion in Russia and weakness in the U.S. to a strong euro and low emerging-market currencies." Football "has remained a bright spot" for adidas, which leads in that market, and the company is hoping that sales ahead of the 2014 World Cup in Brazil "will provide a second wind." The company on Wednesday unveiled its new "Samba Pack" line of cleats, "the first in what will become a steady cascade of new World Cup products, from team jerseys and the match ball to apparel and street wear." Adidas "can expect a boost from the sales of such exclusive products." However, that "may not be enough to stay alone out front" in the global football market anymore. Nike "has been quietly building heft in the field that Adidas once dominated." Adidas Football Division Head Markus Baumann said, "There are only two players in the field of football; there is us as No. 1 and Nike as the challenger." Adidas "set the stage for Thursday's earnings statement with a dire profit warning in September" (WSJ, 11/6).
According to futbolfinanzas.com, Real Madrid's Carlo Ancelotti is "La Liga's best-paid coach." Ancelotti is followed by Barcelona's Tata Martino, who joined the club during the summer. Martino, who makes $7.3M annually, is followed by Atlético's Cholo Simeone ($3.4M) and Athletic Bilbao's Ernesto Valverde ($2.7M). Both Miroslav Djukic of Valencia and Marcelino G. Toral of Villarreal earn $2.4M per year (MARCA, 11/6).
|La Liga Coaches' Annual Salaries
|Real Madrid||Carlo Ancelotti||$10.1M|
|Athletic Bilbao||Ernesto Valverde||$2.7M|
|Villarreal||Marcelino G. Toral||$2.4M|
|Real Sociedad||Jagoba Arrasate||$680,000|
La Liga side Málaga Dir General Vicente Casado said that the team has "paid off all its debt to the Spanish tax authorities (Hacienda)," according to Carlos Cariño of AS. Casado said, "With the Spanish tax authorities and Social Security, we do not have any remaining debt." Casado added that the club's current budget is €42M ($57.8M) and that it has paid off the €103M ($142M) that it owed to the Spanish tax authorities. When asked about the club's "financial evolution," Casado said, "During the '09-10 season, the budget was €25 million. For the following season, it was supposed to be €50 million, but it reached €128 million and there was a budget difference of €78 million. The budget was projected at €50 million again in '11-12, but reached €116 million. Within this evolution, a sheikh contributed more than €150 million in lost funds. The reality is that the €150 million spent generated a debt during those years that was more than €100 million. The club has sold players exclusively for the purpose of paying the debt. Now, in terms of spending and revenue earned, Málaga is self-sufficient" (AS, 11/6).