European competitions represent one of the most prestigious stages for a football club. However, history has shown that only clubs that view it as part of a long-term strategy—rather than a shortcut to success—truly capitalize on the opportunity. For some, European football serves as validation that they have built something stable, allowing them to leverage the financial and branding benefits to take the next step. For others, it becomes a pitfall, where short-term thinking and financial risks create long-term problems.
A study by Kościółek (2022), which examined the performance of Polish clubs after participating in European competitions, found no clear evidence that playing in Europe significantly strengthens domestic league performance in the long run. While clubs were not necessarily weakened by the extra matches, they also did not experience a guaranteed improvement. One possible explanation is that many clubs in smaller leagues lack the structures and resources to convert European success into sustainable progress. Revenues often get consumed by short-term expenses, and key players who perform well in European matches are quickly poached by wealthier clubs.
This highlights a crucial insight: Participating in the European football is not a guarantee for club growth, but it can serve as verification that a club is doing things right. If a club has a clear strategy and strong processes in place, the additional revenues from European competitions can be wisely reinvested in long-term development, such as scouting, youth academies, and organizational improvements. However, without a clear plan, European participation risks becoming a fleeting moment of success that fades quickly.
In How Hard Can It Be?, Hammer and Davidsen (2021) describe how football clubs often operate with a short-term mindset, reacting to external pressures rather than executing long-term strategies. Media scrutiny, fan expectations, and the relentless pursuit of quick results create an environment where clubs prioritize short-term fixes, expensive signings, rapid managerial changes, and inflated wage bills, over long-term stability. This mentality can lead clubs to overspend in the euphoria of European participation, only to face financial or sporting difficulties when results inevitably fluctuate.
What Hammer and Davidsen (2021) describe can be clearly seen in cases such as Málaga CF. After an impressive 2012/13 Champions League campaign, where they reached the quarterfinals, the club embarked on an ambitious spending spree, signing expensive players and significantly increasing wages in hopes of solidifying their status among Europe’s elite. However, when results declined and Champions League revenues disappeared, the financial burden became too much to bear. Málaga soon found themselves relegated to Spain’s second division, struggling to recover from their misguided strategy.
A similar fate befell Anderlecht in Belgium. Once a dominant force in Belgian football and a regular participant in European competitions, the club made a series of poor financial decisions, including costly transfers and unsustainable wage structures. As a result, Anderlecht lost their competitive edge and were forced to scale back operations, now focusing more on domestic youth development as they attempt to rebuild.
Kościółek’s (2022) study on Polish clubs highlights precisely this issue. While European participation provided a temporary financial boost, many clubs struggled to translate those earnings into long-term improvements. Instead, revenues were often used to cover existing costs or fund short-term squad reinforcements, making clubs vulnerable in the long run. This pattern is reflected in the cases of Málaga and Anderlecht, than reinforcing the club’s structure, their European earnings were spent on expensive short-term solutions that ultimately failed.
On the other end of the spectrum, some clubs have successfully used European football as a catalyst for sustained growth. One of the best examples is Atalanta. Despite having a significantly smaller budget compared to Serie A’s traditional powerhouses, Atalanta has become a consistent Champions League participant in recent years. Their success is built on a strong scouting model, a clear playing philosophy, and a well-structured organization. European football has validated their approach, allowing them to reinvest revenues into their academy, infrastructure, and smart recruitment, rather than making impulsive, short-term acquisitions.
A similar model has been adopted by RB Salzburg. The Austrian club has established itself as a breeding ground for young talent, using European football as a showcase to increase player valuations and generate lucrative transfers. By maintaining a consistent football philosophy and continuously refining their development pipeline, Salzburg has not only dominated their domestic league but also remained competitive in the Champions League and Europa League. For them, European competition is not a one-off opportunity but an integral part of a broader strategy to solidify their standing in European football.
The contrast between these clubs is clear: those that see European football as a validation of their existing processes, and use the revenues to reinforce their long-term strategy, are more likely to achieve sustainable success. Meanwhile, clubs that treat Europe as a shortcut to glory, adjusting their financial model to chase immediate success, often struggle when fortunes shift.
Whether a club thrives or collapses often depends on how they handle the marshmallow test, can they resist the temptation of instant gratification through flashy signings and instead focus on future sustainability? Kościółek (2022) demonstrates that clubs participating in European competitions frequently struggle to convert earnings into lasting sporting progress. However, those that reinvest wisely create a stable foundation that enables repeated qualification and sustained competitiveness.
For Swedish clubs, the lesson is clear. When teams like Malmö FF, Hammarby IF, and AIK reach European competitions, their long-term viability depends on how they manage the financial windfall. Should the money be allocated toward improving infrastructure, youth academies, scouting networks, training facilities or will it be spent on short-term transfers?
For Malmö FF, regular participation in European competitions serves as validation that their strategy is working. The revenues generated from European football help finance the club’s long-term sustainability. For Hammarby IF and AIK, who have yet to establish the same consistency in Europe, it becomes even more important to have a clear plan on how participation can create lasting impact and contribute to the club’s long-term development.
Hammer and Davidsen (2021) emphasize that many clubs struggle to maintain a long-term vision in football’s high-pressure economic landscape. However, those that do and treat European football as part of a greater strategy rather than an isolated goal, are the ones most likely to succeed. European competitions are not a guaranteed recipe for success, but for clubs already making the right decisions, they can serve as a catalyst for further growth.
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