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Estudiantes and the battle for Argentina’s football future: Privatization or tradition?

5. February 2025
Estudiantes (foto: uradna spletna stran kluba)
Argentina is undergoing major economic reforms, and football is not exempt. The traditional non-profit model of club ownership is being challenged as Estudiantes receives an influx of private American millions.

Estudiantes de La Plata is one of Argentina’s most historic and successful football clubs. While not part of the "Cinco Grandes" (the five biggest clubs in Argentina), Estudiantes has an illustrious history, boasting six national league titles, four Copa Libertadores trophies, and a memorable 1968 Intercontinental Cup victory over Manchester United. Their last major successes—winning the Libertadores in 2009 and the Argentine league in 2010—are now distant memories, but the club has once again found itself in the national spotlight, this time for a very different reason.

Under the leadership of club legend Juan Sebastián Verón, Estudiantes has become a focal point in Argentina’s heated battle over football privatization. The country’s president, Javier Milei, is pushing to privatize football clubs, challenging a century-old system where clubs are structured as member-owned non-profit associations, much like Barcelona, Real Madrid, and Athletic Bilbao in Spain, or Hamburg and Schalke in Germany.

The Argentine Football Association (AFA), led by Claudio Tapia, strongly opposes these reforms, insisting on preserving the current model. Boca Juniors, one of Argentina’s biggest clubs, has also publicly opposed privatization, aligning itself with the AFA to protect the traditional club structure. However, in recent weeks, Estudiantes and Verón have become unlikely allies of Milei’s vision—thanks to American businessman Foster Gillett, the son of former Liverpool co-owner George Gillett.

Although Argentine law prevents Gillett from outright owning Estudiantes, his financial backing has already given the club a major edge over its domestic rivals. His investment immediately sparked controversy when Estudiantes triggered the $15 million release clause of Boca Juniors midfielder Cristian Medina—without consulting Boca, breaking an unwritten rule among Argentine clubs that such transfers must be negotiated directly between teams.

Boca immediately rejected the funds, claiming the payment came directly from Gillett, violating FIFA regulations. However, after lengthy negotiations, the deal was ultimately approved, and Medina has already debuted in an Estudiantes shirt. The move was seen as a direct challenge to the existing power dynamics in Argentine football.

Beyond Medina, Estudiantes also secured 32-year-old striker Lucas Alario from Brazil’s Internacional, previously with River Plate, Bayer Leverkusen, and Eintracht Frankfurt. Verón also attempted to sign 22-year-old winger Alan Velasco from FC Dallas, but Boca retaliated by hijacking the deal for $10 million.

Milei welcomed Estudiantes’ actions, declaring, "They are on the path to becoming a private company, which will benefit their members and fans." Verón denied that the club was privatizing, as current AFA regulations prohibit privately owned clubs from competing in the top division. However, Gillett added fuel to the fire by posing for a photo with Milei’s political ally Juliana Santillán, alongside a portrait of the president—whose economic policies have driven Argentina’s poverty levels from 40% to 53% due to aggressive austerity measures.

Boca Juniors, firmly opposed to privatization, responded to Milei’s decree by reaffirming its commitment to remaining a non-profit institution: "Our club belongs to its members and the people who make it greater every day."

Meanwhile, AFA president Tapia insists the non-profit model must remain, though critics argue his opposition is more about preserving personal influence than protecting Argentine football: "We know the model we want for our institutions. Clubs must remain non-profit associations. If anyone thinks privatization will save football, they are mistaken. That is a complete lie."

Some see Milei’s push for privatization as ideologically driven rather than beneficial for football. Interestingly, in Brazil—where the political climate is vastly different—privatization has not sparked such controversy. However, Brazil’s stronger economy and financial stability have contributed more to its clubs’ dominance in South American competitions than ownership structures.

What happens next remains to be seen. For now, it appears that tradition still holds weight in Argentine football, and most clubs are not eager to dismantle a system that has functioned for over a century. Ultimately, the chaos in Argentine football mirrors the broader instability in the country’s politics and economy—an unavoidable reflection of society itself.

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