Hungary's Most Celebrated Soccer Team, Ferencváros, Also Its Most Troubled

Ferencváros is the Manchester United, the New York Yankees, the Yorimuri Giants of Hungarian soccer. The green-and-white wearing squad is, of all Hungarian clubs, by far the most celebrated, most dominating, most well-known internationally. In total, Ferencváros has 28 championships, 26 Hungarian Cups, one UEFA cup runner-up standing and one UEFA title. Yet juggernaut Ferencváros has been relegated to the second division for the first time ever in its prestigious history, running afoul of the opponent against which it had no chance: money. And with it, the ultimate scandal for a club that has seen too much scandal.

The final (final final, we're assured) decision regarding the insolvent club came two days before the kickoff of the 2006-07 Hungarian soccer season. In past weeks, a license to operate in the first division was denied, then issued and later withdrawn. In a confusing series of events, the licensing committee approved Ferencváros's century-plus-old re-admission on 17 July, overturning a previous resolution. The Hungarian FA then stepped in to state that this decision was a breach of statutes, and dispersed the committee. The FA never formed substitute committee. Two days before the opening of the championship, the future of Ferencváros was sealed, though truthfully Ferencváros' fate may have been set right around the time the Berlin Wall fell.

Immediately with Hungary's political changes of the late 1980s/early 90s came financial difficulties for Ferencváros. The first attempt to merchandise the name was in 1990, when Jean-Claude Bras created a foundation to run Ferencváros' soccer department, with the ultimate goal of a shopping center behind the club's stadium. Bras and his pipe dreams departed in July 1991.

For wont of funding, the team turned to sponsorships. Concomitantly, success on the pitch should also have boasted things economically. Ferencváros turned in the top performance by a Hungarian club ever in the 1995 Champions League. Approximately US $2.44 million came to Ferencváros.

Scandal, naturally, followed. Approximately US $470,000 "disappeared" from club coffers. Ferencváros' managing director and vice president were investigated, but said investigation was suspended in October 1999 with no charges filed. From 1991 to 1997, the Ferencváros budget increased twelvefold while income stagnated and then decreased. By December 1997, Ferencváros owed a total of approximately US $2.8 milion.

In September 1998, dodgy politician then-Minister of Agriculture József Torgyán and new Ferencváros president removed a large part of the Ferencváros debt, through companies close to the Ministry of Agriculture. Torgyán fought all effort to privatize the owning company FTC Ltd. In 2001, Ferencváros was given credit of approximately US $750,000. Later that year, 80% of Ferencváros ownership was purchased by Fotex, with promises of approximately US $11.25 million in investment over the next four years.

However, Fotex soon became wary of associating the brand name with a team rapidly becoming known for another disturbing feature of post-communist era soocer: hooliganism. July 2001 headlines screamed of an incident in which Ferencváros attacked supporters of Croatia's Hajduk Split before a Champions League match. This was chased by the single ugliest incident in Hungarian soccer history. After the Ferencváros/Debrecen match closing the 2002-2003 season, Ferencváros fans went on a tear, storming the pitch. Hooligans beat on Debrecen fans, players, coaches, and even members of their own team. Fotex left Ferencváros, taking the brand name "Fradi" (a nickname for the team), a brand on products from teevee programming to bad beer.

Before a UEFA Cup match in 2004, Ferencváros supporters attacked fans of UK club Millwall in downtown Budapest. While police literally stood and watched, a riot ensued in which Ferencváros supporters stabbed two Millwall backers. During the match, Millwall's black players were treated to racist abuse from Ferencváros quarters. Though some UEFA officials threatened a permanent ban on Ferencváros' participation in future UEFA Cups, no such action was taken.

Meanwhile, further investors came and went. One laughable/pitiable incident involved a cancer-cure research firm called Celladam which, though promising over US $7 million in investments, never delivered a schilling. Celladam representatives were allowing to sit on the board for four months before being ejected when apparent no money was coming.

And financial incompetence directly affected on-pitch results. In 2004, Ferencváros was scheduled against Albania's SK Tirana and the Czech Sparta in the Champions League. Again (or maybe "as always"), Ferencváros was in financial trouble and sold its best player, Zoltán Gera. Afterward, Ferencváros representatives lied to press about the price tag on Gera. Ferencváros played without Gera in Prague and lost. End of Champions League hopes.

One major Hungarian newsweekly declared that "the situation of Ferencváros today is almost hopeless." Estimates place Ferencváros debt is over US $4.7 million. To assuage this debt, Ferencváros must sell the land owned by the club and all shares in FTC Rt. In today's financial crisis at Ferencváros, the club is redefining "stripped down." In the offseason, Ferencváros used a second-division squad's bus to get to an exhibition match.

A new prospective buyer is real estate developer and market research company HI Grupo of Madrid. HI Grupo plans to build a new stadium for Ferencváros according to UEFA regulations alongside a shiny new entertainment center.

And while the Ferencváros brain trust waits for a tender offer, Ferencváros fans must watch their Green Eagles play against a lower level of competition than they've ever seen. Ferencváros has weathered the economics of 19th century capitalism and 20th century communism. Can they take the supercapitalism of the 21st?