Navigating expectations: Ferencvaros CEO strives for greater European success amidst financial realities

• A few weeks ago, Ferencvaros clinched their sixth consecutive title in Hungary. CEO Pál Orosz is striving for further growth while also advocating for a dose of realism among the fervent supporters.
• "You have to uphold your principles and never display any sign of weakness." Reflecting on a significant confrontation with the club's most ardent Ultras a few years back, Pál Orosz elucidates why they needed to reshape the matchday culture.
• Why it matters: Ferencvaros and Hungary boast a storied legacy in European football, with past triumphs and finals. Despite a period of decline, both the national side and clubs are resurging towards the summit.
• The perspective: Maintaining dominance in a smaller or medium-sized league presents challenges when aspiring to European success. Strong domestic competition is essential. Ferencvaros are exploring the possibility of establishing a new league.

By Kasper Kronenberg , Editor-in-Chief, Off The Pitch

"I didn't hesitate for a moment. My answer was a resounding yes."

When the President of Ferencvárosi Torna Club approached Pál Orosz in the winter of 2011 with the opportunity to become CEO of the multisports club’s football department, there was only one response: an unequivocal "Yes."

The scenario faced by Pál Orosz echoes the experiences of heirs to family businesses worldwide. Just as it was customary two decades ago for the next generation to assume control once the elders deemed it time, Pál Orosz found himself at a crossroads of tradition and opportunity.

In 1965, Ferencvaros emerged victorious in the Inter-Cities Fairs Cup, akin to today's Europa League, triumphing over Juventus. The competition was sealed in Turin, where Pál Orosz's father, Pál Orosz SR., a prominent figure in the Ferencvaros team for over a decade, crossed paths with his future wife—a stewardess aboard the return flight.

For Pál Orosz, Ferencvaros—affectionately known as Fradi in Hungary—is deeply intertwined with his family history. The annals of Ferencvaros and Hungarian football are replete with memorable moments unmatched by few nations.

In 1952, the Hungarian National Team clinched Olympic gold, a monumental feat highlighted by a victory over England at Wembley Stadium before a crowd of 105,000. A year later, Hungary delivered a resounding 7-1 thrashing to England in Budapest, marking the most significant defeat the English side has ever suffered.

Trounced Germany

During the 1954 World Cup, Hungary's prowess was evident as they trounced Germany 8-3 in the group stage, only to succumb to a spirited German comeback in the final, losing 3-2.

The events of 1956, including the Hungarian Revolution, cast a shadow over the football landscape, prompting notable figures like Ferenc Puskás and Sándor Kocsis to depart for Real Madrid and Barcelona, respectively.

These historical exploits remain ingrained in the Hungarian consciousness, shaping perceptions of their football teams, including the six-time reigning champions, Ferencvaros.

Despite clinching yet another title on Saturday, Ferencvaros supporters remain insatiable, perpetually yearning for more.

"I recall a Saturday a few years back after a convincing 6-2 home victory. As I made my way to my car, I encountered a fan in the parking lot. Our conversation quickly turned to his shock at conceding two goals against what he deemed a subpar team. It was evident that he harbored disappointment," reminisces Pál Orosz.

"While he may not represent the entirety of our fanbase, it's fair to say they hold high expectations. Our successful European campaign against the likes of Monaco, Trabzonspor, and Leverkusen a few years ago was met with pride and joy. However, it also heightened expectations among certain segments of our supporters, who now anticipate triumph over nearly all European teams. We often find ourselves reminding them of our budget constraints compared to our European counterparts," adds the CEO, drawing from his background in branding and marketing.

Injected personal funds

When offered the CEO role at Ferencvaros in 2011, Pál Orosz was still a founding partner of his marketing agency, Human Telex, boasting a staff of 70. Though he remains a shareholder in the agency, he now devotes his full attention to serving Ferencvaros while retaining his stake in the company he helped establish.

The invitation to become CEO came from the current Club President, Gábor Kubatov, also a Vice President of the leader party of the government in Hungary, whom Pál knew from their shared presence in the stadium stands. At the time, Ferencvaros had endured a trophy drought, with Debrecen reigning as the dominant force in Hungarian football. Moreover, the club faced financial turmoil, burdened by significant debt and dwindling revenue streams.

Pál and other investors were compelled to inject personal funds to ensure the club's financial solvency. Before implementing their vision, they first had to stabilize the club's precarious situation, following a period under the ownership of Kevin McCabe, the English businessman who had previously owned Sheffield United.

"It was a challenging period for us, a turnaround we had to navigate. But right from the outset, we believed fervently that we could effect significant change," reflects Pál. "We conducted a survey to gauge the strength of the club's brand, viewing it akin to any other brand in dire need of marketing and diligent effort. The survey revealed that over 1 million Hungarians held affinity for the club, indicating the potential to reclaim its status as Hungary's premier club."

A prolonged dry spell

The survey highlighted a fiercely loyal fan base among those aged 40 and above, while garnering sympathy from the younger demographic, albeit without Ferencvaros holding the top spot in their allegiance.

"We couldn't fault them; after all, Ferencvaros had endured a prolonged dry spell. Thus, we recognized that to boost revenues and reclaim our position at the summit, we needed to secure titles, awakening a dormant fan base hungry for success," explains Pál.

Rebuilding trust with local businesses was another crucial task. Many were skeptical about sponsoring Ferencvaros given its financial predicament.

"We prioritized transparency, acknowledging our financial constraints and urging sponsors to exercise patience. Fortunately, they rallied behind our management team and strategy," Pál notes.

Building a championship-winning team takes time, and it wasn't until the 2015/2016 season that Ferencvaros clinched the title. While subsequent years saw fluctuating fortunes, since the 2018/2019 season, they have dominated the league with consistent success.

"Our primary focus remains on maintaining our domestic dominance. We cannot afford to take winning for granted; it demands mature, aggressive performances week in, week out against our domestic rivals," asserts the CEO.

"Moreover, we must elevate our performance on the European stage and manage the weight of fan expectations. Some players struggle under the immense pressure, and we must address this," adds Pál.

“We must contend with stronger competition”

With their fan base swelling to 2.2 million, up from 1.2 million in 2012, Ferencvaros is expected to uphold Hungary's footballing legacy and demonstrate their prowess on the global stage.

However, the challenges facing the players extend beyond mental fortitude in handling fan pressure. A fundamental issue lies in the quality of the Hungarian league, where Ferencvaros players can secure victories even without delivering top-notch performances.

"We recognize that to evolve as a club, we must contend with stronger competition on a consistent basis, both domestically and internationally. We're engaging in discussions, both internally and externally, on how to address this. One potential avenue is the creation of a league involving teams from outside Hungary while remaining part of the domestic league. While no solution has been finalized, we are taking this matter seriously," explains the CEO.

While the formation of a new league could be a game-changer, one of the significant shifts during Orosz Pál's tenure was the transformation of the matchday experience, marked by a notable change in atmosphere. While Ferencvaros have always boasted passionate fans, the presence of hardcore Ultras often led to disturbances before and after matches, detracting from the club's image as a family-friendly destination.

Upon the completion of their new 22,000-capacity Groupama Arena in 2014, a new ticketing and fan card system was introduced, requiring all fans to register biometrically, via palm vein recognition.

Although this initiative allowed the club to identify troublemakers, it was met with resistance from the Ultras. Many chose to boycott matches until the club abandoned the new safety protocols, significantly impacting the stadium atmosphere for several years due to the absence of vocal supporters.

"We posed a simple question to them: If you're not causing trouble, why resist palm vein scanning? Despite our efforts to explain, they remained steadfast, and we stood firm in our approach. While it posed challenges, in such situations, one must uphold principles and never display weakness," asserts the CEO.

They feel secure

Eventually, the Ultras began to return to the stadium, and today, the atmosphere has undergone a significant transformation, witnessing a diverse mix of attendees at matches.

"It's been a game-changer for the entire club because it's challenging to expand your fanbase among kids and families if they're reluctant to attend matches. Now, they feel secure, and we're seeing people from across the country visiting Budapest and coming to matches. This allows us to focus on our campaigns to engage with individuals from all regions, and we're seeing the results in better sponsorship deals and increased matchday revenue," explains Bálint Máté, Head of International and CSR at the club.

Since 2019, the club has experienced substantial growth, with commercial income increasing by 47 percent and matchday income by 48 percent. Additionally, the club has benefited from several significant player sales.

The club anticipates further growth across all revenue streams as they continue to expand their domestic fanbase. For over a decade, Ferencvaros has conducted various programs and events focusing on nutrition, exercise, and other topics, reflecting its roots as a multisport club established in 1899.

"We aim to educate and inspire people throughout Hungary, perhaps even motivating them to change their lifestyles. This is the power of sport, and we take our role in this seriously, investing significantly in these initiatives. However, ultimately, we're a football club that needs to win matches. While we can't change the world entirely, we hope that our players and staff can inspire people nationwide," concludes Pál Orosz.

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