Unlocking Des Moines’ Soccer Dreams: The Debate Over Public Aid

Milan, Italy — In an editorial in The Des Moines Register titled “City Should Limit Aid to Iowa Pro Soccer Stadium,” the reader gets the run down with reality. The pro soccer stadium project funded largely by Krause Group will not happen unless there is public financing from the city of Des Moines.

$95 million will be provided by Iowa native Kyle Krause, CEO of Kraus Group. Although the city has been given the codified responsibility of providing a desired sum by private donors, the editorial states that the city has bargaining power.

The editorial suggests the disappointment that would ensue if tax increment financing and or if millions of dollars were given to the project that has seemingly cut the line in front of others. However, it recognizes the societal benefits for the community despite the deficit that the tax revenue would not solve.

Furthermore, they cite a need for affordable housing to keep workers in the city of Des Moines. In the same breath, Iowa’s reputation for athletic arena construction is mentioned. As well, the editorial nods to Krause’s formidable background as an Iowan, giving meaning to the proposal that is trying to be made.

Photo taken from USL Pro Iowa website feature of Mini-Pitches built in the Iowa community.

Pro Iowa is not the only football project the Krause family is spearheading. As of the time of the writing of this article, Parma 1913 sits with a strong 1st-place position in Serie B.

Millions of euros have been lost in the operation of the club since its purchase in 2020, as transfer windows are where sums of debts and deficits accumulate over the next few years of ownership (a symptom of modern Italian football). In a country where foreign investment is looking to bring larger resources and provide new strategies, it would be wise to flip on investments every year.

Football, unlike American sports businesses, relies heavily on player development and sales. Leaders in world football as reported by CIES are Benfica, Ajax, Stade Rennes, Chelsea, Porto, and Sporting, each being examples of football being played outside of Italy.

This demonstrates that profits can be generated, just not currently or even recently in the Italian context. According to data from the CIES Football Observatory’s report on top football academies, Italy lags in player development compared to other countries. Upon reviewing the number of players developed by an Italian club playing professional football in professional leagues, the clubs of Milan and Atalanta have a combined sum of 150 players.

In comparison to football clubs in other countries, Italy is behind.

When trying to solve the hard questions of creating a profitable business model in football, the first answer is turning to the development and improvement of football players. This should be of the first order.

It starts with recruiting formidable youth coaches and football scientists to oversee the development of the players from pre-adolescent ages to get a better idea of the professional product. This is true as most academy players are signed to professional contracts at age 15.

This component itself will improve the quality of the club player and better prepare the player for a potential career in the sport. However, science is only a means to standardize a level of talent.

If there is talent within the city or metropolitan of Parma, they quickly need to be identified, assessed, and recruited before they leave for more promising opportunities with a rivaling academy. What can help with the recruitment of the player and their families are the facilities, the appearance of such is what an academy needs to embody as the institutional mystique is what many of Europe’s top academies have.

The culture of the surrounding area of the facility would likely be a representation of the club values and the community which will then increase the value of the football school to its servants.

Once these virtues are in place, the club will likely grow from its established popularity. This would be amplified once local products enter professional football from the academy, and even more so if they are sold for club record fees to top clubs in and outside of Italy.

This objective would be of the first order. Also knowing that there is a plan to introduce pro football in Des Moines, Iowa, this American project can offer an energetic boost to the first project in the medium-sized central Italian city.

Winning the championship is usually of the first order for a successful football organization. As we already know, turning a profit and sending successful players upwards and beyond creates a sweeter and even more euphoric pride.

Iowa’s professional football project will offer the Krause Group, Parma 1913, and Des Moines to be members of a unique group of the growing trend of multi-club ownership. Leaders in this realm are the City Group, Ineos (Manchester United, OGC Nice, Lausanne-Sport), Redbull, and 777 Group to name a few. As of 2023, there are over 250 participants in this structure.

The benefits that such a model intends to provide are to create linear development pathways for football players and personnel as well as the exchange of intelligentsia. This success does not come overnight, but we are likely to witness sustained success from the execution of projects from wealthy owners over time and their subsequent impacts on world football.

Des Moines would be a drop in the pond of football in comparison to City Group’s Girona, or other affiliated City teams. Yet, it would become a port for Iowan talents to embark on their larger journeys in professional football.
Iowa today is championed by the 4th-tier football club Des Moines Menace (currently operated by the Krause Group) and has most recently contributed one player to international football through the appearance of Elvir Ibisevic to the Bosnia and Herzegovina national team in 2018. Furthermore, the Iowa Soccer Development Foundation has made a series of contributions to the community through the donation of over 650 balls and other equipment to different organizations as well as the construction of 10 futsal pitches across the state.

For more information on the mini-pitches and community contributions, you can visit the USL Pro Iowa website.

This is where the city government would be able to capitalize. If the city were to contribute public funding to the Krause Group project, they should demand a 5–10% return from player transfers from Iowa Pro Soccer.

This strategy would encourage the city, county, and state to understand and invest in the mines of football to produce talents that would ultimately return to the city government and shine the state of Iowa.