Financial crisis: How football is affected by the credit crunch
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Buradasınız >> Ana Sayfa HABERLER & MAKALELER Kriz Diğer Yazarlar Financial crisis: How football is affected by the credit crunch

Financial crisis: How football is affected by the credit crunch

The turnovers in the Premier League are relatively stable, particularly given the broadcast revenue and growing global popularity of English football.

 

3141: Main revenue streams
a) TV: Sky and Setanta have paid £1.7 billion for the current domestic Premier League rights, while the overseas rights are now worth £625 million.

b) Sponsorship: Clubs are free to negotiate their own sponsorship deals and these can be extremely lucrative, with Manchester United's shirt-deal with AIG worth £56.5m over four years.

 

 c) Spectators: The relative worth of gate receipts and merchandise has declined following the huge television deals, but Arsenal's financial success since moving to the Emirates stadium still underlines the potentially huge importance of maximising a club's fan base.

 

2: How long are the main deals
The television rights for the Premier League are renegotiated every three years. The most recent deal relates to 2007 until 2010, with the Premier League poised to begin negotiations for the period from 2010 until 2013. Premier League chief executive Richard Scudamore accepts that movement up and down is possible in domestic rights, but expects the entire package to increase. The sponsorship packages vary from club to club, though shirt deals typically last for around four years.

 

3: How at risk are sponsors
The turnovers in the Premier League are relatively stable, particularly given the broadcast revenue and growing global popularity of English football. However, the sponsors are in various degrees of trouble. AIG, the United shirt sponsor, was recently the subject of a rescue deal from the US Federal Reserve, while West Ham's XL sponsors have gone bust. Industry experts are also predicting a significant impact in sponsorship deals for clubs lower down the pyramid. Health rating of four.

 

4: How much debt in sport
Deloitte's last estimate for the Premier League's total debt was around £2.5bn, while the FA chairman, Lord Triesman, said that city sources had estimated it at £3bn. The debt at the biggest clubs is particularly large, with Chelsea, Manchester United and Liverpool accounting for more than £1.5bn. Chelsea, though, regard their debt as "softer than soft" because it is owed to Roman Abramovich and not, therefore, "external". There is also significant debt below the Premier League, with clubs having admitted that it is an issue of particular concern.

 

5: Who is main sugar daddy
Roman Abramovich is football's best known 'sugar daddy', but the takeover at Manchester City of the Abu Dhabi United Group has ensured that there are now new arrivals in football with deeper pockets than even Chelsea's billionaire owner. Sheikh Mansour Bin Zayed Al Nahyan is the son of the founder of the United Arab Emirates and his family have an estimated potential wealth of £500bn - compared to £13.2bn for Abramovich.

 

Kaynak: http://www.telegraph.co.uk/sport/football/3160700/Financial-crisis-How-football-is-affected-by-the-credit-crunch-Football.html

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