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Discussion Starter #1
Well it affects us in many ways, but will it also mean that the momey in the football world can go down? After all many (not all) of these owners are heavily involved with stocks that are currently falling all the time, and in West Ham's case, their Chairman's Icelandic bank has been shutdown... so when will football feel the full force of this meltdown, if at all?
 

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Depends how the clubs are financed.

Most of the top oweners are so rich this means nothing to them and infact the banks love them still paying back their loans now.

For the other smaller teams, they should be financed mainly off season tickets which get paid at the start of the season (before it all kicked off pretty much) and matchday tickets should make up about 20% of income.

In economic terms, football is an inelastic product. People wont stop going to football because theyre struggling this month or go to another club because theyre cheaper. Most people will cut down on other things (beer,**** etc) and still go to football.

On the big scale like youre referring to Deano, really cant see it making much difference to be honest.

Maybe less transfers in January because they cant get a loan (which most/all transfers are financed by) but i highly doubt it.
 

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Discussion Starter #4
Arseal are still in debt by over 200 million... the good thing about Arsenal with Wenger is that they finance themselves well, apart from when the new stadium was being built, the club is always making profit on its yearly report... and as long as they keep this up, then the debt doesnt matter so much. However, even though as La_Fa said, the absurdly rich owners aren't affected as much, what could trouble these clubs like Chelsea and Man City is if the owners left... because the clubs are in a huge debt. Chelsea for example are over 600million in debt, and whoever took over the club would need to have the money to face these debts because the turnover of Chelsea is infact not that great. Chelsea doesnt have a massive fanbase in England or worldwide, even if it is improving. I think it would be naive to think that monetary problems will not catch up to them... however the current crisis could affect some of the smaller clubs if they are not financed well, also abroad, not just the EPL.
 

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However, even though as La_Fa said, the absurdly rich owners aren't affected as much, what could trouble these clubs like Chelsea and Man City is if the owners left... because the clubs are in a huge debt.
No they're not. They're in roughly the same amount of debt as clubs with equivalent incomes. Chelsea are in about £700m of debt, which is the same as Man Utd. But Chelsea's isn't owed to someone who is demanding it to be paid back. So they are in debt, but not a debt that would put off any potential new owners, because it's proportional to their income as a company. Chelsea and Man City are obviously in the best position as far as getting new investment in the team is concerned, because they don't need to borrow in order to do so. Liverpool are in £350m of debt, but they're trying to borrow another £350m to build a stadium. That will probably suffer as a result of the financial situation.

Let's face it, it's not going to be the big clubs that suffer (as usual), with the possible exception of West Ham. Most clubs income is determined outside of the short-term financial climate. While that means that at the moment, they should be unaffected, if this is still going on by next summer, it could affect them for the whole of next season. If any club has to renegotiate their sponsorship deal in the summer, they may not get as much as they would otherwise. They will be less able to get investment in the team. Television rights are 3 or 4 year deals, and aren't up for renewal for a while yet.

It could go either way. Firstly, the transfer windows have caused clubs to be a bit more cautious, and only commit to a level of spending they can sustain for the whole season. Or secondly, it makes clubs less able to adapt to any problems they might get into, by offloading players to balance the books.
 

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In economic terms, football is an inelastic product. People wont stop going to football because theyre struggling this month or go to another club because theyre cheaper. Most people will cut down on other things (beer,**** etc) and still go to football.
WTF :confused:

I dont understand what "cutting down on ****" has to do with watching a football game.
 

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WTF :confused:

I dont understand what "cutting down on ****" has to do with watching a football game.
Haha sorry, i thought it was a word used all over, maybe not. I have a habbit of doing that.. today sent a text saying .. Yeah cant tall now,at the football. It was going to a girl and my mate who saw the text thought we had some secret sex code going on :D

Yeah it means ciagrettes... people would rather not have a few pints or not bet as much so they can go to football.
 

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Haha sorry, i thought it was a word used all over, maybe not. I have a habbit of doing that.. today sent a text saying .. Yeah cant tall now,at the football. It was going to a girl and my mate who saw the text thought we had some secret sex code going on :D

Yeah it means ciagrettes... people would rather not have a few pints or not bet as much so they can go to football.
I see. Well its not just in this case im simply bad with slangs.

I got asked so many times if I had a "square". Little did I realize squares is what they call the cigarettes here. I guess the pack is a square so thats where it comes from :rollani:.
 

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I think it will have its effect on football because, well basically, footballs ties with economy are very strong.

For example, the sales of fan shirts etc will drop by some margin. People will still be going to the matches but it has been pointed out that ticket prices are anyways a bit expensive so maybe some effect from there. The effect on season ticket holders will be seen in the next seasons statistics. Probably new stadiums will be harder to built as its harder to get the loan money and i doubt the transfer fees stay as high as they are now. Basically the meltdown has just started and things will get worse before they get better. The storm has gone over the States, it is doing its damages in Europe and starting to show some effects in Asia as well.

In my mind some household names, that are a bit mismanaged, may join the lower leagues and hit major financial troubles but probably the biggest clubs and clubs with filthy rich sugar daddies wont be affected that much. I think that clubs in EPL are a bit more safe because the league itself is commercially better managed than others. Than again it has the most foreign owners to whom the club is just an investment.
The first victim is West Ham, what damage was done there, remains to be seen but atm they probably got off easy.

So, interesting times ahead. Im just happy that barca had mr Laporta and co to steer us out of the debt and we wont be hitting the storm with a big debt on our asses.
 

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It really depends on how clubs manage their finance, and how much do they really on credit...
 

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I haventread the posts above but i wuld say it will in large make changes to the system indeed ...

Sponsors, fans, owners even Billionares are affected .. Just spending willy nilly is going to be seriously reviewed ..Y ?

Well , For one I read somewhere tha the #2 Richest man in the World Lashni Mital ( part owner of QPR) lost about 40# of his stock value in the last month or so .. thats BILLIONS wiped off his accounts .. THATS SERIOUS BUSNIESS .. if that doesnt make you sit up and wonder ..then your a fool ( Im speaking of owners)

Fact is , Owning a football club big or small is a finacial waste f money , unless you got a true blue cash cw like Man United and you buy it with very small debt if at all ... then your be alright ...

unfortunalty thats not true .. Formula one is in HUGE DWANG, so are sports like Golf, Tennis...

every ones money is feeling a pinch ..chelsea are cutting costs even ..

right now in the market ,more than ever there is no point in spending 30 million on a Henry ( Old not as good player)

no point in having multimillion pound weekly wages ...

fans are paying thorugh the teeth ... !!

TV rights and sponsorships are already over valued ...

the whle system will have to CORRECT itself,cos realy the whole thing is drivenn by sentiment and so called fantasy footy for rich boys

In many a way this market crisis is good as it should bring things back to their true value ... I think as a billionare it would make more sense to INVEST in say a Baseball team or tennis tournement than buying a top English club ...

too much overhead spend , not enough return n investment ...
 

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anyway , personaly I feel soccer and all sport now has to start operating on sound financial principles .. none of this wishy washy fantasy stuff ...

player transfers should be a 2nd resort than 1st option ..Your essentialy chucking out your hard earned money/ your profits why not invest and actualy carry through Youth development systems ...promote players ..?

I like the american sports model ..utilising trades and negotiating deals ...and just work on the salary ...maybe thats a better option..?

but anyway ...

Your
 

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http://www.busrep.co.za/index.php?fSectionId=561&fArticleId=4618344

Crisis spreads to soccer as sponsors hit the crossbar
September 19, 2008

By Tariq Panja

The English Premier League is becoming a scoreboard for the global credit crisis. Newcastle players wear the logo of Northern Rock, the mortgage lender nationalised in February; West Ham lost XL Leisure last week when the tour operator grounded all its flights because it ran out of money; and West Bromwich Albion was unable to land a shirt sponsor after being promoted from the second division.


Same boat

"There's not that much money sloshing about," said Nigel Currie, the director of sports marketing at Brand-Rapport. "Football clubs are not immune to the credit crunch. They are absolutely in the same boat as everybody else."

Typically, a shirt deal is a club's biggest single source of sponsorship revenue. AIG, which struck the deal with the US government two days ago, is in the second year of a four-year agreement with United worth £56.5 million (R825 million).

This season, however, shirt sponsorship revenue in England's top soccer league fell to £67 million from about £75 million a year earlier, Currie said. This is the first time it has fallen.

When West Brom played West Ham last week it was the first time in the Premier League's 16-year history that a match was played with both teams sporting jerseys without a sponsor's name.

Since XL Leisure collapsed only a day before the game, West Ham played with patches over the logo.


Taking bets

The situation is so dire that even the bookies are getting involved. Irish bookmaker Paddy Power has started taking bets on which team will be the next to announce that it is ending the shirt sponsorship.

Sometimes not having a sponsor was better, said Currie. When newspapers needed to illustrate Northern Rock's difficulties after it became the victim of the first run on a UK bank in more than a century, they turned to sports.



"You look in the business pages and they will inevitably use a picture of Michael Owen with a Newcastle shirt on," Currie said. "It portrays an image of not being successful."

The Premier League generates revenue of more than £1.5 billion and sponsorship income accounts for a fraction of that. United, for example, collected £49.3 million in television revenue last year, and earned another e42.9 million (R500 million) by winning the Champions League last season.

United, owned by the American Glazer family, would not disclose its contingency plans for a possible loss of principal sponsor AIG, according to a representative for the Glazers.

The club, which has won three European titles and the English league 17 times, would not have trouble finding a new one, said Stefan Szymanski of Cass Business School in London.

"There would be a queue of sponsors lining up for United," he said.

West Brom said this week it was in talks with several interested parties about securing a sponsor to replace Deutsche Telecom's T-Mobile. It was unlikely to get more than £1 million, said Currie, who worked on Manchester United's previous shirt deal with Vodafone.

Jacques Bungert, the president of Young & Rubicam Brands, which arranges sports sponsorship deals in Europe, said the plight of West Brom and West Ham might have implications for other mid-ranking Premier League teams.

"The fact the team doesn't have a sponsor is very frightening for the others, wondering if they will go in the same direction" said Bungert.

One English team got around the whole issue. Aston Villa, owned by US billionaire Randy Lerner, snubbed corporate sponsorship offers and instead offered the team's claret and blue shirt to Acorns, a local hospice for children.
 
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