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Posts from the ‘Football Finance’ Category

May 24

German pointer

It was after all my first ever dog! The ‘huns’ as former generations might have referred – but I prefer our German counterparts in Europe, are destined to battle out for the Champions League trophy at Wembley.  The issue I want to highlight is not the more common debate contrasting our Country and Deutschland of standing for spectators, club ownership and balanced finances – but that of ticket prices.

Talk Sport broadcast today a Season Ticket at Tottenham for £800+ for 2013/14 whilst Dortmund’s equivalent is an alleged £100. Okay so the German market is not one I’ve analysed but this significant variation – with the greater financial viability of that Country’s game does suggest there is something we might learn – and indeed others including Spain.

Uli Hoeness, President of Bayern Munich, Dortmund’s opposition in the Final, said when asked:  “why the Club didn’t have higher ticket prices, like they do in England”  he replied “We do not think the fans are like cows to be milked. Football has got to be for everybody. That’s the biggest difference between us and England.”

Mar 24

Bubbles to burst?

“I’m forever blowing bubbles” the faithful sing at West Ham United.  But are these same bubbles to burst in the future?

A 99 year lease has been agreed for the old Olympic Stadium.  West Ham, Gold, Sullivan, Brady et al will be mere tenants at a fee to that Council of £2M per annum. Potential for extra revenue “Yes”; modern facility “Yes”; better viewing and atmosphere “No”; affecting Leyton Orient FC “Yes”.

But fans stay and owners go – where is the asset for the succession planning. Players and the ‘name’ is surely not enough.  The current Owners are too astute to do this for benevolence or philanthropy.  Are they pocketing the monies from the sale of Upton Park?  There’s a risk of some commonality to the E.P experience as not owing anything!

Another view.

Feb 27

A tale of two Cities

Okay let’s not split hairs, I know that only one is Manchester City and the other Manchester United – but the headline is used to take two perceptions on recruitment from two teams both of which think it’s their City.

I share with you a personal experience of each and leave you to think which was the right approach?  Certainly if you subscribe to ‘relationship marketing’ and longevity of loyalty only one fits the bill for me.

I take my Son to the Etihad Stadium for the first time (having been rebuked a sufficient number of times from following Dad’s team!).  The receptionist answers the phone and one learning it was his first visit says he will get a ‘City Card’ with his own name on – naturally adding to their database in doing so.  But what goes to follow is: entry for only £5, a free first team shirt (name on reverse was extra) and a goody bag swiftly following in the post.  Great!

Compare with ‘the Theatre of Dreams’.  First you had to become a Member at: £22 (card included).  Then buy a ticket admittedly £10 – so again value. But we really wanted to go to the Real Madrid replay and so had to enter a ballot.  Some weeks’ later we were notified that we had been unsuccessful.  Then an SMS arrives saying go to the website to get tickets.  We have to again register on that site. And after tooing and froing it says you are not eligible to buy tickets. Great!!

Feb 18

Spanish football

Reign in Spain 2

The ‘game’ of financial roulette as reported before in this blog needed urgent action in Spain.  The Spanish Football League has now announced new rules designed to prevent clubs from overspending.

These regulations include powers to limit the total cost of any clubs’ playing squad – also players registration can be prevented if perceived to be above an acceptable budget – though I don’t yet understand how this is calculated.  The Turkish connection portrayed, namely: Deportivo La Coruna is the latest Club to seek assistance to avoiding going bump and has filed for bankruptcy protection. 

This move appears another step in the right direction after the earlier agreed protocol to comply with UEFA’s financial fair play (FFP) regulations in the Country. Notably. from 2014 clubs must set up a ‘fund’ totalling 35% of their revenue from media rights to act as a guarantee against any tax liabilities.  I’m sure our HMRC would favour such. Furthermore, there is now an obligation for clubs to provide detailed budgets for the following season(s) including information on sales and expenditure, profit and loss and investments or any sales of assets.

Will I need to write about Reign in Spain 3?

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