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Jun 4

Brand football

The power of football in marketing terms has never been underestimated.  This is echoed in the latest report by Brand Finance (World’s leading brand valuation consultancy).

One particular piece that caught my eye follows on from the financial turmoil of Rangers FC in Scotland.  Their counterpart in Glasgow, Celtic, have won recognition as one of the top 50 brands in the global game.  It is suggested that this same Club, could even challenge such as Manchester United, Arsenal, Bayern Munich, Barcelona and Real Madrid in the top 10 if they were to ever play fixtures in the English Premiership.  The Daily Record confirms: “Celtic have become the first Scottish club to feature in the 50 most valuable clubs in football after their brand increased by a massive 30 per cent in the past 12 months.”  Maybe I need another trip north of the Border to see what tactics my namesake and Marketing Director has been employing.

In the Report, clubs are given a credit rating between AAA to D and the worth of their brands are calculated on how much it would cost to license them from a third-party.  Celtic have a BBB+ rating and a brand value of $64M – £40.7M.

May 3

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Plastic football

Apparently the debate has started again about the pros and cons of a main pitch within stadia being plastic.  Certainly technology has changed from the days that pioneers like QPR, Oldham and Luton took that decision on installation.

It seems a long time ago that I secured funding on an artificial pitch and floodlighting at Werneth School (my first!); quickly followed by a 3G being put in Woodley Sports FC’s Stadium, after I had success in assisting them to achieve a Football Foundation grant for stadia improvements.  At this time, the Football Association agreed to treat it as a ‘pilot’ before determining future policies at differing levels of football leagues’ hierarchies.  

The Institute of Groundsmanship (IOG) comments: “While artificial turf facilities have a place in community sport, the bigger problem is what do you do with the 20,000 plus grass pitch sites where football is played week in, week out”.  A valid point but the future will have to comprise both natural and synthetic turf in specific locations.

At semi-professional to grass roots levels ‘plastic’ can make a prudent choice – not least for reduced maintenance consideration, regularity of play compared with a seeded alternative, ability to hold multi-activity programming – and as a corresponding ‘income generator’ when pondering on commercial aspects of running a club.

To see how things have changed it will be worth visiting Stockport Sports Village when it opens in some 12 weeks’ time.  A myriad of quality ‘Field Turf’ pitches and suitable synthetic surfacing for football and tennis alike.  I introduced, Stockport Sports Trust (now trading as Life Leisure) where I am a Founder Director, to facilitate this Scheme and be appointed Operator.

Apr 4

Stockport County FC: Edgeley Park Stadium

Stark reality

When “County” went down, I recall someone saying that this was the best thing that could happen to us.  We’d just bounce back was the rhetoric.  I rubbished the suggestion, pointing out that the BSP read like a graveyard of former ‘League’ teams: York, Cambridge, Luton, Grimsby etc.  If we were to remain in that Division in Season one that would be a result in my opinion, after a free-falling demise and so many woes – consolidation had to be the name of the game.

Facing the on-going reality, relegation brings with it reduced income. There is an immediate loss of the £250,000 Premier League solidarity payment;  TV revenue and sponsorship £430,000 is halved for one year and then goes all together; youth development funding of £180,000 a year is halved for two years and then gets removed.

 It’s a significant contrast from the generous parachute payments clubs relegated from the Premiership receive for three years. 

All this explains why the Centre of Excellence in its current guise is not sustainable – and why innovative ticketing regimes need to be piloted such as ‘mad hatter prices’ to boost attendances for forthcoming seasons including attracting ‘new blood’ (the fans of tomorrow) and deriving supplementary in-stadia secondary spend.

Apr 4

Messy house

The latest Begbies Traynor report on football’s well-being states that:

“Of 68 teams surveyed in the Divisions [Championship, 1 and 2], 13 have signs of distress such as serious court actions against them, including winding-up petitions, late filing of accounts and “serious” negative balances on their balance sheets. That 19% compares to just 1% in the wider economy”.

When will they learn?  The Firm has been Administrator at several clubs that I’ve personally had involvement with: Chester and Huddersfield.  Plus others such as: Lincoln City, Northwich Victoria, Wrexham, Farnborough, Crawley, Scarborough, Bournemouth, Halifax, Southampton and Port Vale.

From a purely selfish perspective this keeps us in business, but how many times do we need to ask when will football get its own house in order?

The survey measures the financial distress of clubs according to problems including serious court actions against them and big negative balances on their balance sheet.

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