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Posts tagged ‘football finance’

Spondulas

A new report states that the average cost of admission (adult) has rocketed in the top four divisions of English football by a startling 11.7% in the past 12 months – more than five times the rate of inflation.  Good job some signs of the recession being curtailed. 

At least County has tried some promotions in BSP to address sales promotion, recruitment of the next brethren and support for disadvantaged. The BBC Sport Price of Football study illustrated a rise in the mean (literally!) £19.01 to £21.24. I would be surprised that a similar added value could be witnessed in supporters’ benefits.  Bet you didn’t know the most expensive away fixture for ‘pie eaters’ is Kidderminster.  Some interesting stats are apparent for benchmarking.

The PKF Football Industry Group’s Leagues Apart Survey has been published recently also.  This showed: “Two out of every three English and Scottish clubs (sample 62 FDs)  face significant cash-flow difficulties with a majority preparing to sell players or seek support from a benefactor before the end of this season.”

More money coming in – particularly daunting futures.  All in all suggests a somewhat ‘leaky bucket’! Given the background it’s not strange to learn, as we did today, that Arsenal will not be competitive untill another two years have lapsed.  First things first – financial viability and sustainability are an imperative. Let’s await the emergence of Fair Play.

US of A

To be quite honest, I’m spoilt for choice today, on football finance stories to mull over.  What with Rangers omission from the SPL etc.

However, I want to reflect on the happenings at Manchester United, perhaps coincidentally this American Day of Independence. Today actually means more to me as it’s my Father-in-Law’s birthday, Necati Kur (pictured). Those of you that know me or read my posts are aware of my contractual allegiance to the FC United of Manchester rather than its ‘big brother’. This team formed in reaction to dissatisfaction with the affairs surrounding the American businessmen, ‘The Glazers’’ takeover. 

Late last night, and so mainly aired today, ‘Man U’ announced that it would seek to raise circa $60M via the New York Stock Exchange.

MUST (Manchester United Supporters Trust) has commented: “Until we have more detail it is impossible to say with certainty what this will mean for Manchester United or its supporters. However, from the initial information we have it appears that the new A shares on offer will be inferior to the Glazers’ own B shares as they will carry only 1/10 of the voting rights. Furthermore the preliminary filing appears to indicate they will not be paying dividends either. So a minority shareholding with inferior voting rights and no dividends is going to severely impact on the attraction to both financial and supporter investors.  However if it turns out that the vast majority of the proceeds are used to pay off the debt that is certainly something MUST would welcome and entirely vindicates our longstanding position that their debt was damaging our club.”

The Barclays Premier League’s Club filed documents with the United States Government’s Securities and Exchange Commission yesterday. Man U would use the money raised from the flotation to reduce its substantial (some might argue unsustainable) debts.

This latest tactical move by The Glazer’s hierarchy, is hot on the heels of the $1Bn (£640M) flotation tried last year via Singapore’s equivalent stock market.  The plug was pulled on that due to the volatility of the World’s economy.

The BBC reported that: “The Glazers borrowed large sums of money to buy the Club and the interest payments on this debt are onerous. In 2010, the owners converted these loans into a bond in order to reduce the interest, but analysts say the share sale demonstrates how the club remains weighed down by its heavy debts, despite its huge global fan base and promotional and marketing efforts. The Club currently owes £423M”.

Playing financial-football with a global brand?

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.