Thursday, 1 January 2009

The future of football clubs in 2009?

I must confess that footy has never been amongst my interests, and I have little understanding of the economics of the business that manages to pay tens of millions to buy players and then pay those players up to two hundred thousand a week. I assume club income comes from gate receipts, corporate sponsorship and TV broadcasting rights.

However, nothing typifies the conspicuous consumption of Brown's bloated boom decade more than football. A riot of laughable bad taste by the players, together with sexual excess and every variety of illegal and deviant behaviour imaginable, at the same time both lauded and condemned by the red tops.

Will TV user subscriptions and advertising revenues dry up? Will corporate sponsors fall by the wayside? Will footy fans desert the terraces? I simply don't know. Will all those footy assets, like every other asset in the economy, prove to have been grossly over-valued? I suspect so.


Nick von Mises said...

Add in a few other things:
- Many clubs are loaded with debt either being bought as LBOs (Man U and Liverpool) or through buying players (Chelski, Sunderland etc). They have to refinance that
- Many clubs went for broke to get top five spots. But only five get them.
- Salaries are typically 60% of costs to a club. Contracts are typically 3-5 years. Not alot of flexibility there.
- Small clubs rely on transfers to big clubs to pay the bills. Will transfers stay so high?
- The top 4 rely on alot of Asian merchandise and TV sales. Asia is now crashing worse than Europe
- As social mood shifts towards frugality and austerity, I can't imagine the £100k p/w players having their usual frollicks tolerated by fans
- Lots of money into a club is pure discretionary like the shirt, hat, scarf, pies, cup match tickets
- PPV isn't on long-term contracts so its easy to skip matches now

Personally, I want football to sink like a stone until all the excess is cleared out amongst the clubs, the players, and the idiot fans.

Elby the Beserk said...

As a Man City fan of 50 years, it is a sweet delight that we are now the world's wealthiest football club, with no debts at all, and our slimy out-of-town neighbours the world's most indebted club.

Indeed, the credit crunch could well be a major problem for both them and Liverpool; interesting article here on trouble ahead for United.

My heart bleeds. Couldn't happen to a more obnoxious football club

Excellent blog, Raedwald, and fine rants on the bastard Brown of late. May they eat shit this year.

Happy New Year to you & yours

Anonymous said...

Football is an invention of the Jews to distract the Aryan Superman from his rightful destiny as the ruler of the world.

Raedwald said...

Anon - I'm going to leave your inane comment up as an example of the puerile and very silly tactics resorted to by those of your ilk. If you want to parody racial supremacists, either do it intelligently or not at all.

Anonymous said...

It is intelligently done, doofus. You're just too uptight to appreciate its awesomeness.

JPT said...

Football cannot, surely (and hopefully) be immune from the financial ice age we're going to run into very soon.

Anonymous said...

" gate receipts, corporate sponsorship and TV broadcasting rights."

One out of three.

Mr. Murdoch pays for most of this, and he manages it because thousands - perhaps millions - of deluded idiots are willing to pay £50 a month (or something) to watch indistuishable teams of purchased players from all over the world pretend to play for Manchester, or London, or Glasgow, or wherever.

Some of this may falter due to the recession, but from what I know of the aforementioned deluded idiots, it'll be a cold day in hell before they ALL give up their Sky Sports subs, so Murdoch is probably OK and so are the illiterate yobs who play for the big clubs.

Anonymous said...

"Indistinguishable", obviously.

It's a hard word to type late at night on Ne'er day after several fine malts.