Join Now  | 
Home About Contact Us Privacy & Security Advertise
Soccer America Daily Soccer World Daily Special Edition Around The Net Soccer Business Insider College Soccer Reporter Youth Soccer Reporter Soccer on TV Soccer America Classifieds Game Report
Paul Gardner: SoccerTalk Soccer America Confidential Youth Soccer Insider World Cup Watch
RSS Feeds Archives Manage Subscriptions Subscribe
Order Current Issue Subscribe Manage My Subscription Renew My Subscription Gift Subscription
My Account Join Now
Tournament Calendar Camps & Academies Soccer Glossary Classifieds
Financial meltdown could hit EPL hard
by Paul Kennedy, September 30th, 2008 7AM
Subscribe to Soccer America Daily

MOST READ

MOST COMMENTED

[ENGLAND] Just two days after Hull City's stunning 2-1 victory over Arsenal, the Tigers' chairman, Paul Duffen, issued a warning about the state of the English Premier League. And it wasn't about the race for the 2009 championship.

Duffen says heavily leveraged clubs could face collapse if the banking crisis gets worse. The debts of EPL clubs approach $4.5 million. Manchester United leads the list at $1.2 billion.

"We have had to be careful," he said. "We're not as rich as Croesus as some of our competitors are, but in some ways we're maybe one of the wealthiest clubs as we don't have any debt. A lot of the clubs have themselves highly geared and in these uncertain banking times I think there could be a few casualties in the Premier League later in the season sadly."

British banks have been hard hit by the financial crisis. Northern Rock, HBOS (Bank of Scotland) Bradford & Bingley have all been nationalized or taken over.

One club that could be in trouble is Portsmouth. Its Russian owner, Alexandre Gaydamak, is rumored to be seeking to sell the club because of its mounting debts -- in particular installment payments on transfer deals concluded by its dealmaking supremo Harry Redknapp. Pompey has debts exceeding $100 million and is projected to lose another $40 million this season.

The marketing success of EPL clubs was one of the reasons behind the league's success, but they face a $15 million decline in shirt sponsorship revenue -- the first decline in its 16-year history.

Jersey sponsors have been in the news recently for all the wrong reasons.

Northern Rock was Newcastle United's sponsor. West Ham's sponsor, tour operator XL, went under.

AIG, the sponsor of Manchester United, was bailed out by the U.S. government.

Wigan sponsor JJB Sports is in danger of going bankrupt because of declining sales.

The gulf between big and small clubs across Europe could increase.

"I don't think Man United would have much trouble finding a new sponsor, likewise Chelsea, Arsenal and a handful of other top clubs," Gary Leih, chairman and chief executive of advertising's Ogilvy Group UK, told Reuters, "but if you're a team struggling in one of the lower leagues, sponsorship is going to be harder to come by. What I think we will see here is sponsorship by local brands. Brands coming together with a local football team can generate enormous amounts of goodwill."



No comments yet.

Sign in to leave a comment. Don't have an account? Join Now




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Soccer America Daily
Roster: U.S. U-23 women head to Spain    
The U.S. U-23 women's national team will play Japan (March 2), England (March 4) and Norway ...
USWNT: No Klingenberg, no A-Rod for SheBelieves Cup    
U.S. women's national team head coach Jill Ellis has named the 23-player roster for the 2017 ...
Report: UCL headed to Turner and Univision in 2018    
Turner Sports and Univision have snatched the U.S. media rights to the UEFA Champions League away ...
U.S. Soccer: U-17 and U-20 women's coaches to be replaced    
B.J. Snow is no longer U.S. U-17 girls national team coach and Michelle French is out ...
U.S. Abroad: Johnson's M'Gladbach pulls miracle comeback    
Fabian Johnson came off the bench for Borussia Moenchengladbach as it came back from 2-0 down ...
Sneak Peek: Potent Impact seeks resiliency and depth    
Last year Montreal stunned Red Bulls, 3-1, on aggregate and took a commanding lead against Toronto ...
What They're Saying: Perry Dealy    
"It's worth preserving because we don't have a lot of icons. It would save a lot ...
Sneak Peek: Vieira is convinced NYCFC will be improved    
In his first season, Patrick Vieira proved that a foreign coach unfamiliar with MLS could find ...
Sneak Peek: Timbers look as good as ever    
From MLS champion in 2015 to out of the playoffs in 2016, it was quite a ...
CCL: FC Dallas rewarded with record-breaking win    
FC Dallas' intensive training camp in Buenos Aires -- nine games over 10 days -- paid ...
>> Soccer America Daily Archives