Join Now | 
HomeAboutContact UsPrivacy & SecurityAdvertise
Soccer America DailySpecial EditionAround The NetSoccer Business InsiderCollege Soccer ReporterYouth Soccer ReporterSoccer on TVSoccer America Classifieds
Paul Gardner: SoccerTalkSoccer America ConfidentialYouth Soccer InsiderWorld Cup Watch
RSS FeedsArchivesManage SubscriptionsSubscribe
Order Current IssueSubscribeManage My SubscriptionRenew My SubscriptionGift Subscription
My AccountJoin Now
Tournament CalendarCamps & AcademiesSoccer GlossaryClassifieds
Financial meltdown could hit EPL hard
by Paul Kennedy, September 30th, 2008 7AM

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
Sacramento shatters USL PRO attendance mark    
[CROWD COUNT] After only nine games, Sacramento Republic FC has broken the USL PRO season attendance ...
U.S. U-17s fall to host Denmark    
[OPEN NORDIC TOURNAMENT] The U.S. under-17 national team lost its opening game at the Open Nordic ...
Nothing but net for Arsenal youngster Gedion Zelalem    
[VIDEO PICK: Off the Post] In our latest addition of soccer players excelling at other sports ...
What They're Saying: Sigi Schmid    
"It's been sort of a strange rhythm ... it's going to be a hectic August for ...
Manchester City romps before record Pittsburgh crowd    
[INTERNATIONAL FRIENDLIES] English clubs made it three-for-three in the Guinness International Champions Cup as Manchester City ...
Kleberson winner gives Indy Eleven second win    
[NASL: Fall Week 3] Brazilian World Cup 2002 champion Kleberson scored deep into stoppage time to ...
Naho paces Reign in rout of rival Thorns    
[NWSL: Week 16] The Pacific Northwest battle of this year's leader, Seattle, and last year's champion, ...
Ocala Stampede shocks defending champion Austin    
[PDL] The Ocala Stampede got goals from Karamba Janneh and Ilija Ilic to beat the defending ...
Rochester ends Orlando's unbeaten streak at 18 games    
[USL PRO] Colin Rolfe's goal gave the Rochester Rhinos a 1-0 win over first-place Orlando City, ...
Valeri does it again for Portland    
[MLS: Sunday] For the second week in a row, Diego Valeri scored a late winner to ...
>> Soccer America Daily Archives