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
What They're Saying: Bakary Soumare    
"As a player, there's nothing more fun than playing in front of a packed crowd, knowing ...
MLS Trade Central: Sporting KC gets De Jong    
Sporting Kansas City signed Canadian international Marcel de Jong after successful trial at left back at ...
Scouting Report: Norwegian train gets back on track    
Back in the day, the USA's archrival in women's soccer was Norway. The Norwegians split the ...
Haji Wright strikes as U.S. U-17s down T&T     
Haji Wright, the USA's leading scorer coming into the Concacaf U-17 Championship, got his first goal ...
Roster: U.S. U-15 girls kick off new cycle    
The U.S. U-15 girls national team convenes March 14-21 at U.S. Soccer National Training Center in ...
Edwards replaces longtime exec Holt as USL president    
Tim Holt, who spent the last 16 years at the United Soccer League, the last six ...
Roster: U.S. U-16 boys to play in Dutch tourney     
The U.S. U-16 boys national team will play in the Netherlands International Tournament in Rotterdam, facing ...
Roster: U.S. U-15 boys head to Florida camp    
Coach John Hackworth has named a 36-player roster for a March 7-15 in Fort Lauderdale, Fla., ...
Man City-Barca breaks FS1 viewing record    
Last Tuesday's Manchester City-Barcelona match set a new viewing record for a UEFA Champions League match ...
Bocanegra joins MLS Atlanta as technical director    
Former U.S. national team captain Carlos Bocanegra, who retired as a player following the 2014 season, ...
>> Soccer America Daily Archives