Join Now | 
HomeAboutContact UsPrivacy & SecurityAdvertise
Soccer America DailySoccer World DailySpecial EditionAround The NetSoccer Business InsiderCollege Soccer ReporterYouth Soccer ReporterSoccer on TVSoccer America ClassifiedsGame Report
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: English FA    
"Our lionnesses go back to being mothers, partners and daughters today, but they have taken on ...
Video Pick: Brazilian sent off for jumping the gun    
Here's the kind of ejection you don't see very often: Santos midfielder Geuvanio got a yellow ...
Video Pick: Dallas' Diaz slips it under the wall     
Mauro Diaz (Dallas), Ethan Finlay (Columbus), Kaka (Orlando City), Sebastian Lletget (Los Angeles) and Tyrone Mears ...
Bobby Wood to remain in German second division    
U.S. striker Bobby Wood has signed with Union Berlin, which finished seventh in the German second ...
TV Report: USA-Japan shatters U.S. soccer viewing record    
The USA's 5-2 victory over Japan in the 2015 Women's World Cup final averaged 25.4 million ...
What They're Saying: Sunil Gulati    
"Carli's performance was as good as any performance in a World Cup final by any man ...
Awards: Lloyd named top player, Solo top keeper    
Carli Lloyd, whose stunning hat trick led the USA to the Women's World Cup title with ...
Turning Points | It takes an entire team of stars    
In the end, Carli Lloyd was the star, scoring six of the USA's last nine goals ...
What They're Saying: Carli Lloyd    
"I just completely zoned out and dreamed of playing in a World Cup final and visualized ...
USA-Japan takeaways: 15ers peak at right time    
The adage of growing stronger as a tournament unfolds was borne out Sunday when the USA ...
>> Soccer America Daily Archives