bantambuff
Reserves Player
[M:500]
Most of my friends think that I am tempermental. That's 90% temper and 10% mental
Posts: 390
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Post by bantambuff on Sept 23, 2008 8:37:14 GMT
I have a fear this season, which I hope proves to be ill founded.
I fear that all 24 clubs will not last the full season in division 2. There could even be casualties in one of the higher divisions. There still seems to be clubs with small fan bases, inadequate income from other sources, and chairmen who still insist on spending obove their means. According to a PKF survey, only 35% said that they expected to make a profit in the next financial year. Not one of those clubs was in Division 2. Their report revealed that in Division 2 the most important source of income was ticket sales, a much more significant factor than TV and radio money. For the Greedy League, TV deals are the main concern, then sponsorship deals, with paying spectators third. Tells you alot about clubs priorities.
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Post by hallmackem on Sept 23, 2008 9:38:15 GMT
"Their report revealed that in Division 2 the most important source of income was ticket sales, a much more significant factor than TV and radio money. For the Greedy League, TV deals are the main concern, then sponsorship deals, with paying spectators third. Tells you alot about clubs priorities."
Clever use of words, but I don't think that getting more telly money necessarily means that it's their main concern. Supporters are top of the agenda for a number of clubs still. Sunderland in particular had Niall Quinn going round the pubs and working mens clubs of Sunderland persuading people to come to the stadium.
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Post by stealth1039 on Sept 23, 2008 9:55:07 GMT
In Spurs case I think it probably is true though as, until we can expand the Lane, we already get a full stadium every week.
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bantambuff
Reserves Player
[M:500]
Most of my friends think that I am tempermental. That's 90% temper and 10% mental
Posts: 390
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Post by bantambuff on Sept 23, 2008 10:03:29 GMT
I think that you have missed my point.
What I'm concerned about is that the impact of the economic downturn will be more keenly felt in the lower divisions. Whilst the Prem clubs will be cushioned from the worst of the impact by the income from the TV deal, those lower down the leagues are more vulnerable. As we punters increasingly feel the pinch, it won't just be through the turnstiles,. with club shops taking a hit as well as corporate hospitality, as businesses look to cut back on costs. Saving a few quid on prawn sandwiches for clients will be the first to go.
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Post by stealth1039 on Sept 23, 2008 14:37:34 GMT
Don't disagree with you Bantam but, although as a percentage of their income the lower divisions will suffer most, in actual lost revenue the Prem will suffer much more. They rely on huge amounts of income from Corporate sources and their ordinary fans are going to be made redundant just the same as those of any club. I can't seriously see a Premiership club going under yet but if this recession is as prolonged as the last (which it will be - & possibly longer because of the damage to banks) then it IS possible. Clubs such as Chelsea can't fill their grounds on good days.
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bantambuff
Reserves Player
[M:500]
Most of my friends think that I am tempermental. That's 90% temper and 10% mental
Posts: 390
|
Post by bantambuff on Sept 23, 2008 14:55:12 GMT
Agreed
The proof, I suspect, will be in total attendances across the whole season. The main cause of business failure in the current economic climate are cash-flow problems. Whilst clubs should be cash rich at this time of year as a result of their season ticket takings, this diminishes as the season progresses. Banks are going to seek only the safest of investments in these troubled times, and football clubs certainly don't fall into that category. I guess thats why its important to have more than just the suppoter revenue source.
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Post by stealth1039 on Sept 23, 2008 17:47:50 GMT
Good point. It certainly might make the January transfer window more boring than normal as will anyone want to flash the cash?
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