In an earlier article, (PSSST: Here’s PS60m For Your Soccer Team ), which I published on my blog, I suggested that the Beautiful Game has become something exclusive to those who have a lot of money. A greater number of Premiership teams are being taken over by foreigners: Manchester United, Liverpool, Aston Villa, West Ham United, West Ham United, West Ham United, Fulham, Fulham, West Ham United, West Ham United, West Ham United, West Ham United, West Ham United, West Ham United, West Ham United, West Ham United, and West Ham United are all owned by Americans. Fulham is owned and managed by Fulham by Fulham owners. Fulham is owned and managed by Fulham by Fulham owners. Fulham by Russian, who can earn more from his trading in oil and mining and is obsessed with winning than he is. The ex-Thai PrimeMinister wants to be a part of the action and take over Manchester City. Is the Premiership becoming a costly playground for the very wealthy? The answer to that question is, I fear, yes. How true is this, judging by the latest annual review on soccer by Deloitte & Touche. The Deloitte Annual Review of Football Finance published 31 May 2007 revealed these shocking financial facts.
1) The combined wages for the English Premier League are expected surpass the PS1billion mark. The wage of the 20 teams was PS854million for 2005-2006, as opposed to only PS168million in 2005. Isn’t it great to be a player in soccer, instead of working at a desk.
2) But wait, there’s more! The first PS200,000 per week player in the EPL will be announced before 2010. At the moment, the Premiership’s highest earners are reportedly Ukrainian Andriy Schevchenko and German Michael Ballack. Both of them (both Chelsea) are believed to be bankrolling at least PS130,000 each week. I think that even though you are proven players, you should only receive a basic salary and the appropriate performance bonus. Soccer clubs will have no choice but to increase the prices of tickets to meet operating costs. This is a great way to insulate the company when things are not going as expected. It can also motivate and reward players, as well the management, for winning.
3) The top 20 clubs of the league generated a total revenue of PS1.4 trillion in two seasons (2005 -2006), a figure that is expected to increase to PS1.8 billion in Season 2007 – 2008. I suspect the vast majority of these revenues came out of the booming Asian economies. These newly-rich are more willing to spend huge amounts to watch their soccer heroes in “live” games.
4) When you consider the amount of money teams have spent to attempt to enter the Premiership, it comes out at PS2Billion. A new 3-year TV contract worth PS2.7billion will be in place for next season. It is widely considered to be a catalyst of wage inflation and the servicing of such debts. The new TV revenues, including international and domestic rights, add up to around PS300 million each season over the next 3 year. It’s going to be a vicious cycle. Teams will borrow money to get into the top division 스포츠티비. The TV money is then used for debt service. With reduced revenues, they will need to borrow more.
My words. The spiraling expenses of the soccer scene are going to get out of control one day. Fans will suffer the most as soccer clubs squeeze them to pay higher ticket prices and more expensive jersey copies. Even fans who cannot afford to travel to the stadiums for the game will not be spared. Fans may be charged more to watch “live” TV or games that are delayed. Finally, I see more top-tier teams being owned by foreigners. These foreigners are usually super-rich and have instant cash inflows. However, they might not be the best interests for soccer. These people are likely businessmen. Can anyone guarantee that these clubs will not be merely cash cows for the owners and that fans won’t be taken for a ride? I am certain that foreign owners have enjoyed both great sporting success and financial benefits. I believe it is high-time for the British government to regulate such transactions, before things get worse.