The Business of Football

The Business of Football

The first football clubs were formed from friends, colleagues or existing sports clubs and were simply a way to enjoy the game and the competition . With the advent of professionalism and large crowds started the first football to be built . Large clubs have to protect public companies to their members against debts of wages and soil development . However, they remained clubs in the eye , and soon became the target of local communities.

Companies in football

Inevitably, the popularity of professional football entrepreneurs who are interested in the game as a commercial profit exercise has attracted and clubs such as Liverpool , Chelsea and Portsmouth have been trained in this way.

Businessmen tend the clubs at that time presented their activities as a form of public service. Their job was to keep the club in good health , rather than to make money. Actually had the FA safety precautions to protect the game of mercantilism. Article 34 says:

No member may receive a salary as a director of a football club. ( In 1981, it was to only be granted to a director changed , and now there is no limit to the number of paid administrators , but they have to work full time in the club)

No member may earn income from owning stocks football dividends were restricted to 5 % of the nominal value of shares

If a club would be liquidated , the surplus should be distributed to fund local sports relief or local sports institutions. This football club protected nesting assets "

Directors often described himself as a guardian - how to put something back into the communities , but in many cases , such a role was very helpful . Their improved profiles enabled many businessmen selfish, receive benefits , promotions and earn money illegally . Many have argued that these clubs run amateurish , combined with the class system, created poorly with owner-managers with little regard for the fans and their comfort and security managed company .

However, the rules to prevent clubs insured companies , the game is affordable and accessible for all . Admission for children is free, even the big clubs and the clubs have seen their support, from generation to generation , the game will be a big part of popular culture .

flotation

Tottenham Hotspur SugarAlthough Alan Alan Sugar became the first club to float on the stock exchange in 1985 , it was not until the mid-90s the rest of the president of the Football saw this as a new way to make money . Sugar (left) was the 34 FA by creating a holding company deal - Tottenham Hotspur plc - with the club only a daughter, transferred their assets to the holding company . This model has been used by successive clubs.

These are the first steps towards sports , football, turning a company - and the industry in the entertainment industry. Fans are no longer regarded as fans , just a "captive market" , whose support was " inelastic " as most responsible for a club for tickets, the more they pay . For larger clubs , with national (and international ) authorities fan bases , such conversions company was a success. In 1997, Manchester United had 3.29 million fans , Liverpool 2.18 million and 1.42 million Newcastle United . This hearing would like to buy in clubs all aspects of merchandising, and as a "brand loyal " for clubs like Manchester United could more or less get away with releasing three versions of replicas of their kit in a single season .

Article 34 was again and again , even though they are aware that the club had found a loophole has allowed the FA to continue this practice and said, should be allowed to " market forces " , their work is done. The FA has now given up its role to protect the football against the forces of commercialism - in fact it's almost encouraged in his plan . With the IPO , the 90s, a massive growth in the game, new and improved stadiums saw imported foreign players a game that appeals to a broad more ( rich ) public. He was also inflated player wages and transfer fees, which increases the price of tickets and the task of the game at the grassroots level . Those who made ​​the biggest profit of course , was the president considerable personal fortune from the sale of their shares.

Participation Support

Ten years ago, Northampton Town Football Club faced extinction by continuing poor financial management. Supporters Club decided that enough is enough , and the future of the football club they loved and cared for based on a knife blade , decided it was time for ordinary supporters did some thing to save professional football in the city. They managed to raise £ 60,000 with the help of local businessmen and directors of clubs and in turn holds a position of trust 18,000 shares ( 8% of clubs ) and can select a director to the Board of Management .

Supporters Direct logo Successes include moving the club Sixfields Stadium in 1994 , a field built by the Council and was owned and rented by the club . This saved the club of major maintenance costs and makes the venerable club stripping potential entrepreneurs interested in the ground assets . Confidence remained vital to the health club , especially this year , when the club was sold , guaranteed his best interests at heart for each potential owner of the club .

Looking for a way to increase fan participation in sports , as the Task Force Football government 's success Northampton Town and used to form the basis of Supporters Direct , a government-funded initiative based at Birkbeck , University of London (home of the Football Governance Research Centre ) .

Brian Lomax , the first fan - Director of Northampton Town , explains the benefits of partisans property:

Proponents believe they have a real stake in their clubs . They are not only worn by the doors and fed bullshit by the Board. The club is located in the municipality of woven, and there are many great advantages to this .

People create rituals to be our thirst for justice solidarity , for expressions of friendship and loyalty. In a world that loses its sense of unity , there is a high demand for places where solidarity can be found. I think this is what football all about media.

Supporters Direct is to provide support , advice and information for those who can play a responsible role in the lives of football clubs for their support. Legitimate trust supports the following goals :

Influence - the formation and operation of representative offices of trailers

Real Estate - Acquisition of shares in football clubs to bundle voting rights supporters to promote the objectives of supporters trusts.

Representation - securing democratic elections of deputies of the fans on the boards of football clubs .

However, these trusts tend to succeed when clubs are in danger. Some advocates now created doubts about the validity of the objectives Northampton Town Trust and the new as Walsall and the Premiership clubs such as Aston Villa trusts tend to attract only a small part of the entire fan base of the club. That has to change - especially in small clubs lower leagues are more likely to lead to financial ruin . Be in these clubs long term goals to see the club by fans ( as happened in Chesterfield ) whose loyalty is likely to take much longer than a few new president owned " white - . Knightsbridge " But these trusts are equally important in the big clubs whose owners are becoming more powerful .

asymmetric Books

Football clubs have to rely on revenue from television as their main source of income , and subsequent treatment should be wider and bring more prosperity. This was the case in 2001 , when the latest round of TV deals have been made , but it was probably the last time baby was so large amounts of money to win - £ 1.6 billion of BSkyB and ITV paid Premier League and highlights . The league has also managed a lucrative contract of 315 million pounds of ITV Digital get - secured by digital terrestrial media companies Carlton and Granada. These offers are for both the " Internet bubble " in which media companies believed substantial payments for such events came good in the end were made.

Of course , in view of the Premier League , which is probably true, but that 's both modest subscribed ITV Digital and League football was a less attractive proposition from the beginning faulty. ITV was in a similar sky in the early 90's - position. Their teams attract fans across the country , ITV digital rights to all three divisions League , the fans are more locally based and rather go to the ground - Wherever Sky staked his fortune on the Premier League that the games on TV. ITV was also a platform , weak signals and a cover that does not cover the country meant that those who opt watch their local team probably not receive ITV Sport Channel faulty anyway . The situation was not helped by not transport capable of chain on Sky - whose platform attracted around 6 million subscribers.

It is in this sense that Carlton and Granada, so that a loss of £ 1 million days of ITV Digital , tried his contract with the league, where he still £ 178,500,000 renegotiation two years. Errors in his attempts, he pulled the plug on ITV Digital , leave 72 football clubs without significant revenue from television rights , and maybe 30 in serious financial difficulties - some of them were already in the administration.

The increase in player salaries

Many fans saw the ITV Digital crisis and directly accused TV companies . But the crisis has not really problems on TV deals , the reports created in the next year , and these problems are probably even affect the Premiership .

The problem is , players inflate wages and the increasing willingness of the President to spend on player transfer fees and wages , especially large, regardless of whether the funds are actually available to pay them. Can expect the best players such as Michael Owen and David Beckham , 70 to win € 100,000 per week . Lesser players expect similar wage rates , whether they are or not worth it. If the Premier League is the only league was the one president had no choice but to build their future secure club membership and pay wages to attract players otherwise inaccessible.

QPR was a time in the Premier League, but he is now languishing in the lower management positions in the league after losing £ 27 million in four years. As a Premiership team, he had 61 professional players , some of whom would never make the reserve team , let alone the first . His youth team players were just as ridiculous wages - with two players who could not make even the youth team still won nearly £ 100,000 per year. In a recent interview with the BBC, Alan Sugar , the former Tottenham Hotspur FC President said :

If you are a club they give £ 50 million to spend. If you are a club of 100 million pounds they still give to spend. Transfers and salaries - And what is going on.

In the past this was possible because the TV companies were asked to pay more money for the rights of every other transaction. But next time , sky - the only real competition to the rights that clubs now nothing can be put forward which could offer a much expected to be reduced , but the players are not likely to accept lower wages.

Players wages have led fans to believe players are more motivated because they are paid regardless of the outcome of the games, and led to the detriment of the game in general. Recommended maximum reintroduction per player or Head Salary Salary caps are means of clubs that have to save yourself.

Responsible Business Management

The situation with all the players wages has arisen because football clubs oblivion is a sport , not a business. As a football club , you do not need to make a profit simply avoid losses suffered . But as president of the football business, they have established in the city on their feet , tend to believe in his philosophies as the market will regulate itself naturally town of Southampton chairman Rupert Lowe .

Preston North End is also home to the National Football Museum
The country of Preston North End is also home to National Football Museum

However, there are signs of change in the game , and begin some clubs like Preston North End so that to realize the benefits of responsible management of clubs. In 1994, Preston was made by Baxi Partnership - a major employer in Preston and public employee manufacturing company in the country - who wanted something back to the community. Bryan Gray , chairman of Preston North End and Baxi Head - General Manager:

To build participation and Baxi partisan to maintain the ethics of the football club , which is in the service of his followers , and successfully market - the 40%.

While this is the usual game of business , which may take over the club, this time it was generally meant . Not that the club is run as a charity - it is run for profit , but for a purpose - for the club. The club was introduced in the Alternative Investment Market , but not to increase for Baxi profit from his actions, but to raise money for the club. Gray believes that good design is an integral part of the meaning of a football club itself and the projection of the community :

Even people in the city that are not as proud of the football stadium as a well designed piece of architecture Preston - the club has immense goodwill in the city.

This belief extends to the club goods . His shop was designed by merchandising manager Steve White , a designer and a fan of North End life . The kit memory shares of White designed and manufactured by the club itself . White also brought in a number of clothing and leisure clothing , the brand with a discreet logo " NOI " . Gray:

Every professional football club has a fund of loyalty in his city. If the club that produces goods is cheap and well designed , people are happy to be associated with him ... It is not really difficult ideas. They are absolutely essential to any good businessman .

Basically football reached halftime, and must decide whether to support a sport on, with many benefits for the communities and society in general , or as a company want with just a few advantages some of his players - they on the field and in the boardroom .

Should it really be only one choice . Football must remain in place should remain a sport , but at the same time learn from his past. It should , the company would , but not to the extent it includes . President must now begin to behave responsibly for the future health of the game. The players have for the sport to flourish except non theyneed lower wages , if a player earns just £ 5,000 per week , only two weeks, have gained a similar amount to a nurse makes in a year. The other argument has to work in the entertainment industry large sums is wrong if people do not start except football is not looking for the sports industry , it is one , is played in the competition. If the players play the game and not the money.

The game of the institutions - in particular , the law should play a more important role - not in football promo tion for those who have money , but those who really support the game. There should be ways herring seine playing career look like after they can no longer play - whether coaching, teaching , or in other trades. After all, when the winners of the World Cup can do, there is no reason why today's players do not . It should return to a role in protecting the football against the forces of commercialism , but to promote good business practices . Your little rivalry with the league should be enabled to finally rest, and maybe start doing the moves by the league in 1991 suggested and go to the only authority in the English game has become , like his other countries. This can bring benefits to him - that we agree TV deals for the entire game , not disproportionately different leagues .

The fans also have their role in fact simple viewer for the investor extends see and pay more attention to their clubs , and this will undoubtedly eventually bigger and brighter. Of course journalism keep the role of the spectator , but it does play a role in the reporting scanner activity not only on the field but in the world of business and politics.


It is only when the reforms took place research , some may be harder then adjust other ( especially in terms of player salaries) makes sport can fully unfold and be seen in a healthy condition . However, one should , if this thing ever happened to the consent of the biggest clubs , including the President are unlikely to support any initiative they may see less short-term financial gain. But it is this kind of short-sightedness has brought the game to its dangerous position today .