Post by QPR Report on Nov 22, 2008 8:42:48 GMT
The Times/Roy Collins
- Financial meltdown hits the Premier League
Fans are tightening their belts and thinking twice about attending matches, so clubs must come up with new strategies
Graphic: First signs of crowd trouble?
extras.timesonline.co.uk/pdfs/trouble.pdf
As the Arabs rode into Manchester City in the summer and sanctioned the £34.2 million purchase of Robinho, while John Terry signed a record-breaking £35 million new contract at Chelsea, including £130,000-a-week wages, it was easy to believe that football was immune to the economic downturn. All it needed was for one of the top clubs' officials to paraphrase Leona Helmsley, the American socialite, by telling us that recession was for the little people.
Plenty of the so-called little people follow football and after one in four supporters of Barclays Premier League clubs said that they will watch fewer matches this season, with a staggering 43 per cent of West Ham United fans insisting that they must cut back, the biggest mystery was that gates seemed to be hardly affected.
Now it has become clear that they have been sustained across the Premier League only by the increasingly popular elastic season ticket. Fans who renewed them in the summer, before the scale of the banking crisis and its knock-on effects were known, are holding on to their seats only by sharing them with friends. And even when seats are left empty, season tickets are counted in official attendances.
As the credit crunch bites, the corporate prawn-sandwich brigade are also feeling the chill of the recessionary wind. Clubs have long since taken their core supporters for granted, so the decreasing number of wealthy fans is far more significant to their hopes of keeping the gravy train running and the gravy boat moving.
The downturn in the lucrative hospitality market is seriously hurting top clubs and no more so than at Arsenal, where catering revenue appears to be well below expectations. Delaware North, an American company, paid £15 million up front for a 20-year catering contract, only to find that many executive box-holders who pay £100,000 a year for the privilege are refusing to pay a further £100 a head for pre-match meals. For the first time, Arsenal have also put Champions League tickets on general sale this season.
A Premier League seat was once the hottest in town. Now even Liverpool regularly put seats on general sale, while Aston Villa, whose win away to Arsenal last weekend confirmed their Champions League credentials, cannot get gates up to last season's 40,000 average.
Troubled Newcastle United have suffered the biggest exodus of fans in England, with gates down almost 5,000 per game. Only the match against Hull City in September has topped 50,000 this season and that was because the supporters wanted to shout abuse at Mike Ashley, the owner, and Dennis Wise, the executive director (football). Newcastle's club shop has also slashed 25 per cent off replica shirts.
Much as the rest of the country's supporters find it hard to resist laughing at the Toon Army, the empty seats at St James' Park and Ashley's failure to find a buyer for the club are as much to do with the credit crunch as the way Newcastle are run. And now even the Premier League's top four are feeling the effect.
Even before the turndown, the Virgin Money Football Fans' Inflation Index showed a 21 per cent rise in match-day costs since last season, with an estimated outlay of £106.21 per fan, the first time it has been above £100. Scott Mowbray, a Virgin Money spokesman, said: “In the past year fans have had severe pressure on their finances from rising mortgages, fuel prices and energy bills. The recent fall in oil prices might see a small drop in our next index in January, but fans are still paying a lot more.“It will also be interesting to see whether clubs attempt to put their prices up even higher as revenue from programmes, food and replica shirts falls.”
Train fares have also rocketed way above the rate of inflation. Steven Powell, of the Football Supporters' Federation and an Arsenal fan, said: “Most fans can't afford the train because there are no longer cheap advanced booking fares. So they go on the official coach, on a minibus or drive with friends and share the petrol costs. Supporters are also cutting down their stadium spending, taking their own food and even flasks.”
Bolton Wanderers have done more than most clubs to keep the turnstiles clicking, recently offering free beer to early arrivals at the Reebok Stadium. They also provide free travel to away grounds and have slashed junior season tickets by 64 per cent to only £49.
Gareth Moores, the club's commercial director, said: “We recognise the squeeze on supporters' pockets and are trying to do all we can to encourage them to keep watching us. Even so, we understand that the credit crunch will reduce demand and we have felt some pain in the hospitality section. We have reduced some prices and added to other packages.”
Other clubs could soon be looking at even more dramatic measures to keep their fans onside. As the season wears on, there are signs of bubbles bursting - and not only at West Ham - as the recession tests supporters' loyalty as never before.
Arsenal Not making as much from their hospitality and catering as they had expected. For the first time, they have also had to put Champions League tickets on general sale. Many fans are already sharing season tickets and the club must worry about selling all their executive boxes next season.
Aston Villa Successful on the field and a model of how foreign ownership can work to everyone's advantage. But gates remain stubbornly below 40,000 and, with unemployment rocketing in certain parts of the West Midlands, 22 per cent of fans say they will attend fewer games. Last season's replica kit reduced from £35 to a Primark-priced £4.99.
Bolton Wanderers Short of letting everyone in for nothing, they cannot do much more to entice supporters into the Reebok. Fans recently received free beer for turning up early and now get free travel to most away games, while a junior season ticket has been reduced 64 per cent to £49.
Blackburn Rovers Only John McCain has experienced more problems getting the support out. They managed only a 20,000 gate for last week's game against Chelsea, so Blackburn have probably burnt their “sold out” signs. Despite many fan initiatives, gates are down 1,000 a match.
Chelsea Even Chelsea's “Loadsamoney” fans apparently cannot afford to pay full price for a replica kit, with Champions League shirts reduced from £56.49 to £44.99. And the City boys can no longer afford Flaming Lamborghinis, let alone the real car, putting a dent in hospitality sales. Roman Abramovich's losses on the Russian stock exchange mean that Luiz Felipe Scolari, the manager, cannot buy in January and 15 scouts have been sacked.
Everton Still actively wooing every passing “sugar daddy”, even though they call themselves The People's Club. Until money walks through the door, they are unlikely to be able to fly out of the Goodison Park window to Kirkby. Nor will David Moyes, the manager, be able to afford any more team-building blocks.
Fulham Mohamed Al Fayed, the owner, promised to make them the Manchester United of the South. But Bolton probably call themselves “The Fulham of the North”. Tickets available for most matches and they are trying to sell half-season tickets for their last ten home games.
Hull City Recession? What recession? Hull fans are running on a full tank as they take the Barclays Premier League by storm, regularly filling their KC Stadium for matches. They have even extended their executive area to cram in more corporate guests.
Liverpool George Gillett Jr and Tom Hicks, the owners, deny that they will struggle to renew their £350 million loan from the Royal Bank of Scotland and Wachovia, which they claim is loser to £200 million. But plans for a new stadium have stalled and tickets are frequently available on general sale.
Manchester City The richest club in the world, or so we are told. But with some of the poorest fans, who did not even take up their full allocation for the recent game away to Bolton, their neighbours. Although the Arab owners are promising to spend big in January, they cannot fill their stadium.
Manchester United The original prawn sandwich punters are not so prevalent these days, with hospitality packages available for many games. Lawyers representing ordinary fans have complained to the Office of Fair Trading about seat prices, some of which, they claim, are up by 60 per cent. A cross-party meeting at Westminster on December 10 will examine the complaints.
Middlesbrough Who wants 8,000 together? In the heady days of 2004-05, when the club finished seventh in the top flight, the Riverside was regularly overflowing. Now they struggle to get 26,000 fans in and Gareth Southgate, the manager, must increasingly rely on his academy players.
Newcastle United Mike Ashley, the owner, is struggling to find a buyer and fans are finding better ways to spend their money during these difficult times.
Portsmouth Before leaving for Tottenham Hotspur, Harry Redknapp reckoned that Victoria Beckham would prefer the local shopping malls to the high-fashion gallerias of Milan. Certainly Portsmouth are more reasonable, with hospitality packages at £99 per head and £10 for children. Alexandre Gaydamak, the owner, wants out, while Tony Adams, the new manager, will have to sell big in January.
Stoke City Like Hull, they are filling the Britannia Stadium for most matches. But aware that money is tight in the Potteries, half-season tickets for the final 11 home games are on offer for £180 and an inflation-busting £90 for under-17s.
Sunderland Roy Keane and the Premier League witnessed crowds up to an impressive 43,344 last season, better than everyone but the top four. With gates falling, the club are offering half-season tickets that also give fans a retail voucher worth a 15 per cent discount at the club shop.
Tottenham Hotspur Miraculously, given their dreadful start to the season, almost every home game is basically a sell-out, although tickets for the less attractive fixtures are now going on general sale. Fans also report that queues for refreshments are much shorter.
West Bromwich Albion With hospitality a big loser for most clubs at the moment, West Brom have packages starting at £100 for their Christmas matches, knowing that fans will be even shorter of cash than usual. Still mostly selling out normal tickets.
West Ham United A credit crunch all of their own, with owner Björgólfur Gudmundsson ordering a review of all his assets amid rumours that he is ready to sell up. And the club's holding company, Hansa, has begun administration procedures. West Ham have debts of £40 million and Gianfranco Zola, the manager, will probably need to hold a fire sale in the January transfer window.
Wigan Athletic The worst-supported side in the Premier League, although gates are slightly up on last season. Highest-priced tickets are only £30 and club members can get into next month's Steve Bruce Fans' Forum for £2, which includes a hotpot dinner
www.timesonline.co.uk/tol/sport/football/premier_league/article5208942.ece
- Financial meltdown hits the Premier League
Fans are tightening their belts and thinking twice about attending matches, so clubs must come up with new strategies
Graphic: First signs of crowd trouble?
extras.timesonline.co.uk/pdfs/trouble.pdf
As the Arabs rode into Manchester City in the summer and sanctioned the £34.2 million purchase of Robinho, while John Terry signed a record-breaking £35 million new contract at Chelsea, including £130,000-a-week wages, it was easy to believe that football was immune to the economic downturn. All it needed was for one of the top clubs' officials to paraphrase Leona Helmsley, the American socialite, by telling us that recession was for the little people.
Plenty of the so-called little people follow football and after one in four supporters of Barclays Premier League clubs said that they will watch fewer matches this season, with a staggering 43 per cent of West Ham United fans insisting that they must cut back, the biggest mystery was that gates seemed to be hardly affected.
Now it has become clear that they have been sustained across the Premier League only by the increasingly popular elastic season ticket. Fans who renewed them in the summer, before the scale of the banking crisis and its knock-on effects were known, are holding on to their seats only by sharing them with friends. And even when seats are left empty, season tickets are counted in official attendances.
As the credit crunch bites, the corporate prawn-sandwich brigade are also feeling the chill of the recessionary wind. Clubs have long since taken their core supporters for granted, so the decreasing number of wealthy fans is far more significant to their hopes of keeping the gravy train running and the gravy boat moving.
The downturn in the lucrative hospitality market is seriously hurting top clubs and no more so than at Arsenal, where catering revenue appears to be well below expectations. Delaware North, an American company, paid £15 million up front for a 20-year catering contract, only to find that many executive box-holders who pay £100,000 a year for the privilege are refusing to pay a further £100 a head for pre-match meals. For the first time, Arsenal have also put Champions League tickets on general sale this season.
A Premier League seat was once the hottest in town. Now even Liverpool regularly put seats on general sale, while Aston Villa, whose win away to Arsenal last weekend confirmed their Champions League credentials, cannot get gates up to last season's 40,000 average.
Troubled Newcastle United have suffered the biggest exodus of fans in England, with gates down almost 5,000 per game. Only the match against Hull City in September has topped 50,000 this season and that was because the supporters wanted to shout abuse at Mike Ashley, the owner, and Dennis Wise, the executive director (football). Newcastle's club shop has also slashed 25 per cent off replica shirts.
Much as the rest of the country's supporters find it hard to resist laughing at the Toon Army, the empty seats at St James' Park and Ashley's failure to find a buyer for the club are as much to do with the credit crunch as the way Newcastle are run. And now even the Premier League's top four are feeling the effect.
Even before the turndown, the Virgin Money Football Fans' Inflation Index showed a 21 per cent rise in match-day costs since last season, with an estimated outlay of £106.21 per fan, the first time it has been above £100. Scott Mowbray, a Virgin Money spokesman, said: “In the past year fans have had severe pressure on their finances from rising mortgages, fuel prices and energy bills. The recent fall in oil prices might see a small drop in our next index in January, but fans are still paying a lot more.“It will also be interesting to see whether clubs attempt to put their prices up even higher as revenue from programmes, food and replica shirts falls.”
Train fares have also rocketed way above the rate of inflation. Steven Powell, of the Football Supporters' Federation and an Arsenal fan, said: “Most fans can't afford the train because there are no longer cheap advanced booking fares. So they go on the official coach, on a minibus or drive with friends and share the petrol costs. Supporters are also cutting down their stadium spending, taking their own food and even flasks.”
Bolton Wanderers have done more than most clubs to keep the turnstiles clicking, recently offering free beer to early arrivals at the Reebok Stadium. They also provide free travel to away grounds and have slashed junior season tickets by 64 per cent to only £49.
Gareth Moores, the club's commercial director, said: “We recognise the squeeze on supporters' pockets and are trying to do all we can to encourage them to keep watching us. Even so, we understand that the credit crunch will reduce demand and we have felt some pain in the hospitality section. We have reduced some prices and added to other packages.”
Other clubs could soon be looking at even more dramatic measures to keep their fans onside. As the season wears on, there are signs of bubbles bursting - and not only at West Ham - as the recession tests supporters' loyalty as never before.
Arsenal Not making as much from their hospitality and catering as they had expected. For the first time, they have also had to put Champions League tickets on general sale. Many fans are already sharing season tickets and the club must worry about selling all their executive boxes next season.
Aston Villa Successful on the field and a model of how foreign ownership can work to everyone's advantage. But gates remain stubbornly below 40,000 and, with unemployment rocketing in certain parts of the West Midlands, 22 per cent of fans say they will attend fewer games. Last season's replica kit reduced from £35 to a Primark-priced £4.99.
Bolton Wanderers Short of letting everyone in for nothing, they cannot do much more to entice supporters into the Reebok. Fans recently received free beer for turning up early and now get free travel to most away games, while a junior season ticket has been reduced 64 per cent to £49.
Blackburn Rovers Only John McCain has experienced more problems getting the support out. They managed only a 20,000 gate for last week's game against Chelsea, so Blackburn have probably burnt their “sold out” signs. Despite many fan initiatives, gates are down 1,000 a match.
Chelsea Even Chelsea's “Loadsamoney” fans apparently cannot afford to pay full price for a replica kit, with Champions League shirts reduced from £56.49 to £44.99. And the City boys can no longer afford Flaming Lamborghinis, let alone the real car, putting a dent in hospitality sales. Roman Abramovich's losses on the Russian stock exchange mean that Luiz Felipe Scolari, the manager, cannot buy in January and 15 scouts have been sacked.
Everton Still actively wooing every passing “sugar daddy”, even though they call themselves The People's Club. Until money walks through the door, they are unlikely to be able to fly out of the Goodison Park window to Kirkby. Nor will David Moyes, the manager, be able to afford any more team-building blocks.
Fulham Mohamed Al Fayed, the owner, promised to make them the Manchester United of the South. But Bolton probably call themselves “The Fulham of the North”. Tickets available for most matches and they are trying to sell half-season tickets for their last ten home games.
Hull City Recession? What recession? Hull fans are running on a full tank as they take the Barclays Premier League by storm, regularly filling their KC Stadium for matches. They have even extended their executive area to cram in more corporate guests.
Liverpool George Gillett Jr and Tom Hicks, the owners, deny that they will struggle to renew their £350 million loan from the Royal Bank of Scotland and Wachovia, which they claim is loser to £200 million. But plans for a new stadium have stalled and tickets are frequently available on general sale.
Manchester City The richest club in the world, or so we are told. But with some of the poorest fans, who did not even take up their full allocation for the recent game away to Bolton, their neighbours. Although the Arab owners are promising to spend big in January, they cannot fill their stadium.
Manchester United The original prawn sandwich punters are not so prevalent these days, with hospitality packages available for many games. Lawyers representing ordinary fans have complained to the Office of Fair Trading about seat prices, some of which, they claim, are up by 60 per cent. A cross-party meeting at Westminster on December 10 will examine the complaints.
Middlesbrough Who wants 8,000 together? In the heady days of 2004-05, when the club finished seventh in the top flight, the Riverside was regularly overflowing. Now they struggle to get 26,000 fans in and Gareth Southgate, the manager, must increasingly rely on his academy players.
Newcastle United Mike Ashley, the owner, is struggling to find a buyer and fans are finding better ways to spend their money during these difficult times.
Portsmouth Before leaving for Tottenham Hotspur, Harry Redknapp reckoned that Victoria Beckham would prefer the local shopping malls to the high-fashion gallerias of Milan. Certainly Portsmouth are more reasonable, with hospitality packages at £99 per head and £10 for children. Alexandre Gaydamak, the owner, wants out, while Tony Adams, the new manager, will have to sell big in January.
Stoke City Like Hull, they are filling the Britannia Stadium for most matches. But aware that money is tight in the Potteries, half-season tickets for the final 11 home games are on offer for £180 and an inflation-busting £90 for under-17s.
Sunderland Roy Keane and the Premier League witnessed crowds up to an impressive 43,344 last season, better than everyone but the top four. With gates falling, the club are offering half-season tickets that also give fans a retail voucher worth a 15 per cent discount at the club shop.
Tottenham Hotspur Miraculously, given their dreadful start to the season, almost every home game is basically a sell-out, although tickets for the less attractive fixtures are now going on general sale. Fans also report that queues for refreshments are much shorter.
West Bromwich Albion With hospitality a big loser for most clubs at the moment, West Brom have packages starting at £100 for their Christmas matches, knowing that fans will be even shorter of cash than usual. Still mostly selling out normal tickets.
West Ham United A credit crunch all of their own, with owner Björgólfur Gudmundsson ordering a review of all his assets amid rumours that he is ready to sell up. And the club's holding company, Hansa, has begun administration procedures. West Ham have debts of £40 million and Gianfranco Zola, the manager, will probably need to hold a fire sale in the January transfer window.
Wigan Athletic The worst-supported side in the Premier League, although gates are slightly up on last season. Highest-priced tickets are only £30 and club members can get into next month's Steve Bruce Fans' Forum for £2, which includes a hotpot dinner
www.timesonline.co.uk/tol/sport/football/premier_league/article5208942.ece