Post by QPR Report on Oct 13, 2009 6:30:29 GMT
BBC - Football clubs 'prove resilient'
As the global economy starts to recover, the leading European football clubs are continuing to prove their resilience, a report has claimed.
Average attendances in the first two rounds of this season's Uefa Champions League were 5% higher than a year ago, said Deloitte's Sports Business Group.
At the same time, England's Premier League matches remain 90% full.
The report added that the continuing strength of top clubs was indicated by Liverpool's new shirt sponsorship deal.
The strong attendances achieved at the start of the season will provide a welcome degree of comfort
Dan Jones, partner at Deloitte's Sports Business Group
Announced last month, the new Liverpool contract will see banking group Standard Chartered become its new shirt sponsor from next July in a four-year deal worth an estimated £80m.
The deal will replace Liverpool's 17-year association with Danish brewer Carlsberg.
'Cautious optimism'
The Deloitte report also highlighted the strength of Arsenal FC's latest financial report, which showed that the club's annual profits had risen by almost a quarter to £45.5m.
"When the economic downturn hit, we expressed cautious optimism for football clubs that the strong and loyal supporter base and the security of long-term broadcast and commercial deals would provide some degree of buffer against the worst effects of recession," said Dan Jones, partner at Deloitte's Sports Business Group.
"Clubs were acutely aware that the real effects would start to be felt in the 2009/10 season, and the strong attendances achieved at the start of the season would provide a welcome degree of comfort."
The report added that while the situation was tougher for the smaller teams in the English Premier League, this was being eased "by the distribution mechanism of Premier League broadcast monies".
news.bbc.co.uk/2/hi/business/8292509.stm
Bloomberg
Soccer Fans’ Loyalty Helps Top Clubs Beat Crunch, Deloitte Says
By Alex Duff
Oct. 6 (Bloomberg) -- The number of fans at Champions League games has risen 5 percent this season, a sign the biggest soccer clubs are insulated from the recession, according to accountant Deloitte LLP.
The average attendance for the first two rounds of matches increased to 37,400, Deloitte said today. Stadia in the English Premier League were on average 91 percent full since the season began Aug. 15, compared with 90 percent for all of last season, Deloitte said.
Soccer “is deeply integrated into people’s lives,” Dan Jones, a partner in Deloitte’s Sports Business Group, said in a statement. Fans “will sacrifice other luxury items before they will give up their sport fix.”
Seventy-five percent of Premier League clubs froze or reduced season ticket prices this season amid a recession in the U.K., Deloitte said. Manchester City and Blackburn have had attendance increases of more than 10 percent, the accountant added.
In a “stunning” success, Liverpool more than doubled its jersey sponsorship value on an accord with Standard Chartered Plc bank, Deloitte said. U.K. media said the four-year accord, announced last month, is worth 80 million pounds ($128 million).
Real Madrid, the club with most revenue, last month forecast a 3.5 percent increase in sales to 421.7 million euros ($621 million) in the year through June on rising ticket sales and other stadium-related income.
Record Spending
The Spanish club spent a record $360 million in the off- season, luring world-record signing Cristiano Ronaldo, Kaka and Karim Benzema. Also last month, Madrid signed an improved deal with jersey sponsor Bwin Interactive Gaming AG, the Austrian online bookmaker.
“We are seeing a flight to quality whereby the largest clubs perform well but for smaller clubs the challenges are greater,” Deloitte’s Jones said.
www.bloomberg.com/apps/news?pid=20601086&sid=ax5h29jTnXIA
Financial Times
Top football clubs resist recession
By Roger Blitz, Leisure Industries Correspondent
Published: October 7 2009
Premier League football clubs have kept their fans and in some cases increased attendances since the start of the season, providing further evidence of the top-tier league's ability to withstand the recession, according to Deloitte.
The first six weeks of the season have witnessed clubs using 91 per cent of their stadium capacity, in line with previous seasons. Blackburn Rovers and Manchester City have increased attendances by 10 per cent.
Deloitte's Sport Business Group said attendance rates vindicate the decision over the summer by more than three-quarters of Premier League clubs to freeze or reduce season ticket prices, in response to the impact of the recession on fans.
But the success of the big clubs in milking other revenue streams during the recession highlights the gulf between those at the top of the Premier League and the rest, Deloitte said.
The £20m-a-year shirt sponsorship deals won by Liverpool and Manchester United over the summer were achieved in the face of a squeeze on sponsorship.
These two, plus Arsenal and Chelsea, are also driving revenues from participation in the Uefa Champions League, all achieving full attendances in their opening home matches.
They can also each expect to receive €25m-€50m (£23m-£46m) from Uefa's broadcasting and marketing revenue pool depending on how they perform in the Champions League.
"We are seeing a flight to quality whereby the largest clubs perform well but for smaller clubs the challenges are greater," said Dan Jones of Deloitte. Smaller clubs were at least helped by the distribution of revenues from Premier League broadcast rights, which "helps to level the playing field across the Premier League", he added.
That league secured a 4 per cent increase in its UK broadcast rights value when it got British Sky Broadcasting to pay £1.6bn for the rights to five out of six TV packages for the three years to 2012-13. It is also expected to win an increase in the value of its overseas rights.
"Leading football clubs and leagues outpaced the rest of the economy in the good times and now seem to be faring better than most," said Mr Jones.
www.ft.com/cms/s/0/f70c430c-b2d8-11de-b7d2-00144feab49a.html
As the global economy starts to recover, the leading European football clubs are continuing to prove their resilience, a report has claimed.
Average attendances in the first two rounds of this season's Uefa Champions League were 5% higher than a year ago, said Deloitte's Sports Business Group.
At the same time, England's Premier League matches remain 90% full.
The report added that the continuing strength of top clubs was indicated by Liverpool's new shirt sponsorship deal.
The strong attendances achieved at the start of the season will provide a welcome degree of comfort
Dan Jones, partner at Deloitte's Sports Business Group
Announced last month, the new Liverpool contract will see banking group Standard Chartered become its new shirt sponsor from next July in a four-year deal worth an estimated £80m.
The deal will replace Liverpool's 17-year association with Danish brewer Carlsberg.
'Cautious optimism'
The Deloitte report also highlighted the strength of Arsenal FC's latest financial report, which showed that the club's annual profits had risen by almost a quarter to £45.5m.
"When the economic downturn hit, we expressed cautious optimism for football clubs that the strong and loyal supporter base and the security of long-term broadcast and commercial deals would provide some degree of buffer against the worst effects of recession," said Dan Jones, partner at Deloitte's Sports Business Group.
"Clubs were acutely aware that the real effects would start to be felt in the 2009/10 season, and the strong attendances achieved at the start of the season would provide a welcome degree of comfort."
The report added that while the situation was tougher for the smaller teams in the English Premier League, this was being eased "by the distribution mechanism of Premier League broadcast monies".
news.bbc.co.uk/2/hi/business/8292509.stm
Bloomberg
Soccer Fans’ Loyalty Helps Top Clubs Beat Crunch, Deloitte Says
By Alex Duff
Oct. 6 (Bloomberg) -- The number of fans at Champions League games has risen 5 percent this season, a sign the biggest soccer clubs are insulated from the recession, according to accountant Deloitte LLP.
The average attendance for the first two rounds of matches increased to 37,400, Deloitte said today. Stadia in the English Premier League were on average 91 percent full since the season began Aug. 15, compared with 90 percent for all of last season, Deloitte said.
Soccer “is deeply integrated into people’s lives,” Dan Jones, a partner in Deloitte’s Sports Business Group, said in a statement. Fans “will sacrifice other luxury items before they will give up their sport fix.”
Seventy-five percent of Premier League clubs froze or reduced season ticket prices this season amid a recession in the U.K., Deloitte said. Manchester City and Blackburn have had attendance increases of more than 10 percent, the accountant added.
In a “stunning” success, Liverpool more than doubled its jersey sponsorship value on an accord with Standard Chartered Plc bank, Deloitte said. U.K. media said the four-year accord, announced last month, is worth 80 million pounds ($128 million).
Real Madrid, the club with most revenue, last month forecast a 3.5 percent increase in sales to 421.7 million euros ($621 million) in the year through June on rising ticket sales and other stadium-related income.
Record Spending
The Spanish club spent a record $360 million in the off- season, luring world-record signing Cristiano Ronaldo, Kaka and Karim Benzema. Also last month, Madrid signed an improved deal with jersey sponsor Bwin Interactive Gaming AG, the Austrian online bookmaker.
“We are seeing a flight to quality whereby the largest clubs perform well but for smaller clubs the challenges are greater,” Deloitte’s Jones said.
www.bloomberg.com/apps/news?pid=20601086&sid=ax5h29jTnXIA
Financial Times
Top football clubs resist recession
By Roger Blitz, Leisure Industries Correspondent
Published: October 7 2009
Premier League football clubs have kept their fans and in some cases increased attendances since the start of the season, providing further evidence of the top-tier league's ability to withstand the recession, according to Deloitte.
The first six weeks of the season have witnessed clubs using 91 per cent of their stadium capacity, in line with previous seasons. Blackburn Rovers and Manchester City have increased attendances by 10 per cent.
Deloitte's Sport Business Group said attendance rates vindicate the decision over the summer by more than three-quarters of Premier League clubs to freeze or reduce season ticket prices, in response to the impact of the recession on fans.
But the success of the big clubs in milking other revenue streams during the recession highlights the gulf between those at the top of the Premier League and the rest, Deloitte said.
The £20m-a-year shirt sponsorship deals won by Liverpool and Manchester United over the summer were achieved in the face of a squeeze on sponsorship.
These two, plus Arsenal and Chelsea, are also driving revenues from participation in the Uefa Champions League, all achieving full attendances in their opening home matches.
They can also each expect to receive €25m-€50m (£23m-£46m) from Uefa's broadcasting and marketing revenue pool depending on how they perform in the Champions League.
"We are seeing a flight to quality whereby the largest clubs perform well but for smaller clubs the challenges are greater," said Dan Jones of Deloitte. Smaller clubs were at least helped by the distribution of revenues from Premier League broadcast rights, which "helps to level the playing field across the Premier League", he added.
That league secured a 4 per cent increase in its UK broadcast rights value when it got British Sky Broadcasting to pay £1.6bn for the rights to five out of six TV packages for the three years to 2012-13. It is also expected to win an increase in the value of its overseas rights.
"Leading football clubs and leagues outpaced the rest of the economy in the good times and now seem to be faring better than most," said Mr Jones.
www.ft.com/cms/s/0/f70c430c-b2d8-11de-b7d2-00144feab49a.html