Sunday, May 31, 2009

The end of corporatism in sport part 1: EPL

This week's Weekend Australian has published a story from The Wall Street Journal about the impact of the financial crisis on the EPL (I have found the online version with a different title: 'English Soccer's Morning After' by Arron Patrick and Dana Cimilluca).

Among the issues raised were:

- EPL squad sizes may be reduced - unleashing lots of quality players into 2nd and 3rd string markets
- season ticket revenue likely to fall 5%-10% next season
- clubs likely to reduce ticket costs to encourage fans
- season tickets bought at the beginning of this season had masked the impact of the financial crisis on fan support (ie they have already paid so they can't save money by not going)
- Player salaries are likely to drop next season as all football countries are likely to be hit
- UK is to increase the highest tax rate from 40% to 50% (this could give Sepp Blatter and Seri A what they want by forcing mega players to consider other leagues where the rates are lower)
- Clubs are losing major sponsors
- Relegated clubs are going to face a double impact in their struggle to return to the EPL

Note to FFA: watch out this stuff has quite a way to work through the football world (and other industries)

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