Monday 8 June 2009

Two sides to the finances of football.....

Two stories about the finance of football caught my eye this week...for very different reasons.

The haves...

Liverpool Football Club have supported the opening of a soccer academy in India as they try to get a foothold in one of the world's largest markets. Previously clubs like Man Utd, Chelsea and Arsenal had tried to maximise their brands by exploring Africa, the Middle East, Canada and Australia to maximise their brands but India hadn't been touched because of the popularity of cricket. With a population of 1.5 billion people, 325 million of whom are between 20-35, and a growing interest in the Premier League, the financial opportunities for the biggest clubs are endless.

The have nots....

The possible collapse of Setanta could have a terrible effect on Scottish football. Last week the company failed to pay the SPL £3m which the SPL themselves had to find to pay the clubs. With Setanta considering going into administration, the SPL may have to find another company to broadcast matches and their desperation to do so would mean a reduced financial deal. With many reliant on the TV money to keep them afloat, the reality is that some football clubs may go bust in the near future.

The financial gulf between the rich and the poor gets bigger everyday!

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