Saturday, May 23, 2009

The Premier League – A ticking financial time bomb?

By: Tom Mallows

We have all done it – or at least those who don’t have a subscription TV service anyway. You want to watch the big game and can’t make it to the nearest pub to watch it so you go online. There you will find hundreds of sites offering live streams for virtually every game - including ones that aren’t on live TV in your country.

It is this growth of online streaming that could see the Premier League bubble finally burst. This is because the one thing that caused the explosion in popularity in the game and sustained it over the past 17 years has been TV money. Each TV deal runs into billions of pounds and has allowed clubs to spend lavishly and push the league to the top of the tree in terms of entertainment.

The TV companies knew they were onto a winner and so knew they could get away with pushing subscription prices up. The football clubs were also aware of this and so each TV deal grew and grew. More money meant more profit both for the TV companies and the football clubs.

But with the rapid growth of online streaming, and the improvement in internet technology, how long will it be before customers cancel their subscriptions and turn on their laptops?

After all why pay when you can get more choice online for free?

It is similar to what happened with the music industry and file-sharing. The record companies did their utmost to shut sites such as Napster down to try and counter this new threat and maintain their healthy profits. Similarly the Premier League battles to shut streaming sites, but as one closes another opens up - the internet is too big a space to manage.

So what effect will this have on the Premier League? Well first off the TV companies will lower their offer when they next come to the negotiating table. Without the broadcasters' millions the foundations on which many a club's shaky financial structure is built will be removed. You only have to look at the fate of clubs in the Championship and below who recently dropped out of the Premier League. The likes of Charlton, Leeds and Southampton couldn’t sustain their spending without TV money. Even those with billionaire owners beware – watch them drift away when it looks like your club is no longer a profitable business venture.

To try and arrest the economic slide, the clubs will then seek to maximise their revenue by selling an individual product rather than as a League. Clubs like Manchester United will seek to negotiate their own TV deal, perhaps using their own TV channel to stream games online. This is fine for the ‘big four’ but what about those in the bottom half of the league with smaller fan bases?

I can only really see a maximum of eight clubs earning enough money from an individual TV deal to survive. But how exciting is a league with just eight teams?

To preserve the Premier League the excessive and irresponsible spending has to stop either now or at the administrators' request when the TV deal finally implodes. If not it seems a safe football bet that the self-styled ‘greatest League in the world’ could go bankrupt.

Sunday, May 3, 2009

Sports - changing world order

I believe quite strongly that a combination of the IPL and the economic (financial) crisis will fundamentally change sport across the globe. I'm probably going to say a few things that are going to be considered a little controversial but it's something I've been intrigued by for quite a while now.

Broadly speaking up until a few years ago the financial power of world sport remained in two major power centres - the US and Europe (Specifically the UK).

Even now the big money in rugby, soccer, motorsport and golf still emanates from these parts... but I don't expect that to last.

Some predictions:

  • I expect in five years time that Bangladeshi cricket will have overtaken English cricket in the test and One Day International rankings
  • Argentina rugby will be stronger than the European nations within seven years
  • In less than a decade I don't believe that the English premiership will be regarded as the leading football league in the world
  • Clubs like Manchester United, Barcelona and Chelsea will be competing with clubs from places like South America, the US and Asia in a global league in the not too distant future as opposed to the UEFA tournaments.
  • Bit of a wild one but I believe that South Africa will have one competitive football team in this tournament in ten years
  • I believe that the premier rugby competition - which will usurp the Super 14 - will be played out of either South Africa or Japan inside the next seven years and will work along the same lines as the IPL cricket system with either a bid or draft offering to pick sides.
  • Motorsport will be dominated by Chinese and Indian manufacturers and representatives and the Middle East and mainstream Asia will host most of the glamour races
  • Support for international brands such as the Springboks, All Blacks, Proteas, Wallabies etc will decline over the next ten years with cross-border franchises attracting greater support.

Obviously there are a lot of people who don't want to hear about the changing global world order but at the end of the day it is a numbers game - China, India, the rest of Asia and Brazil to some extent are growing rapidly at all levels...

  1. Look at what China achieved at the last world Olympics
  2. Look at the support the IPL has attracted - it's HUGE money and prestige that far outweighs what the international cricket boards can afford to pay their players.
  3. F1 used to be the domain of the European manufacturers... suddenly the likes of Toyota are coming in and the Middle East is pouring money into development of tracks and teams - things are going to look very different in a few years time...

Does it sound like lunatic fringe stuff or do you think there is some merit to it all? Would love your input?

Friday, April 24, 2009

FIFA fashion range set to hit the stores

The global roll-out of the first official range of FIFA branded clothing and merchandise is set to begin later this year. The move follows a long-term worldwide agreement with Global Brands Group, the international brand management and licensing company, to become FIFA’s exclusive worldwide Master Licensee.

Global Brands Group is to use a series of high-profile trade shows over the next few months to reveal the first FIFA Collections to the international retail industry. The FIFA Collections, which will initially comprise five separate ranges of apparel – 1904, Editions, Code, Essentials and Trophy – is expected to be available in more than 100 FIFA Official Stores® and in an extensive network of FIFA branded retail spaces in over 12 markets around the world from August 2009 onwards. In addition to the two seasonal launches (Autumn/Winter and Spring/Summer), Global Brands Group is also currently developing a dedicated Event range celebrating the 2010 FIFA World Cup™.

The special official licensed product range is set to reflect not only the excitement of the world’s single largest sporting event, but also the rich history of the African host nation. The range – which will be sold exclusively via FIFA Official Stores® and FIFA branded retail environments – is due for launch in Summer 2009 and will complement the more widely available 2010 FIFA World Cup South Africa™ licensed event merchandise ranges that will be available in FIFA Official Event Strores®, general retail outlets and onsite at the event. Together with a series of leading designers, Global Brands Group, has carefully developed each FIFA apparel line to reflect the heritage and dynamism of football in order to connect with both the global community of football fans as well as mainstream, high street fashion and lifestyle consumers. The collection has been engineered to garner an emotional connection with the consumer through the power and history of the FIFA brand. Key ranges will include apparel for both the male and female markets. As part of the international roll-out of the FIFA brand, Global Brands Group is in the process of signing exclusive strategic agreements with Master Distributors in each territory. Agreements have already been reached in five markets (US, UK, India, Australia and Turkey), with deals in three further markets pending and an additional six identified.

Global Brands Group is also actively seeking Master Distributors in a series of other key territories. The Master Distributors may also be responsible for the creation of FIFA Official Stores®, the first of which opened at Singapore’s new T3 terminal at Changi airport in January 2008. Global Brands Group has just announced that the second of these stores, and the companies first in Europe, will open at Paris’ Orly airport on 1st September 2009. Further FIFA Official Stores® in London, Tokyo and Los Angeles, as well as in emerging markets such as Latin America, China and India, are already in development. Official FIFA Stores® will act as a primary destination for fans, offering them a unique football inspired shopping experience in addition to exclusive collections.

Mark Matheny, CEO and Co-Chairman of Global Brands Group, said: “Since becoming FIFA’s official licensing partner in 2005, Global Brands Group has worked tirelessly to create a range of apparel in keeping with the tradition and global stature of the FIFA brand. It was also important to ensure that we produced a range of apparel that appealed to a wide range of consumers, including football fans, fashionistas and men and women of all ages.” Simon Hawkins, SVP Global Product Sales of Global Brands Group, said: “Through our Master Distributor network, our goal is to deliver the FIFA brand experience to the broadest group of football fans and consumers worldwide. Our distributors have built up experience in the sports, lifestyle and value sectors, and have an established distribution infrastructure in place to meet the needs of retailers in their region. “They are effectively an extension of Global Brands Group and will also provide valuable insight into their market and consumers in orders to ensure that we meet their needs’’.

Thierry Weil, Marketing Director of FIFA, said: “The launch of the first FIFA sports lifestyle collection marks an important milestone in our goal to connect with fans around the world. There has been huge demand for the launch of this collection due to FIFA’s incredible brand exposure as well as the countdown to the 2010 FIFA World Cup™. Global Brands Group has therefore developed five ranges of apparel that fully incorporate the heritage and dynamism of FIFA. “We are confident that Global Brands Group’s expertise in the licensing and retail industry will ensure that FIFA merchandise reaches as wide an audience as possible, in every corner of the world”.

About Global Brands Group Global Brands Group is the world's leading independent, international brand management, retail and licensing company. Global Brands Group's passion for managing brands is tied to its desire to building sustainable equity and creating new branding opportunities through geographic expansion, category extension and retail innovation. Through its international network of offices across six continents, Global Brands Group maximises revenue potential by creating manufacturing, retail and distribution partnerships worldwide. Global Brands Group's business is focused on product licensing, merchandising and retail development. Currently Global Brands Group's growing portfolio of intellectual properties includes brands created by the Federation Internationale de Football Association (FIFA), the PGA TOUR Licensed Properties, Inc. (PGA TOUR), Federation Internationale de Basketball (FIBA) and Warner Bros. Consumer Products among others. With corporate headquarters located in Singapore, Global Brands Group has a network of offices in major cities around the world including London, Dubai, Tokyo, Hong Kong, Sydney, Buenos Aires and Johannesburg. www.globalbrandsgroup.com

About FIFA For more than 100 years, the Fédération Internationale de Football Association, founded on 21 May 1904 in Paris and better known as FIFA, has continued to provide the essential leadership role to the international football family. Headquartered in Zurich, Switzerland, the eighth FIFA President, Joseph S. Blatter (Switzerland), guides the organization today with a commitment to the evolution of FIFA as a modern and dynamic association. FIFA's members form the basis of the world’s football family. From the founding seven, the family has today grown to 208 affiliated football associations, organised into six confederations spanning the globe. FIFA’s worldwide activities go well beyond its various competitions, such as the world’s biggest single sport event, the FIFA World Cup. FIFA gives material, financial and promotional support to develop the game around the world through projects such as FIFA Goal or Futuro. Underprivileged people and communities benefit from the Football for Hope movement that FIFA and streetfootballworld founded in 2005 to promote and support local organisations that are using the power of the game for social development.

For more information on FIFA and its competitions, especially on the 2010 FIFA World Cup South Africa™, please visit the official website at www.fifa.com

Source: PressPortal

Monday, April 13, 2009

Not sure

Hhhhmmmm 60 days to go and this is the news that has hit the press this evening - Specialist banking group Investec has bought 50 000 tickets for the 2009 Confederation Cup at a cost of R3.5m....

Wonder what to make of that?

50000 tickets is a fair whack and do you interpret that as South Africa having failed to have sold the tickets or do you believe that Investec are doing it out of the goodness of their hearts?

That bunch of tickets being given out as a bit of a social development initiative is great - but it is 50000 tickets that have not been sold to international tourists hitting our shores...

Wednesday, April 8, 2009

Best club side at the mo...

The Champions League is supposed to answer the question of which side is currently the greatest club competing in Europe at the moment.

Obviously everyone has their own favourite who they believe is the best side, but last nights round made for some seriously interesting viewing.

Chelsea beat Liverpool at Anfield - 1-3 - big result
Barcelona thumped Bayern Munich - 4-0

On top of that, you had the gutsy performance out of Porto to hold Manchester United 2-2 at Old Trafford and definately playing from a strong position going into their home round...

Any thoughts on which is the best club side at the moment and why?

Monday, April 6, 2009

PIFA-CYFC football team in South Africa

Premier India Football Academy’s U-17 boys “PIFA-CYFC” from India were invited through Cutting Edge Pvt Ltd to participate in the Gauteng Future Champions Under-17 Football Tournament that was held in South Africa from March 23 to 29, 2009.

The 16-member team from India, which was invited by the Gauteng Provincial Government, joined 11 other top junior teams from around the globe. The competition was being held in the run-up to the 2010 FIFA World Cup that will be held in South Africa.

The following players were selected for the team :
Harshad Meher ( Capt), Kean Lewis, Ajit Bhoir, Amarjeet Gadhri, Rehan Poonawala, Sumehr Gwalani, Rickin Dang, Rishi Singh, Suveer Katariya, Burges Master, Dev Krsna Sagar, Crish Shah, Karan Sawhney, Siddharth Singh, Prudhvi Kolaventy & Amal Khandwala

The team officials were Coach Nirvan Shah, a UEFA licencee, Tour Manager - Armaan Malick and Team Manager - Anjali Shah.

PIFA-CYFC was in Group ‘A’ along with Notwane FC of Botswana, Sedibeng Select of South Africa. and Inter Milan of Italy.

The other teams in the tournament include the formidable SC Corinthians of Brazil, Kaiser Chiefs of South Africa and Boca Juniors of Argentina.

Even thought the team lost all its matches by narrow margins in the final minutes of the match mainly due to lack of fitness, the boys came out of the game with their heads up and hopeful that they could beat their opponents.

The highlight of this tour was when Karan Sawhney put one past Inter-Milan goal keeper.
The finals was won by Boca Juniors (Argentina) they beat Esperance (Tunisia) 2-0, the third place was taken by Inter Milan.

The Gauteng Provincial Government and South African Football Association provided first class staying and match facilities. VIP security. The teams were treated to a gala dinner & an African cultural show Umoja, a tour to the Cradle of Life and a Lion Safari.

Later, the teams were taken to SAFA House the head office of South African Football Association and to see the construction of the Soccer City stadium that will host the opening & closing ceremony of the FIFA 2010 World Cup.

The team’s air travel was fully sponsored by South African Airways and the playing kit by NIKE.

Sunday, April 5, 2009

Mighty Aston Villa!

Sir Alex Ferguson insists Villa are "as close as anyone" to breaking the Big Four's supremacy.

Ferguson says O'Neill will not be happy with the way his side have fallen away in the past few weeks because he is a winner - but believes Villa will make big strides in the coming seasons.

He said: "Martin has seen his high hopes of a spot in next season's Champions League slip back a little. He won't be happy with that because he is a winner - it's the nature of the man.

"But no matter how the season ends for them, he had done a fantastic job at Villa.

"He launched a rebuilding programme when he first arrived and there is a lot of youth in his squad.

"He is as close as anyone to breaking into the top four and they will get better. He has a team for the future."

Source: Aston Villa media