Many people are wondering if it's a good idea to force salary caps into the European Soccer Leagues. I would totally vote for it. Think about it - what are the names of the teams that recently won major tournaments. Yes, it's Chelsea London, Manchester United and Real Madrid. You ask yourself why? It's simply because these teams get huge amounts of money injected by oil billionaires like Roman Abramovich, who bought Chelsea London and has the money to attract the worlds best players. UEFA president Michel Platini (picture) also believes that salary caps should be enforced because it "would reduce the power of the giant clubs of England, Italy and Spain, and allow many more teams a realistic chance of winning trophies."Wednesday, March 17, 2010
Salary Caps in European Soccer Leagues?
Many people are wondering if it's a good idea to force salary caps into the European Soccer Leagues. I would totally vote for it. Think about it - what are the names of the teams that recently won major tournaments. Yes, it's Chelsea London, Manchester United and Real Madrid. You ask yourself why? It's simply because these teams get huge amounts of money injected by oil billionaires like Roman Abramovich, who bought Chelsea London and has the money to attract the worlds best players. UEFA president Michel Platini (picture) also believes that salary caps should be enforced because it "would reduce the power of the giant clubs of England, Italy and Spain, and allow many more teams a realistic chance of winning trophies."
Tuesday, March 16, 2010
Playing Soccer Pays!
It takes a lot to become a professional soccer player. Most of todays professional soccer players started at a very young age and spend a significant time of their lives on a soccer field practicing. It takes skill, hard work and also a little luck to be discovered by a soccer scout. But once you made it and signed a contract with a team it's like a dream come true! You not only get to do what you love the most but you also get paid a considerably salary. This being not enough, the most successful players also get huge contracts with companies like Pepsi. Take a look at this commercial: http://www.youtube.com/watch?v=_sOdVCc5WrE
Where is the money coming from?
We heard that many European soccer teams spend millions of dollars for signing new players. But how can they afford it? Are they going into debt or is the soccer business that profitable?
As in many other professional sports, a team can make a lot of money by selling tickets, jerseys and so on but I would like to focus on the amount of money that is up for grabs by participating in a tournament. First of all you have to qualify but once you're in it's almost like winning the lottery! There are lots of tournaments but I want to put your attention to the UEFA Champions League. After qualifying the team automatically gets 3 million Euros. For participating in the group stage you get another 2.4 million. For every win you receive 600,000 and for a tie 300,000. Each quarter finalist receives 2.5 million, 3 million for the semi-finalists and the winner get to take home 7 million Euros.
Source: http://en.wikipedia.org/wiki/UEFA_Champions_League#Prize_money
World's Richest Soccer Clubs Revealed
Author: Rhea Singh Published: March 02, 2010 at 7:44 am
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With the awards season upon us, its no surprise that Deloitte's sport unit has revealed the world's richest football clubs list. Real Madrid who have dominated this particular list for the last 4 years have yet again topped it with annual revenues of 401.4m euros. The phenomenal figures based on data from 2008/09 season also see's Real Madrid become the first global sports team to top annual revenues of 400m euros according to the Football Money League.
Real Madrid's arch rivals Barcelona take the second spot ahead of English Premier League Champions Manchester United who drop to third. Manchester United had dominated the list for 8 years until Real Madrid dethroned them. The authors however, do point out that Manchester United would have been top of the list had the value of the pound not fallen. Despite the exchange rate issues, seven of the top 20 teams listed in the rich-list are from England. Tottenham (15th), Manchester City (19th) and relegated club Newcastle United (20th) making it in the second half of the list. All the 20 clubs are from the 'big five' Eurpean leagues with Germany contributing 5 clubs, Italy 4 and 2 each from Spain and France.
World's Richest Football Clubs
1) Real Madrid: 401.4m euros2) Barcelona: 365.9m euros3) Man Utd: 327m euros4) Bayern Munich: 289.5m euros5) Arsenal: 263m euros6) Chelsea: 242.3m euros7) Liverpool: 217m euros8) Juventus: 202.3m euros9) Inter Milan 196.5m euros10) AC Milan: 196.5.m euros
This Deloitte review however, may be a little misleading as it does not include the cost of transfer fees or player wages, or VAT and other sales taxes, and concentrates solely on day-to-day income from football business. The income includes money from ticket sales, sponsorship, merchandising and other commercial revenues, television monies, corporate hospitality and non-match day stadium use. With Portsmouth becoming the first Premier League club to enter administration, and giants such as Manchester United and Liverpool in financial trouble despite performing well in the league shows that the problem of overspending is still a major concern. The Deloitte list, however, does indicate that their is still a lot of money in the game and with careful administration through measures such as wage-ceilings and prudent transfer fees, football can get through this precarious financial period unscathed.
Author: Rhea Singh Published: March 02, 2010 at 7:44 am
Share16
With the awards season upon us, its no surprise that Deloitte's sport unit has revealed the world's richest football clubs list. Real Madrid who have dominated this particular list for the last 4 years have yet again topped it with annual revenues of 401.4m euros. The phenomenal figures based on data from 2008/09 season also see's Real Madrid become the first global sports team to top annual revenues of 400m euros according to the Football Money League.
Real Madrid's arch rivals Barcelona take the second spot ahead of English Premier League Champions Manchester United who drop to third. Manchester United had dominated the list for 8 years until Real Madrid dethroned them. The authors however, do point out that Manchester United would have been top of the list had the value of the pound not fallen. Despite the exchange rate issues, seven of the top 20 teams listed in the rich-list are from England. Tottenham (15th), Manchester City (19th) and relegated club Newcastle United (20th) making it in the second half of the list. All the 20 clubs are from the 'big five' Eurpean leagues with Germany contributing 5 clubs, Italy 4 and 2 each from Spain and France.
World's Richest Football Clubs
1) Real Madrid: 401.4m euros2) Barcelona: 365.9m euros3) Man Utd: 327m euros4) Bayern Munich: 289.5m euros5) Arsenal: 263m euros6) Chelsea: 242.3m euros7) Liverpool: 217m euros8) Juventus: 202.3m euros9) Inter Milan 196.5m euros10) AC Milan: 196.5.m euros
This Deloitte review however, may be a little misleading as it does not include the cost of transfer fees or player wages, or VAT and other sales taxes, and concentrates solely on day-to-day income from football business. The income includes money from ticket sales, sponsorship, merchandising and other commercial revenues, television monies, corporate hospitality and non-match day stadium use. With Portsmouth becoming the first Premier League club to enter administration, and giants such as Manchester United and Liverpool in financial trouble despite performing well in the league shows that the problem of overspending is still a major concern. The Deloitte list, however, does indicate that their is still a lot of money in the game and with careful administration through measures such as wage-ceilings and prudent transfer fees, football can get through this precarious financial period unscathed.
Soccer Clubs: Big Money, Growing Woes
Liverpool FC's American owners, faced with insurmountable debt, are looking to sell. It's a familiar story in the high-stakes world of European soccer
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American billionaires George Gillett and Tom Hicks were in the vanguard of sports investing when they shelled out $310 million in 2007 to buy Liverpool FC, one of England's biggest and richest soccer clubs. Money was easy, so they took on $500 million in debt to build a big new stadium and cover the team's operating costs. The payout looked promising.
Then the global credit crunch hit and the math started to fall apart. The stadium was postponed and the Americans finagled a six-month extension on their loan. But the $500 million comes due in July 2009, and refinancing in the current climate seems implausible. Instead, Gillett and Hicks hope to sell the club for as much as $700 million—still not a bad return on investment—to Middle Eastern buyers.
Investors Back Off "Football"
So it goes these days in the high-stakes world of professional soccer. Despite revenues last year that topped $270 million, Liverpool's financial predicament is becoming an all-too-familiar tale for soccer clubs across Europe, especially in the world's most lucrative domestic championship, the English Premier League (EPL). Spiraling player salaries, uncertainty over future corporate sponsorship deals, and the deteriorating global economy have made many investors wary of owning a piece of the world's most popular sport
Liverpool FC's American owners, faced with insurmountable debt, are looking to sell. It's a familiar story in the high-stakes world of European soccer
View Slide Show
American billionaires George Gillett and Tom Hicks were in the vanguard of sports investing when they shelled out $310 million in 2007 to buy Liverpool FC, one of England's biggest and richest soccer clubs. Money was easy, so they took on $500 million in debt to build a big new stadium and cover the team's operating costs. The payout looked promising.
Then the global credit crunch hit and the math started to fall apart. The stadium was postponed and the Americans finagled a six-month extension on their loan. But the $500 million comes due in July 2009, and refinancing in the current climate seems implausible. Instead, Gillett and Hicks hope to sell the club for as much as $700 million—still not a bad return on investment—to Middle Eastern buyers.
Investors Back Off "Football"
So it goes these days in the high-stakes world of professional soccer. Despite revenues last year that topped $270 million, Liverpool's financial predicament is becoming an all-too-familiar tale for soccer clubs across Europe, especially in the world's most lucrative domestic championship, the English Premier League (EPL). Spiraling player salaries, uncertainty over future corporate sponsorship deals, and the deteriorating global economy have made many investors wary of owning a piece of the world's most popular sport
Manchester United debt increases to £716.5m, latest accounts confirm
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Press Association
guardian.co.uk, Wednesday 20 January 2010 14.40 GMT
Article history
Manchester United's parent company's overall debt has swelled to £716.5m, their latest accounts reveal.
The company, Red Football Joint Venture Ltd, which is owned by the Glazer family, filed accounts today for the year ending 30 June 2009, showing their overall debt has gone past £700m for the first time, increasing by £17m from £699mi.
The biggest rise has come in the payment in kind (PIK) loans, which typically have a higher interest rate, which show a £27m increase to £202m. Bank loans, meanwhile, have dropped by £9m to £509m.
The overall debt figure, not contained in the prospectus for a £500m bond issue released last week, illustrates why the Glazers are so keen to raise cash through bonds to reduce the interest on the debt.
Red Football Joint Venture paid £68.5min interest on their debts in 2009, but unlike the previous year, returned an overall profit of £6.4m in 2009. In 2008, they returned a £47m loss.
The profit can almost entirely be explained by the sale of Cristiano Ronaldo to Real Madrid in the summer for £80m. Red Football Joint Venture's accounts record an £80.7m profit on "disposal of players" compared to a £21million profit in 2008.
A spokesman for the Glazer family insisted that the debt did not have a bearing on the operation of the club.
He said: "The club has a £50m surplus to work with once the interest payments have been made."
Manchester United's accounts also show their chief executive David Gill was paid £1.8million last year.
Tweet this
Press Association
guardian.co.uk, Wednesday 20 January 2010 14.40 GMT
Article history
Manchester United's parent company's overall debt has swelled to £716.5m, their latest accounts reveal.
The company, Red Football Joint Venture Ltd, which is owned by the Glazer family, filed accounts today for the year ending 30 June 2009, showing their overall debt has gone past £700m for the first time, increasing by £17m from £699mi.
The biggest rise has come in the payment in kind (PIK) loans, which typically have a higher interest rate, which show a £27m increase to £202m. Bank loans, meanwhile, have dropped by £9m to £509m.
The overall debt figure, not contained in the prospectus for a £500m bond issue released last week, illustrates why the Glazers are so keen to raise cash through bonds to reduce the interest on the debt.
Red Football Joint Venture paid £68.5min interest on their debts in 2009, but unlike the previous year, returned an overall profit of £6.4m in 2009. In 2008, they returned a £47m loss.
The profit can almost entirely be explained by the sale of Cristiano Ronaldo to Real Madrid in the summer for £80m. Red Football Joint Venture's accounts record an £80.7m profit on "disposal of players" compared to a £21million profit in 2008.
A spokesman for the Glazer family insisted that the debt did not have a bearing on the operation of the club.
He said: "The club has a £50m surplus to work with once the interest payments have been made."
Manchester United's accounts also show their chief executive David Gill was paid £1.8million last year.
Adidas extends FIFA deal for 2010 FIFA World Cup
Adidas has extended its sponsorship agreement with FIFA for the World Cup soccer tournaments in 2010 and 2014 in a deal worth $351 million, FIFA boss Sepp Blatter said on Wednesday.
Adidas will get priority access to TV and stadium advertising at the two events, the world's second-largest sports goods firm told a news conference at the headquarters of the world soccer organisation in Zurich.
Adidas will as at previous events supply the official match ball and equipment for FIFA officials with licensing for endorsed retail equipment included in the deal.
The agreement comes as no surprise as Adidas has been FIFA's partner since 1970 and the firm has been keen to expand its soccer activities to fend off increasing competition from sector giant Nike and German rival Puma.
Sponsoring deals are important for sports goods firms to boost brand awareness, though analysts have expressed concern at the cost of marketing at big events.
Adidas saw a double-digit rise in sales of goods from endorsement deals in Asia after the Bavarian firm sponsored the 2002 World Cup in Japan and South Korea, where Brazil beat Germany in the final. The 2010 World Cup will be held in South Africa, while the venue of the 2014 tournament has still to be decided.
Adidas Chief Executive Herbert Hainer also said the firm has reached its 2004 sales and profit targets. It has forecast a 20 percent rise in net profit with currency-adjusted sales growing 5 percent.
Adidas has extended its sponsorship agreement with FIFA for the World Cup soccer tournaments in 2010 and 2014 in a deal worth $351 million, FIFA boss Sepp Blatter said on Wednesday.
Adidas will get priority access to TV and stadium advertising at the two events, the world's second-largest sports goods firm told a news conference at the headquarters of the world soccer organisation in Zurich.
Adidas will as at previous events supply the official match ball and equipment for FIFA officials with licensing for endorsed retail equipment included in the deal.
The agreement comes as no surprise as Adidas has been FIFA's partner since 1970 and the firm has been keen to expand its soccer activities to fend off increasing competition from sector giant Nike and German rival Puma.
Sponsoring deals are important for sports goods firms to boost brand awareness, though analysts have expressed concern at the cost of marketing at big events.
Adidas saw a double-digit rise in sales of goods from endorsement deals in Asia after the Bavarian firm sponsored the 2002 World Cup in Japan and South Korea, where Brazil beat Germany in the final. The 2010 World Cup will be held in South Africa, while the venue of the 2014 tournament has still to be decided.
Adidas Chief Executive Herbert Hainer also said the firm has reached its 2004 sales and profit targets. It has forecast a 20 percent rise in net profit with currency-adjusted sales growing 5 percent.
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