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sbcs ball reds set top deloitte football money league

by 24.11.2017 0 comments

From sponsorship to the ever-expanding world of football media coverage, when it comes to the business of football, SBC has you covered. This edition breaks down the financial results of Manchester United, and looks at why the amount of football broadcast on television will almost certainly increase.


Record revenue and record costs in latest Manchester United financial results 

Announcing financial results for the 2018 fiscal first quarter, Manchester United revealed not only record incoming revenue, but also record outgoing costs.

Heavily aided by a return to the Champion’s League, United recorded an increase in TV rights revenue which increased by 31 percent to £38.1m.

Staggeringly, the revenue of United in just the first quarter of the financial year was greater than the yearly revenue recorded by five Premier League teams. Furthermore, the transfer spend of the club has increased rapidly since the departure of legendary manager Sir Alex Ferguson, with United spending more in the four years since the Scotsman’s departure, than they did in the 27 years he was at the helm.

In the corresponding results of last year, the Brexit vote had played a key part in the club’s increasing levels of debt. However, in the latest set of results the club reported that the debt fell to £268.1m, a 20.6 per cent decrease compared to the same period in 2016, down from £558.9 million when the Glazer family first brought the club, although it shouldn’t be disregarded that the figure reached a peak high of almost £800 million in 2015, something that at the time sparked mass protests amongst the club’s fans.

United also retained status as a dominant force in social media, reporting an 11% increase in overall social media interactions and remaining as the most interacted with club on Twitter,  with 16.5m likes and retweets in this period.

Following on from the release of the results, United extended the already extensive portfolio of partners the club boasts, with the announcement of its 65th official club partnership, with Melitta becoming the Red Devils official European coffee partner.

Extending the football feast to Saturday night

After a unanimous agreement by the League’s chairmen, within the next Premier League broadcasting deal the number of games shown live on TV is likely to increase from 168 to a possible 210 games, with the the league contemplating the idea of Saturday night football. The expansion means the Premier League will almost certainly strengthen its spot as the richest league in the World, with it having already confirming to Ofcom that the number of games would increase to at least 190 as part of the next deal.

The meeting that led to the agreement over the increase in games broadcast represents the first time that all 20 Premier League clubs have come together since the dispute over whether the big six should be granted a greater share of foreign TV money.

Price of Football proving problematic for young fans, BBC study finds

A Price of Football study, conducted by the BBC, found that four in five young football fans viewed cost as an obstacle to attending football matches in the UK – despite the fact that the majority of ticket prices have either been frozen or reduced.

BBC Sport asked more than 200 clubs across the country for information on ticket prices and found almost two thirds of price categories have been reduced or remained the same across England, Scotland, Wales and Northern Ireland.

In a separate poll, 1000 18-24 year-old UK-based fans were asked how they engage with football, with 82% claiming the cost of tickets was an obstacle to them going to more matches.

PSG chairman implicated in ongoing FIFA trial

Paris Saint Germain Chairman Nasser Al-Khelaifi was in secretive negotiations to take over a sports marketing company accused of paying football officials millions of dollars in bribes, a federal court in New York heard on Tuesday.

It was revealed that Al-Khelaifi was in negotiations to buy out the firm, but the deal was abandoned after the owners had been indicted in the US after a dramatic police raid on their Zurich hotel.

The trial began on 14 December, with three former South American football officials accused of corruption as part of a major US inquiry. The men – Jose Maria Marin, Juan Ángel Napout and Manuel Burga – have been charged with racketeering, wire fraud and money laundering.

Everton outlines ambitious new stadium plans

After securing a 200 year lease for the land at Bramley Moore Dock, Everton look set to go ahead with plans to build a new  state-of-the-art 50,000 seat stadium.

A statement on Thursday stated: “Everton Stadium Development Limited (a wholly-owned subsidiary of Everton Football Club) and Peel Land and Property (Ports) Limited have formally signed an agreement for the Club to lease land at Bramley Moore Dock, Liverpool Waters.

“The lease, which is conditional upon gaining planning consent for the proposed new stadium and securing funding for its construction, will run for a period of 200 years at a peppercorn rent.

“The signing of the agreement is a significant milestone in the project and means Everton effectively now controls the land upon which a new stadium would be built. This follows several years of searching for a new site and is the culmination of an exhaustive search across the city.”


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