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Football and the World Economy
Topic Started: Dec 31 2008, 02:15 PM (1,218 Views)
Roosevelt
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And another one, from the other end of the money pipeline, about the situation both Setanta and ITV find themselves in.

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ITV is in talks to restructure the repayments on all of its major sports rights deals, including its £275m contract to screen the FA Cup and England home internationals, in response to unprecedented economic pressures.

Meanwhile, it is understood that troubled Irish pay-TV broadcaster Setanta has already deferred one payment of £10m as it seeks to renegotiate its own £150m four-year contract with the FA and its other rights deals, raising further concerns about its future within the sports that it helped to bankroll.


LINK
Another day in June, we'll pick eleven for football
We're playing for our lives, the referee gives us f**k-all

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Yogi
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Roosevelt,Mar 6 2009
10:30 AM
And another one, from the other end of the money pipeline, about the situation both Setanta and ITV find themselves in.

Quote:
 

ITV is in talks to restructure the repayments on all of its major sports rights deals, including its £275m contract to screen the FA Cup and England home internationals, in response to unprecedented economic pressures.

Meanwhile, it is understood that troubled Irish pay-TV broadcaster Setanta has already deferred one payment of £10m as it seeks to renegotiate its own £150m four-year contract with the FA and its other rights deals, raising further concerns about its future within the sports that it helped to bankroll.


LINK

Ominous news indeed as TV is why I think the English league has been able to assert itself internationally in recent years. It's clubs have more economic might than thsoe from other leagues because of the TV situation.

Yet despite this news, I seem to recall recently that Sky just upped it's TV rights fee for airing English matches.
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Roosevelt
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But it's looking in some cases as if the upward spiral in rights fees was ultimately unsustainable. My gut tells me that this isn't the last of the gold egg laying geese that finds itself in a bad way. The termites in the foundations of a number of business models developed over the last 15 years are beginning to manifest themselves.

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Setanta 'is on brink of collapse'
Mihir Bose

Setanta faces administration "within days" unless backers provide more funds to pay £30m it owes to the English Premier League, reports have suggested.


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It is expected that a rival broadcaster - perhaps ESPN - would buy up its Premier League football rights.

But the worsening economy has led observers to suggest that the rights to 46 games that Setanta holds for next season, the final year of its current contract, would not be worth as much as they had been.

There are also doubts about whether the Premier League could match the £159m Setanta paid for the right to screen 23 Premier League games each season from 2010-11.

A shared deal with ITV saw them secure rights for England and FA Cup matches for £425m - and it is likely another firm would buy up these rights.

One SPL club has told BBC Scotland that income from Setanta alone accounts for 33% of their income, while another said it was 20% for his club.

"With cuts already being made for next season, the loss of revenue of 20% would undoubtedly have a knock-on effect on and off the pitch," said one a source.

It is feared that the loss of cash from Setanta could force as many as three SPL clubs into administration.


http://news.bbc.co.uk/2/hi/business/8090633.stm
Another day in June, we'll pick eleven for football
We're playing for our lives, the referee gives us f**k-all

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Merengue
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Thanks for linking that article Roosevelt. Yes this is huge news and I like your analogy about the "termites in the foundation!" But as those Scottish club officials pointed out, losing so much of their income per year could be devastating. Not to beat a dead horse but this is something on my mind now, it just adds to the irresponsibleness (is that a word?) of Real Madrid's new president Florentino Perez' buying spree. $94 million for Kaka and he's not done. This ever increasing gap between the haves and have nots is worsening the sport throughout the world. And the potential loss of television income is what will damage the lesser clubs even more.
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Yogi
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I will bring this thread back to life with the news that Belgian Jupiler League, the nation's top level league, is now short one club as Mouscron will no longer exist:

Mouscron To Cease Operations


After a long-running soap opera played out over many months, the Belgian Jupiler League has been forced to take the step of removing Mouscron from the competition. The club, who have been playing under the cloud of serious financial troubles of late, will be wound up later today.


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raconteur
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Yogi,Dec 28 2009
06:07 AM
I will bring this thread back to life with the news that Belgian Jupiler League, the nation's top level league, is now short one club as Mouscron will no longer exist:

Mouscron To Cease Operations


After a long-running soap opera played out over many months, the Belgian Jupiler League has been forced to take the step of removing Mouscron from the competition. The club, who have been playing under the cloud of serious financial troubles of late, will be wound up later today.

That is sad to read. I hope they can reform themselves and come back just as Fiorentina and Napoli did in Italy after running into some serious financial difficulties.
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Merengue
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From this article that is what it sounds like is being prepared raconteur, the club's matches for the entire season, including those already played, will officially be listed as forfeits, the players will become free agents and the club will be relegated to the third division,

http://sports.yahoo.com/soccer/news?slug=r...uters&type=lgns

Here is a list of Mouscron's players, any bargains out there?

http://en.wikipedia.org/wiki/R.E._Mouscron#Current_squad

I recognize the names of Walter Baseggio, a veteran Belgian midfielder, Matthieu Assou Ekotto, the older brother of Tottenham's left back Benoit Assou Ekotto, and Jaycee John, the Nigerian born striker who represents Bahrain. But overall certainly not a star studded team. Fiorentina and Napoli are big clubs who found financial backers willing to restart those clubs. The question is whether modest Mouscron will be able to find their own?
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Manzanares
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Mouscron was in 9th place in the Belgian league so despite a "no name" roster they were doing Ok on the field. Sad to read of this, their debts were "only" 800,000 euros, pocket change for clubs like Real Madrid and Manchester United. Mouscron do say they will try and sue their youth players to reform their team next season in the 3rd division.
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Mr. Pither
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HFC Haarlem Are No More

Haarlem cease to exist because of their bankruptcy. Kind of sad for a club where Ruud Gullit and Johnny Metgod among others got their start. But attenadace had dipped to 1,000 as they were playing in the Dutch lower leagues and this is a club who have had a long history of hooligan troubles which scared fans away.

So Mouscron in Belgium and now Haarlem in Netherlands have ceased to exist during this season.
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Merengue
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Haarlem is a club I have always associated with hooliganism, I recall in the past reading that their games with Ajax in particular often turned into battles between the rival fans. But it sounds like once the club fell upon hard times, the fans abandoned it.
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Merengue
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And a month before the Russian season is to begin FK Moscow closes up,

FK Moscow Drops Out Of Russian Premier League

The club's owner, the world's largest nickel producer tried for over a year to sell it. From the linked article it sounds like Russian clubs rely either on local companies or oligarchs sponsoring them. When that weak foundation falters, the club can fail like FK Moscow.
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ursus arctos
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In the Soviet era, the clubs were supported by ministries or nationalized industries (as was the case in the entire Warsaw Pact), and that pattern has persisted in the "New Russia", with oligarchs and politicians stepping in.

It isn't a sound foundation, especially for clubs like FK Moscow that don't have historical roots.
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Yogi
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ursus arctos,Feb 5 2010
06:53 PM
In the Soviet era, the clubs were supported by ministries or nationalized industries (as was the case in the entire Warsaw Pact), and that pattern has persisted in the "New Russia", with oligarchs and politicians stepping in.

It isn't a sound foundation, especially for clubs like FK Moscow that don't have historical roots.

I believe Torpedo Moscow lost their benefactor too and dropped down to the Russian 2nd division.

But I think Dukla Prague and practically all of the dominant East German clubs (Dynamo Berlin, Magdeburg, Dynamo Dresden) all lost their backers when the Iron Curtain fell and were unable to get any oligarchs to back them (are there any oligarchs in the old DDR?) They now are all playing in lower level leagues in their respective countries.
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ursus arctos
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That's right about Torpedo (their historical sugar daddies were the ZiL automotive company, who are now once again in control), and very true about the DDR.

Essentially all of the traditional powers collapsed after re-unification, and the strongest Ossi team at the moment is 1. FC Union Berlin, who always had significant popular support, but were completely overwhelmed by the regime's favoritism toward Dynamo Berlin. The only other Ossi teams in the 2. Bundesliga are Hansa Rostock and Energie Cottbus, neither of whom were major sides in the DDR.

Dukla also went bankrupt when the Czech Armed Forces withdrew their support.
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Sammy Maudlin
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Another European club looks to be biting the dust, Bulgaria's Botev Plovdiv

http://sports.yahoo.com/soccer/news?slug=r...uters&type=lgns

Botev Plovdiv have been expelled from the Bulgarian first division for non-payment of debts and registering insufficient players, the Bulgarian Football Union (BFU) said on Wednesday.

In the last few weeks, the BFU has upheld claims by 19 players that Botev, twice Bulgarian champions, breached their contracts by failing to pay them for several months.


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