How will the economic collapse affect football?

Essex blue

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So with our economy collapsing as well as the world what affect will this have on city as well as every club.

The down turn could hurt us and Utd more than most due to our reliance on sponsorship deals.
The sponsors wont be throwing money at football when the deals expire and this may also affect tv income
 

bugsyblue

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I know this is a football forum so absolutely a relevant question, it’s just if everything you spoke about does happen we’ll have lots more important things to worry about than how city are doing.

As long as they remain in existence then that’s all that matter and we’ll all be supporting them. I think it’s way more precarious for clubs in the lower leagues whose sole survival is based on stadium attendance revenue.

If a second wave hits around the start of the new season I don’t know how clubs in the fourth, third, and even some in the second tier will survive.
 

Prestwich_Blue

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Sponsorship contracts tend to be long term at PL level, around 3 years or more. Some for much longer. Under normal circumstances we'd have easily replaced the Etihad contract with one of similar size but we don't know what will happen to companies' marketing budgets under the current crisis. So United might also have trouble getting the sort of deal they got from Chevrolet. But those deals are largely predicated on global TV exposure.

The most obvious hit to clubs' revenue streams will be matchday income and I posted something last night about that. Nearly a quarter of Arsenal's total revenue comes from tickets followed by 20% for Spurs and about 18% for United. It's about 15% for Liverpool & Chelsea and 10% for us. Arsenal failing to qualify for Europe would have been quite serious for them I think.

As regards TV revenue, that's mostly safe I think. As part of the conversation we're having with the club via City Matters it seems that the TV companies will be going back to the old model of not showing every game, at least not domestically. We'd prefer them to carry on what they've been doing since the restart and show all games on a fixed schedule so they aren't messing about with dates and times. That could lead to an increase in broadcast revenue which could offset any loss in matchday income.
 

King KdB of Belgium

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The only way football will survive is for the fans to be allowed back into the grounds. For this to happen we will need a reliable vaccination programme to be up and running as soon as it is feasible to do so. It may happen that if you want to return to watch City at the Etithad Stadium you may have to prove that you have been vaccinated against this virus. If you haven't been vaccinated you will not be allowed to enter the stadium.

The longer this goes on where clubs are not allowed to have fans in the grounds, the more likely it's going to bankrupt the smaller clubs. Even clubs in the Premier League can go under. Clubs like Burnley, and newly promoted Fulham etc., will struggle to survive without the cash coming in from the supporters. Money from sky and bt will be drastically cut. Plus there is no income from March day sponsors coming in as well.. All of this is money which the smaller clubs need to survive in the Premier League, as well as the other league's down the football pyramid.

If this goes on for much longer football fans will have found something better to do on a match day. Therefore it's possible that crowds could be a lot smaller than they are now. This would leave some clubs with the only option is to shut down completely, and sell off the land for some other use.
 
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waspish

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If No fans are allowed back in the ground clubs will have to think out the box like having a zoom season ticket where you live on your seat where there is a camera with pan option :)
 

Gaudion M

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I know this is a football forum so absolutely a relevant question, it’s just if everything you spoke about does happen we’ll have lots more important things to worry about than how city are doing.

As long as they remain in existence then that’s all that matter and we’ll all be supporting them. I think it’s way more precarious for clubs in the lower leagues whose sole survival is based on stadium attendance revenue.

If a second wave hits around the start of the new season I don’t know how clubs in the fourth, third, and even some in the second tier will survive.

Agree with that. The lower down the leagues you go the more gate receipts and other match day sales are as a percentage of income. Sponsorship also tends to be smaller local firms and not the big global corporates that are more interested in clubs with TV exposure. Its hard to see how they survive as the cost is the player wages and there is not much they can do on that front. The implications for the transfer market are pretty clear. An opportunity maybe for better run clubs that have funds to see them through (and maybe owners with deep pockets).

That said I can see games coming back - the government wont be doing any bail outs of football clubs so they will want them to survive. Stadiums with some fans in could come back before Christmas. Its probably less risk than going to the pub - the issue is when people go on public transport to the game and then on to the Pub.
 

The Future is Blue

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Obviously all the clubs have had their income affected but surely City with little or no debt are the stronger above the others who will have to service said debt. However I'm expecting an overhaul or scrapping of FFP soon on the instruction of the G14, Gill, Parry and their cronies. The Rags usually take great pride in smashing transfer records on mediocre players....the reason Sancho is not in the bag is they haven't got the money!
 

BrianW

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A lot of people are going to be on the rock and roll who never dreamed they would be, and they will find that, contrary to popular belief, you don't get £500 a week and a free house. So for these people, going to football and buying Sky subscriptions will become a very low priority.

Lots of businesses, great and small, are going down the toilet. This means less money available for sponsorship and less money spent on corporate "entertainment".

Of course many people, and many businesses, will still be doing very nicely thank you, but this trouble in the general economy is bound to hit football incomes; the only question is, how severely?

The bigger clubs will trim their outgoings. Some owners will still invest. Smaller clubs, unless really well run, are likely to suffer badly. I strongly suspect that when the next round of TV bidding comes along, the bids will be notably lower, and that is a crucial slice of clubs' income.
 

Mancity1980

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A lot of people are going to be on the rock and roll who never dreamed they would be, and they will find that, contrary to popular belief, you don't get £500 a week and a free house. So for these people, going to football and buying Sky subscriptions will become a very low priority.

Lots of businesses, great and small, are going down the toilet. This means less money available for sponsorship and less money spent on corporate "entertainment".

Of course many people, and many businesses, will still be doing very nicely thank you, but this trouble in the general economy is bound to hit football incomes; the only question is, how severely?

The bigger clubs will trim their outgoings. Some owners will still invest. Smaller clubs, unless really well run, are likely to suffer badly. I strongly suspect that when the next round of TV bidding comes along, the bids will be notably lower, and that is a crucial slice of clubs' income.
I don’t know how others feel but how rich or how much money is in football is not that important to me as a fan. As long as my club continues that is paramount, then of secondary importance is its position in the football hierarchy and entertainment value. If things go back to the scruffy stadiums and entertaining city football of the 70s (minus the hooliganism please) then I am happy.
 

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