Financial problems for FA

The Football Association was under pressure from the Coalition Government over its governance structures even before England’s exit from the World Cup.  These pressures have now intensified.  But in addition to those problems the FA faces serious financial challenges.


In summary these are:


1. Sponsorship deals are on a four-year cycle and are about to run out.  Will sponsors be enthusiastic about renewing?

The Football Association was under pressure from the Coalition Government over its governance structures even before England’s exit from the World Cup.  These pressures have now intensified.  But in addition to those problems the FA faces serious financial challenges.


In summary these are:


1. Sponsorship deals are on a four-year cycle and are about to run out.  Will sponsors be enthusiastic about renewing?


2. The finances of the Wembley Stadium subsidiary are prrecarious given the loans that have to be paid back and  al lot depends on the sale of VIP seats – which in turn are influenced by an economy that is likely to grow slowly and where the wealthy financial services sector faces a whole series of challenges.


3. The broadcasting deal is up for renewal in 2012 and ITV knows that it overpiad last time.


4. If Fabio Capello is asked to leave, which seems more likely than not, the FA will be faced with a big compensation bill – of their own making.


5. Paradoxically the 2018 World Cup bid is actually going quite well, but pursuing it successfully is going to cost a lot of money.

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