Football is well placed to weather the recession according to Deloitte’s annual Football Money League, although clubs below Premiership level may take a bigger hit. Attendances are holding up well across European leagues, although several clubs are changing prices to ensure that their stadiums are full while others (such as Manchester City) have announced a freeze or cuts to season ticket and other prices. Lower down the leagues, clubs will suffer falling attendances, a more difficult corporate market and problems in dealing with falling revenues.
Football is well placed to weather the recession according to Deloitte’s annual Football Money League, although clubs below Premiership level may take a bigger hit. Attendances are holding up well across European leagues, although several clubs are changing prices to ensure that their stadiums are full while others (such as Manchester City) have announced a freeze or cuts to season ticket and other prices. Lower down the leagues, clubs will suffer falling attendances, a more difficult corporate market and problems in dealing with falling revenues. ‘We may well see insolvencies at some clubs, as we always have seen in difficult times,’ commented Deloitte. Nevertheless, Paul Rawnsley of the Deloitte sport business group commented, ‘The unique nature of the football industry will enable major clubs to be relatively resistant to the economic downturn.’ However, the view at Deloitte is that clubs could face a difficult summer when individuals and companies decide whether to renew season tickets and corporate boxes. Merchandise sales are holding up well, but may weaken in the summer. One response clubs are making to the downturn is to be more flexible with wage structures with a greater emphasis on performance-related bonuses.