A Study of The English Premier League’s Current Globalisation Strategy The English Premier League (EPL) is the fourth most lucrative sporting league in the world, behind America’s NFL, NBA and Major League Baseball. It is a corporation owned by the 20 participating football clubs and currently has revenues of £1.8billion a year and television rights deals worth over £2.7 billion. It is already one of the UK’s most successful and recognisable international brands. The EPL’s top four clubs, Manchester United, Chelsea, Liverpool and Arsenal are global brands in themselves, occupying four of the top eight of Deloitte’s football money league places and commanding combined revenues of £714.1 million last year. (Deloitte Sports Business Group, …show more content…
Larger clubs undoubtedly oppose Game 39 because currently they have the monopoly on lucrative foreign tours and are unwilling to share a market potentially worth £billions. The games themselves would be staggered so it would be possible to watch all ten on television, increasing potential television revenue for each club. Game 39 amounts to capitalising on the product that the EPL already offers. The same match will take place regardless of how many fans watch it, so maximising the number of fans makes logical business sense. The commodity, the match itself, can be distributed around the world by satellite television, meaning there is no increase in manufacturing or shipping cost of a physical product. 10,000 Americans travelled to London for the October game, leaving over 80,000 seats free for potential ‘new’ fans, or customers, of NFL at Wembley. Once generated, these fans can watch their team via satellite television regardless of where they are in the world, like boxing or F1. The UK was chosen to host the game due to its affluent population who would make the trip financially feasible. The NFL’s stated target markets are Mexico, China, Japan, Germany, Canada and the UK. All have populations capable of making foreign games financially
There is no question that the National Football League (NFL) and the National Basketball Association (NBA) are different and similar in many aspects. Discovering the comparisons and contractions in value, revenue, and operating income of these professional sports teams, can help shed light on the tremendous amount of money these leagues withhold. In calculating the value is divided between four separate classes, which are the sport value, the market values, stadium value, and the brand value. Surprisingly, When looking into the values one may find that some of these categories are more valuable then those of the other league, showing how these two leagues are both structured uniquely. The only element that makes this business possible is the
All around the world, society pushes people to become who they are. Whether it is a trend or a way of life, those people get to choose how they want respond to society. This develops the person's traits and allows other people to understand why they act the way they do. With character development comes maturity, realization and a path away from society’s norms. The same idea is shown throughout the books The Glass Castle by Jeannette Walls, To Kill a Mockingbird by Harper Lee, House on Mango Street by Sandra Cisneros, and Romeo and Juliet by William Shakespeare. Jeannette Walls believes society’s influence is more helpful to character development because it allows the characters to form around this idea of society and decide how they want to
Some reasons an emergency fund is important is are in the event of unexpected events. One can still be covered from finical ruin until they can obtain more funds for financial security. Sudden unemployment, illness, household, and natural disasters can have long lasting financial implications in the wrong predicament. For the finical situation I am in any one of these events would leave me homeless in less than a month.
We first examined Real Madrid’s revenue streams and found that from their inception through the 1970s their business model was based almost entirely on their ticket sales. After the 1970s up until 2003 they had some media rights, a small merchandising department, and some other negligible streams of income. It was in 2003 that team President Florintino Perez decided to make Real Madrid into a
The elite Spanish and English Football clubs have enjoyed the global football explosion over the last two decades. For example, Barcelona and Real Madrid have used revenue generated from Champions League and the Spanish League to buy the best players in the world at very high prices (Markus 45). This has made the teams become the centre of investment for billionaires who are keen to have a share of the teams. It is from this perspective that the professional soccer teams end up overspending in the name of getting hold of the best players in the world. Moreover, some teams such as Manchester United have been reported to be overstretching their budgets by paying massive interests to its players. This results in losses which might lead to bankruptcy and fall of the football team. By analyzing such trends, professional clubs may end up being in unhealthy financial positions, which throated their survival and the stability of football as a global sport (Homewood para. 10). Based on these concerns, there is a need to regulate the spending of football clubs so as to guarantee that there is a level ground for all top division soccer teams in Europe (Dijk 45). This paper analyzes Financial Fair Play regulations and their effects on professional soccer clubs in Europe as well as their prospective effects on the economy.
With high levels of financial losses encroaching the world of football, the need to spend in order to compete developed a phenomenon known as financial doping. This is a situation in which an owner of a sports franchise invests their own personal wealth into securing success, rather than relying on revenue generated via the franchise related activities. This reflects on what Sloane (1971) says that football club owners are utility maximisers rather than profit maximisation. Being motivated by success as their clubs participate in prestige competitions, some may argue that their investments are not ‘sustainable’ and the impact of sugar daddies has been titled as ‘financial doping’ (Muller et al., 2012). A significant proportion of debt accumulated in the league is in the form of ‘soft loans’, which is low or zero interest loans from the clubs’ owners. These soft loans will rarely be called in, which differentiates them from loans taken out from a bank. The severity of financial doping in English football has been referred to as a “melting pot” with teams such as Liverpool, Manchester United, Manchester City and Chelsea all receiving financial support from their billionaire owners. With external sources of money being introduced into the game, it highlights how football is able to stay afloat and thrive despite making substantial financial losses. The APFG in 2009 noted that there were severe doubts about whether it is sustainable in the medium or long
The ‘Sugar Daddy Game’ received an increased academic attention in recent years; researchers observed and compared many aspects and implications of that phenomenon. To start with Dietl et al. (2009) and their analysis of social welfare and difference between profit-maximising and win-maximising leagues; then Lang et al. (2011) analysed benefactors influence on industry competitiveness; then Madden (2012) studied implications towards the economic stability of the industry; then Franck & Lang (2012) observed growing trend towards riskier strategic investments amongst ‘sugar-daddy’ owned clubs; and finally the possible outcome of new
The globalization of football has skyrocketed through the years, which has resulted in many negative and positive outcomes for the sport as a whole in Africa. Africa has been empowered and disempowered by this globalization that has created a complex relationship involving independence, peace and commercial imperatives. As I will describe throughout this essay, Africa as a continent has come a long way with the globalization of football but still struggles deeply in certain aspects.
It has been suggested that the UCL is a product of societal evolution. After forty years without change the European Cup had become commercially obsolete to broadcasters and sponsors due to the lack of guaranteed matches involving Europe’s biggest clubs (Ahlstrom, 2002). The knockout format allowed for clubs who would bring in large sums of revenue to be eliminated after merely two games.
Although, the case study of Manchester United gives us a good example of a brand’s ability to globalize, it does not give us a clear picture into how a league as a whole accomplishes these same goals. To get this clear picture of a successful global soccer league we can review a case study by Matthew Holt that examines the UEFA Champions League and its ability to succeed. The UEFA Champions League(UCL) was established after the UEFA European cup started to see more revenue increases based on the increase in television and digital technologies. (Holt, 2007) The goal of the UCL was to increase revenue through a newly structured European club soccer league. The first way that UCL accomplished this was through centralized marketing. This was accomplished through selling the television rights as the UCL brand rather than allowing the clubs to individually sell the rights to the games. This increased the value of the television rights and in turn increased the profitability of the clubs. (Holt, 2007) UEFA sold this UCL brand
The main aim of this paper is to identify and discuss a contemporary issue that affects operations management, strategic management and human resource management within the specific industry. Building on the authors’ interest this paper will focus on the arising issues and problems related with the rapid growth of the influence of private and public (to lesser extent) benefactor owners within the European football industry (Lang et al., 2011). The ‘European model of Sport’ (Holt, 2009) refers to the overall design of the European Football Industry and implies a guideline that organisations has to follow. The most important principles assume a global hierarchy where national competitions are seen
Since the beginning of the English Premier League there have been four major football teams which consist of Manchester United, Liverpool, Arsenal and Chelsea. In the last twenty years Manchester United have bagged twelve Premier League championships, Chelsea have won two, Liverpool have won two and Arsenal have won three. Other than Blackburn Rovers no other premier league football team has been able to even shake the outcome of the ladder and the dominance of these four teams cannot be underestimated. In recent times there has been talk about the English Premier League being a four team competition that is not nearly a fair
Today, it is said that the English Premiership League is the wealthiest league in the world. If you are football lover Roman Abramovich is the name you would certainly know, who is one of the most famous owners in England or even in the world. He was
In Europe, be that as it may, city don procedures have focused more on pulling in a progression of real games occasions, for example, World or European Championships, again advocated on the financial effect produced through facilitating such occasions. While numerous American games financial analysts (eg, Baade, 1996; Noll and Zimbalist, 1997; Coates and Humphreys, 1999) now reliably concur that reviews demonstrate no huge direct financial effect on the host urban areas from the current stadium improvements, it isn't evident to the point that European style facilitating of major sports occasions isn't monetarily helpful to the host urban communities. This section looks at ten noteworthy games occasions, all World or European Championships facilitated by UK urban areas over late years, all of which have been considered by the current creators. The distinction from the North American circumstance is that these occasions move around from city to city in light of offers from potential
£1.4 billion was spent this summer in the Premier League, breaking last summer’s record for the sixth consecutive year, instead of investing that money in youth. The “major” clubs from each league are using their financial strength to kill off the competition in their leagues. Would you like your local players being raided by money giants? Not only are transfer fees ruining football, but skyrocketing ticket prices are also having the same effect. I know I’m not the only one who fears for the current welfare of football. Whether you’re a football fan or not, you need notice that this is unacceptable. You have to realise that the money being spent has got to change very quickly due to the growing concern over football’s financial future.