There have been some big headlines in England as the January window comes to a close. In New York Yankee style, Manchester City tried to buy legendary AC Milan midfielder Kaka for £108 million with a weekly salary of half a million pounds. If this transfer was successful, it would have been the biggest and most expensive move in the Premier League...ever. The closest to the £108 million offer was Real Madrid’s offer of £48.1 million for Zinédine Zidane in 2001! Manchester has made a lot of moves during this trade window to acquire players like De Jong (17m), Wayne Bridge, and Craig Bellamy (14m). Man City is still in talks and may yet acquire a few more players before the window closes.
With all of this attention on Man City and multi-millionaire/billionaire owners, less fortunate teams like Fulham are calling for a salary cap. Like in the NFL, NBA, and NHL, the Premier League may fall under some sort of cap. Currently, Chelsea and Manchester City are owned by billionaire oil tycoons. Roman Abramovich, Chelsea FC owner, has invested over £500 million in the team. One of the major concerns is that teams that have billionaire owners will throw their money around and offer huge contracts to star players, or corner the free agent market. On Chelsea’s team alone you have some amazing star talent from all over the world. Michael Ballack, German national captain; John Terry, English national captain; Petr Cech, considered one of the best goalies in the world, hails from the Czech Republic; Ashley Cole, Joe Cole, Frank Lampard are all English national team regulars; Didier Drogba, star Ivorian national team striker; and a scattered array of other national team stars. Chelsea is fortunate to have all of these players, but if any salary cap was imposed, the Blues would have to sell off some, if not most of these players.
By throwing a lot of money around, the Premier League has been dominated by the Big 4: Arsenal, Manchester United, Liverpool, and Chelsea. They have been able to attract the best players in the business and be able to afford their giant price tags. This has caused an imbalance in the league. After every season, the bottom 3 teams are relegated or demoted to the league below their current league, while the top 3 teams are promoted to the league above theirs, all in an effort to keep the different leagues in England competitive and interesting. Chelsea, Manchester United, Arsenal, and Liverpool have never graced the lower level leagues since the creation of the league system due in part to the thick wallets these teams possess. A hard cap could possibly increase the competitiveness of the league, or backfire and make all of these stars go to the abroad leagues. This is a tough issue that the FA is considering.
Another big concern for the league is the possibility that these owners will write off their current losses and abandon their team, leaving the team with a huge debt and possible bankruptcy. Currently, Liverpool owners Tom Hicks and George Gillett are trying to sell their shares in the club. Yes, the same Tom Hicks who owns the Texas Rangers and the same George Gillett who has investments in NASCAR. They are seeking to sell Liverpool to the Al-Kharafi family, whose net worth is in the £8 billion range. If this deal goes down, then Liverpool could join the ranks of Manchester City and Chelsea as having billionaire owners. However, Chelsea is still holding their breath after their current owner, Roman Abramovich, was offered a substantial amount of money to sell the club. So who is the interested buyer? The same billionaires that own Manchester City. There is big concern in the Premier League if this deal goes through. However, at this point in time, Abramovich seems to be content as the owner of the Blues…but everyone has their price, at least according to the Manchester City’s owners. We will see how this plays out, especially if Chelsea does not come away with any hardware this season.
Sunday, January 25, 2009
Tuesday, January 20, 2009
United look to India for new shirt sponsor deal
I wanted to make sure that I had credible information before I posted it, but it has been official, Manchester United is in the process of finding a new shirt sponsor. Since AIG has had a run of bad luck with their financing and future profitability, Man U has begun to look for another sponsor after the current contract expires in the summer of 2010. So far, according to ESPN, Manchester United has been in contact with Sahara, a giant Indian corporation, as well as Saudi Telecom, who is already a Red Devil commercial sponsor. In addition to these candidates, Man U may be seeking a sponsor in Kuala Lumpur, Malaysia.
More info @ http://soccernet.espn.go.com/news/story?id=611290&sec=england&cc=5901
More info @ http://soccernet.espn.go.com/news/story?id=611290&sec=england&cc=5901
Friday, January 16, 2009
The Great Blues Identity Crisis: The Impact of Chasing the Championship
The Blues have gone through a total redesign of their team over the past summer. The 2007/2008 season was rough for Chelsea. After losing to Manchester United 2 times in less than 2 weeks for the prized UEFA Cup and then the sought after Premier League Championship, Avram Grant, Chelsea’s coach, was sacked. Along with the coach, Chelsea also cut or dropped more than 8 players, including stars such as Claude Makelele (France National Team), Shaun Wright-Phillips (English National Team), and Wayne Bridge (English National Team). Other notable players included Tal Ben-Haim, Steve Sidwell, Andriy Shevchenko, and Khalid Boulakrouz.
To solidify the newly striped team, Chelsea signed Portuguese’s National coach, Luiz Felipe Scolari in hopes of restoring Chelsea to the glory days of only a few years before. Chelsea won the Premier League Championship in ’05 and ’06, the FA Cup in ’07, and the Carling Cup in ’05 and ’07. They went without hardware in 2008, while in 2009 they have already dropped out of the Carling Cup and are sitting 3rd in the Premier League behind Liverpool and Manchester United. In order to turn the club around, Scolari reevaluated the current roster and added a few new players. Jose Bosingua, Deco, and Mineiro were all added, while benched players like Nicolas Anelka saw new life.
So, how has Scolari done? Well, Chelsea started out on a strong note and was the lead dog for a bit until injuries hampered with most of their starters, including team captain and defender John Terry, midfielders Michael Essien, Michael Ballack, Didier Drogba, and Deco, to name a few. Recently, the Blues have looked a little sluggish. These lackluster performances have led to multiple defeats at home…prior to this season Chelsea had been undefeated at their home at Stamford Bridge for the last 2 years. Discontent has also arisen among some players regarding playing positions and time on the pitch. Chelsea has only won 2 out of the last 8 Premier League games, but did show some life in their 4-1 win over FA competitors Southend United.
What does this all spell out? There is a lot of uncertainty in the club right now. Many fans are not happy at the way the team has been performing…much like how Lions fans have felt for the last 50 years. Attendance has fallen, and now on the team’s website, Chelsea FC has dropped prices by 2.5%. The way Scolari has managed has also caused some problems among a few of the players, who are now requested to be transferred during the January window. However, Scolari believes that he has the players that he needs to be successful, so it does not sound like Chelsea will be in the market for adding another player this month.
How will not shopping hurt Chelsea? Manchester City has made a strong effort to acquire Kaka from AC Milan. Kaka has been viewed as one of the best players in the world, and is expected to turn around Manchester City and keep them out of relegation. Kaka is a big enough name in the industry that can attract a bigger crowd for Manchester City as well as allow Man City to charge a higher ticket price. They will need to after an offer of around 110 million pounds. Chelsea could make a move on a few top name players who are dissatisfied with their current team or whose contract is soon to expire. There has been a lot of talk surrounding German Bayern Munich striker Lukas Podolski’s future. He is currently on the market. In addition to permanent moves, MLS stars are flooding the market for loan transfers. David Beckham is on loan from the LA Galaxy to Italian club AC Milan, while Donovan is on loan to Bayern Munich. These temporary contracts could add not only skill and talent to teams, but also attracts new interest and business for clubs. Chelsea could really be missing out by not making any moves, especially since their side has been no stranger to injuries.
Chelsea is playing a very important match this weekend against Stroke. The Blues really need these 3 points in order to stop the bleeding and regain their composure in the Premier League.
Pbo
To solidify the newly striped team, Chelsea signed Portuguese’s National coach, Luiz Felipe Scolari in hopes of restoring Chelsea to the glory days of only a few years before. Chelsea won the Premier League Championship in ’05 and ’06, the FA Cup in ’07, and the Carling Cup in ’05 and ’07. They went without hardware in 2008, while in 2009 they have already dropped out of the Carling Cup and are sitting 3rd in the Premier League behind Liverpool and Manchester United. In order to turn the club around, Scolari reevaluated the current roster and added a few new players. Jose Bosingua, Deco, and Mineiro were all added, while benched players like Nicolas Anelka saw new life.
So, how has Scolari done? Well, Chelsea started out on a strong note and was the lead dog for a bit until injuries hampered with most of their starters, including team captain and defender John Terry, midfielders Michael Essien, Michael Ballack, Didier Drogba, and Deco, to name a few. Recently, the Blues have looked a little sluggish. These lackluster performances have led to multiple defeats at home…prior to this season Chelsea had been undefeated at their home at Stamford Bridge for the last 2 years. Discontent has also arisen among some players regarding playing positions and time on the pitch. Chelsea has only won 2 out of the last 8 Premier League games, but did show some life in their 4-1 win over FA competitors Southend United.
What does this all spell out? There is a lot of uncertainty in the club right now. Many fans are not happy at the way the team has been performing…much like how Lions fans have felt for the last 50 years. Attendance has fallen, and now on the team’s website, Chelsea FC has dropped prices by 2.5%. The way Scolari has managed has also caused some problems among a few of the players, who are now requested to be transferred during the January window. However, Scolari believes that he has the players that he needs to be successful, so it does not sound like Chelsea will be in the market for adding another player this month.
How will not shopping hurt Chelsea? Manchester City has made a strong effort to acquire Kaka from AC Milan. Kaka has been viewed as one of the best players in the world, and is expected to turn around Manchester City and keep them out of relegation. Kaka is a big enough name in the industry that can attract a bigger crowd for Manchester City as well as allow Man City to charge a higher ticket price. They will need to after an offer of around 110 million pounds. Chelsea could make a move on a few top name players who are dissatisfied with their current team or whose contract is soon to expire. There has been a lot of talk surrounding German Bayern Munich striker Lukas Podolski’s future. He is currently on the market. In addition to permanent moves, MLS stars are flooding the market for loan transfers. David Beckham is on loan from the LA Galaxy to Italian club AC Milan, while Donovan is on loan to Bayern Munich. These temporary contracts could add not only skill and talent to teams, but also attracts new interest and business for clubs. Chelsea could really be missing out by not making any moves, especially since their side has been no stranger to injuries.
Chelsea is playing a very important match this weekend against Stroke. The Blues really need these 3 points in order to stop the bleeding and regain their composure in the Premier League.
Pbo
Wednesday, January 14, 2009
How to Buy a League: Where Big Business Meets the Largest Sport's Market
When you turn on a classic American sporting event, whether it is baseball or basketball, you expect to see familiar players wearing their team jerseys that are plastered with the team logo and city. How boring is that?
If you were a sponsor, how could you make sure that every moment of the game there is a spotlight on your logo, or even better, every highlight that makes it onto the Top 10 on Sports Center has your logo synonymous with the team or player that made that game winning play? Instead of being a partner, how about owning the league? If any of these ideas sound too outrageous, then simply tune into the Barclay’s Premier League. That’s right, European football has become a sponsor’s best friend.
In 2006, Barclays, an English bank, renewed their contract with the English Premier League for another 4 years. This sponsorship allows Barclay to name the English Premier League. Since Barclay has taken over, the league has been called either the Barclay’s Premier League or the Barclay’s Premiership. This sponsorship came with a hefty price tag of 65.8 million pounds sterling (roughly about $125 million). Similarly, Coca-Cola also sponsors a league in English football. In addition to having the league named after the sponsor, every team in that league has patches on their uniform displaying the league sponsor. For example, Chelsea has the Barclay’s Premier League displayed on their sleeves of their kit.
What if a company cannot afford $125 million, how can they differentiate themselves from other potential sponsors? Sponsors can literally sponsor a team. Crazy? Manchester United, the most recognizable sports team in the world, dawns AIG (American International Group) on their jersey. On a 4 year, $56.6 million contract, you can expect that the AIG logo to be the most visible logo on the front of the jersey. Some other big companies that sponsor Premier teams include Samsung (Chelsea, phone services); Carlsberg (Liverpool, beer); Fly Emirates (Arsenal, airline); and many more.
In addition to corporate sponsored jerseys, there is competition among Nike, Adidas, Umbro, and Puma is fierce to sponsor individual teams, because there is no league contract for apparel.
Here is something else, this isn’t just happening in England…it has progressed throughout the whole sport…even many of MLS (Major League Soccer, that’s right the U.S. has a professional soccer league) teams have jersey sponsors.
Still not convinced that this European football is for sale? Leagues still sell advertisements around the perimeter of the pitch, much like hockey does. Also, television advertisements still entice teams that have missed out or cannot afford other forms of sponsorship. So next time you watch an American sporting event, try to imagine the teams wearing corporate jerseys instead of their normal attire.
Cheers,
Pbo
If you were a sponsor, how could you make sure that every moment of the game there is a spotlight on your logo, or even better, every highlight that makes it onto the Top 10 on Sports Center has your logo synonymous with the team or player that made that game winning play? Instead of being a partner, how about owning the league? If any of these ideas sound too outrageous, then simply tune into the Barclay’s Premier League. That’s right, European football has become a sponsor’s best friend.
In 2006, Barclays, an English bank, renewed their contract with the English Premier League for another 4 years. This sponsorship allows Barclay to name the English Premier League. Since Barclay has taken over, the league has been called either the Barclay’s Premier League or the Barclay’s Premiership. This sponsorship came with a hefty price tag of 65.8 million pounds sterling (roughly about $125 million). Similarly, Coca-Cola also sponsors a league in English football. In addition to having the league named after the sponsor, every team in that league has patches on their uniform displaying the league sponsor. For example, Chelsea has the Barclay’s Premier League displayed on their sleeves of their kit.
What if a company cannot afford $125 million, how can they differentiate themselves from other potential sponsors? Sponsors can literally sponsor a team. Crazy? Manchester United, the most recognizable sports team in the world, dawns AIG (American International Group) on their jersey. On a 4 year, $56.6 million contract, you can expect that the AIG logo to be the most visible logo on the front of the jersey. Some other big companies that sponsor Premier teams include Samsung (Chelsea, phone services); Carlsberg (Liverpool, beer); Fly Emirates (Arsenal, airline); and many more.
In addition to corporate sponsored jerseys, there is competition among Nike, Adidas, Umbro, and Puma is fierce to sponsor individual teams, because there is no league contract for apparel.
Here is something else, this isn’t just happening in England…it has progressed throughout the whole sport…even many of MLS (Major League Soccer, that’s right the U.S. has a professional soccer league) teams have jersey sponsors.
Still not convinced that this European football is for sale? Leagues still sell advertisements around the perimeter of the pitch, much like hockey does. Also, television advertisements still entice teams that have missed out or cannot afford other forms of sponsorship. So next time you watch an American sporting event, try to imagine the teams wearing corporate jerseys instead of their normal attire.
Cheers,
Pbo
Monday, January 12, 2009
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