The Business of European Football Essay Sample
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Introduction of TOPIC
Football was greatly loved by the people in England. In fact, this is the reason why there are football clubs that acquire lots of money. It was said that that the operating profits for the 2007-2008 England football league will be doubled up to GBP 260 million. With this we can say that England have a strong Football Economy. But these things are not true for all the football clubs. Some of the clubs that were not so successful in wining games have their owner to be bankrupted. These football clubs are those who are experiencing financial trouble.
Of course, there is a correlation between the success of the European football team and the financial success of the team that’s why football clubs are earning money. Club owners are releasing lots of money to pay for its players, to pay for the practice of the team (which includes the venue of the practice, if it was to be done in private place or to be done in their own field), to pay for the foot ball staffs and to pay for the playing materials of the team (uniforms, shoes, etc.). If the football club will not win, they can not acquire money resulting for the loss of the club owners’ own revenue. In fact, business man Firoz Kassam has been involved in the football business saying that if somebody wants to use football as a business they might experience the loss of Kassam’s £15m pounds because of owning a football team. On the other hand, if the team wins a game, they can acquire money in change for the money that was been released by the club owner. The demand of the people or the consumers for these leisure activities also had a great impact to this issue.
If the teams are successful in terms of game the demand of the people for watching them also increases resulting to more money they can acquire. In order for the team to be successful, the players must be co-operative. The more co-operative the team is, the more successful the football club can be. Players also affect the money that comes in the club. If you are a ‘good player’, the club owner must give you a ‘good salary’. This means that if the salary of the football club is increasing the salaries of its players are also increasing. These really happen in football industry, because a football club can never be successful without having its players. The above mentioned things are the reasons why there are players that of high cost in terms of wages. In fact, these were very true to what happened to the great football player, David Beckham. David Beckham has been offered by America to be in their football team because of his good playing performance for the England National Football team. Beside the fact that England National Football Team already gives Beckham a big amount of money, America will give a larger amount of money to Beckham if he will agree to join to in their team.
The financial success of a football team also depends on the right management of the club owner. If the owner can ask its players to go down their wages, the revenue of the club will increase. This might be hard but there are other things that a clu
b owner can do if he wished to increase the revenue of his club. He can minimize the amount of money
Speaking of the success of the football team in wining its games, right management of the owner was also concerned. If the teams were given a good coach by its owner there is a great possibility of having victories. Also, if the owner release right amount of money for the training of the team victory can be achieved. In a clear view, if the owner wants the money that the club only for himself and didn’t support the financial needs of the club, victory can never be achieved. The statement of Firoz Kassam was also a great reflection on this issue. Firoz Kassam said that, “if anybody wants to go into the football business thinking it’s a business then that is the first big mistake, and I would say don’t do it. Football is a hobby and it’s not about making money” (open2.net).
Of course, England benefits greatly in the success of its Football teams. As mentioned above, the GBP only for the 2007-2008 will be 260 million. It was also mentioned that people of England are increasing their demands for football. This means that when the demand of these consumers for football increase the GBP of football for England will also increase, resulting to more taxes of football leagues. Thus, this fact makes England more prosperous.
Beside of the above mentioned, there are European football teams that are experiencing financial troubles. In fact, 80% of the league clubs are experiencing this difficulty according to Kiram(open2.net). This is simply because there are club owners that make football a business. Maybe, some of them didn’t give enough money to support the team needs. They money which the club gets was only use by the owner for his own purpose. Also, this was because there are clubs that offers high wages for their players. Maybe, the owners of this clubs don’t speak out to his players regarding their high wages. Or maybe, no player will stick to the cutting of wages. So in practice, the outcome of the game is that everyone will increase their expenditure, nobody reduces, and the owners of the clubs get to the worst possible outcome rather than the best (open2.net).
In the other hand, this can not only be a cause of over waging to the players of the team but also because of ‘over drafting’. Over drafting was getting more players for the team to play in. When the club had so many players, even thought they were only paying each player the right wage, many are to be given wages resulting also to over expenditure of the club. If your club was experiencing the above mentioned over expenditures, and your team doesn’t experience wins then it’s a loss for the club. Your team will have fewer games. Fewer games mean fewer sponsors that can give money to the club. Further more, these clubs maybe do not have any fund raising activities. They do not realize that fund raising activities can help their club so much. In short, those clubs maybe poor in right management that’s why they are experiencing financial loss.
Also, these clubs maybe are affected by the football lovers. If your club was not in the top rank, beside of few sponsors, less people will support your game resulting to the less income of the club. Why your club is not in the top rank? Simply, this is because of the skills of your players. Maybe, the players of the other team are more skillful than your player. Football is a competition. All of the club cannot win in this game at the same time; of course, there should be a team that will stand out. There is only 1 champion in a competition. In some competition, sometimes, there are three which was the champion, 1st runner up and the 2nd runner up. So when more football clubs join a league, at the end, many were announced as losers. Making these ‘losers’ loss their sponsors and supporters.
Therefore, the success of the football club is also given by its success financially. If the football club was not successful in wining games, they can have financial troubles. Winning games is one of the reasons why there were clubs who experience financial troubles. Moreover, financial troubles of football clubs also depend on the high cost of the players, over drafting of players and improper management of the club.
_____________, ‘ The Business of Football’. 2007. Management and Organizations. June 8, 2007 http://www.open2.net/moneyandmanagement/management_organisation/penbus2.html
_____________, ‘England again has best finances of European football’. June 1, 2007. euFootball.Biz. June 8, 2007 http://www.eufootball.biz/Finance/010607-England-best-finances-of-European-football.html
Michael Hirshcom, ‘ Will America buy David Beckham?’ 2007. MEN.STYLE.COM/. June 8, 2007 <http://men.style.com/details/features/landing?id=content_5340>