Gav Reilly

the thoughts of a journalist, web designer and musician, thinking out loud

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Written by Gav

March 9th, 2010 at 1:09 pm

Posted in Finance,Soccer

Tagged with , , , , ,

One Response to 'Can a fans’ trust really work?'

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  1. One of the big issues, from the economics of it, facing United and pretty much all clubs in major leagues in Europe (and no shortage of minor leagues) is that there is no incentive to build a sustainable business model.

    Take the EPL, 18 clubs turned a loss last year while United have plenty of debt issues to handle despite turning a profit. The problem for these clubs, as it currently stands, is that if they reduce their outgoings they will also reduce their incomes by even more because of the loss of earnings that will follow finishing lower down the table or being relegated. Essentially until the model or practices change, and fairly radically, clubs will either lose a lot of money one way or more money the other way and no prizes for guessing then why so many clubs are on a path to bankruptcy.

    Bayern’s model, and you spotted a good issue with it there, only works because it’s the same for all of Germany which unfortunately makes the model itself a little limited but if it could be adapted for elsewhere the potential for all stakeholders is substantial.

    It effectively forces the clubs into a sustainable model which results in a product that is, from a competitive rather than stylistic perspective, more entertaining to fans. Nothing brings in fan interest like winning but a genuine potential for winning is a good second and the Bundesliga, largely due to its sustainability based model, effectively guarantees that a greater number of clubs are in contention for titles and European places than found elsewhere in Europe.

    This in turn means more games matter which gets greater fan interest as there are more genuine big occasions and of course pleases sponsors and broadcasters because it’s easier to profit off the back of them.

    Emmet Ryan

    16 Mar 10 at 2:07 pm

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