European Football Clubs' New Business Model: The Prospects and Perils
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Code : BSM0014
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Region : Europe
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FOOTBALL CLUBS ANDMAJOR COMPETITIONS The Union of European Football Associations (UEFA), founded on June 15th 1954, is the governing body of football in the European Continent, which is constituted by 52 national football associations of Europe. The UEFA, one of the six continental confederations of FIFA, holds four competitions for the European football clubs, and controls and regulates the prize-money and media rights for those competitions. The major competition held by UEFA for the European national teams is the European Football Championship that was first held in 1958... CHANGING BUSINESSMODEL: PROSPECTS AND PERILS With every club competing to sign star footballers, the salaries of the top football stars have surged exponentially. In the 2000-2001 season, Italian clubs spent asmuch as 125% of their revenues to pay salaries to their players. Even top Italian clubs like Fiorentina and Lazio faced problems in paying the salaries... MAN U – THE TRUE PROPHET OF FOOTBALL Man U restricts its expenses on the players to 50% of its revenues. "Man U's willingness to let Beckham go, while it may alienate some fans, reflects the team’s iron rule that no player must loom larger than the team as a whole." It has a strong fan base of 53 million worldwide, and it leverages on its fan base to merchandise everything fromcoffee mugs to team T-Shirts. Man U also sells financial instruments like credit cards, home mortgages, consumer loans, and insurance policies. It operates an online auction business similar to that of eBay Inc., and a chain of restaurants called Red Café all over the world. Through all these initiatives, the club earns $85 million per annum... |
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