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Premier League clubs mix business with pleasure.

October 29th, 2009 by tom | Filed under Daily News, Employment, Recession, Retail, UK Banks, UK Small Business, UK employment.

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Despite the recession that has gripped the UK for almost twelve months, and the less than buoyant year that preceded it, statistic produced by England’s Premier League football clubs show that despite it all, there will always be a place in their budget to follow their favorite club. Figures recently produced show that attendances are actually on the up since the start of the season, providing further evidence that the recession does not necessarily apply to soccer.

The first few weeks of the season has witnessed clubs managing to fill their stadiums to an average of 90 per cent stadium capacity, in line with previous seasons, while have actually succeeded in drawing larger crowds than season 2008/2009.

The increased attendance rates may largely be driven by the decision of most of the Premier League clubs to reduce season ticket prices, as a gesture to their loyal supporters. Reductions in income from this source have been more than offset by other revenue streams with the principal source of income for many clubs these days coming through sponsorship and global TV rights. Recent £20 million pound annual shirt sponsorship deals won by both Liverpool and Manchester United during the summer were achieved despite many of the large companies walking away from sponsorship deals. AIG, long term shirt sponsors for Manchester United were forced to wind up their shirt sponsorship deal at the end of this season, only to be rapidly replaced by American insurance giant Aon. Another sign of better times ahead was the recent agreement by Barclays Bank to continue to sponsor the Premier League until at least the end of the 2012/13 season.

The top Premier League clubs also draw considerable revenue taking part in the UEFA Champions League, where they can earn between £23 million to £46 million from the association’s broadcasting and marketing revenue pool depending on how far the go in the Champions League or Europa League.

The Premier League also succeeded in securing a 4 per cent increase in its UK broadcast rights value when it got British Sky Broadcasting to pay £1.6 billion for the rights to five out of six TV packages for the three years to 2012-13 with an increase in the value of its overseas rights for these seasons still being negotiated.

With these kinds of figures flying around it is little wonder that the leading Premier League clubs can afford to subsidize ticket prices and enjoy that special atmosphere of having a full stadium.

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