alt I have been studying Deloitte’s latest Annual Review of Football Finance.*

 

Its prime focus is European club football and in particular the business side of the English Premier League, the top tier of English club football and one of the most successful sports competitions in the world.

 

The report estimates that Premier League clubs’ revenue reached a colossal £2 billion in 2008-09.

 

It expects their revenues will continue to grow even in 2009-10, “albeit at a slower pace”.

 

“Between 1992 and 2008, revenues for the top 20 [English] clubs grew at a compound annual rate of 16 per cent, compared with 5.4 per cent for the UK economy as a whole,” according to Dan Jones, Partner in Deloitte’s Sports Business Group.

 

The report also estimates that the European football market was worth a cool €14.6 billion (£12.4 billion) in 2008 – an increase of €1 billion (£852 million), or 7 per cent, in revenue terms compared with 2007.

 

How the vast majority of other sports must envy such numbers!

 

In many ways, however, what for me are the report’s most interesting observations concern the possible spin-off benefits to clubs of hosting major international football tournaments.

 

These should provide food for thought for many of the 13 nations currently involved in the bidding battle for the 2018 and/or 2022 World Cups.

 

These are, in alphabetical order: Australia, Belgium, England, Holland, Indonesia, Japan, Mexico, Portugal, Qatar, Russia, South Korea, Spain and the United States.

 

Germany enjoys World Cup legacy

 

The comments chiefly concern Germany, the 2006 World Cup host, and the impact of facilities used in that tournament on matchday income generated by the top German clubs.

 

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According to Deloitte: “Germany’s hosting of the 2006 FIFA World Cup has left a legacy of excellent facilities which has translated to matchday revenue benefits for clubs.”

 

Says the report: “Bundesliga clubs continue to enjoy the benefits of large crowds in the modern stadia used for the 2006 FIFA World Cup, with a €28 million (£23.8 million) (9 per cent) increase in matchday revenue to €338 million (£288.1 million)  in 2007-08.”


“The Bundesliga continues to be the best-attended of the ‘big five’ [European football] leagues – for the sixth successive season – with average league matchday attendances of 42,600 in 2008-09, the highest level since the Bundesliga was formed in 1963.

 

“The comprehensive development programme for the 2006 FIFA World Cup has provided the Bundesliga with a new generation of facilities, with average attendances increasing by c.14,000 per game (47 per cent) since the FIFA World Cup was awarded to Germany in 2000.

 

“The positive impact on matchday attendance and revenues experienced by Bundesliga clubs emphasises the impact of hosting a major tournament.

 

“The Bundesliga has set the benchmark of what can be achieved in terms of developing world-class facilities when hosting a major football tournament.”

 

European Championships could boost Serie A

 

The report also raises the question of whether securing the right to stage another major competition – in this case the 2016 European football championship – might act as a catalyst for stadium investment in Italy, a country where attendance trends at club level are far less healthy.

 

“In 1997-98,” Deloitte recalls, “Serie A [the top-tier of Italian club football] had the highest average attendance of any of the ‘big five’ leagues…

 

“The c.20 per cent fall in attendances since 1997-98 has seen Italy fall behind the Bundesliga, the Premier League and [Spain’s] La Liga in terms of average attendance.

 

“Italy – along with France, Turkey and a joint bid from Norway and Sweden - have signalled to [European football governing body] UEFA their interest in hosting Euro 2016…

 

“Italian football will be hoping that securing the hosting rights to Euro 2016 will provide the catalyst for the stadia investment it needs to improve its competitive position at club level in Europe.

 

“UEFA are expected to announce the host in May 2010.

 

“Italian football’s stakeholders will be hoping to avoid a repeat of the disappointment when UEFA Euro 2012 was awarded to Poland and Ukraine ahead of Italy.

 

“Urgent action is necessary to address the investment and security issues with club stadia if Serie A is not to fall further behind its European peers.”

 

Note, though, that Deloitte states that the Bundesliga has set the benchmark of what can be achieved.

 

France struggling

 

The situation in another big European country – France - sounds what for me is a cautionary note, since it suggests that the sort of benefits enjoyed by Germany are not automatic.

 

France, too, hosted a World Cup relatively recently, in 1998, with the national team winning the final – played at the new Stade de France, outside Paris – in memorable style.

 

Yet Deloitte summarises the current situation in the land of Zinedine Zidane and Thierry Henry thus:

“Matchday revenues at Ligue 1 clubs…have stagnated at between €130 million (£110.8 million) and €140 million (£119.3 million) since 2004-05.

 

“French clubs have committed to, or have in the pipeline, around 20 stadium projects with a total planned investment of c. €1.5 billion (£1.2 billion).

 

“The completion of these projects is essential to provide a platform to drive the step change required in matchday revenues to narrow the widening gap to the rest of the ‘big five’ [European football leagues].”

 

*Safety in Numbers: Annual Review of Football Finance. Published by the Sports Business Group at Deloitte, PO Box 500, 2 Hardman Street, Manchester M60 2AT, United Kingdom. Price £600 (Discounted price for educational use - £60.)


David Owen is a specialist sports journalist who worked for 20 years for the Financial Times in the United States, Canada, France and the UK. He ended his FT career as sports editor after the 2006 World Cup and is now freelancing, including covering last year's Beijing Olympics. An archive of Owen’s material may be found by Twitter users at www.twitter.com/dodo938