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Football Clubs & Finance Market Update 2014 Sixth Edition February 2014 Edited by Robert Hucker ISBN 978-1-78304-125-1 Football Clubs & Finance Football Clubs & Finance Foreword In today’s competitive business environment, knowledge and understanding of your marketplace is essential. With over 30 years’ experience producing highly respected off-the-shelf publications, Key Note has built a reputation as the number one source of UK market information. Below are just a few of the comments our business partners and clients have made on Key Note’s range of reports. “The test of any marketing strategy and plan lies in the quality of information used, upon which marketing judgments and decisions are based. Quality is the key word here. The Key Note reports are an excellent source of such quality information, covering a wide variety of product sectors.” The Chartered Institute of Marketing “We have enjoyed a long-standing relationship with Key Note and have always received an excellent service. Key Note reports are well produced and are always in demand by users of the business library. Having subscribed to Market Assessment reports for a number of years, we continue to be impressed by their quality and breadth of coverage.” The British Library “When we are putting together strategic information for presentations to major retailers and Symington’s Board, the combination of Key Note’s market research and company information proves invaluable. It is accurate and easy to use, and provides us with important insight that we cannot get elsewhere.” Symington’s “I regard Key Note as the number one provider of UK market research. The way Key Note content is packaged and presented is appealing and easy to understand and therefore a must for my taught course students. Its products are complemented by remarkably high levels of customer service.” University of Cambridge, Judge Business School © Key Note Ltd 2014 Football Clubs & Finance Contents Contents Executive Summary 1 1. Market Definition 2 REPORT COVERAGE....................................................................................................................2 MARKET SECTORS.......................................................................................................................3 Size of Club ....................................................................................................................................3 Type of Income ..............................................................................................................................3 Ownership ......................................................................................................................................3 MARKET TRENDS.........................................................................................................................4 Illegal Streaming ...........................................................................................................................4 Financial Difficulties .....................................................................................................................4 Ticket Prices.....................................................................................................................................4 ECONOMIC TRENDS....................................................................................................................5 Table 1.1: UK Economic Trends (000, £m, %, million and £), 2008-2012............................6 MARKET POSITION......................................................................................................................7 The UK..............................................................................................................................................7 Overseas...........................................................................................................................................8 2. Market Size 9 THE TOTAL MARKET..................................................................................................................9 Table 2.1: Total Turnover of Main UK Football Clubs by Value (£m and %), Seasons Ending May 2005-2013.................................................................................................................9 Figure 2.1: Total Turnover of Main UK Football Clubs by Value (£m), Seasons Ending May 2005-2013.............................................................................................................................10 BY MARKET SECTOR.................................................................................................................11 By League Turnover ....................................................................................................................11 Table 2.2: Turnover of Main UK Football Clubs by League by Value (£m and %), Seasons Ending May 2005-2013........................................................12 Figure 2.2: Turnover of Main UK Football Clubs by League by Value Share (%), Seasons Ending May 2005 and 2013................................................................................13 Market Structure .........................................................................................................................13 Table 2.3: Structure of Professional Football in the UK and Europe, 2013/2014............14 Promotion and Relegation ........................................................................................................15 2012/2013 League and Cup Awards ........................................................................................16 Table 2.4: Final League Standings and Cup Winners, 2012/2013.......................................17 © Key Note Ltd 2014 Football Clubs & Finance Contents By Revenue ...................................................................................................................................18 Table 2.5: Turnover of the English Premier League by Type of Revenue (£m and %), Seasons Ending May 2005-2014...................................................19 Figure 2.3: Turnover of the English Premier League by Type of Revenue (£m), Seasons Ending May 2005-2014................................................................20 Match Day Revenues ..................................................................................................................20 Table 2.6: Total Attendance to League Matches in England and Wales by Division (million), Selected Seasons Ending May 1949-2013.....................21 Figure 2.4: Total Attendance to League Matches in England and Wales by Division (million), Selected Seasons Ending May 1959-2013.....................22 Table 2.7: Average Attendance to League Matches for Selected Clubs in England and Wales (number), Season Ending May 2013....................................................................23 Broadcasting Revenue ...............................................................................................................24 Commercial Revenue...................................................................................................................25 Table 2.8: Sponsors of Premier League Football Clubs, 2012/2013....................................25 3. Strengths, Weaknesses, Opportunities and Threats 27 STRENGTHS..................................................................................................................................27 WEAKNESSES..............................................................................................................................27 OPPORTUNITIES.........................................................................................................................28 THREATS.......................................................................................................................................28 4. Current Issues 29 2012/2013 SEASON....................................................................................................................29 GOAL-LINE TECHNOLOGY .....................................................................................................30 FINANCIAL FAIR PLAY .............................................................................................................30 Union of European Football Associations ..............................................................................30 Premier League.............................................................................................................................31 Football League............................................................................................................................32 SCOTTISH FOOTBALL STRUCTURE REORGANISATION .................................................33 © Key Note Ltd 2014 Football Clubs & Finance Contents 5. Forecasts 34 INTRODUCTION..........................................................................................................................34 General Economic Forecasts .....................................................................................................34 Table 5.1: Forecast UK Economic Trends (000, %, million), 2013-2017.............................34 FORECASTS 2014 TO 2018......................................................................................................35 Table 5.2: Forecast Total Turnover of Main UK Football Clubs by Value (£m), Seasons Ending May 2014-2018 ....................................................................36 Figure 5.1: Forecast Total Turnover of Main UK Football Clubs by
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