Header Random

Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts

Tuesday, 11 January 2011

Home Nations Return Could Spell Ruin For FAI

A report that the Home Nations Championship, last contested over 25 years ago, may be set for a return could spell very bad news for the FAI.

The BBC claims that Wales, Northern Ireland, Scotland and England are set to renew the competition, last contested in 1984, after the four home nations separately agreed to be sponsored by Vauxhall.  The contract with the motoring company, which has yet to be announced but has been mooted for some time now, could be the vehicle through which the tournament, once a mainstay of the football calendar in the British Isles, makes its return.

The English FA is continuing to feel the brunt of the ongoing recession, and the collapse in 2009 of Setanta.  The Irish broadcaster had been paying £150m for its portion of the rights for the FA Cup, a figure which has been reduced by around £70m under the new contract.  ITV, meanwhile, is reportedly paying £275m for FA Cup and England international rights, and this too is expected to fall when their contract comes up for renewal at the end of next season.  Sponsorship revenues have also fallen, while the coffers at Soho Square have also been hit by a poorer-than-anticipated World Cup performance.

Ireland's footballers could be facing further disappointment

Collectively, these factors have brought about what appears to be a change of heart for the bosses of English football.  Initially, they declined the opportunity to appear in what is now the Carling Nations Cup but now, they look set to spearhead this renewed Home Nations Championship, one which could leave the FAI and the Republic of Ireland out in the cold.

Today’s report does state that the Republic may be invited to take part, and for financial certainty going forward, that will need to be the case.  However, the inclusion of a fifth team means that sides will have to play an extra game each, and while this has financial benefits, it will also mean the requirement of two additional international dates in the already congested football calendar,

Therefore, should this competition make it’s suggested return without the Republic of Ireland, then one of two disastrous outcomes appear to be the most likely.  Either the renewed Home Nations competition would exist in tandem with the Carling Nations Cup, or the new tournament between the Celtic nations would be snubbed by Scotland, Wales and Northern Ireland, who would swap the Aviva for Wembley Stadium and the extra funds this entauks.  The former appears unlikely at best, as it would lead to a duplication of fixtures for the three other nations, and the latter would mean that one of the FAIs primary revenue streams for the years ahead would be no more, before it had barely begun.

Coming at a time when its own financial situation has come under scrutiny, and, indeed when it has been forced to take corrective action to balance the books, the FAI cannot afford this headache.  Even if it does not transpire, the mere rumblings surrounding this competition have served to undermine the Carling Nations Cup just weeks before it makes its debut.  Should the suggestions become something more concrete, then the FAI must do all it can to get the Republic of Ireland added to the ticket, or else the consequences for Irish football will be much worse than the loss of one friendly competition.

Saturday, 10 October 2009

Bohs' Bailout Is Not Right

Apologies for my recent silence but I've been very busy.  Despite that, I can't let one very, very annoying story rumble on past without comment.

The story comes from the world of Irish football and concerns Bohemians FC.  For our foreign readers, or for those of you seemingly unaware that association football is, in fact, played here, Bohemians are one of Ireland's most successful clubs.  This decade alone, Bohs have won three League of Ireland titles and two FAI Cups.  They've also been moderately successful in Europe - the win over Aberdeen in 2000 was probably their highlight.  All in all, they're one of our finest.

Like all clubs, Bohs have been hit hard by this recession you may have heard about, but then again who hasn't?  And Bohs' appearance in the Champions League this season, not to mention prize money from last season's League and Cup wins, as well as appearance money in the Setanta Sports Cup, should mean that they're able to stomach the downturn.  Unfortunately, no.  This week it was revealed that Bohs were bailed out by the FAI to the tune of €100,000 earlier this season.  The cash was not a gift, nor a loan, but (according to the FAI) an advance on monys paid to Bohs by UEFA for their brief appearance in the Champions League.

This is a disgrace.  In a year when Cork City were on the brink and when clubs like Galway United, Sligo Rovers and Drogheda have all struggled, why do Bohemians deserve money?  The FAI say that the nature of this money isn't a loan and thus means that they're not contributing to the club's operational costs, but so what?  A loan is a loan and by all accounts this money was given to Bohs to ensure their financial stability.  So why them?  Why not any other struggling League of Ireland club?

When it comes to sport, favouratism cannot be allowed from any figures of authority.  Not from a referee, not from officials and certainly not from the body charged with running the game.  The FAI say that what they have done is not unusual, and even say that they've done similar favours for other clubs but that's not good enough either.  Clubs should live within their budgets, even in times like this when all clubs are struggling financially.  Bailouts shouldn't be given, to anyone.

All any fan wants is fairness.  We want our lot to win, sure, but more important than that is the knowledge that the playing field is level.  A mere suggestion of bias towards one side or another comprimises the integrity of the game and in an instance such as this happens.  Fans of other clubs can now argue that 'the FAI love Bohs 'cos they gave them all that cash' and while that may not be the case, this bailout is enough to plant seeds of doubt into the fans of other clubs, including your's truly. 

This money, though well intentioned, was an own goal.

Tuesday, 16 June 2009

Setanta & The SPL - Troubled Waters For Both

I’m about to make an admission.

I’m a television rights nerd. Who shows what and how much do they pay for it are questions I regularly ask, and I don’t just mean here in Ireland. Michael Hiestand in USA Today is necessary reading (I’ve probably read everything he’s ever done on their website) and when I go to the Digital Spy forums, I’m normally only in the Broadcasting section.




We watch a lot of sport on television, and a lot of us pay very well for the privilege, so given the impact on the armchair fan, it’s only right that TV sports deals are followed. Some of the quirky facts involved in television rights deals are very interesting – did you know that BSKYB get the Lions tour for SFA because of a deal Murdoch did for the Super 14/Tri-Nations? And in the US, ESPN pay $1.1bn for 17 matches each year on Monday Night Football; answers on a postcard if you’ve any idea how they turn a profit from this. Given this nerdiness, it’s probably not surprising that I’ve been very interested in the financial health of Irish sports broadcaster, Setanta.

For the record, I am a Setanta subscriber and have been for nearly two years. I think they provide a very good service on certain sports. Their Magners League coverage is very good and they’ve done well to give boxing fans fights that otherwise wouldn’t be seen in this part of the world. It’s also nice to see a sports provider for Ireland. For many, Setanta burst onto the scene when they snatched two Premier League packages for the 2007/08-2009/10 seasons for a sum of £392m. Since then, they’ve broadcast 92 matches and they’ve done an OK job. At the very least, they should be commended for offering top-flight English football for a more reasonable price than Murdochvision.

Yet this deal, in hindsight, wasn’t their best. Setanta, quite simply, overreached on this and other occasions. Too much was paid for the PGA Tour, football internationals, an FA Cup deal, the Guinness Premiership and the SPL. From a base of low subscription fees and an all-too-low number of subscribers, Setanta’s business model floundered and it’s reported that they’re losing about £100m a year.


Setanta’s latest troubles started when they lost one of the two packages they had owned for the Premier League. From the 2010-11 season, Setanta are scheduled to broadcast only 23 matches per season, half of their current total. From then on, media commentators speculated about the financial health of the company and now, about four months later, things have come to a head. There are talks of a buy-out deal for the company from ESPN, or Bauer (not Jack), Endemol, Top Up TV or one of a host of other groups.



It looks like Setanta will survive but I’m not going to discuss the consequences of this crisis for the company. Instead, I’m going take a look at how this is going to affect sports fans, both Setanta subscribers and otherwise. Most commentators agree that the SPL would be the biggest sufferer. It is difficult to see any company willing to shell out to cover it – the BBC (previous rights holders) are cash strapped and SKY simply don’t have the space to show as many games as Setanta do, given their Premier League, La Liga and Football League commitments as well as everything else. This means that SPL clubs are in for a huge decrease in revenues, no matter if they re-negotiate with Setanta or are forced to move elsewhere.

So that means that the fans of the SPL clubs will also suffer, through no fault of their own. If their club goes down the tubes or if it is forced to go semi-professional like a lot of clubs in Ireland have done, then they will be given a lesser quality of football and a smaller chance of winning/surviving. Celtic and Rangers will struggle in Europe, while clubs like Hamilton and St. Mirren may struggle to survive. This is down to Setanta’s issues, but also due to the clubs themselves. On one hand, it’s difficult to blame them for spending money that they have budgeted for and are contractually obliged to receive. However, given that Setanta’s troubles were documented for many months now, and given the publicity surrounding the difficulties in the broadcasting sector, these issues are hardly a surprise. If yours truly, a recently finished media student with an interest in this isn’t surprised by the crisis facing SPL clubs, then unprepared clubs really do not have an excuse.

About 12 months ago, my beloved Galway United faced heavily documented financial issues. Players were released and fundraising efforts were stepped up after lower-than-expected earnings left the club falling foul of the League’s spending cap rules. The club’s Chief Financial Officer, Nick Leeson (yes. That Nick Leeson) saw a crisis coming, prepared for it and now the club are in a relatively state both on the pitch and the balance sheet. This clearly shows that clubs who are aware of what is going on can and will survive. In the coming months, we’ll see which clubs are properly prepared.

Sunday, 15 February 2009

Recession Rumbles On NASCAR's Biggest Day Of Thunder

I don’t know if I like Nicole Kidman. As an actress I mean. For every To Die For there’s a Bewitched or an Australia. Or a Days of Thunder. Motor racing doesn’t make for great films (Frankenheimer’s Grand Prix aside, though that is more of a technical marvel than a good story) and Days of Thunder is no exception. It’s an OK tale of a young driver (Tom Cruise) attempting to make his way into NASCAR, and our Nicole makes an appearance of her own as a brain surgeon and love interest of the world’s favourite scientologist, before he became a scientologist. Her character Dr. Claire Lewicki (please comment if that’s your surname... it’s unusual to say the least) utters one line which I think is worth repeating.

Nobody knows what's gonna happen next: not on a freeway, not in an airplane, not inside our own bodies and certainly not on a racetrack.


Tonight, of all nights, that’s a pretty appropriate sentiment. The future of NASCAR is uncertain. In 2009, 19 years after Cruise and Co put NASCAR on the silver screen, the sport needs something another boost its profile. Much like Formula 1, NASCAR has fallen victim to this recession you might have heard about. America’s ‘Big Three’ car manufacturers have needed a bailout from the US government and, when they’re laying off staff, it’s difficult to see how they can afford to spend millions of dollars on an increasingly expensive sport.

As I type this, I’m watching the Daytona 500, the first and most important race of the Sprint Cup season. 43 cars are racing in front of a sell-out crowd in the stands and millions on TV, but one has to wonder what the sport will be like later in the season, in less traditional NASCAR strongholds like Fontana on a random NASCAR Sunday rather than during The Great American Race. Will the sport survive the economic meltdown? Yes. It’s got too much tradition and the television income is substantial, to say the least. But what sort of a NASCAR will we be looking at in 2010 or 2011? That remains unclear.

Measures have been taken. Testing has been curtailed in a cost cutting measure, while it seems that among the teams there is a genuine willingness to cut costs and end a ‘he-who-spends-most-wins-most’ culture. Yet I question the actions of NASCAR in this crisis. Sure, the testing has been postponed, but why has there been minimal international marketing? Where are the in-race features which show the drivers’ personalities to the casual fan, who has tuned into today’s 500 and needs to be lured into the sport? I'm watching FOX's coverage right now and on the sport's biggest day, which attracts the curious viewer, there's been none. Why are races so long? Even hardcore fans are pushed to watch 400 miles at Dover or 500 in California. Why are there races in Fontana, Atlanta, Miami, Infineon and Vegas and not, say, in Rockingham where hardcore fans are in plentiful supply? If people in the locality aren't going to turn up to watch, then that makes for an unappealing television spectacle too.

The crisis has bitten, but the show is still good. Tune in, you won’t regret it. Yes, they turn left all the time but as a series it offers much more competitive racing than we see in Europe. The show is good, both on TV and in the stands. There is no reason that this series cannot survive the recession better than F1. I feel it will do that, but the suffering should not be as extreme as it already is. NASCAR authorities need to do more, but so far there has been no pro-active measures from them, badly needed as they are. Don’t just take my word for it. Remember what Claire, I mean Nicole, said.

You...have a sickness, it's called denial and it's probably going to kill you.

Friday, 5 December 2008

Is F1 Running Out Of Gas?

A busy week for the Almost Daily Sports Blog. Three posts! You'd know exams are around the corner....


So Honda have withdrawn from Formula One. Wow. the credit crunch has bit hard on the world's most glamorous sport. That a car manufacturer should decide to leave a luxury sport in a time of economic down turn is not surprising. What is surprising is the timing of the announcement. Honda were said to be close to having a much improved 2009 and, under Ross Brawn, had tested next year's car in Barcelona in recent weeks.

There are still hopes that a buyer can be found for the team, particularly since the car giant are expected to be willing to take a nominal fee to shift the team from it's books. Yet in such a recession, who in their right mind would be willing to take on a team that has an annual operating budget of almost $500m??

I've been following Formula One for over fifteen years. My earliest memories are of private racing teams winning Grands Prix (Ferrari aside). Williams were the dominant team then, today they are small. This is due to the advancement into the sport of giant car manufacturers. They viewed F1 as an expensive advertisement for the superiority of their cars. Yet now, when the cash runs tight, F1 could be the first thing they drop.

I have it on good authority that there are three more teams in danger of dropping out of the sport in the short-to-mid term. That turns the sport into a farce. Who would watch 12 cars race for two hours?

The problem is not just that teams are pulling out, but that it is impossible for teams to join. Eddie Jordan started Jordan F1 and scored points the first time his cars went to the grid. That could not happen today due to the exponential increase in spending that the sport has seen. And now the cash has dried up, so that money is even more difficult to come by. It is a vicious circle. I do not see a way out. The 2008 Brazilian Grand Prix may yet turn out to be the sport's grand farewell...