I wrote an article titled “Pssst: Here’s PS60m for Your Soccer Team ” which I have published in my blog. It was about how the Beautiful Game is turning into something that only wealthy people can afford. A rising number of Premiership clubs is being purchased by foreign investors: Manchester United and Liverpool are owned by Americans. West Ham United and West Ham United are owned by Icelanders. Fulham is owned by an Egyptian who is primarily interested in retail. Chelsea is owned by a Russian with a PS9 billion personal fortune, who is obsessed in winning and can earn much more from his oil and minerals trade. We even have an ex-Thai Prime minister wishing to get a piece in the action by taking over Manchester City. Is the Premiership slowly becoming a luxury playground for the super-rich Yes, it is. The latest annual review of football by Deloitte & Touche is a stunning example of this. The Deloitte Annual Review of Football Finance was released on 31 May 2007 and revealed the following shocking financial facts:

1) The wages combined of the English Premier League will surpass the PS1billion mark. This is the first time the competition has been formally launched since 1992 – 1993. The combined wages of all 20 teams reached PS854 millions for the 2005-2006 season, up from “merely” PS168million in 2005. It’s wonderful to be a soccer player, rather than a desk-bound worker 스포츠티비.  

2) The rich are getting better. We can expect the EPL’s first PS200,000-a-week player to emerge before 2010. The top two earners in the Premiership are currently Ukrainian Andriy Shevchenko (both Chelsea) and German Michael Ballack, who each bank at least PS130,000 per weekly. Even if you’re a proven player like them, you shouldn’t be earning a minimum wage or the proper performance bonuses. To keep costs down, soccer clubs may have to charge more for tickets. This is the best way for the business to be protected in times of poor results. It will also motivate and reward players as well as the management for winning.

2) The top 20 clubs generated a total turnover of PS1.4billion in 2005 and 2006. This figure is expected rise to PS1.8billion for Season 2007-2008. My suspicions are that these revenues came mainly from Asia’s booming economies. This figure is expected to rise to PS1.8 billion for Season 2007-2008.

4) The staggering PS2 trillion in debt has been accumulated by taking into account money that was spent by teams from the lower divisions trying to get into the Premiership. The new TV deal, worth PS2.7billion, will be in force for the next season. It is widely expected to act as a catalyst for wage rise and debt servicing. The new TV revenue will include domestic and international rights. It amounts to approximately PS300m more per season over the next three-years. It will be the beginning of a vicious cycle. Teams get loans to join the top division and are then able to earn more TV money. This is used to service their debts. They will still need to borrow heavily, even though they have less revenue.

The spiraling financial costs involved in soccer will eventually get out of hand, I swear. Fans will feel the most, as they will have to fork over more money for tickets, jersey replicas, and program sheets. Even those with limited budgets cannot afford to go to the stadiums. Pay-per-view TV will likely cost more, whether they’re watching “live” games or delayed broadcasts. I predict that foreign owners will take over more top-tier clubs. Although these foreigners can be super-rich and bring in huge cash inflows, it may not be in the best interest of soccer. These foreigners are most likely businessmen. It is impossible to ensure that these clubs are not just cash cows to be milked, and that the fans are not being taken on a wild ride. It is clear to me that foreign owners have had significant sporting success AS WELL AS financial gain. It is high time that the British government or the highest governing body FIFA regulate these transactions before they get worse.