Football Food For Thought / Dan Fitch / 14 October 2008 /

Dan "The Betting Man" Fitch discusses the effects that financial insecurity has had on several Premier League clubs and what the long-term effects will be.

I'm not very interested in the world of finance. I may buy pink toilet paper, but never have I purchased a pink newspaper and the last savings account I had was opened primarily so that I could get my hands on a china Nat West pig.

Despite my lack of financial knowledge, I have managed to get whiff of something called 'the credit crunch'. You may have read something about it in the papers. Apparently we're all going to lose our savings and return to the barter system.

Unlike the rest of the media, it is not my aim to create widespread panic. These days, if you enter a high street bank, you'll be treated to seeing your branch manager doing an impersonation of Jimmy Stewart in 'It's a Wonderful Life', as flocks of frightened punters try to reinvest their money in a safer location, such as under floorboards or in a Betfair account.

Slowly the story of the world's economic meltdown has started to creep onto the back pages too. Before the credit crunch, Britain had enjoyed years of economic prosperity and the Premier League rode on the crest of that wave, as if it were a native of Summer Bay. But how will our clubs cope as the world tightens it's financial belt a notch or two?

The biggest losers so far have been West Ham United. They are currently without a sponsor after XL went bust, though Dean Ashton and a good proportion of West Ham fans have continued to wear shirts that show the holiday firm's logo. It's on the tag inside, along with the washing instructions.

The Hammers set about finding a new sponsor, with a three way battle ensuing between local businesses the Queen Vic, Pat's Cars and Argee Bhajee. Unfortunately, before anything could be signed, West Ham ran into more financial trouble, as their Icelandic owner Bjorgolfur Gudmundsson lost a huge portion of his fortune when his bank Landsbanki went belly up.

It now seems unlikely that Gianfranco Zola will have much in the way of transfer funds come the January window, with the West Ham squad looking somewhat slim and full of injury prone players. Though they have got off to a good start, their wins have come against sides that are struggling and a price of [8.8] for West Ham to be relegated displays a verdict of no confidence from Betfair punters.

Other clubs have also been hit by rising borrowing rates. Mike Ashley may have been able to sell people the idea that dressing from head to toe in towelling was fashionable, but he can't sell anyone on the notion of Newcastle being a safe investment. With everything up in the air he was forced to appoint Joe Kinnear as an interim manager, but it's more likely that Roy Kinnear will get the post permanently. Until the sale goes though, Newcastle remain in limbo and are just [5.5] to be relegated.

Sides like Liverpool may have missed the boat in terms to moving to a new stadium. The cost of building a new ground would be astronomical when you consider the high interest rates and the amount of tea breaks Scouse builders would take. But for how long can Liverpool afford to only house 40,000 fans when their rivals can accommodate so many more?

It's anyone's guess where we'll be financially when the next round of Premier League TV deals come again. Will the fact that people have less money in their pocket lead them to cancel TV subscriptions, or will they stay in to save money and watch more TV? A successful auction needs to have a number of financially strong bidders. SKY are an established company, but the future of Setanta is less clear, with the Irish company having invested millions in rights acquisitions in an effort to attract subscribers.

Ticket prices may have to be reassessed. I recently tried to buy a ticket for Tottenham's visit to Fulham, only to find them priced at £48 each. As much as I want to see John Pantsil in the flesh, it's hard to justify this expense. Hopefully the combination of the credit crunch and relegation to the Championship, will make next season's fixtures more affordable.

It's been boom time in the Premier League for more than a decade. If it's not to go bust, the clubs will need to move with the troubled times. Now, which of you superstars is going to be the first to volunteer for a wage cut?

'.$sign_up['title'].'

'; } } ?>

:

:

:

?

: