English football and American owners – A worrying combination

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30% of Premier League clubs have ownership or investment by an American.

Obviously you have Stan at Arsenal. Then the Glazers at United. Liverpool are owned by an American sports fund, FSG. Ellis Short is at Sunderland. Randy Lerner at Aston Villa. And most recently Crystal Palace have had Joshua Harris invest £50m into the club.

There are an additional 3 American owners in the lower leagues (Fulham, Millwall & Coventry).

Whilst the Eastern European and Arab investors saw buying a Premier League club as play thing. Something to chuck a lot of their personal fortune at for their own please. Like a yacht, a super car, or a chalet in the alps, the American’s saw it as an investment. A way to make money.

Back 15 years ago, you would be crazy to buy a Premier League club in the hope of making money. The majority made massive losses. The ones that made a profit, it was barely worth speaking of. Maybe a million or so.

Arsenal often bucked the trend, especially with the new stadium build, making profits in the £10s of millions. We were the Bank of England club.

American investors saw a gap in the market though. They looked at the sports clubs they owned, how much money their franchises made, especially in the NFL.

In 2015, the 32 NFL franchises had a combined revenue of $7billion. Almost every single franchise is worth over $1billion (£690m). Only 5 Premier League sides are worth above this.

So the American investors sat their and looked and the Premier League and noticed its short falls against the NFL. Places where the NFL was raking it in, and the Premier League clubs had barely scratched the tip of the iceberg.

What we have then seen over the last decade is an explosion in Premier League revenue. Arsenal, as an example, have seen a 46% increase in revenue since 2008 (Source: Swiss Ramble). And that is before the new TV. It is more than likely that after the new TV deal has come in, the average Premier League side will increased its revenue by over 100% over the last decade.

And it is not just the domestic TV revenue that has been exploited.

The Premier League, whilst already popular abroad, has increased its popularity overseas. Alongside this we have the new commercial deals. The sponsored naming of Stadium’s is one thing that Americans have bought in recently.

Back 10 years ago, it would have been unheard of to have a ‘Diesel Engine Partner’, ‘Savoury Snack Partner’ or a ‘Malaysian Official Integrated Telecommunications Partner’. All of these Manchester United have, and more.

Premier League clubs are now bringing in more commercial revenue than ever before, with Manchester United and their American owners leading the way.

A lot of what the Premier League has done recently to increase revenue has been done on a global commercial level. Bar the TV deal, which sees less and less 3pm Saturday kick offs, very little was changed at a local level, effecting the local fan.

This is now changing.

When you look at the American franchise models and how the deal with their fans, it creates a cause of concern for the future of the English game for the local fan, as it is clear that the more American owners in the league, the more they will push for us to follow the American model.

Already we have seen discussions of taking a Premier League game abroad. Or the creation of a 39th game.

Now this is where I find some English fans hypocritical.

They will happily go to Wembley for an NFL game. With more games scheduled to be played at Twickenham and potential Spurs new stadium, there will be even more NFL games held in England. I am of the opinion that if you go to these games, you lose your right to moan when a Premier League game is held abroad.

And in my opinion, within 10 years, we will see Premier League games held abroad. It is inevitable.

Then we have the idea of the franchise itself.

America does not do failure very well. So their league systems do not have promotion and relegation. It ensures that no matter the sport, there are only a finite amount of top level professional clubs, all able to keep hold of the money,

Their are 32 NFL sides. 30 NBA. 30 MLB. 30 NHL sides. There are 92 professional clubs in England and hundreds more non-league who could one day become professional.

There is no great American dream of a side being able to rise through the leagues to win. No Nottingham Forest. No Wigan Athletic. No Swansea. No Leicester City.

You have your franchise, and that is that. The only changes you get are when an owners decides to uproot his franchise to a different city. Sometimes even a different state. Wimbledon to Milton Keynes is the norm in America.

So how long until we see a full Premier League break away from the FA. A decision to pick the 20 most popular sides. Or even create new sides (Sheffield Wednesday & Sheffield United becoming Sheffield City, Rovers and City of Bristol becoming Bristol United, etc).  A 20 team Premier League, with billions of pounds of revenue, where there is no relegation. Sod the rest of the league. That will be the viewpoint.

Imagine London, a City with 10 million people. It has 15 clubs currently in the top 4 leagues. A franchise situation would probably reduce that to 3. 4 at the most. As generations go on, that is a lot of people to be spread amongst not many professional clubs.

There was talk last week of securing places in the Champions League for the big sides. Guaranteed places. This did not surprise me.

It is the big sides that generate the viewing figures which in turn dictates the advertising revenue. More people will watch Manchester United globally than Leicester City. So it is only obvious that the money men would rather Manchester United play than Leicester.

Guaranteed slots for the major sides. This could then lead to an extension of the Premier League franchise. And European Super League with Europe’s top 30 sides, playing each other week in week, in a normal league format.

If all this is concerning, wait until the American investors introduce new pricing structures.

In the NFL you have something called the Permanent Seat Licence (PSL).

The PSL gives the owner the right to “own” a seat. It does not give the owner a ticket, week in week out, like our season ticket, but the right to buy a ticket week in week out. Basically, you buy you PSL, then you buy tickets in that seat on an individual basis. So you are paying twice.

Owning a PSL can cost anywhere between $500 – $150,000. And you still have your season ticket to pay for.

Based on per game (in the NFL, you get 8 games with your season tickets), the average season ticket prices in 2014 are:

Cheapest season ticket prices (averaged on a per-league game basis):

Premier League: $27 per game

NFL: $46 per game

Most expensive season ticket prices (averaged on a per-league game basis):

Premier League: $73 per game

NFL: $266 per game

Son in terms of pricing, the American investor will see that there is still a long way to go. Doubling, even trebling, the prices of the tickets.

Alongside franchising (potentially at a European level), it would create a situation where their are less top flight interests, with more top flight fans (over time), therefore dramatically increasing the demand for tickets.

Finally, you add in the foreign tourist fan. We have seen it for 2 decades, but even more now. Packages sold by the clubs to travel agencies to come on holiday to London and watch a game of Premier League football. Often your Chinese or Korean or Arab fan do not care who they watch, they just want to watch Premier League football.

The American investors will continue working the foreign fan base, creating more interest, selling more packages abroad, creating a situation where there are fewer tickets available at a local level.

We already here about Arsenal selling 200-odd tickets to Chinese travel agencies for the away game against Manchester United.

The less supply to local fans, the higher the demand, the more they can charge.

 

Everything in America is about money. and how to make as much as possible no matter how you step on. If you are unhappy with the state of the game now. In 10 years times, it will be a lot, lot worse. You probably won’t be going anymore.

Keenos

Arsenal create 2 tier ticket pricing fiasco

6 Replies

Right before I go any further I’m going to nail my colours to the board, I’m a silver member at the club, I have been since we moved to the bowl, I also pay for a red membership and 2 jnr Gunners for my family. Keeno’s (our main blogger) is a Gold member who is also on the away ticket scheme, so between us we have 5 levels of membership covered. This suits us both, he’s a young man about town, I’m an aging family man who once did what hes doing now, altho raving did get in the way of going The Arsenal in my late teens and early 20’s like a lot my age. All of the bloggers and admin team on SheWore (2 Golds, 3 Silvers, a Red, 7 Jnr Gunners and another Away scheme member) have been activly involved in supporters rights for about 6 years now and if you are a regular on the facebook page or follow us on twitter you will know this. We see all match going supporters as equal and want a fairer price for ALL fans.

Keenos Gold membership every year covers him for 26 home games. 6 cat A, 14 cat B and 6 cat C over 19 Prem games and 7 cup games. My  Silver, Jnr Gunners and Red memberships means I get the chance to buy tickets on a game by game basis at the same price as Keenos and the other Gold members pay (theres reductions for Jnr Gunners of course). Decent discounts used to be given to season ticket holders at Highbury, if you bulk buy in advance like Keenos you deserve a discount off the total purchase price and it’s about 4% for Gold members now, not much but that’s how the Gold membership is calculated.

The upcoming Barca game is the 7th cup game of the season and the club have deemed it as cat A, but this meant it was the 7th cat A game of the season so the club wrongly asked Keenos and all Gold members to pay the difference between a cat A and cat B price. For Keenos that was a surcharge of £16.11 which he was asked to pay when he renews his membership in the summer, to which he was rightly up in arms over, as was I and many others and yes we did have a chat about what we could do about it, hence yesterdays blog our tweets and statuses on the Facebook page.

After HUGE pressure from fans on twitter on blogs on facebook by writing emails by phoning into the club and radio shows and by the supporters groups talking about working together to protest the club backed down on Friday evening and whilst telling fans they’re too stupid to understand the T+C’s of Gold membership they agreed to scrap the surcharge. Well done them, well done everyone who wrote blogs, emails etc. We won, well some of us did….

We are now in a postition where for the first time since we moved to the bowl that the same seat has 2 different prices depending on what membership is buying it, yep, same game, same seat, but Keenos will pay £16.11 less than me if i manage to book the same seat next to him on my silver membership. If Keenos decides to sell his seat on the ticket exchange the club will  now reimburse him the cost of a cat B game. If i then purchase that ticket on my Silver or Red membership i am buying it at the cost of a cat A game and the club pockets the difference, it just doesn’t make sense.

Now for all pressure made over the last few days from from fans on twitter on blogs on facebook by writing emails by phoning in the club and radio shows and by the supporters groups talking about working together to protest the Silver, Jnr Gunners and Red members seem to have been left the only ones paying the higher cat A price whilst everyone else is sitting around patting each other on the back saying we won. Well I’m sorry that’s bolloxs and all a little too much “im ok jack” for us, whatever happened to “Gooner Family” and looking after each other ?  Thers’s only ever one loser when making imaginary divisions between fans,  the fans.

This could be the first danergous step towards a pricing system similar to the airline and train compaines who constantly rip off football fans and hoilday makers at busier times, trust me the club would introduce this if they could and that would affect ALL the different memberships. Even worse is a Permanent Seat Licence, which is used in America and which Keenos mentions in his blog later on this morning . Before you think these will never happen, I never thought I’d have to travel to Manchester to play Tottenham on a Sunday at noon or watch a league game on a Monday evening, just because the camera’s wanted to be there. I never thought i’d see £50 tickets for a home game, let alone £62+. I never thought a game would be played where its impossible to get a train home from. Football and our club has really lost the plot and it will only get worse for match going fans as more and more greed sets in.

The pressure and plans of protest should’ve been kept up to make sure ALL fans got to see this game at the cat B price Gold members are now paying/paid. There’s approx 12,000 Silver, Jnr Gunner families and Red members in the ground every game who also feel the pinch of high ticket prices. I run a little online shop and I don’t charge people different prices for the same item depending on how long they have followed the club or if they have kids, I dont get charged extra for a pint by my local pub as I now only go in there once every other week instead of every night, so I dont see why the club should charge more for the same seat, Everyone Is Equal. Let’s all work together on ticket prices for everyone, home support, away support,  kids, families, OAP’s, disabled and students. Let’s keep this up for ALL fans no matter what membership they hold and lets try to push the club back to it’s past ways as a classy family club that looks after ALL its supporters, not just Jack, before its too late.

Gav

Greedy, Greedy Arsenal

4 Replies

greed-is-good

They’ve done it again, they’ve done it again, Greedy Arsenal, they’ve done it again.

By now I am sure you would have all received an Email from the club. Or those of you who are image1season ticket holders would have done anyway.

For those not aware, as a season ticket holder, he automatically pay for the first 7 home cup ties of the season (excluding the League Cup). This is the primary reason when studies on season ticket costs are done, Arsenal always appear so much more expensive than other clubs.

Now this for me is already a bone of frustration. Especially when we have to play a Champions League qualifier, which often becomes our first cup credit used. There have been previous suggestions from the club’s fan groups (I think the BSM came up with this one) that Arsenal should offer a ‘Season Ticket Lite’. An option to exclude cup games, and just pay for the 19 league games.

So these Emails, and there are plenty about, show that due to the amount of games that the club have deemed ‘relevant’ this season, there will be an additional charge to season ticket holders. Ranging from £16.11 to upwards of £25.

How can they tag on additional costs, you may ask? Well within the clubs General Admission Season Ticket Terms and Conditions 2015/16 it states the following:

4.5 In the event that the First Team plays more than seven Relevant Cup Matches during the Season and/or there are, during the Season, more than six Category A Matches, or more than 14 Category B Matches, or more than six Category C Matches, the Club will provide information regarding the availability of tickets for such matches through the Club’s box office on request and on the Website (as well as information on where entry to the Ground for such matches can be obtained by the use of the Season Ticket). The cost of the tickets for any such matches shall be payable by you.

Now in the season ticket, paid for before the start of the season, we know we get a mixture of Cat A, Cat B & Cat C tickets making up the full cost. The club dictates that of the 26 games covered by the season ticket, there will be “six Category A Matches, 14 Category B Matches and six Category C Matches”. The 6 Cat A games are usually Spurs, Manchester United, Liverpool, Chelsea and more recently Manchester City. They then usually throw in the 1st knock out game of the Champions League. Thus making 6 games.

However, this year, due to greed, the club made an unprecedented move and made a group stage game Cat A. The home match against Bayern Munich. Having already played (or release ticket information) for the above 5 home Premier League games, it meant we had already had out 6 Cat A games. And then we drew Barcelona. This in turn led the club to make the Barcelona game Cat A, and enforce clause 4.5 of their terms and conditions.

Now £16.11 is not much money. It is affordable. But it is more the principle of the matter.

Just a couple of weeks ago, Arsenal announced the news that ticket prices would be frozen for 2016/17.

At the time,  Ivan Gazidis said: “We have incredible home support with sell-out crowds for every game. This decision reflects our on-going aim to maintain a fair and balanced approach to our ticket pricing.”

The clubs website even boasted “It will be the seventh time in 11 seasons at Emirates Stadium that prices have been held flat.”

And then they do this. It essentially works out to nearly a 2% rise. Talk about spin!

What also grates is that with the new TV deal, the club are set to earn hundreds of millions more over the next few years. This additional charge makes the club a little more than £720,000. I n the grand scheme of things, it is nothing. Just a little bit more money to sit in the bank.

Of course, the situation is exaggerated further by Arsenal’s current form. No wins in 4. Next to nothing spent in two transfer windows.  And all this news will do is alienate the fans more. Cause my divisions. And eventually it will boil over and the fans will vent their frustrations in the only way they know, and can, at the team.

It just does not sit right.

Of course, Arsenal are not the only club who seem to think “Greed is Good”.

https://twitter.com/PR_WhoRu/status/695404861324529665

A £30 cap on away tickets is not quite as far as The Football Supporters Federation Twenty’s Plenty campaign, but it would at least be a start.

The fact that clubs rejected this proposal shows that deep down, they really do not care about the fans. They care about money. Reducing tickets to £30 for away fans would not have cost the clubs much. Maybe a couple of million a season, if that. Taking into account that TV deal, it would have been a nice gesture.

But the Premier League do not do nice gestures. They are looking to maximise income. No matter who it upsets.

It is worrying that Arsenal apparently led the No Campaign. How true this is (as it was a closed vote) is not clear. Is it just an attempt by the Daily Mail to add a top club to it for click bait, or is it true? It would not surprise me if Arsenal voted no.

What is frustrating is that whilst it is true, Arsenal do charge the highest for away fans (those 5/6 Cat A games, they get charged £64ish), we also get charged the most as away fans.

Wherever Arsenal fans go, alongside Manchester United and Liverpool, we are always Cat A. This means we have to pay £50 to go to holes such as Norwich, West Ham & Sunderland.

An Arsenal away fan who go’s to every Premier League away game will pay about 35% more than a fan of Leicester, or Southampton, who often pay the lowest categories.

The majority of tickets we pay are over £40. About 4 or 5 games northwards of £50.

Whilst the club voting yes might have cost the club more than any other side, it would have also saved clubs fans the most. It would have saved me around £300 a season. A big chunk of change that.

So in their own self greed, by voting NO, Arsenal have kept their profits high, and missed a chance to save their own fans a lot of money.

This weekend, fans of Liverpool will be protesting against their owners, FSG, after it was announced that next year tickets will be as high as £77.

Considering that when FSG took over from Gillett and Hicks, they were seen as white knights, riding in on their Yankee horse to save the club, it is a massive shift in popularity. It shows that owners, especially seemingly the American ones, are no different to each other. you get rid of one lot, and the new lot are just as bad.

Over at Manchester United, we are seeing what could potentially happen if the bubble bursts.

Reports this morning are that the Alex Ferguson Stand could be closed for their UEFA Cup home tie against Midtjylland.

Despite dramatically reducing ticket prices (allegedly), there are still 27,000 unsold tickets. this despite them having a policy where season ticket holders are forced to buy tickets via direct debit – if they cancel their direct debit their season ticket get’s cancelled.

In the grand scheme of life, £16.11 is not a massive amount. My rail season ticket has gone up more this year. But it is the principle of the matter. When there is more cash in the game then ever before. And this cash is going to dramatically increase again, the fact that Arsenal, and other clubs, are trying to squeeze every last penny out of fans is just wrong.

Of course, there are some who say “the solution is easy, just do not go.” It is not easy.

Keenos