Wednesday, 20 January 2010

Sporting Cash-Cows?

In the local Portsmouth News paper tonight there is a large section about the financial troubles of Portsmouth football club. Indeed the sporting section of their website is dominated by Pompey's troubles. It seems that someone, somewhere in the history of the club hasn't been exactly prudent with the finances. Sad to say, they are in a pretty big hole and unlikely to climb out of it. The rumour is the club is worth more as a property development opportunity than a viable football club.

Also in the news we have this report showing that Manchester United's debt have now reached over £700 Million. I've seen reports that Manchester United may find it hard to keep up with the other clubs thanks to the drag induced by the large amount of debt. Sounds a bit like the UK economy!

I do wonder if this is going to happen to other clubs, especially as the cost of debt is due to rise sharply.

It seems that the money men are taking advantage of the large amounts of money running through premiership clubs. Just another commodity to be exploited. Its a shame, but thats what happens when a sport turns into a multi-million pound business.

The same can be said of formula one motor racing, where there are tremendous pressures to make huge changes to satify corporate clients. Luckily, the sport has been able to accommodate the corporate sector without changing too much. Although some would say the recent changes such as night races at new circuits are a sign that the history of F1 is being abandoned at the behest of the big corporations.

Its a pity that the traditional stomping grounds of the corporate sector have been abandoned in favour of chasing better returns in sporting and other fields, because once they have control, they want to change the playing field to suit themselves, ruining the very cash-cow that attracted them in the first place.

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