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Why Hard-Up Fa Needed To Strike Gold In South Africa

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http://www.guardian.co.uk/football/2010/jun/28/world-cup-fa-england-germany

The humiliating blow inflicted by Germany at the Free State Stadium did not just wound England's pride. It will also hit the bottom line of the already cash-strapped Football Association. The national team is the engine that powers the FA's finances – filling Wembley, acting as the lure for commercial partners and giving it access to the marquee names that net sponsorship deals. Since the collapse of Setanta the FA's finances have been under unprecedented strain and, while steps have been taken to relieve the impact of Sunday's defeat, it will have a noticeable effect on the association's commercial activities.

1 Sponsorship deals

All the FA's existing deals run out after this World Cup, under a four-year cycle, established by the former commercial director Jonathan Hill, that is designed to maximise the FA's return by selling sponsorship in tiers.

Hill's acting replacement, Stuart Turner, faces the tricky task of renegotiating the flagship England sponsorship deal with Nationwide against a backdrop of failure on the pitch and uncertainty about the future. The building society, which has a long-running association with England, still has a £20m offer on the table but it has been unimpressed with the FA's attempts to find an alternative sponsor willing to pay more.

The sports agency IMG was engaged to do so and the FA was believed to be confident that there was enough interest to seal a deal in excess of that which Nationwide is prepared to offer. Whether that will change after England's second-round defeat in South Africa remains to be seen.

Sponsorship experts said the FA would have to offer evidence of change and renewal in the England management and playing squad in order to inspire hope for the future. Deals with Carlsberg, Umbro, Tesco and Mars were renewed, sensibly, before the World Cup but there is one key "supporter" slot remaining to be filled, after National Express downgraded its relationship to "supplier" status.

2 Wembley

Perhaps the most immediate impact of the World Cup failure will be on the precarious finances of the Wembley Stadium subsidiary. The FA has to pay £20m annually on loans that were taken out to pay for the £757m national stadium until at least 2014. That, however, depends on Wembley's management continuing to fill the stadium for a packed programme of concerts and football matches. Even at full capacity Wembley lost £23m in 2008 after depreciation, interest payments and tax were taken into account. Despite refinancing its loans, the operating company faces several years of onerous interest payments.

August's friendly against Hungary will provide the first litmus test of whether the public's love affair with England has withered. Much after that will depend on how the 2012 European Championship qualifying campaign begins.

Wembley earns around two thirds of its income – £59m a year – from its VIP Club Wembley seats and executive boxes. Any reduction in income from these deals, many signed with corporate partners before the recession hit, would seriously affect the business plan.

3 Broadcasting deals

ITV's contract to show England matches, for which it paid £275m in 2007, in a deal that included the FA Cup, is up for renewal in 2012. The FA plans to begin marketing the rights – it is keen to see matches mostly on terrestrial television – at the beginning of next year.

ITV has already written down the value of its rights by £50m, thanks to the recession, which is effectively an admission that it overpaid. The BBC is under political pressure not to overpay for sports rights. Therefore few analysts expect the FA to match the total it achieved last time. On the other hand, live football is becoming ever more important to broadcasters – as illustrated by huge audience figures for England games at this World Cup, despite the disappointing performances. As with the FA's commercial contracts, much will depend on the start – and in particular the mood – of the 2012 qualifying campaign.

4 Contracts

Sir Dave Richards, the Club England chairman who – extraordinarily to some, given his part in the boardroom dramas of the past 12 months – now holds the future of Fabio Capello in his hands, will have to weigh up the fiscal as well as the footballing consequences of whatever decision he comes to over the coach.

After a break clause was removed from Capello's contract in the run-up to the World Cup, following interest from Internazionale, sacking the Italian and his staff would cost £12m. If he goes – and he will not resign – a negotiated settlement will be likely. But on top of the FA having to pay out Capello's contract, his replacement would expect around £3m a year. Interestingly the commercial deals that England players have with the FA through 1966, the company run on their behalf by David Beckham's former adviser Terry Byrne, are also up for renewal.

A story of house prices in football?

It's quite clear everyone has been living the high life on debt and the never never. Everything was always going to expand, taking a huge loan out for Wembley not a problem as income was going to increase.

Pie in the sky fantasy economics is everywhere. The FA bet big and failed.

Still at least no one will simply get sacked, anyone sacked will get a huge payout for failure.

A bit like the banks who got bailed out by the taxpayer.

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I noticed something different this world cup - there were the supporters and those that were not, this time those that were not were not just discounected from this display of talent but in more cases actively sidestepping anything to do with this feast of skill.For many anything beuatiful about the game has been well and truly beed dead and buried under a pile of crap so thick and deep that little of anything worth supporting has long since gone.

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Wembley Stadium has become a millstone. We didn't need a national stadium, most other European countries don't have one. Taking the games round the regions would have been much better.

If there had to be one, it should have been built in the Midlands. Better access for most, a quarter of the price, but no, it has to be in London, innit.

Why not stick a levy on all Premiership club transactions? á la the banks.

I hope the FA goes bust.

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"Hill's acting replacement, Stuart Turner, faces the tricky task of renegotiating the flagship England sponsorship deal with Nationwide against a backdrop of failure on the pitch and uncertainty about the future. The building society, which has a long-running association with England, still has a £20m offer on the table but it has been unimpressed with the FA's attempts to find an alternative sponsor willing to pay more."

I'm surprised that this is their best offer.

What does a UK only company want with sponsoring a team that plays half of its matches outside of the UK?

tim

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http://www.guardian.co.uk/football/2010/jun/28/world-cup-fa-england-germany

A story of house prices in football?

It's quite clear everyone has been living the high life on debt and the never never. Everything was always going to expand, taking a huge loan out for Wembley not a problem as income was going to increase.

Pie in the sky fantasy economics is everywhere. The FA bet big and failed.

Still at least no one will simply get sacked, anyone sacked will get a huge payout for failure.

A bit like the banks who got bailed out by the taxpayer.

Why have they wasted £25million+++ on the bungling Capello and his mafia, How could they take away the dismissal clause from his contract. This money should have been spent on grass roots football rather than lining the pockets of a has been. (This is not hindsight I was saying this at the time!)

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<br />+1 to both. If I weren't in danger of tripping over confused meaning and a bad pun, I'd say football is a bubble.<br />
<br /><br /><br />

Blown BlaDDer?

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Still at least no one will simply get sacked, anyone sacked will get a huge payout for failure.

A bit like the banks who got bailed out by the taxpayer.

"Delete" the FA and let Capello et al seek payouts in bankruptcy court.

Then offer Wembley as all-year training ground to those national teams who actually can pay and preferably in cash, e.g. Russians, Saudis, maybe Norwegians :-)

Most of Russian star players are employed by European clubs anyway so they'll save a fortune on travel/expenses :rolleyes:

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Why have they wasted £25million+++ on the bungling Capello and his mafia, How could they take away the dismissal clause from his contract. This money should have been spent on grass roots football rather than lining the pockets of a has been. (This is not hindsight I was saying this at the time!)

Because Dave Richards is a prat who knows nothing about how to run a football club or a business.

http://en.wikipedia.org/wiki/Dave_Richards

Sir Dave Richards (born Walkley, Sheffield) has puzzlingly managed to climb the greasy pole of footballing administration to somehow become the chairman of the FA Premier League, member of the Football Association (FA)'s Board, chairman of the FA's international committee, president of the European Professional Football Leagues organisation,[1] chairman of UEFA's Professional Football Committee and former chairman of Sheffield Wednesday F.C.

Richards was a director of companies involved in engineering, telecommunications and water and waste treatment, several of which entered administrative receivership or were dissolved.[2] He became a director of Sheffield Wednesday F.C. in 1989 and chairman five months later,[2] following the departure of the long-serving Bert McGee. During his 10-year reign at Hillsborough, where he insisted on being called "Mr Chairman", Wednesday lost considerable amounts of cash, undid all McGee's hard work and sowed the seeds for further decline for years after.[2]

Richards was made chairman of the Premier League in 1999 and left Sheffield Wednesday shortly afterwards with the club facing relegation from the Premiership, despite claiming to be a big fan and wholly responsible for the position they were in.[2] He succeeded Lord Pendry as chairman of the Football Foundation in March 2003,[3] and left the post in 2008.[4]

In 2006 Richards received a knighthood for services to sport.

And you wonder why the FA are now in the mess they are in?

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Not sure if true, but a comment on the DM webpage says.

Why do we need to pay so much money to managers when everybody else gives not even half of Cappelo's wage?

* Fabio Capello (England) - £6m

* Javier Aguirre (Mexico) - £2.7m

* Marcello Lippi (Italy) - £1.7m

* Bert Van Marwuk (Netherlands) - £1.5m

* Carlos Parreira (South Africa) - £1.5m

* Joachim Low (Germany) - £1.3m

* Diego Maradona (Argentina) - £830,000

* Marcelo Bielsa (Chile) - £588,000

* Bob Bradley (USA) - £345,000

* Ricki Herbert (New Zealand) - £25,000

- dss, London, 29/6/2010 11:14

Because our FA are mugs and useless- Have no sense of business-like renegotiate a contract before the World Cup- Any fool could have said wait until after the World Cup- But no the FA has more money than sense and is run by useless people.

Read more: http://www.dailymail.co.uk/sport/worldcup2010/article-1290385/WORLD-CUP-2010-Fabio-Capellos-lost-Italian-facing-sack-England-boss.html#ixzz0sHodTFfw

Sounds insane if true.

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Why do we need to pay so much money to managers when everybody else gives not even half of Cappelo's wage?

* Fabio Capello (England) - £6m

I have no idea why the pay England managers so much, surely the thing to do is pay for results. Give them an average to low wage and then a massive bonus based on how they perform.

It happens time and again, just stick something in the clause that says if you don't do qualify we can terminate the contract, if you don't get to the quarter finals you get 1/4 of the compensation and so on.

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I have no idea why the pay England managers so much, surely the thing to do is pay for results. Give them an average to low wage and then a massive bonus based on how they perform.

It happens time and again, just stick something in the clause that says if you don't do qualify we can terminate the contract, if you don't get to the quarter finals you get 1/4 of the compensation and so on.

we were told at the time that this is what they did do to get Capello's salary to 6 million

tim

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The excuse for taking out the review clause was that Inter Milan were sniffing after Capello. I reckon it was a Bull***t bluff, similar to the one that got Eriksson another term at England.

Eriksson was maligned unfairly it seems. From 2002 to 2006, the only team in Europe that got to 3 successive quarter finals in major tournaments was England.

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