Football Business (The) - UK - December 2008

Table of Contents

• Issues in the MarketMain issues
• Definition
• Abbreviations
• Market in Brief
• Media v matchday: The result
• Club loyalties weakest among the young
• Media rights push income through the £2.5 billion barrierSponsors seek football' s reach
• Recession-resistant, not recession-proof
• England gives game to the world -- again
• Preferred viewing platform: We (still) love TV
• Mobile can put clubs in fans' pockets
• Innovation: Meshing media and matchday
• Supporter groups: Core v casual
• Internal Market Environment
• Key points
• Media coverage: Platform-neutrality the launch pad for growth
• Television: Fragmentation fails to brake rising rights fees
  • Figure 1: Television football coverage, 2003-07
  • Figure 2: Premier League football television rights values, 1988-2007
• Radio and match-going: Complements, not competitors
• Print media: Youth weeklies provide newspaper functions for kids
  • Figure 3: Leading football magazines, by audited circulation, 2003-07
• The internet: Changing the rules of the economic game
  • Figure 4: www.arsenal.com, website traffic, 2001-07
• Worldwide web speeds game' s globalisation
  • Figure 5: Share of total unique visitors* to leading Premier League websites, by region, August 2007-May 2008
• Web browsing habits setting football up to score
• Hitting the network?
• Mobile: An opportunity to get up close and personal
• Multifunctional handsets: Adding value home and away -- or abroad
• Broadcasters wary of cannibalisation risk
• Betting: Football a spectator, not a player
• Stadium development: Building boom takes a breather
  • Figure 6: Capital expenditure on stadia/facilities by English clubs, 1997/98-2006/07
• Sustaining the ' new stadium effect'
• Ticket costs: Fans still finding the price worth paying
  • Figure 7: Premier League stadium utilisation rates, 1998/99-2007/08
• Big variations in prices and policies
• Secondary ticketing market continues to grow
• Globalisation: Kimonos for goalposts?
• Game 39 plan shows matchday beats media
• India the latest target
• Foreign owners: They liked the league so much, they bought the clubs
• Success
• Broader Market Environment
• Key points
• Is football recession-proof?
• Trading down: Will fans look for a free transfer?
• Televised football: Trading down or turning off?
• The 1980s: A warning from history?
• Not just Chelsea who appeal to pensioners
• Evolving society ushers in crowd changes
• Access to technology: Traditional fan base disconnected
• Broadband to be star performer
• Competitive Context
• Key points
• Bundesliga draws crowds, Premier League banks cash
  • Figure 8: Major European football leagues, revenue and attendance trends, 2002/03-2006/07
• The greatest show on earth?
• English clubs at centre of the web
  • Figure 9: Global traffic to football club websites*, March 2007
• Football almost 2-1 up on other sports
  • Figure 10: Interest in named sports/pastimes, 2003-08
• Online interest outpaces Olympians
• English football facing an Asian handicap?
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• Premier League drives growth
  • Figure 11: Income and attendances of English professional football clubs, 2003/04-2013/14
• Recession held at bay -- at least until May
• Slowdown could swing revenue mix towards media
• Forecast to 2013/14
• Factors used in forecast
• Segment Performance
• Key points
• Premier League engine starts to turn over faster
  • Figure 12: English football revenues, by division, 2002/03-2006/07
• Revenue streams: Broadcast rights values head for majority share
  • Figure 13: FA Premier League clubs' revenue mix, 2002/03-2006/07
• Sponsorship: Entering an age of change?
  • Figure 14: Team shirt sponsors, FA Premier League, 2008/09
• Club-brand integration cuts through clutter
• Online gaming sector reduces its stake
• Shirts still for hire
• Attendances: Many head for the few
  • Figure 15: Share of English professional football attendances, by division, 2003/04-2007/08
• The Clubs
• Key points
• Success and its coverage the key to cash
  • Figure 16: Premiership clubs' attendances and revenues, 2006/07
  • Figure 17: UK traffic to Premier League clubs' websites*, August 2007-May 2008
• Wannabes spend to earn
• Club profiles
• Manchester United: Pace-setters on and off the pitch
  • Figure 18: Key financial indicators of Manchester United, 2002/03-2006/07
• Chelsea: Star performers prove bankable assets
  • Figure 19: Key financial indicators of Chelsea, 2002/03-2006/07
• Arsenal: New home holds key to entering the big money league
  • Figure 20: Key financial indicators of Arsenal, 2002/03-2006/07
• Liverpool: Stadium delay raises pressure to perform
  • Figure 21: Key financial indicators of Liverpool, 2002/03-2006/07
• Tottenham Hotspur: Commercial advances funding ambition
  • Figure 22: Key financial indicators of Tottenham Hotspur, 2002/03-2006/07
• West Bromwich Albion: Premier survival on Championship prices?
  • Figure 23: Key financial indicators of West Bromwich Albion, 2002/03-2006/07
• How Do We Follow Football?
• Key points
• Fans 2, Non-fans 1.2
  • Figure 38: Type of football fan, October 2008
• Converting casuals? Or alienating the avid?
• How to focus on the cas(h)ual fan
• Going to the match? Probably not...
  • Figure 39: Ways of following football in the last 12 months, October 2008
• Did you see that goal? More than likely...
• Segmenting the segments
• Still a man' s game...
• ...but not necessarily a young man' s one
• Crossover interest highlights segregation of matchday and media fans
• Interactive Engagement: What Do Fans Do Online?
• Key points
• Internet complements TV and matchday experiences
  • Figure 40: Football-related online activities done in the last 12 months, October 2008
• Avid fans look beyond the official line
• Clubs can be quick to exploit speed through mobile
• Internet football offers something for everyone
• Gambling Habits: How Do Fans Bet?
• Key points
• Football a key player in the growing sports betting market
  • Figure 41: Gambling activities done by football fans, October 2008
• Understanding the football punter: Who bets where?
• In-stadium betting can be boosted by mobile
• Marketing gambling: Blanket promotion missing the target
• Appendix -- Broader Market Environment
• Age trends
  • Figure 48: Trends in the age structure of the UK population, by gender, 2003-13
• Lifestage trends
  • Figure 49: Adult population trends, by lifestage, 2003-13
• Socio-economic trends
  • Figure 50: Adult population trends, by socio-economic group, 2003-13
• Appendix -- How Do We Follow Football?
• Type of football fan -- detailed demographics
  • Figure 51: Type of football fan, by demographic sub-group, October 2008
• Activities done regularly/occasionally -- detailed demographics
  • Figure 52: Most popular regular or occasional ways of following football in the last 12 months, by demographic sub-group, October 2008
  • Figure 53: Next most popular ways of following football regularly or occasionally in the last 12 months, by demographic sub-group, October 2008
• Activities done more than 12 months ago -- detailed demographics
  • Figure 54: Most common ways of following football done more than 12 months ago, by demographic sub-group, October 2008
  • Figure 55: Next most common ways of following football done more than 12 months ago, by demographic sub-group, October 2008
• Activities never done -- detailed demographics
  • Figure 56: Most common activities never done, by demographic sub-group, October 2008
  • Figure 57: Next most common activities never done, by demographic sub-group, October 2008
• Combinations of activities done regularly/occasionally
  • Figure 58: Regular or occasional ways of following football in the last 12 months, by most popular other ways of following football, October 2008
  • Figure 59: Regular or occasional ways of following football in the last 12 months, by next most popular other ways of following football, October 2008
• Activities done regularly/occasionally, by activities done more than 12 months ago
  • Figure 60: Regular or occasional ways of following football in the last 12 months, by most common ways of following football done more than 12 months ago, October 2008
  • Figure 61: Regular or occasional ways of following football in the last 12 months, by next most common ways of following football done more than 12 months ago, October 2008
• Activities done regularly/occasionally, by activities never done
  • Figure 62: Regular or occasional ways of following football in the last 12 months, by most common activities never done, October 2008
  • Figure 63: Regular or occasional ways of following football in the last 12 months, by next most common activities never done, October 2008
• Appendix -- Interactive Engagement: What Do Fans Do Online?
• Any interactive activities -- detailed demographics
  • Figure 64: Any football-related online activities done in the last 12 months, by demographic sub-group, October 2008
• Activities done via PC -- detailed demographics
  • Figure 65: Most popular football-related online activities done via PC in the last 12 months, by demographic sub-group, October 2008
  • Figure 66: Next most popular football-related online activities done via PC in the last 12 months, by demographic sub-group, October 2008
• Online activities, by ways of following football
  • Figure 67: Football-related online activities done via PC in the last 12 months, by most popular regular or occasional ways of following football in the last 12 months, October 2008
  • Figure 68: Football-related online activities done via PC in the last 12 months, by next most popular regular or occasional ways of following football in the last 12 months, October 2008
• Combinations of online activities
  • Figure 69: Most popular combinations of football-related online activities done via PC in the last 12 months, October 2008
  • Figure 70: Next most popular combinations of football-related online activities done via PC in the last 12 months, October 2008
• Appendix -- Gambling Habits: How Do Fans Bet?
• Gambling habits -- detailed demographics
  • Figure 71: Gambling activities done by football fans, by demographic sub-group, October 2008
• Gambling habits, by ways of following football
  • Figure 72: Gambling activities done by football fans, by most popular regular or occasional ways of following football in the last 12 months, October 2008
  • Figure 73: Gambling activities done by football fans, by next most popular regular or occasional ways of following football in the last 12 months, October 2008
• Combinations of gambling activities
  • Figure 74: Combinations of gambling activities done by football fans, October 2008
• Gambling habits, by online activities
  • Figure 75: Gambling activities done by football fans, by most popular football-related online activities done via PC in the last 12 months, October 2008
  • Figure 76: Gambling activities done by football fans, by next most popular football-related online activities done via PC in the last 12 months, October 2008