Term Paper: Business of Soccer

Pages: 10 (4107 words)  ·  Bibliography Sources: 1+  ·  Level: College Senior  ·  Topic: Sports  ·  Buy This Paper


[. . .] The first effort of the club is to make sure that the delayed games of the club are broadcast on the new YES network, and for this purpose a deal has been signed by the club with YankeeNets LLC, which is the parent company for the Yankees and New Jersey Nets. (Insight on the news)

There will also be exhibition tours for matches against Major League Soccer clubs. The name of the club will be promoted by Nike through a 13-year, $430 million marketing and licensing contract. This is expected to make the club a household name. The reason for the fame of Manchester United is the same - explosive growth, along with dominance on the field. From 1993, the team has won seven titles in the English premier league, and these include the title for three consecutive years. Apart from this the club has won nine other league titles from 1908, ten FA Challenge Cup titles, two European Championship Club cup titles and one World Club Championship. In the meantime, the club is undergoing a lot of change in leadership and the chairman, Sir Roland Smith is retiring and Roy Gardner will be taking charge. The person in charge of day-to-day operations will still be Kenyon and the change in management is not expected to stop the international push of the club. (Insight on the news)

The situation of finances in sports is improving throughout the world, and the situation even in Germany has improved. In 1998, the sports related gross domestic product amounted to nearly 53 billion DM in Germany and this is nearly 1.4% of the total GDP of around 3,799 billion DM. In terms of expenditure in sports, the German citizen spent nearly 40.6 billion DM on sports during 1998. When the figure is compared to the total household consumption, this amounts to roughly around 1.9% of the total household consumption. The expenditure is comparable with the expenditure on tobacco or personal care products. The government also provides funds totaling to 11.5 billion DM for sport through the different bodies at the federal, state and local governments. This shows that about 1.5percent of the total consumption of the total government is for use by sport. Apart from this direct expenditure, the government has granted subsidies worth 1.4 billion DM to the sport clubs and sports associations. (The Economic Effects of the Soccer World Cup 2006 in Germany with Regard to Different Financing)

The government does not provide much money for the clubs to build up the infrastructure, as the sports infrastructure is supposed to be built up by the local government, as also the construction of the club's own infrastructure. The finances for this are shared between the states, communities and sports clubs. There was also the employment of a large number of people, 783,000 in all. They amount to more than 2.4% of all employees and they were all directly related to sports. This also shows that as many people are employed in sports as are employed in banking. Of course the number includes people in certain jobs where social insurance was not compulsory like exercise therapists and secondary trainers. The presence of this group of employees clearly shows that the high quality sport services offered by the sports clubs. (The Economic Effects of the Soccer World Cup 2006 in Germany with Regard to Different Financing)

Soccer in the U.S.

The game has started to succeed in the U.S. with the building of new stadiums, and they are expected to become the stores for fond memories, team pride and all the rest that is associated with football. One of the latest stadiums was built in the National Training Center in Carson, California. This is the second biggest stadium in the country after the Crew Stadium in Columbus, Ohio. The stadium is the home for the tem, Los Angeles Galaxy as also the U.S. national team and the federation itself. The stadium has a seating capacity of 27,000. It is the center of attraction of a large 85 acre sports complex. This is large complex with 10 locker rooms, two training rooms, a weight room, a players' lounge, laundry facilities and space for office and storage. The coaches and the referees will also be able to use the center for their training programs. The club, Galaxy based at the center will now be free to determine its own training schedule and this will provide it more time to assess the incoming talent. The training facility could also be used by foreign clubs and thus be a commercial proposition.

Steps are being taken towards this, and the city of Los Angeles is trying for a relationship with the club of River Plate in Argentina. This club comes for training in California in June, when they had also played exhibition matches. This was recognized by the club management who said that they were aware of the fact that foreign clubs trained around the world, and they were keen to provide a place for the foreign clubs to train. The place could be used by these clubs for preparing for the regional and national championships. The agreement could be through leases or some type of partnership agreements, in which case the expenses of the clubs would be lower. The main method of making money for the club would be through the control of the concessions and the revenue they expected to earn from parking. (There's no place like home: the new home of U.S. Soccer doesn't open until next year, but it's already the sport's most important domestic development since MLS)

The ground will also have unique facilities that is not available to many other grounds, and that is a team store and a restaurant with a sitting capacity for 450 people. The stadium of course will earn a lot of money through ticket sales and here also there are new thoughts. The seats will be low in number, so that they will not be available very easily. The stadium will be European in style, and the stands are expected to be rectangular so that the audience can be closer to the scene of action - only 24 feet away from the sidelines. This is also the feature in the other major stadium in the country called the crew stadium which has a rectangular shape, seats close to the field and the relatively low seating capacity of 22,555. That stadium had opened in 1999, and has consistently recorded good attendance from the beginning. (There's no place like home: the new home of U.S. Soccer doesn't open until next year, but it's already the sport's most important domestic development since MLS)

The building of this stadium is being carried forward with the building of other stadiums for other major clubs in the United States. These include a stadium for the city of Harrison, NJ and a stadium for the MetroStars. There are also plans for building up a stadium in collaboration with the DC Sports and Entertainment Commission in Washington about a new stadium for United. There are also plans for new grounds in Dallas and Kansas City. The main problem to the further development has been due to the finance problems of the billionaire, Philip Anschutz, who had been supporting all this activity. His company called Qwest Communications has been in trouble. The construction of new stadiums is seen by every country as essential to the development of the game. (There's no place like home: the new home of U.S. Soccer doesn't open until next year, but it's already the sport's most important domestic development since MLS)

The game is also rapidly spreading among the future citizens and the leading role in this is being taken by the Soccer Association for Youth (SAY) and they are working in the project for over three years. The aim is to develop a special program for children in the economically stressed communities. The name for the program is HOPES, a short form for Honoring Opportunities to Participate Equally in Soccer. The program consists of providing a day of fun to children who may not otherwise be able to play soccer. It also provides professional training to these children. The event is in the form of "stations" through which the children go around. These different stations teach the children the arts of soccer like dribbling, passing and scoring, playing 5 man team games, instructions from British soccer camps, involvement with local police and fire departments, getting close to professional athletes for autograph and interaction sessions and some other sources of fun. The centers at individual communities can receive the free equipment from SAY for the purpose and the United States Soccer Foundation is expected to continue this program. (Bringing soccer to your kids)

The history of soccer in United States is linked with Lamar Hunt, and he has three teams in major league soccer: the Columbus Crew,… [END OF PREVIEW]

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