Saturday, July 23, 2011

World football challenge is a win-win situation for America and Europe

"Money buys success and success brings fans who in turn brings revenue," - Stefan Szymanski, author of Soccernomics
This simple formula has proved to be true especially in the last twenty years with the founding of the English Premier League in the business of international football. Money today's European top teams bought success for that, and these teams are aggressively trying to globalize their fan base with preseason tours of foreign countries. World football challenge, which begins tonight (Manchester United vs. New England Revolution 8 pm ESPN2), shows how beneficial are these tours for the hard fans and corporate owners.

The concept of the European teams toured of the United States began in 2003 on average 52,821 fans drawing more than nine games. Next participation for the tour fell in eleven games an average of 39,182, creation of enterprises ChampionsWorld filing for Chapter 11 bankruptcy protection in January 2005 eventually led. The New York although a hit with American fans, who often have their favorite player in person to see, times reported, that $2 million dollars in the first issue of 2003 and $5 million dollars in the Second Edition lost the tournament. The losses are finally to the led the death knell for ChampionsWorld.

After some trial and error in early season tours between 2005-2010 of the 2011 world football challenge slated, the largest football event of the summer. Famous marketing group of creative artists Agency has teamed up with soccer United Marketing to 14 games with major League soccer teams and set the biggest clubs in the world. While some skeptics always say that the international clubs come in the United States only to some money to make, sell some gear and leave us with the invoice (see: ChampionsWorld), it should be noted, that this time it no losers in the world football challenge. Major League Soccer is a great opportunity to measure brightest and biggest clubs in the world against the course. Commissioner has pointed out, "in the past, the super clubs came in the United States only to build their brands and expanding their global footprints and in many ways, their football in the United States seize opportunities now that the clubs joined the League better with the world, come not only to build their brands, but they contribute to the development of sport in the United States"

For the world's largest teams, it is a great opportunity to expand their brands. Manchester United, the most valuable sports franchise according to Forbes (1. 86 billion), slated to $ 1-$ 2 million per game earning. Spain's two powerhouse clubs, Real Madrid (Forbes rank: 5) and Barcelona (Forbes rank: 26), the same offer also expected to make. In the meantime teams such as Manchester City and Juventus due to up to $1 million, are, while other international teams $200,000 to $300,000 make for each game.
These clubs tours add for preseason only revenue for their war chests. According to the report of Deloitte money League, Real Madrid saw sales EUR 439 million (approximately $600 million) last year. Barcelona, the earned 398 million euros ($ 560 million) was behind them. Third rank Manchester United saw a turnover of 350 million euros (US$ 492 million) in the same period. A lot of the money comes from TV revenue, and this is why teams see the value in the expansion of their global brand.

A few games in the United States and Asia bring a lot of exposure for these clubs, and finally a major bargaining chip in negotiating the TV rights.

As a whole also gains provide the world football challenge for more than just the teams. With this much star makes win the sponsors as well as pre-season tours. In total there are 11 main sponsors for the world football challenge, including title sponsor Herbalife. More than doubled year on year commercial revenues since opening event, and it has been a five-fold increase in commercial partnership offers. Since the games run during the month, it will be interesting to see how the profits since 2003 increased, and as these profits between the European and American teams shared.

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