Finance in Football

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Finance in football: More than just a sport
1.0 Introduction:

‘’Football has a global appeal beyond that of any other sport. The increase in football’s revenues over the past 15 years has facilitated the transformation of the business - particularly in Europe’s largest leagues – and the impact of football extends far beyond the action on the pitch each week’’ (Dobson and Goddard 2011). The aim of this proposal is to see how the finance in football has changed and how much it controls the sport in the 21st century. Football Is all over the news and watched by millions and the assumption is that there is too much money involved in the game nowadays and that fans are becoming detached from the club they support. The research that will be undertaken will look at how much the income of clubs has increased now compared to 15 years ago and whether there are more sources of finance available to them now and also how it affects the fans and their local communities. A further aim is to get in contact with a premier league club and possibly have an interview with their commercial director and ask about how all the money that these clubs get is distributed into all different parts of the business that they run such as players, maintenance of the facilities and wages. This research will provide a great insight into the running of a club and may change the perception people have about how much money is being ‘splashed’ on players and players wages.

2.0 Objectives:

2.1 The first objective of the proposal is to gather information that clearly shows the increases in investment that have helped the clubs grow and develop. 2.2 To conduct a thorough literature review on 5 books, websites or articles about research that has been done before. 2.3 Show how the increase in finance to the clubs has affected the spread of costs onto the fans. 2.4 Get a face to face or phone interview with one of the leading premier clubs commercial directors or a chairman 2.5 To provide an in-depth analysis and conclusion as to how and why clubs have changed so much financially and this has affected their communities.

3.0 Literature Review:

3.1 S. Dobson and J. Goddard (2011) The Economics of football 2nd edn, Cambridge University Press, New York

This book presents an original economic analysis of the English football industry. The economic influences on decisions taken by owners, managers, players and spectators are all considered, using theoretical methods of economic investigation. These methods analyse the English clubs compared to clubs in other countries around the world. This source of secondary data is therefore vary valuable on a comparison level and shows indications on where the English clubs are going wrong. This book is written by two knowledgeable writers who have written many more editions on this subject and is therefore considered reliable source of data to use. Furthermore the date that this recent edition was published brings the subject right up to date and isn’t out dated. On the other hand, there are other aspects that this book hasn’t covered such as the local communities that might of been affected in one way or another by these changes, which is what this report will be focusing on alongside the changes in finance.

3.2 Barber and Gavin (2002) Fan 'power' and democracy in football, Sir Norman Chester Centre for Football Research, Leicester (accessed online 17/10/2012 British Library)

‘’The extent to which supporters have fulfilled their aim of gaining a more meaningful say in the way the game is run is still open to debate’’ (Barber,Gavin 2002). It is arguable, too, that new forms of ownership in football especially the conversion of clubs to Plc’s may make the prospects of a direct voice for fans even more difficult to achieve. This report shows how detached the population are becoming with their clubs, and how ‘super-rich’ especially the big clubs, are becoming. This data has conducted interviews and...
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