Leeds United: The decline of Leeds United occurred over a three season span, commencing at the end of the 2001/02 season when they fell from the top echelons to missing out of the Championships League. The financial repercussions were significant, as serious money had been spent acquiring key players who failed to achieve their task of driving the club to the Championships League. Immediate measures had to be taken to put Leeds United back on track financially, and a few higher profile players were sold off quickly to other clubs. High hopes for a recovery in the next season were quickly dashed as more club assets had to be sold off to counteract the dire financial situation Leeds United found itself in. The home stadium and training facilities were sold off, and international talent was also sold to other clubs in a bid to rectify what was turning out to be a serious down-turn for Leeds United and the clubs extended family. The end of the 2005/06 season saw Leeds finish 5th in the Championships, earning the club the right to a playoff for promotion to the Premier League. Leeds United’s last chance for a comeback was dashed when they lost, demoting the club to ‘League 1’ for the first time in Leeds 87 year history.
Manchester United: Powerhouse football club Manchester United have earned the title of ‘England’s most successful club’, winning 9 premierships in the last 16 seasons, never finishing lower than 3rd. Consistently listed by Forbes Magazine as one of the world’s richest soccer clubs, Manchester United boasts an annual turnover of over 200 million Pounds, and is now as recognized for its achievements within the business world, as it is for its on-field success. In late 2007, the club declared profits of 60 million Pounds, doubling its profits from the previous year, and multiplying its 2005 takings by 6. Not content with resting on its laurels, the direct ors of Manchester United are working towards increasing this profit margin even further over the coming years.
Ticket sales for matches throughout the year, a redeveloped stadium that can now hold an extra 8,000 fans, and global marketing initiatives that have embraced technological advancements have seen Manchester United become on the most successfully marketed, branded and promoted sporting clubs in the world. A comprehensive website that is easy to use has seen a huge increase in Manchester United’s global fan base, and with an average week seeing 139 million visitors to the site, it is no surprise that sponsors are keen to align themselves with this sporting brand. Vodaphone and Nike are key sponsors, and American International Group spent big to become Manchester United’s major shirt sponsor.
Proving they are socially aware, Manchester United also developed a three-tiered system to put back some of their gain. On a local level, they support initiatives to encourage learning in schools, they also support 10 x national charities, and are affiliated on a global level with UNICEF.
Real Madrid: Billed as the most successful European football club, Real Madrid has earned itself the title of the world’s richest soccer club. While other clubs consistently vie for top 10 placement, Real Madrid has finished in the top spot for the last three years. In the 2006/07 season, the club won La Liga for the first time since 02/03, dispelling critics who felt that the club was underperforming considering the amount of A- list players it had acquired. Traditionally, significant revenue has come to Real Madrid through the form of sponsorship and merchandise sales, however the club has also gained financially through increases in match day and broadcasting revenue.
Footballer salary’s: Back in the 1930’s, Everton legend Dixie Dean earned a weekly income of 8 Pounds per week – nowadays, the average yearly income of professional soccer players is 676,000 Pounds per year, with roughly 30 per cent earning over 1 million Pounds per year. This does not include often highly lucrative endorsement and sponsorship agreements.
Kaka: Some may be surprised to learn that the highest paid player in the world is Brazil International and AC Milan regular Kaka. Boasting a stellar 2007/07 season, Kaka earned over 20 individual awards, the most significant being the FIFA World Player of the Year, as voted by his peers. Kaka’s yearly income is 15 million US Dollars – a whopping USD$286,876 per week.
Ronaldinho: Football legend, and a marketing dream, Ronaldinho has broken records throughout his professional career. Voted FIFA World Player of the Year in 2004 and 2005, and racking up 23 awards, Ronaldinho’s number 10 jersey is worn by aspiring footballers the world over. NIKE is his major sponsor, and the R10 range of products produced by NIKE was the first line of boots, clothes, and other specially designed products ever created for a soccer player.
David Beckham: The former England Captain is rumored to be the wealthiest player in the world. Earning over $240,000 Pounds per week with soccer club giant Real Madrid, ‘Becks’ has actually taken a pay cut to move to LA Galaxy. His global marketing appeal is what contributes to the David Beckham empire however, as his brand has the capacity to increase club and product awareness wherever it is attached. Agreements with the likes of Adidas, Emporio Armani and Pepsi have been favorable to both sides.
Transfers: Transfers of players can either make or break a club, often costing millions of dollars to secure star recruits. One of the most expensive and costly transfers recorded was that of Juan Sebastain Veron to Manchester United. Veron was ineffective, and acquired multiple injuries over his time with the ‘Red Devils’, even though his transfer fee was 28.1 million Pounds. This fee pales in comparison to what Real Madrid spent to secure French International legend Zinedine Zidane, who was transferred for an incredible 46 million Pounds. Zidane’s impact was felt straight away however, with his contribution to the club assisting with premiership titles and individual awards. Real Madrid have consistently spent big money acquiring talent from around the globe, including the likes of Beckham, Ronaldo and Michael Owen.
Memorabilia: For every piece of football memorabilia, there is a fan or collector willing to pay substantial fees to acquire it. Items associated with legendary players, clubs or moments in time tend to fetch higher prices, as do items embroiled in controversy.
