SBD Global/June 3, 2013/Finance

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  • Failure To Reach World Cup Finals In Brazil Costly For English Football

    English football faces losses of up to £50M ($76M) if England fails "to qualify for next summer’s World Cup finals," according to Alex Miller of the London DAILY MAIL. Such "is the economic importance of making it to Brazil" that the FA has been "warned of a commercial ‘disaster’ if Roy Hodgson’s stuttering side become the first England team in 20 years to fail to qualify for a World Cup." The lost income "would be made up of forfeited prize-money" (up to £25M ($38M) for winning the event, but more realistically around £15M ($23M) if they survive the group phase), low shirt and merchandise sales and damaging declines in sponsorship cash. Brand Rapport Sports Marketing Dir Nigel Currie said, "Not qualifying for the World Cup would be nothing short of a disaster." The FA makes more than £50M a year "from sponsorship deals that run in four-year World Cup cycles." Contracts with Vauxhall, Mars, Carlsberg, Lucozade, Nivea and Marks and Spencer "expire at the end of the World Cup." Failure to reach Brazil "would make renewal negotiations harder and marketing insiders estimate a dip in future values" of between 10-20%, or £5M-£10M ($7.6M-$15.2M) on those deals alone (DAILY MAIL, 6/1).

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  • Finance Notes: Bike NZ Must Explain Reserves To Government

    Bike New Zealand "does not have permission to stockpile up to half-a-million dollars in government funding and senior staff must now explain themselves to the Crown." The Sunday Star-Times revealed BikeNZ, one of the government's prime Olympic investments and the second-most funded sport organization in the country, "was building a 'reserve' out of taxpayer money" (FAIRFAX NZ NEWS, 6/2). ... The Australian Turf Club's worrying A$60M ($57.4M) debt, "compounded by a poor Sydney carnival and 18 months without its prime asset, Randwick," has forced the club into an A$8M cost-saving restructure. The human face of the restructure "will be seen on Monday when the ATC will make 10 per cent of its full-time staff redundant," which makes up A$2.5M of the savings (SYDNEY MORNING HERALD, 6/3).

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