12 Aug 2008SPL teams feeling the effects of the credit crunch

Football Finance News | Football Sponsors/ Sponsorship and Media

Scotland's top flight clubs are feeling the effects of the credit crunch, according to the latest football research.

According to financial advisors PFK, Scottish Premier League (SPL) teams are suffering from falling ticket sales, as well as less merchandising money and less interest in corporate entertaining.

Charles Barnett, the author of the report, said that the survey showed "clear signs" that the credit crunch is starting to have an impact on football teams in the SPL.

He said that 25 per cent felt under pressure from their banks and found it difficult to source funds, while pressures from the fans for on the pitch performances remained.

"Football teams have great difficulty in reducing their ticket prices because of long-term trends in players' wages which make up half to 60 per cent of overall costs of running a team," he added.

Half of the clubs in the SPL said their sponsorship revenue had not grown and a further 25 per cent said they were also considering down-sizing the first team squad in order to free up cash.

Another 50 per cent said their payroll costs for the team had increased.

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