FOOTBALL is an industry awash with cash, but as economists and analysts continue to speculate about the possibility of a downturn in 2020, how will clubs cope with the economic uncertainty that could compromise their financial stability? Football business news site Off the Pitch reports.
If anyone wants a reminder of how a serious global recession can impact professional football, just visit Valencia in Spain and take a look at the unfinished Nou Mestalla stadium. It has sat dormant for a decade, a ghostly reminder of a crisis that brought Spain to its knees.
From football’s perspective, the Premier League has enjoyed unprecedented prosperity, fuelled by broadcasting fees, mass marketing, global expansion and ever-rising wages. When the financial crisis broke, most football industry commentators felt the unique nature of the game would allow its main protagonists to slalom their way through the turmoil. Some clubs suffered, such as West Ham United, who were caught up in the problems facing Iceland, but mostly, the elite clubs were unaffected, despite some carrying large amounts of debt.
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