Fans beginning to feel the pinch

By John Busk, FC Business

The credit crunch has well and truly bitten football fans across the country according to the latest national survey of supporters by Football Fans Census. The FFC contacted just under four thousand supporters across the Premier League and Football League at the end of last year and the results makes grim reading for the football industry.

Overall, 79% of respondents said their financial position had either got worse or had not improved compared to the same time last year, with 78% expecting no improvement in their fortunes in the coming year.

Almost half expect their financial position to get worse in 2009, confirming fears that the year ahead is set to be as tough as the one past for football clubs struggling to maintain revenue.

Empty stands - a sign of the times?

Tim Gentles, MD of Football Fans Census commented: ”This confirms what we would have expected but it is grim reading for clubs nevertheless. In any market consumers tend spend less if they perceive their level of wealth to worsen in the near future and football is no different, be it in terms of games they attend or the spend on sundries when they are there.”

Many clubs have seen revenues increase through a multiplier effect of match day spending, from the traditional programme to merchandising to food and drink, and if wealth perceptions hit disposable spending patterns clubs could be in a for even rockier ride as the year pans out.

A recent study by Deloitte estimated that corporate sales account for up to 40% of matchday revenue and already this season clubs have seen this income come under pressure. Many have started reducing package prices to help prop up demand. The figures reveal a more worrying trend, however, as it appears that season ticket holders are the most pessimistic about their financial situation.

Only 18% of season ticket holders foresee any improvement in their financial position in 2009, compared with a quarter of fans who attend 10 games a season.

While a core of season ticket support tends to remains stable regardless of personal or club fortunes, a sizeable proportion is more sensitive to changing circumstance – either on the pitch or off it. Any drop in season ticket sales hits clubs hard, but uncertainty surrounding future sales is equally damaging to close season budget setting.

Fans were even more pessimistic about the how the credit crunch will affect their club. Just over half of all supporters surveyed felt the financial stability of their club will be jeopardised by the recession.

Interestingly fans are more negative further down the league: while 45% of Premier League fans questioned felt that the recession will jeopardize their clubs, the figure is as high as 62% in League Two.

As to why season ticket holders seem to have been affected more then most Gentles cites lifestage as a key driver: “season tickets holders tend to be older and as such have more financial interests than younger fans. As a consequence interest rates, unemployment and general economic instability affects their perceptions on a deeper level than the more footloose and fancy free.”

Regional disparities throw up worrying trends for clubs outside the capital as well. While just under a quarter of fans in London buck the trend and expect their finances to actually improve in 2009 only 14% of fans in the Tyne Tees region expect the same.

The comparative optimism of fans in the top flight will have been bolstered by the recent one billion pound deal Sky signed for Premier League broadcast rights but that is unlikely to improve the outlook of fans lower down the pyramid.

Gentles suggests this is down to a mix of bitter experience and biting realism “fans lower down the leagues are more likely to have been touched by severe financial difficulty at their clubs in the past so I’m not surprised they have a more jaundiced view.

The collapse of the ITV deal lingers long in the memory and the reality is that many clubs lower down the league are on a financial knife-edge anyway; fans aren’t stupid and are possibly right be weary of what the future holds”

Drastic measures

Fans of Rotherham or Luton will doubtless agree but nevertheless the report has worrying implications to all clubs. A drop in ticket incomes, and in match day revenue could turn the coming year could turn into a self-fulfilling prophecy for fans and their clubs alike.

Football Fans Census

Contact: Tim Gentles

Address: The Media Centre, 19 Bolsover Street, London, W1W 5NA
Email: contact@footballfanscensus.com
Phone: +44 (0)207 665 4127
Web: www.footballfanscensus.com

Football Fans Census: Survey Results

The national survey of 3,887 football fans was conducted by the Football Fans Census between 17 - 31 Dec 2008. The survey was conducted online and supporters of 121 teams were represented including all clubs in the Premiership and Football League. 58% of respondents were season ticket holders.

The Football Fans Census is the leading football research expert providing a communication channel between the supporter and the football industry.

Q1. Has your overall personal financial position got better, got worse or stayed the same compared to this time last year? (right)

Stayed the same - 33%

Got a little bit worse - 32%

Got a little bit better - 16%
Got a lot worse - 14%

Got a lot better - 4%

Prefer not to say - 1%

Q2. Compared to now, do you feel that your overall personal financial position is likely to get better, get worse or stay the same in 2009?

Stay the same - 36% / Get a little bit worse - 32% / Get a little bit better - 17% / Get a lot worse - 10% / Get a lot better - 4% / Prefer not to say - 1%

Q3. Do you fear that the financial stability of your club will be jeopardised by the credit crunch?

Overall results: Yes - 51% / No - 49%

Results by division of club supported:

Premier League (left): Yes - 45% / No - 55%

Championship: Yes - 53% / No - 47%

League 1: Yes - 57% / No - 43%

League 2 (right): Yes - 62% / No - 38%