French Clubs and the Challenges of "Foot-Business"
Thiriez, Frédéric
French Clubs and the Challenges of "Foot-Business" - 2002.
62
The French model is undeniably a great success. The training of young players is an example for all. The French national team is accumulating victories. The financial solidarity between the clubs guarantees the high quality of the national championship, which, despite the high number of clubs (38), continues to attract supporters, broadcasters, and their sponsors. The financial situation of professional clubs is sound, as opposed to that of many European clubs. However, this model is today under threat. The disparity of tax rates and social contributions in Europe is leading to a dramatic distortion of competition to the disadvantage of French soccer. Our clubs find it difficult to attract investors because of their limited assets (stadiums, brand merchandizing, TV rights), so their access to financial markets remains prohibited. More importantly, the limit imposed on TV rights- and their possible decrease -might put these institutions in dire straits if wages and social contributions continue to increase. So far, bankruptcies of French clubs have been rare. If nothing is done, they might increase in the near future.
French Clubs and the Challenges of "Foot-Business" - 2002.
62
The French model is undeniably a great success. The training of young players is an example for all. The French national team is accumulating victories. The financial solidarity between the clubs guarantees the high quality of the national championship, which, despite the high number of clubs (38), continues to attract supporters, broadcasters, and their sponsors. The financial situation of professional clubs is sound, as opposed to that of many European clubs. However, this model is today under threat. The disparity of tax rates and social contributions in Europe is leading to a dramatic distortion of competition to the disadvantage of French soccer. Our clubs find it difficult to attract investors because of their limited assets (stadiums, brand merchandizing, TV rights), so their access to financial markets remains prohibited. More importantly, the limit imposed on TV rights- and their possible decrease -might put these institutions in dire straits if wages and social contributions continue to increase. So far, bankruptcies of French clubs have been rare. If nothing is done, they might increase in the near future.
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