Wed Apr 17, 2013 6:29 pm
Article taken from Walesonline earlier today.
Cardiff’s global exposure is expected to enjoy a massive boost, with the city’s high education, tourism and hospitality industries among those expected to benefit.
Experts have predicted promotion could create an extra 5,000 jobs in and around Cardiff and generate up to £120m for the local economy.
Recently promoted teams such as Swansea City, Hull and Blackpool have seen their local economies benefit to the tune of £30m to £60m. But football finance experts claim Cardiff’s unique position in the league as a single representative of a capital city boasting an international airport means the returns could be even greater.
According to an estimate by Professor Tom Cannon at Liverpool University’s Football Industries group, promotion will pump £120m into the city’s economy and potentially create thousands of jobs.
And the timing couldn’t be better as a bumper TV deal begins next season. The Premier League’s new deal with Sky and BT is worth £3.018bn for three years – 70% more than the old contract.
Adam Bull, senior consultant in the Sports Business Group at Deloitte, said Premier League football in the 2013/14 season would generate Cardiff City revenue of about £80m. This represented, he said, a £60m increase in revenue compared to the £20m currently earned by the club.
“The vast majority of this uplift, circa £55m, will be from broadcast income as the Premier League enters the first year of its greatly enhanced three year TV deals,” Mr Bull said.
“Based on existing distribution methods, even if Cardiff City were to get relegated at the end of their first season in the Premier League, they would receive parachute payments of approximately £60m spread across the following four seasons, assuming the club does not return to the top flight during this time.”
Cardiff City’s latest set of financial accounts show the club made a £13.6m loss in the 2011/12 season, bringing the total debt to £83m. For the year up to May 31, 2012, debt to Mr Tan stood at £37m, with a further £19m owed to Langston, the company represented by former owner Sam Hammam.
Now promotion has been secured, Langston is due a one-off payment of £5m, while a further £720,000 is also owed to Cardiff council as part of a 15 year lease on the stadium land.
My personal views are If this accurate then the worse case scenario will promotion be worth £140 million but also the fact that 5,000 jobs and a £120m boost to the local economy being created should justify to strong degree the changes made by the football Clubs and maybe the minority will stop slagging off the rebrand and embrace the fact of the financial boost and much needed jobs being created in this part of the Country in these difficult economical times.
Fact is their are only a minority of people who are in the comfort zone and with decent degree of wealth to ride out these difficult financial times without any harsh impact in their quality of life, It is easy for someone to slag of the rebrand using the club politics for their own entertainment and amusement whilst the majority of us who graft for a living and just want a few hours top notch entertainment Saturday afternoon and lets be fair what could be more top notch than Premier league football!.
The fact that the rebrand being the catalyst for the increase in job opportunities for the future should be a good reason for anybody selfish and fortunate enough to stop and look at the big picture Premier league football and a far better local economy.
Wed Apr 17, 2013 9:23 pm
There's a lot of sense in that article.