French cancel 2009 F1 Grand Prix
"For economic reasons, the FFSA has decided to cancel the (2009) French Grand Prix," said a FFSA statement.
The current financial turmoil is a bit worrying for sport in general IMHO. Quite a few sports rely on sponsorship etc to gather funds to splurg on over paid stars. During a downturn in the economy advertising is usually one of the first expenses to be cut. It's seen as a "soft" way to prop up the bottom line. The marketing effect takes time and when under pressure weakening the spend is a quick way to keep things level. Typically most downturns are not protracted, though this downturn doesn't look normal at the moment, and marketing spend can return to normal later. Also you have consumers who will be less hungry than normal. I still remember paying £1.50 to watch a top class football match. That doesn't even buy you a drink now!
The biggest impact though is likely to hit those clubs that are highly leveraged. Liberal funding is very hard to get hold of suddenly and any dip in revenues will make it difficult to met debt covenants. Pressure will also be applied in the transfer market to keep spending within the clubs means and the sales of players will get harder. It's at times like this that monumental shifts can take place in clubs fortunes. Keep your eyes open for opportunities.
The current financial turmoil is a bit worrying for sport in general IMHO. Quite a few sports rely on sponsorship etc to gather funds to splurg on over paid stars. During a downturn in the economy advertising is usually one of the first expenses to be cut. It's seen as a "soft" way to prop up the bottom line. The marketing effect takes time and when under pressure weakening the spend is a quick way to keep things level. Typically most downturns are not protracted, though this downturn doesn't look normal at the moment, and marketing spend can return to normal later. Also you have consumers who will be less hungry than normal. I still remember paying £1.50 to watch a top class football match. That doesn't even buy you a drink now!
The biggest impact though is likely to hit those clubs that are highly leveraged. Liberal funding is very hard to get hold of suddenly and any dip in revenues will make it difficult to met debt covenants. Pressure will also be applied in the transfer market to keep spending within the clubs means and the sales of players will get harder. It's at times like this that monumental shifts can take place in clubs fortunes. Keep your eyes open for opportunities.
posted by Peter Webb at
4:28 AM
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