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  #1  
Old 01-21-2005, 07:10 AM
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Razor Razor is offline
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Struggling Superliga: revisited

I know we had a thread that dug into the fiscal challenges around the Superliga (specifically, the non Big Three clubs) faced ahead of Euro 2004. This article from www.sportsnet.ca was very interesting...

Quote:
Seven months after Euro 2004, Portugal's soccer stadiums stand empty



posted January 18 @ 10:53, EST

LISBON (AP) - A few months ago, stadiums across Portugal were packed for the European soccer championship. These days, the seats are mostly empty.

More than one million fans attended games during the month-long tournament last summer in flashy new stadiums built at a cost of about $1 billion US.

Today, some of the venues look like white elephants. The legacy of the biggest sports event ever staged in Portugal is under threat, with sparse attendance stretching the finances of Portuguese clubs.

"Portuguese soccer is living on the edge," said Vasco Pinto Leite, director-general of club side Leiria. "Our new stadium is fantastic, but we're having trouble getting fans through the gates."

Uniao de Leiria, whose new 30,000-seat, 77-million-euro ($122.4 million Cdn) stadium sold out for two Euro 2004 games, drew only 1,400 fans when it opened the Portuguese league season. The club's average attendance is 6,050.

Halfway through the Portuguese Super Liga season, overall attendance is slightly up over last year but the average crowd is just 10,418.

Stadiums in Braga, Coimbra, Aveiro and the Boavista stadium in Porto are less than one-third of capacity.

Compare that with other European leagues: the average crowds last season in Germany's Bundesliga were about 36,000, in England's Premier League around 32,000, and in Spain's La Liga almost 29,000.

Dominic Malcolm, a lecturer on sports and business at Leicester University in England, says experience has shown that clubs need to diversify their sources of income. Staging music concerts or other sports at the venue can help offset a club's costs, for example.

"If the stadiums were built solely on the basis that crowds would increase, that's very foolhardy," Malcolm said.

One of Europe's smallest and poorest nations, this country of 10.3 million splashed out 964 million euros ($1.53 billion Cdn) on 10 stadiums for Euro 2004.

The venues were a relative bargain. The price tag was less than the cost of the Stade de France in Paris or the new Wembley Stadium being built in London.

No other host country had ever assembled such lavish facilities for the European championship. Portugal's first new stadiums in 50 years were supposed to help struggling teams make ends meet.

It isn't working out that way.

Of the 10 clubs that got new venues, only Portugal's Big Three - reigning European champion FC Porto, Benfica and Sporting Lisbon - have the pull to make their new stadiums pay for themselves.

Those three clubs get 70 per cent of the revenue generated by Portuguese soccer, leaving the other 15 Super Liga clubs to fight over the scraps.

Six of the cash-strapped clubs couldn't raise the money to build their state-of-the-art stadiums. The projects were funded by local governments, which paid for the construction and leased the venues to the teams.

The most alarming case is the Algarve stadium, also intended as an open-air concert venue, which has no firstdivision home club and draws just a few thousand spectators for local teams in lower leagues.

Quality facilities have also failed to translate into better performances on the pitch.

The Portuguese Super Liga is a second-tier European league. Skilful players are quickly signed up by richer foreign clubs.

Amid an economic recession, ticket prices between 15 and 60 euros ($23.85 to $95.40 Cdn) look like a dispensable luxury. Also, a handful of the weekly league matches kick off at 9.30 p.m. on cold, wintry nights, making television broadcasts of games a more comfortable option.

No Portuguese club featured in last year's list of the wealthiest 20 European clubs.

While the English Premier League generated revenue of 1.74 billion euros ($2.8 billion Cdn) in 2002-03, the Portuguese championship raised just 198.4 million euros ($315.4 million Cdn), placing it ahead of only Scotland, Denmark, Norway and Sweden in European soccer's financial list.

Victor Martins, an economics professor at Lisbon University hired by the government to study the financial impact of Euro 2004, says the smaller Portuguese clubs are now feeling the pinch.

"The maintenance and lease costs are very high for the clubs. It's a risky business," Martins said. "It's plainly a problem and I doubt it'll be resolved without some blood-letting."


I know it's not a silver bullet, but I just don't understand why the powers that be for the FPF/Superliga haven't figured out that any TV deal(s) needs some sort of blackout restrictions. Obviously the "regional telecast" model wouldn't work a la the NFL due to the relatively small size of the country, but I don't care if it's Porto going to Moreirense or Sporting playing at Nacional; if the game's not sold out then it shouldn't be on TV. I guarantee you that if they stopped showing the games, you'd see sellouts; if for no other reason than you'd see a spike in Big Three supporters filling visitor's stadia to support their team.
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  #2  
Old 01-21-2005, 08:03 AM
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What about the wacky television times?

9:30 start time?

What kind of promotion model do they follow? Anything beyond "Malhao-Malhao!!!"

It seems to me that the league's bottom line suffers from the fact that clubs are run more like a family business, rather than a profit/loss corporation.

There is no John Henry or Robert Kraft in the Supaliga, not even PDC.
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  #3  
Old 01-21-2005, 08:08 AM
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Futebol in Portugal is run by idiots. It's the only business where demand does not impact the price of the supply. Why are they selling 15 Euro tickets in Leiria to see them play Rio Ave? They should sell them at 5 Euros.

Asking the TV to black out games is not going to happen. Too much money involved there.

However the true key...is quality of the product. And Portugal does not offer it. The game is always bogged down by the players hacking each other, refs who call everything seen and unseen. There's no flow, little artistry and imagination in our game. Improve the quality of the sport, lower the prices, market the teams regionally, to youth groups, senior citizens, etc., and you'll see a boost not only in attendance, but revenue as well.

Maybe we can get a group here to purchase Leiria, and make it happen the way it should.

Oh yeah...and put all the games on earlier in the day.
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There was indeed a conspiracy to have Benfica and Braga challenge for the title until the last week of the season. There was also a conspiracy against Sporting to keep them out of 1st place by 26 points. The conspiracy is about to be revealed in a public judicial forum soon enough. It's hasn't anything to do with Golden whistles, but with Golden Showers, as Sporting Administration and coaching have conspired to piss all over themselves this season.-RedEagle
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  #4  
Old 01-21-2005, 08:18 AM
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on the tack of diversifying income streams...

every one of these stadiums should be opening the gates early each morning to host an open air feira - with parking for the donkeys and carts that bring the live chickens and rabbits to market. Also fresh pao de milo, local produce and pinga. They could even butcher the meat on the spot for freshness and clean fish. A tarp could protect the field.
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  #5  
Old 01-21-2005, 08:22 AM
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Quote:
Maybe we can get a group here to purchase Leiria, and make it happen the way it should.


Whadda ya say? I volunteer to get the ball rolling in the Portuguese community up here. We can get a Yank/Canuck business cadre established lickety split.
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  #6  
Old 01-21-2005, 08:34 AM
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Quote:
Originally Posted by RedEagle
Futebol in Portugal is run by idiots. It's the only business where demand does not impact the price of the supply. Why are they selling 15 Euro tickets in Leiria to see them play Rio Ave? They should sell them at 5 Euros.

Asking the TV to black out games is not going to happen. Too much money involved there.

However the true key...is quality of the product. And Portugal does not offer it. The game is always bogged down by the players hacking each other, refs who call everything seen and unseen. There's no flow, little artistry and imagination in our game. Improve the quality of the sport, lower the prices, market the teams regionally, to youth groups, senior citizens, etc., and you'll see a boost not only in attendance, but revenue as well.

Maybe we can get a group here to purchase Leiria, and make it happen the way it should.

Oh yeah...and put all the games on earlier in the day.


I respectfully disagree that the quality of the game would have a direct/positive impact on the attendance at the games; although it would be a positive impact on the relative strength of the league overall in comparison to other European leagues.

It seems to me that the average diehard fan is going to go to every game whether the reffing sucks or not. I don't think that if Anders Frisk married Collina's daughter and had 16 sons who all became Portuguese citizens and were world class officials who worked every SuperLiga game, that you'd have people in their cafes in the Serra Estrella getting into their cars and making the trek to Lisboa to see a game live versus staying at their local club playing cards/staying in staggering distance from their homes.

The only way they get off their asses is if the game's not sold out and is not made available on TV.

I agree with all your other points re: price points, lack of target marketing to specific age demographics, etc.

As for the group - I nominate Penguin for Head of Futebol Operations. Red will be the CBO (Chief Bribing Officer) and Tinto can tap into his socialist networks to get us a sweetheart deal with the camara where they pay us for keeping the club there. I will be in charge of ensuring hot chicks are always available in the President's Box.
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  #7  
Old 01-21-2005, 11:09 AM
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I agree completely with blackouts, though they wouldn't need to black them out on condition of selling out the stadium. Just at 50% capacity would be a huge boost.

Red is also correct that they simply have zero imagination when it comes to marketing the sport. And there's absolutely no reason to have Saturday and Sunday night games. That's just plain stupid.
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Old 01-21-2005, 01:08 PM
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Quote:
Originally Posted by RedEagle
Futebol in Portugal is run by idiots. It's the only business where demand does not impact the price of the supply. Why are they selling 15 Euro tickets in Leiria to see them play Rio Ave? They should sell them at 5 Euros.

Asking the TV to black out games is not going to happen. Too much money involved there.

However the true key...is quality of the product. And Portugal does not offer it. The game is always bogged down by the players hacking each other, refs who call everything seen and unseen. There's no flow, little artistry and imagination in our game. Improve the quality of the sport, lower the prices, market the teams regionally, to youth groups, senior citizens, etc., and you'll see a boost not only in attendance, but revenue as well.

Maybe we can get a group here to purchase Leiria, and make it happen the way it should.

Oh yeah...and put all the games on earlier in the day.


Ive always said that I wanted to buy Leiria....Im down.
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  #9  
Old 01-21-2005, 02:28 PM
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Quote:
Originally Posted by Surge40
Ive always said that I wanted to buy Leiria....Im down.


BWA-HA-HA-HA...I don't know why this struck me so funny..
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