Thursday 11 August 2011

The State of the Game

 When David Glenn of accountancy firm Pricewaterhouse Coopers announced this week that the Scottish game was faced with the option of decline or destitution, it was confirmation to many that the country seemed to have fallen into a footballing quicksand.  With attendance figures down by hundreds of thousands, and millions of pounds worth of debt having to be written off by club owners, things weren’t going well off the field at all.  On the pitch, it was little better.  Rangers, the sole Scottish representatives in this year’s Champions League, were eliminated in early August at the hands of Malmo, while Dundee United had earlier fallen out of the Europa League after being defeated by Polish runners up, Slask Wroclaw.  Add in the fact that the national team has not graced a major international tournament for nearly thirteen years, and it’s abundantly clear that the picture is far from rosy.  So just how do we go about sorting this out?
 

  A main concern of Glenn’s was falling attendances.  Over the past few years, total attendance figures have fallen by over 600,000- hardly good for business.  Besides ticketing, clubs miss out on income from food, drink, programmes and other match day paraphernalia that would be fans would buy.  Relatively speaking, the total SPL average attendance of 13,672 is not bad.  It’s on par with countries such as Turkey and Russia, is comfortably higher than the likes of Switzerland and Belgium, and is streets ahead of Portugal.




  That being said, take the Old Firm out of the equation, and it’s a different story.  The third highest average attendance (Hearts) is three times less than that of second placed Rangers.  An average attendance without Glaswegian representation falls to just 6,979.  Forget Turkey, Belgium and even Portugal- this compares to the Malaysian league.  Such a disparity between the best and the rest simply does not exist in rival countries. 




  Fixing this is easier said than done.  There are numerous strategies, but each with their pitfalls.  Reintroducing terracing may be attractive to fans who want the traditional fan experience, but it would be bound to be subject to substantial opposition from bodies such as the Hillsborough Family Support Group.  Similarly, allowing alcohol and tobacco back into the ground would make games more attractive to older generations, but may alienate children, and thus discourage family attendance.  On the other side of the coin, Scottish clubs could offer free tickets to school children in the hope of recouping the money through other match day revenue streams, and eventually in ticket sales from the kids when they’ve grown up.  However, this runs the risk of price hikes for the rest, and would probably result in a reduction in match day income in the short term that clubs could ill afford.  However, despite their drawbacks, it’s evident that the clubs must try something new to bring supporters back into the ground.

  The age of television has meant that clubs can now make up on poor attendance through  broadcasting deals.  Juventus, for example, have an average attendance of just 20,000, but their support across Italy means that they can negotiate a TV deal in surplus of €90M each year.  Sadly, this is just not an option for SPL clubs.  Each season, the combined Sky/ESPN deal brings in just £13M to be shared between the twelve clubs.  Let’s compare this with two countries surrounding Scotland in the UEFA league rankings: Denmark and Switzerland.  Both countries have a relatively similar population to Scotland, and both countries have slightly lower average attendances on the whole.  Logic dictates that their TV deals should probably be roughly equal with that of the SPL.  Not so.  The Swiss league generates £23.68M per season for television money, while the Danish clubs enjoy a massive £41.26M windfall every year. 
 
  Given that broadcasting revenue makes up a significant percentage of overall income, it’s little wonder that Scottish sides have been struggling to keep up in Europe.  More money means that clubs can bring in better players.  Better players make for better games.  Better games then encourage TV companies to-you’ve guessed it- offer more money to broadcast matches.  Conversely, smaller TV deals mean that clubs struggle to attract a decent calibre of player.  The poorer players put on poorer performances, and-again you’ve probably guessed it- the TV companies are less inclined to pump money into the league.  In layman’s terms, if the SPL is to rely on TV money, the future is pretty bleak.

  This makes it imperative for clubs to think outside the box.  Hamstrung financially, how can they raise the quality of the game?  The answer lies with youth coaching, and a canniness in the transfer market.  Thankfully, clubs are picking up on this.  Most Premier League clubs now have at least one homegrown player who they could sell for a decent fee, with the likes of Hearts’ David Templeton and Aberdeen’s Fraser Fyvie potentially going for millions.  Other clubs, such as Kilmarnock, have expertly manipulated the loan market to bring in quality players who would otherwise be out of their reach.  The poster boy of this would be Alexei Eremenko.  A seasoned Finnish internationalist on wages of more than £20k a week at his parent club, Killie fans were able to watch him transform the Ayrshiremen into one of the best footballing sides in the division.  As a result, the average Kilmarnock attendance rose by over 20%, in comparison to the previous season. 
 
  

  A side effect of quality youth development is that the national team benefits enormously.  When the SPL was in its financial heyday in the early noughties, the national team suffered, as clubs could import expensive foreign talent, preventing the locals from getting a look in.  Now that clubs no longer have the means to do this, the emphasis is back on homegrown players.  In fact, the SPL can now boast that 52.8% of all players in the top flight last season were Scottish.  This is still below the European average of 66.4%, but it’s getting closer.  Talent improves with games, and the more Scottish youngsters playing (and playing well), the larger the pool of qualified candidates for a place in the national team.  We may well even see Scottish representation at a major international tournament before the next election.



 
  Our national game may well have its problems.  Issues such as debt, falling attendance and poor TV deals cannot simply be ignored.  If nothing is done, then we should be fearful for the state of the game.  However, none of these problems are terminal.  Furthermore, they’re all within the sphere of control for each and every Scottish club.  So long as they show a bit of initiative, as well as continue to invest in youth, Scottish football will undoubtedly find a rope out of this quicksand yet.