It’s alarming to note that even the world of sports is not immune to the credit crunch fallout.
Recent media reports have listed a host of disturbing occurrences in the world of international and even local sports that do not bode well, all a direct result of the credit crunch, with more revelations and upsets sure to follow.
Managers Being Let Go
News of the recent “letting go” of Bristol Rugby manager, Corin Palmer, must be making managers around the country very nervous.
Citing “very difficult economic conditions” the club’s CEO, Steve Gorvett said, in January this year that the club had been forced to let Palmer go to cut costs.
This follows a promotion a few months before, so it’s clear the action was not performance based, but rather economically motivated.
Many local, national and even international teams rely on sponsorships to boost their earnings, and cover costs.
However, recent reports that even big name teams like Manchester United, are losing sponsorships with the news that one of their sponsors, AIG opting not to renew their sponsorship deal, pose a worry to smaller, less high profile teams.
At around $100 million cost, it’s no wonder the cash strapped company has opted to look for advertising opportunities elsewhere – that’s about as big ticket as advertising comes these days!
Sponsors in other sports, including high profile, big money contenders like formula one have also been dropping out at an alarming rate.
UK Olympic Headaches
It seems that the elation following the announcement that London is to hold the 2012 Olympics has been dampened too. The construction of the Olympic village and other necessary amenities has sapped several more million than originally intended and that trend looks set to continue, with very little interest in the various projects, as investors sit tight.
Neither developers nor sponsors have come forward for any of the Olympic preparations and the organizing committee seems to already be resigning itself to spending well over its multi billion pound budget.
One has to ask, with so much fallout from the global economic crisis, whether that money would not be better spent alleviating some of the strain on citizens or business.
With other events, like the 2010 soccer world cup, to be hosted in other countries around the world, one has to wonder whether fans will be able to afford the trip to see their national sporting heroes in action on foreign soil.
If not, it could mean enormous financial losses for host countries like South Africa, who have been lauding the event as a phenomenal tourism boost.
With the future of commercial sport and even international teams and events in jeopardy, it seems here again is another area where we will have to wait and see what happens.
One thing’s for sure, if the credit crunch continues for much longer without relief, players and sports people who have been earning fantastic salaries up until now could be in for a nasty surprise. Who knew job security at that level was also at risk?
Mark Price Says information is power; keep one step ahead by visiting Creditcrunchnews.org for the latest news updates on the Global Credit Crunch , how it will affect you and how to avoid financial disaster.