To offer another, somewhat different take on this (and I admit I?m no financial or advertising guru):

1. Gate revenues and attendances drop in times of recession ? that?s a fact. What we?re facing this time is record-high ticket prices, so you could, reasonably, expect attendances to drop by a greater amount

2. Football does, in fact, rely on the greater financial world for both revenue and credit. Football is tied into a global economy, and when the global economy suffers, so will football. Witness, as an example, AIG?s recent near-meltdown. Do you really think, if their sponsorship with Man Utd was up for renewal next season that they?d even be considering it right now? Man Utd will, of course, find another sponsor if they need to, because they?re Man Utd. But most clubs aren?t so lucky.

3. Merchandising, even when done well (and Everton do not have a great track record in this regard) will inevitably suffer in a recession also. Yes, items will still be bought, but in smaller quantities. Also, where a club largely relies on selling merchandise on a match day, any drop-off in attendances from point 1 above, will impact heavily on matchday merchandising

4. This recession could well see an apocalypse for traditional advertising (billboards, print adverts etc.). Budgets will be cut dramatically, as they are in every recession, and this will have a far greater impact on traditional media than it will online media. You can expect to see more and more of the budget allocated to online advertising. This is unlikely to be done to a great degree on single club sites. Rather, sites like Guardian Unlimited?s Football site will attract more advertising. Maybe even ToffeeWeb will benefit!

4. Corporate hospitality, even when done well, will suffer hugely in a recession. And let?s be honest, Everton don't do it well.

Now, all of the above isn?t to say that football is doomed. What the clubs do have working in their favour is that they have guaranteed income from Sky over the next 2 (?) years. The hope would be that things will have sorted themselves out before the next contract negotiations. However, as I understand, negotiations begin very early in these things, and will almost certainly be taking place against the backdrop of a recession. Sky will be susceptible to the downturn in advertising and spending, so you could expect their offer to drop.

Most reports at the start of this season said that Setanta had until the end of this season to prove their business model can work, before their creditors pull the plug. With what?s happened to the global markets in recent weeks, I think their creditors will be a little more jumpy right now!

Finally (!), a rich benefactor would be hugely welcome right now, and there?s no real reason why we can?t be at least optimistic in this area. You may well see more money coming into football from this area, as seriously rich investors look for a (relatively) safe haven for their money over the next few years. I?m guessing that they believe that football will bounce back from any downturn over the next few years. More realistically, they know that they can always form a super-rich breakaway league if it comes down to it.

I think Sky will suffer badly through recession as many families seek ways to cut back. Freeview provides access to many of the satellite channels ? even Sky Sports ? and if Sentanta go to the wall ? as is rumoured ? there will not be much competition next time round.

Sponsorship and Hospitality will take a massive pounding as companies need to be seen to be cutting back even if they have the funds available for his frippery.

Finally, I think the prospect of obtaining a benefactor for Everton is zilch. With or without Kirkby, it will be a hard sell with something like £200M needed to be pledged just to cover ground development and existing debt.

Sorry to be such a pessimist, but I work in finance, and believe me, the real trouble hasn?t even started yet!

I agree with the comments, we are already seeing empty seats in the stadium for the Man Utd game. Advertising will go downhill and with Setanta possibly going to the wall then that will leave a hole, they will obviously go owing the money to the Premier League who will sell the rights to sky for a bargain sum just like the ITV Digital fiasco a few years ago.

As an investor football looks pretty bleak, why invest in a football club when at the best of times there is no profit to be made, let alone in these difficult times? There are plenty more investments out there that look a lot rosier than a Premier League club. Just look at Philip Green, he loves going around buying failing businesses at a time like this, turning them round and making a nice profit, will he touch Everton with a barge pole, will he heck!

A question for those with expertise in the financial world: Should the financial melt be as bad as some pessimistic experts predict, would you rather be in the shoes of Everton or Liverpool and on what known facts do you base your decision?

I was only wondering because our financial liabilities ie; debt, is far less than that of Kop Inc. Their playing staff may be worth more than ours but, with its greater number of players and corresponding wage structure in a financially strapped society, it would be a liability. There are probably other aspects that support our position...

If I lose my job, which could well happen soon these are the cutbacks, I?ll need to make:
1st No season tickets next year, I currently pay for 2 adult and 1 junior although i may still get to the odd game
2nd No EFC merchandise at Xmas or in the summer
3rd No away games- currently do about 5 a season.
4th No Sky subscription. I?d like to put this first on the list, but if you can?t go to games you have to watch it on TV.
I haven?t done the sums yet but it may allow me to keep my car on the road.
There are thousands like me.

Carl, I believe that the next tv deal will be nothing like the current one. In the area I live, 7 pubs have closed in 15 months due to the smoking ban and recession. Every one of those pubs was paying Sky the guts of £1000 per month. Multiply that across the country and you will see that Sky must cut back.

I do work in finance - I’m a Chartered Accountant advising the best part of 80 businesses and brace yourselves, because you ain’t seen nothing yet!!

There will be an increase in business failures over the next 12 months at least. With it will be a reduction in confidence from the ones that survive. All of this will hit the pocket of the guy in the street. Naturally this will filter into reduced spending ability.

Football will not be immune from this and anyone who thinks otherwise is a fool. I may be a lot of things, but a fool ain’t one of them. Hold onto your hats, its going to be a bumpy ride.

Dick, I know exactly the question you pose. However whilst Liverpool’s debts and operating costs are greater than ours, they also have significantly more income with which to service them than us. I could foresee real problems for them if they had been knocked out of the CL early, but now they’ll probably just about get by. In any event, they have wealthy suitors in the wings to pick up the pieces, whereas we don’t appear to have that ’luxury’.

As I say, strap your seatbelts we’re in for a bumpy ride.

Anyone wondering what a recession might do to football need only think back to the 80’s when crowds of 35,000 were considered very good even at Anfield, Old Trafford and Goodison. It’s a bit naive to think the passion of the fans will sustain clubs through a recession!

In hindsight this post is poorly researched and badly timed.

Mickey honestly I feel for your position I sincerely hope that your company finds alternate ways of cost saving. I am in a relatively secure job and sympathise for those who currently find they are not.

My post has invoked a good debate which was my intention, but without touching on personal issues such as job security.

Byron points taken as you say you work in finance and I am not qualified to argue.

Note to self do better next time

If any of you want to get away from the crunch, are Engineering-types, and fancy working/living here in Houston for a large Offshore Construction and Pipelay company (excellent salary), let me know - we are short on Engineers.
Unfortunately you only get to see the Blues infrequently on FSC or Setanta!

I agree with many of the posts we haven?t seen anything yet!

Don?t forget though "Cash is King", so whilst it may take a while, football may not be immune! With fans coming in each week and paying you can keep everything ticking over.

Ever wondered why we never seem to get our winter break which everyone agrees is so good for the players/teams etc?

Watch out for the close season when this income and the TV money dries up for several months but the outgoings don?t! it might happen even sooner for the smaller clubs.

If they get knocked out of the FA Cup and a couple of games cancelled due to poor weather, they might be staring at a month with no income ? the banks are no longer happy to bankroll business and that ?s what football has become.