This essay has been submitted by a student. This is not an example of the work written by professional essay writers.
Uncategorized

Special circumstances

This essay is written by:

Louis PHD Verified writer

Finished papers: 5822

4.75

Proficient in:

Psychology, English, Economics, Sociology, Management, and Nursing

You can get writing help to write an essay on these topics
100% plagiarism-free

Hire This Writer

Special circumstances

The exceptional circumstance affecting the premier league

as a company is the

ownership of clubs. When the league was formed ownership

was limited to local

business people. International business people own these football

clubs nowadays. For

example, Manchester City is owned by the ruling family of

Abu Dhabi. The problem

with foreign ownership is that the businessmen’s

interests extend beyond

maintaining a sinecure within the Football Association.

The clubs have

to serve global ambitions, which limits the profit cycle of the business. Keeping the clubs happy with their international aspirations and pulling them in the same direction as to maintain profits and Tv right become an uphill task for the stakeholder of the EPL.

Team analysis

The English Premier League has been successful over these

years because of its developmental strategy. The EPL uses an approach known as

the elite player performance plan. The plan introduced in the year 2012 makes

it a step ahead of the rest of its competitors. EPPP is a long term strategy

that focuses on developing more and better homegrown players within England.

The Premier League consulted with its clubs and representatives of the FA and

introduced a mission approach where each local player would be empowered

through a player-led approach. The world-class youth development strategy has

led to the EPL always supplying the best of talent to the clubs. It is through

this strategy that the premier league has remained entertaining and become the

world’s most-watched league. This developmental strategy goes further to identify

very young players at the age of nine years and organize football tournaments

for them. These tournaments only act as boosters towards identifying talents

that keep the premier league better than the rest of the other leagues.

Marketing section

The English Premier League market targets billions of

football lovers across the world. In terms of demographics, football enthusiast,

especially men in the age group of 15-60, are the main target markets of the

premier league. The most successful marketing group and the target is the Asian

continent, which has a lot of population. By virtue of having a huge

population ,the Asian market, by default makes the EPL the most profitable

league in the world.

Marketing strategy

The marketing strategy used by the premier league is

successful because it is people based. The EPL managers are quick to responding

to the changing habits of their customers. Younger customers who like change

are observed so that a complete overhaul is requested each time the interest of

the market has changed. Compared to American professional sports marketing

becomes very hard for sports that take long. However, EPL focuses on promoting

a two hour game and the TV is still left with some space for advertising,

airing an episode or a movie.

A second marketing strategy is that the premier league

focuses on engaging the future of its audience. Instead of focusing on the

older fans the premier league focuses on younger fans that do a better job in

engaging the future. An Example is the West Ham club that runs a promotion

called Kids for Quid. Such a marketing strategy ensures that even in the future

the premier league will still be watched. Other clubs like Arsenal also engage

its junior supports through a club called Junior Gunners.

Operation section

The premier league is the biggest revenue generating

league. It operates 72% better than the nearest competitor the Bundesliga. In

terms of clubs, six football teams from the top English division were named the

world most valuable team financially. The ability to generate greater revenue

improves greater success on the pitch and also sustains efforts of club

licensing.

The revenues collected by the EPL come from the Premier

League market rights and distribution rights that are paid by different media

houses. The EPL has made various agreements on television rights with media

companies like Sky sport, Multi-choice which are based locally. Other

international media owners also pay for the television rights of displaying the

premier league. The television right are the highest point of revenue

collection for the premier league.

Of the television rights sold the EPL uses half of the

revenue to pay the club and spend almost quarter in organizing for the

competition. Revenue of organizing for the competition includes paying referees

and other essentials. In terms of tax the premier league spends approximately

3.3 billion in tax to the UK economy; this is according to the financial

analysis of 2016/2017 alone. Other expenses are not shared by the premier

leagues clubs they are individually catered for by the EPL Company. The EPL as

a company also generate revenue from other project. For example, The Premier

Kicks is an initiative that supports young people in serious violence hot

spots.

However, clubs within the premier league have different

ways of generating revenue. Apart from payment from the EPL Company, the clubs

sell their players; sell their merchandise and run label endorsements and

advertisements for other companies which pay them hugely.

The revenue share is done in the following manner:

UK broadcast revenues

50 per cent equally shared;

25 per cent shared based on how often a club’s

matches are broadcast in the UK (known as “Facility Fees”);

25 per cent shared based on where a club finish in

the league table (known as “Merit Payments”)

Central

Commercial revenues: Equally

shared by clubs

International

broadcasting revenues: Equally

shared by clubs

Management and Personnel section

The EPL is managed by one CEO. Each of the 20 clubs that

make it up operates independently. Executive members of the EPL are

representatives from the 20 clubs. Each team contributes one member to the

Club. Financial consultations are made through interacting with all the representatives.

Other members of the executive are the head of referees who oversee the

execution of matches with the level of fairness and standards as dictated by

the rules. For a decision to be made two thirds of the votes have to be in

favor of one side.

Capital section

The operating capital of EPL has risen steadily for the

past three years. The highest operating capital is the match day commercial

capital. Match day commercial capital grew from 8% in the past to 12% of the

total revenue. Even with the increment of revenue, operational capital derived

from profits fell by 16% from the previous years. The previous revenue was at

one billion, this year stand at 867 million, both figures in Dollars. These

capital results dropped due to the wages spend on clubs. The wage spend of

clubs continue going up thereby limiting operational capital.

Financial projection

Increases in wage spend by EPL clubs on players limit

significant increase in profits expected by the clubs. Such spending limits the

annual financial projection of the clubs and the EPL in general. If not for

commercial revenue the financial position of the EPL might drop. However, the

financial projection of the year 2018 is likely to go past the 5 billion income

revenue as long as the premier league remains the most popular football league

in Asia based on the Asian population.

Miscellaneous section

The league spends 140$ million to the EFL. The payment is

made to the EFL which is the second division tier. This payment is made to help

ring fence development grants of the youths playing in this second tier

division of football.

 

  Remember! This is just a sample.

Save time and get your custom paper from our expert writers

 Get started in just 3 minutes
 Sit back relax and leave the writing to us
 Sources and citations are provided
 100% Plagiarism free
error: Content is protected !!
×
Hi, my name is Jenn 👋

In case you can’t find a sample example, our professional writers are ready to help you with writing your own paper. All you need to do is fill out a short form and submit an order

Check Out the Form
Need Help?
Dont be shy to ask