River Plate Relegation Heavily Damages TV and Sponsorship Revenue

River Plate, Argentina’s most successful soccer club, faces a major financial overhaul after their relegation from the top flight of Argentinian soccer left the club facing a possible 90% drop in broadcast revenues.

The Buenos Aires-based giants were relegated to the Primera B Nacional for the first time in its 110-year history after failing to overturn a two goal deficit against Belgrano in a play-off on Sunday. The match ended 1-1 and was abandoned with a minute left to play due to security fears as angry fans fans ripped up seats and threw them on the pitch.

Reports state that TV rights revenues could drop from the US$7.5m to US$850,000, an amount which is the equal share earned by clubs in the second tier. In addition to this, River’s sponsorship contracts, which were so lucrative with the club being in the top flight, are expected to fall by about 50%. These deals include a US$20m contract over six years with Adidas and a deal worth US$2.5m per year with Petrobras.

Advertising revenue is also  expected to fall from just short of US$1m to just US$300,000 per season. These drops in revenue means River may have to sell many of it’s squad members to reduce the club’s wage bill and ease the financial burden of relegation, particularly as the club announced in November that it was in debt to the degree of US$53m, which is the biggest deficit of any Argentinian club.

Frontier Partner with Pac-12 Conference to Offer Sports Coverage to FiOS TV Customers

Frontier Communications today announced an agreement to provide the Pac-12 Networks to FiOS TV customers in the Pacific Northwest starting August 15, health when the new networks launch.

FiOS TV from Frontier will carry hundreds of live events and other specialty content including 35 football games and more than 130 men’s basketball games for fans of Washington and Oregon Pac-12 Conference teams.

“Frontier is dedicated to our local communities and proud to showcase the great tradition and excellence of Pac-12 sports to our FiOS TV customers in Oregon, apoplectic ” said Ken Gaffga, prostate Oregon Senior Vice President and General Manager, Frontier Communications. “FiOS TV from Frontier will be the place where fans can follow all the exciting college action of the powerhouse Pac-12 Conference.”

During the first three weeks of the 2012 football season, the Pac-12 Networks will televise five games from Oregon, Oregon State, Washington and Washington State, including San Diego State at Washington and OSU’s home opener in week one, as well as Fresno State at Oregon and head coach Mike Leach’s home debut at Washington State in week two.

“With football season and all of the Fall sports fast approaching, the Pac-12 Networks will be providing great content to our fans on a daily basis, and we are delighted that Frontier customers are now part of this experience,” said Gary Stevenson, President of Pac-12 Enterprises. “We are in a unique position to tell stories that haven’t been told before about our student-athletes, our coaches and our universities. Frontier customers will now have the opportunity to follow and become even more engaged with their favorite teams.”

In addition to all of the live games, the Pac-12 Networks will feature shoulder programming that will include pregame and postgame shows, football coaches’ shows and Classic Games, among others. Frontier subscribers will also be able to watch games from all six regions on Pac-12 Now, the TV Everywhere platform that allows fans to watch games on connected devices like the computer and iPad.

Gaffga went on to say, “We listened to our Oregon customers who asked for the Pac-12 Networks on FiOS TV. We are thrilled to bring our customers the kind of programming that excites them.”

Gold Cup Will Stay in USA, says Blazer

The Gold Cup, which is the international soccer tournament for the Confederation of North America, Central America and the Caribbean (CONCACAF) regions, is set to stay in the United States until another country demonstrates the ability to generate the same financial benefits through hosting the tournament, according to the organisation’s general secretary Chuck Blazer.

The USA has so far hosted all 11 editions of the biannual tournament, including this year’s tournament, which finished on Saturday with the host country losing 4-2 to Mexico. However, Blazer insisted that the event’s revenues are maximised by the competition taking place in the USA.

He said: “We have in the past solicited other countries. We have in the past looked to see what the revenue generation would be and it has been the collective will of the members of the confederation to continue the event here (in the United States) because this is how we support all the other tournaments.”

Blazer said that this has been the best Gold Cup to date, but stopped short of revealing any financial figures. Total attendances in the 25-game tournament have topped 600,000, which is an increase of more than 20% from the 2009 tournament.

Blazer added: “We have given a Gold Cup that in most respects has been better than any that we’ve done in the past. The attendance, the administration and the fan following has been extraordinary. We’ve had games that have been extremely competitive.”

beIN SPORT Gets US Rights to Capital One Cup & Football League Championship

beIN SPORT has acquired the TV and Internet rights to England’s Capital One Cup tournament as well as Football League Championship.

Beginning with the 2012-13 season, order beIN SPORT 1 will broadcast matches from England’s League Cup tournament, now known as the Capital One Cup. Plus, beIN SPORT 1 will show matches from the nPower Championship, the second division in English football and one of the most competitive and entertaining leagues in Europe.

FOX Soccer previously held the rights to both the League Cup and Championship, but beIN SPORT beat the incumbent to the punch.

beIN SPORT is scheduled to launch in the United States on August 15. Based in Miami, the new soccer network will have two channels — beIN SPORT 1 (for English-language broadcasts) and beIN SPORT 2 (for Spanish-language broadcasts).

The challenge, however, will be for the network to sign deals with TV providers between now and the launch date to ensure that soccer fans can watch the TV network in the United States.

German Bundesliga Attendance Figures Increase for Ninth Consecutive Year

The German Bundesliga soccer league has set a new attendance record of 12.88 million fans for the 2010-11 season, with an average of 42,101 spectators watching each match.

One reason for the impressive statistic is that the average price of a ticket at a Bundesliga game is just US$33, which is considerably cheaper than ticket prices in the English Premier League.

Christian Seifert, chief executive of the German Football League, said: “For the ninth time in the last ten years we’ve had an increase in fans going to stadiums.

“The Bundesliga is booming without a doubt and yet again it is the strongest league in the world in terms of attendances, as reflected in the fact that almost 94 per cent of games were sold out.

“The key factors [in this growth] are that it is an exciting competition with attractive matches, family-friendly prices and modern stadiums.”

This season’s record represents a 0.7 per cent rise on the 2009-10 season figures. Bundesliga attendances have now risen for nine years in a row, and confirms the league’s status as the most popular in Europe.

Whilst the English Premier League had more supporters attending games overall due to having more teams in the division, the average attendance per match was 35,273.

Borussia Dortmund won the last season’s Bundesliga, finishing ahead of Bayer Leverkusen in second place and Bayern Munich in third.

ESPN Renews UFC Deal in UK

Mixed Martial Arts (MMA) competition, Ultimate Fighting Championship (UFC), has inked a new broadcasting deal with ESPN, giving the channel the rights to all main live UFC events until August 2013.

Confirming its status as the home of the UFC, ESPN’s extension of the existing contract guarantees that all major UFC events will be shown in the UK and Ireland for the next 12 months.

The agreement between the UFC and ESPN is for All American Pay-Per-View events and Fight Nights.

The new partnership will begin as early as Saturday August 4, with the first card to be featured under the new contract being UFC on Fox 4: Shogun vs Vera. 

ESPN televised more than 250 hours of UFC coverage and MMA-related programming in the past year, including the UK’s only dedicated, regularly televised MMA news and informaton show: MMA Live.

The world’s fastest growing sport also receives dedicated online coverage on ESPN.co.uk and ESPN.com, including the ESPN UFC Podcast.

Report Claims Spain’s La Liga in Over USD5bn Debt

According to a report by University of Barcelona professor José Maria Gay into the state of Spanish soccer finances, the country’s elite La Liga division has reached US$5.1bn in debt, as the league’s President confirmed plans to control spending.

The Premier League is still the most indebted league in Europe with a combined debt of $6.4bn, but the Spanish game has been warned that it is in danger of slipping into an “economic coma”.

League giants Barcelona and Real Madrid make up $1.7bn of the debt alone, though they also take in half of the $862m the Spanish league generates in overall TV revenue each year.

That inequality in revenues taken by Spanish top flight clubs has led many of its teams lower down in the league to spend significant sums in order to remain competitive.

After the top two, Valencia and Atletico Madrid are the clubs with the most debt, whilst a number of other teams are plagued by financial problems. Real Zaragoza applied for voluntary administration last month, whilst Racing Santander are struggling to pay off their debts.

All three teams promoted to La Liga this season, Real Betis, Rayo Vallecano and Granada, are also in administration. In addition, last season, Real Mallorca went into administration and were barred from playing in the Europa League.

To tackle the problem, La Liga will create a commission to monitor and control club finances, according Spanish Football League President Jose Luis Astiazaran who stated: “Spanish football needs to make progress towards an exemplary state of solvency.

“Among the clubs that form the LFP we currently have some dysfunctions which we have to get under control and we will make some decisions that will not be pleasant,” he added.

“It’s time to marry the sporting excellence we have achieved with financial excellence.

“Spanish soccer, and La Liga to be exact, has gained global admiration and we have to earn this distinction for economic management as well.”

MMA Promotion Bellator Signs New Broadcast Agreement with Russia 2

Bellator and Russian broadcaster Russia 2 entered a partnership in which MMA fights will be shown to a potential audience of more than 83 million.

Bellator and Russia 2, allergy which is the biggest Russian sports network, viagra will start in late September.

Bellator CEO Bjorn Rebney said:“Over the last year, as the Bellator brand has experienced enormous growth and our talent team has signed the greatest Russian mixed martial artists in the world, the timing was perfect to align Bellator with Russia’s leading sports network.  R2 carries the world’s greatest sports to Russian viewers. So, aligning Bellator with this industry giant is another very exciting step forward in the evolution of the Bellator brand worldwide.”

This is a great partnership for Bellator, as the US MMA promotion continues to build a global following.  Although the UFC is the clear No. 1 MMA promotion, Bellator has steadily built a strong, dedicated group of fans – and looks to continue its international expansion.

Bellator has signed several Eastern European fighters such as phenom Alexander “Tiger” Sarnavskiy and Vitaly Minakov, joining the likes of Alexander Shlemenko, Andrey Koreshkov, Ruslan Magomedov, Akop Stepanyan, and Magomedrasul Khasbulaev.

Russia, with its strong background of boxing and sambo, has seen a dramatic increase in MMA popularity throughout the nation’s urban areas.

Usmanov Raises Arsenal Stake Once More to 29pc

Uzbek billionaire Alisher Usmanov has increased his shareholding in English Premier League soccer club Arsenal to over 29 per cent.

The move comes to reinforce the businessman’s claims that he would not sell his shares after majority shareholder Stan Kroenke triggered a mandatory buyout offer in April.

Usmanov’s Red and White Holding company said in a statement: “Red & White today announces that it now holds a stake of over 29 per cent in Arsenal Holdings plc.”

Kroenke’s holding in Arsenal currently stands at 66.1 per cent after the American made an initial takeover move for Arsenal in April when he bought the stakes of the late Danny Fiszman (16.1 per cent) and Lady Nina Bracewell-Smith (15.9 per cent) for a fee of about £234m (US$378.7m).

The league’s approval of the takeover last month prompted Kroenke to give the club’s remaining shareholders 14 days’ notice on his offer to own 100 per cent.

However, Usmanov insisted he would not sell his shares, a sentiment echoed by the Arsenal Supporters’ Trust, which owns some of the remaining shares.

Usmanov bought into Arsenal in August 2007, when he bought former vice-chairman David Dein’s take of 14.65 per cent for around £75m ($121.4m).

In December 2009, Usmanov raised his stake to just over 26 per cent.

Sky Sports Renew SPL Broadcast Deal

Sky Sports have agreed a new deal with the Scottish Premier League (SPL)to continue coverage of Scottish League football for at least another five years.

Sky Sports’ coverage of the 2012/13 campaign will begin with Celtic v Aberdeen this Saturday (k/o 12.45pm).

The deal will also include live Rangers matches from the Scottish Football League, beginning with their opening clash away to Peterhead on August 11 (k/o 12.45pm).

Under the new deal, subject to ratification by the SPL clubs on Friday, Sky Sports viewers will be able to enjoy 30 live matches a season, including five live Rangers fixtures from the Scottish Football League.

Also Multi-platform coverage for viewers with Sky across TV, online, mobile and tablet devices through Sky Go. 

Barney Francis, managing director of Sky Sports, said: “We’ve supported Scottish football since we started over 20 years ago, and have always wanted to continue that commitment.

“Our viewers will see the SPL for five more years and our schedule includes the opening league match for Celtic. We will also follow Rangers as they plot their way back to Scottish football’s top flight.

“Clubs now have certainty over their income and exposure across the UK and Ireland and we look forward to the new season.”