Many ask whether sports leagues are also hit by the economic crisis. Many of professional players who are earning millions of dollars from salaries alone don’t seem to be quite affected. But how about the other stakeholders in the business?
US owners of English football (soccer) club Liverpool, Tom Hicks and George Gillett lost £42.6 million (US$ 69 million) in a year. Liverpool FC’s parent company paid £36 million to service the debt incurred to buy the club. This casts an uncertain future to the company if the loan isn’t refinanced.
Club owners, however, are confident in getting the funds necessary to keep the club within their ownership. Liverpool was bought in 2007 with a promise to construct a new stadium. The stadium will be delayed for a 2012 completion.
Hicks and Gillett both invest on sports clubs with Hicks owning stakes in the Texas Rangers baseball club the Dallas Stars hockey club. Gillet owns hockey team Montreal Canadiens and Richard Petty Motorsports that competes in NASCAR.
Source: BBC
