Euro 2012 sales may fall by 100m euros 27/03/2009 |
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European soccer’s regional championships will have a decline in sales for the first time since 1996 because of the credit crunch and the lack of local sponsors in Poland and Ukraine, a UEFA official said.
The event, which starts in June 2012, will still be profitable, Vice President and treasurer Marios Lefkaritis said. Still revenue is likely to fall by 100 million euros ($135.8 million), Lefkaritis, who presented the organization’s annual accounts in Copenhagen yesterday, said in an interview.
UEFA executives hailed last year’s championships in Switzerland and Austria as its most successful ever after it generated 253 million euros in profits on sales of 1.35 billion euros. The Poland and Ukraine event, the first time the championship will be held in Eastern Europe since 1976, has been troubled by slow construction of roads, hotels and other infrastructure needed for the games.
“There are many aspects why it will be lower, especially (the shortage of) local sponsors,” Lefkaritis said. He added the global economic crisis “is playing a part too.”
The championships rival the Olympic Games as the most watched sports event after the soccer’s World Cup. The number of participating nations increased to include 16 teams for Euro 96 in England, and the 2012 finals will be the last 16-team competition. The following tournament will include 24 teams.
Revenue in 1996 totaled 147 million euros, increased to 230 million euros in 2000 and to 853 million euros at Portugal’s Euro2004.
Broadcast Benefits
In projections shown to delegates from UEFA’s 53 member associations, general secretary David Taylor said only broadcast revenues have been forecast to increase at Euro 2012.
“We will still make considerable profits from Euro 2012,” Taylor said in an interview. “But we feel the commercial outlook, because of the uncertainty in the economy at the moment, is not so good. It’s difficult to be out in the marketplace just now and so therefore that will go down.”
Euro2008 generated 290 million euros in commercial rights sales. Partners included Burmah Castrol Plc, Mastercard Inc., Coca-Cola Co and McDonalds Corp.
“The tournament isn’t until 2012 so we don’t have to rush at this. That’s why tactics in the marketplace will also be important,” Taylor added. Commercial and broadcast sales are likely to be completed within the next 18 months.
Yesterday, UEFA posted a profit of 235.6 million euros, 16 percent higher than it forecast on strong sales at Euro 2008. Its cash reserves doubled to 508 million euros.
(Source: Bloomberg)
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