Monday, March 22, 2010

Croker closure is a mistake

So the IRFU’s time at Croke Park has ended on a somewhat sad note with the defeat by Scotland and the failure to claim the Triple Crown but this disappointment will be nothing compared to what the GAA must be feeling as they look at the accounts.

Since Croke Park finally opened its doors to ‘foreign sports’ back in February 2007 after years of political debate about the issue, it has been a revelation for Irish sport.

The GAA received a massive cash injection thanks to deals done with the IRFU and the FAI as well as any additional gate receipts they took as part of the deal.

The amount the GAA is reportedly to have raised by allowing the use of their stadium is €36million, and this came at a time of financial recession.

It also gave the GAA a use for Croke Park in the winter months when it is rarely used.

If the GAA had not been so stubborn over the past decade, and had they not voted no to a change in ‘Rule 42’ (a rule that only allows GAA sports to be played on GAA grounds) in 2001, then we may have continued to see rugby and soccer played at the country’s best stadium in the future.

The IRFU and FAI were forced to plan the redevelopment of the crumbling Lansdowne Road after the collapse of the Irish governments plan for a national arena and the GAA’s stance on the use of their headquarters.

They spent millions of Euros that could have been reinvested in developing both sports and building a smaller stadium that would be suited to hosting less glamorous internationals, AIB Cup finals,FAI Cup finals, etc.

Instead we will have the Aviva Stadium, no doubt a fine ground, but it’s 50,000 capacity is too big for the above mentioned finals and too small for Six Nations rugby and crucial soccer qualifiers.

In the past four years, rugby in Ireland has grown dramatically in popularity due to the success of the national team, and Croke Park was the venue as Ireland picked up their first Grand Slam in 61 years as Ireland beat France, England and Italy at GAA headquarters in 2009.

The fact that 82,000 people could watch those events obviously helped raise the interest in the game, while also creating a much louder atmosphere. The smaller attendance in the Aviva Stadium will obviously make it more difficult for fans to get to games and what the atmosphere will be like in the redeveloped, and so called ‘spiritual home', remains to be seen.

The same goes for soccer, while it has always been a popular game in Ireland, the move to Croke Park has allowed many more fans experience a competitive home international match rather than just a meaningless friendly when tickets were more easily available at the old Lansdowne Road. Maybe that chance helped young fans to become more proud of their country’s football team and not just the big English clubs they support.

However, it is not the fault of the IRFU or the FAI that this has happened. Some have said more pressure from them on the GAA may have helped to keep Croke Park open to other sports but it would have been too late - the redevelopment had begun, the investment was made and the GAA had made its bed when the success of the move had become apparent.

Obviously, the GAA would have had to vote again on the issue but given the success of the past few years, it is unlikely they would have said no.

The GAA has shot itself in the foot. They may say they have not budgeted for the additional income from international events but the fact of the matter is rugby and soccer internationals created a massive amount of revenue and also indirectly increased the popularity of Gaelic Games.

When fans travelled from different countries to watch their nations do battle with Irish rugby and soccer teams at Croke Park, many returned to visit the stadium’s museum and no doubt grew to appreciate the importance of GAA to Ireland’s culture.

So now when the likes of Kerry, Kilkenny, Cork and Dublin are not bringing the crowds to Croke Park then the GAA will have to turn to Westlife and Bono rather than Brian O’Driscoll and Robbie Keane to keep the money rolling in at Headquarters.

And it’s a shame that they would rather glitzy pop stars swagger in front of Hill 16 rather than Irish sporting heroes competing against the world's best.

Tuesday, March 02, 2010

Reds should be wary of the Knights

So the Red Knights are attempting to ride into Old Trafford on a crusade to apparently save Manchester United from the American cowboys that have slung one of the world’s biggest football clubs into a £700million debt.

The Glazers are reluctant to sell. Mainly because they bought United for one reason, and one reason only - to earn a profit - but they have been unable to do so yet because of the global recession.

Therefore, in any normal business sense, it is too big a loss to ‘cut and run’ yet so they are prepared to ride the proverbial storm until they can potentially reap the rewards of the huge financial risk they took to take the club off the stock market in 2005.

January saw Red Football Ltd, the parent group of Manchester United FC, announce a huge £700million debt that sparked an outcry from Reds fans who were led to believe that the deficit had grown by £200m from the £500m figure that was mooted about when the Glazer’s purchased the club. In fact, the figure has never risen, in fact it has dropped, not by enough but it has.

The ‘Green and Gold Until Our Club Is Sold’ campaign begun and has been of relative success – making a point to the owners that the fans are not happy but also still getting behind the team.

I agree that the Glazers need to be pushed out to secure the future of United as the large debt they have amassed, along with their hit and miss success rate in business, has left the club in a precarious position.

However, are these ‘Red Knights’ the people that can pull the club out of their poor financial state? What are their intentions? Have they got the finances? Will they be able to continually strengthen the team?

These are just some of the questions that fans need to ask before giving them their support and backing them.

Supporters will also have to realise that while these Knights in red shining armour, who are out to rid the club of all things Glazer, claim to be lifelong United fans, if they get invest heavily into the club then their business heads will be put on straight away.

They will be successful business men if they have the cash to stump up an offer for one of the biggest football clubs in the world, thus they will have all the attributes that go with financial success including ruthlessness and the constant want for profit.

So those fans who are thinking that because the ‘Red Knights’ wear the red shirts they will automatically do what every fan wants, think again. Don’t think they won’t raise ticket prices. Don’t think they will buy Kaka. Don’t think they will drop the price of merchandise. They will do what is best for their pockets.

If they have the financial muscle to provide what United fans want then they will be good for the club, there is no doubt about that.

The main worry I have with this consortium is Keith Harris being in control. The financing wheeler dealer who shares the name with the ventriloquist famous for the Orville The Duck puppet has been sounding like a muppet.

In January when the news broke of the apparent increase in debt, Harris was straight in heaping blame on the Glazers and calling for the fans to protest. He also claimed that a group was already set-up to look at a bid to buy the club.

More recently, when Harris spoke out about the ‘Green and Gold’ campaign, he called for fans to do more and start boycotting games.

Boycotting games? Stop buying merchandise? Why? Isn’t it starkly obvious? Harris is trying to remove some of the prestige around the club so that the Glazers will look to sell and at a lower price. Harris seems to be more of the ‘Green and mould’ campaign.

United fans have to remember that the club is not like Manchester City or Chelsea who have been made mega-rich by the owners.

Granted the Reds have always had a strong financial backing that is more than most other clubs but the brand of the club, and the success in the stock markets, was built on the 90’s domination of English football that made United a world renowned successful club that was attractive for investors and sponsors.

Why should fans who have spent a lot of money on season tickets, who enjoy going to a game at the weekend and who have built their social lives around football just stop going to games? It won’t make any difference to the Glazers.

Ticket revenue makes up a fractional amount of United’s huge profits. Sponsorship and merchandise sold worldwide is what brings in the big bucks.

United need continued success to ensure that the sponsorship keeps coming. If fans start dropping off from going to support their team, apart from being unfair on the players, it could also have an effect on results on the pitch.

It seems to be that Harris, who played a pivotal part in the takeovers of Manchester City, West Ham and Aston Villa, has seen the money signs ringing again and has jumped at the chance of adding to his fortune.

He may be a United fan but as mentioned above, he’s an experienced business man and financial success will come first for him.

The Glazers need to go but Manchester United supporter groups should be wary of who they back in a bid to buy them out.