How positioning the French football business compared with its main competitors?

Résumé du document

While the French football is making one euro, the English is making about 2.50. This fact underlines the difference in the economic efficiency between the French and the English competition. In the season of 2006/2007, the French professional league made 1.2 billion euros in terms of income. Football is the first business sport in France much before tennis. In this document, we are going to answer the following question: How is the French football business positioned when compared to its main competitors? In the first part, we will describe the business model of football clubs in France. In the second part, we will speak about the lack of diversification of French clubs and finally we will focus on the deregulation in the market. Between 1998 and 2005, the incomes of TV rights got multiplied by six times. More than ever, the French football is dependent on an actor: the TV channel Canal, which spent 600 million euros to buy the same. The TV rights represent 57% of its general incomes. In 2008, professionals had a happy surprise: Orange, which presented new challenges on TV, bought a part of its rights for 150 million euros.

Extraits

[...] Debt situation The average debt of French Football Company is massively inferior to England or Italy. This is due to a law that had been created by the regulation instance. A club must establish a balanced computability at the beginning of each season, and then this is study by an organization who agree or not the plan for the next year. Although they have low debt of assets) French club are penalized by the level of assets. Indeed, most of clubs don´t own the stadiums that are most of the time the belongings of the cities. [...]

[...] Conclusion The French league, although less rich as its main competitors, has developed in the last ten years considerably its incomes. Conscious of their lack of diversity, clubs plan to develop the business by building new stadium, increasing the merchandising and trying to sell the TV right abroad. All the results, would allow clubs attract better player thanks to bigger salaries in order to compete in a European competition. Currently, the French football is inferior to its main competitors in results and finance but has at the same time some fundamental bases like footballers' formations and low debt level which can make envious other championships. [...]

[...] How positioning the French football business compared with its main competitors? Introduction When the French football is making one euro, the English is making about 2.50 This fact underlines how big is the difference in the economic efficiency between the French competitions and the English ones. In the season 2006/2007, the French professional league made 1.2 billions of incomes; football is the first business sport in France far away before tennis. In this document, we are going to answer to the following problematic: How positioning the French football business compared with its main competitors? [...]

[...] The French soccer is less diversified as its competitors and as worst results. In the last twenty years, France won only once the champions league (Marseille in 93) and once the UEFA (PSG in whereas England, Italy and Spain are almost every year in final or semi-final. The longer they go into the competition, the more you get TV rights incomes. In the XXI century, Lyon is an exception because even if they don't win the competition, they reach semi-final or quart-final every year since 8 years. [...]

[...] Germany is an example for France, because during the last world cup the installations were renovated and at the same time, places of life with commercials area were built. The aim was to develop the purchase per customers and to push the fan to stay longer in the stadium. In Lyon, the customer will find some hotel to sleep. Bellow is the chart of global incomes The most of incomes are brought by two actors: Canal+ and Orange. A system of solidarity between L1 and L2 appears and does not exist in England. The second league receives 91 million Euros but TV just pays 15 for. [...]