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Clubs warned about admission prices

last updated Friday 19th August 2005, 7:58 AM
British football clubs have been warned that they cannot keep hiking up admission prices as a way of avoiding a financial crisis. Business adviser PKF says in its annual review of the industry that football had managed to avert a threatened financial meltdown in recent years.

But partner Charles Barnett said: "Football clubs can no longer ignore the issue of ticket revenues.

"Ticket prices cannot continue to rise at the rate they have."

PKF (UK) LLP warns in its fourth annual survey that clubs will seek to further rein in salaries and will increase demands for compensation for players while away on international duty.

"There must be a tidal change in the attitude towards club funding in the next few years because there is simply no getting away from the fact that ticket prices cannot continue to rise at the rate they have," said Barnett.

"This means costs will have to be cut elsewhere and the development of other revenue streams considered. Worryingly, the costs incurred for players who are away on international duty are rising

"The most obvious place to rein in costs is player salaries."

Only 31% of clubs expect to make a pre-tax profit in their next accounting period, slightly down from last year's 33%.

"Ticket revenues have soared and are responsible for the biggest revenue growth among 48% of clubs in the last year."

The next highest growth winner, TV, garnered just 14% of votes, with merchandising and sponsorship 7%.

"There has been progress in making player salaries more related to performance on the field," said the report.
Source BBCi