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End Of Season May Mark End Of An Era

May 14, 2002

With the close of 2001/2002 English football season - marked by Birmingham City clinching the final Premiership promotion place on Sunday - many clubs outside the top flight are looking forward to an uncertain future, warns a sports economist from Staffordshire University.

Dr Paul Downward, Reader in Economics at Staffordshire University Business School, says the recent collapse of ITV Digital will have far reaching implications for those clubs in the Nationwide League.

Dr Downward believes that some clubs could go bust, players face the possibility of redundancy and a new three-tier 'pyramid' system will evolve, made up of:

1) The Premiership which will consist of an affluent elite of
   clubs.

2) A 'lower division' populated by larger metropolitan clubs
   who, unable to break through the financial barrier, will
   effectively act as "feeder clubs" to the Premiership.

3) The bottom tier which will consist of semi-professional
   football clubs making up the lower divisions.

Dr Downward said: "The moves towards a more market oriented football economy, which has allowed the Premiership to become such a dominant force in English football, has ensured the
concentration of revenues.

"While BSkyB revenues allow these clubs to retain an option of competing for the best players in a free market, which has seen wages and transfer fees spiral, this has never really been a realistic case for clubs outside the Premiership.

"Consequently clubs aspiring to make the Premiership have had to place themselves in financial jeopardy to aspire to such ambitions. This explains the concern of clubs over the loss of the ITV Digital revenues.

A similar trauma was recently faced by Rugby League and drawing on what happened with this sport Dr Downward concludes that: "An obvious consequence for football will be that players will be made redundant. Also, there will be further concentration of resources among clubs outside the
Premiership.

"However, the traditional metropolitan clubs that draw relatively larger gates will obviously be less
vulnerable to these changes than smaller clubs."

Staffordshire University

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