Archive for nigeriang

HERE AND THERE: Proudly African

HERE AND THERE: Proudly African

It’s a safe bet that in 1946 in Orlando, Florida, USA, when Earl Silas Tupper developed the product that has now become a synonym for kitchen containers he had no idea it would ever be sporting the slogan, ‘Proudly African’. In Nigeria we generally just stick to the generic short form, as in ‘just pack the fried rice in the plastic’, or in the related, ‘wrap the eba in the lylon’… but I digress.

Despite its Floridian origins, Tupperware, the product with the singular distinction of serving as an empowering tool for post world war housewives smarting at being relegated back to the kitchen after tasting the liberating fervour of the workplace, is in the full swing of the new awakening now sweeping South Africa.

Although it was Avon, founded in 1886 by David H, McConnell (California) that pioneered a direct marketing system developed by Mrs. P.F.E. Albee through the idea of the Avon lady, Tupperware is known for the Tupperware party, a strategy that made the company famous, spurred sales, and provided home bound women with a convenient way to make some money for themselves.
Right now there is a huge party on the roll in SA and its theme is finally, African. The flyer for this month’s Proudly African Tupperware campaign, displays a colour suffused, on the go food storage container in saturated red, purple, yellow, violet and green.
Woolworths, SA’s generally toffee nosed quality food and clothes brand store is bursting with touches of local colour. I did a double take two weeks ago when I bumped into rails of brightly coloured t -shirts and tops, boasting not just the logos of European and American soccer teams but the names of South Africa’s provincial capitals. There were rows of big flamboyant afrocentric jewelry, giant hoop earrings, big in- your-face necklaces, and unmistakably “tribal” bangles: In Woolies? The home of the winter greys and autumn browns? Hey, we are finally African! Who knew?

For the government owned broadcaster, SAFM, the World Cup inspired the brilliant idea of playing 100 percent African music in the month leading up to and for the duration of the soccer festival. This was so visitors could get a taste of South African music whenever they tuned into the station, otherwise they might just have been confused as to whether the planes that brought them actually had landed on a different continent.

The flag story comes in two parts. Right now every other car is festooned with the South African flag and the drivers span the rainbow. Some cars have two South African flags and a third from a different country, as well as nifty gloves on both car mirrors patterned like the country flag. Traders armed with flags hit the Joburg streets two months ago. Yours truly was on the look out for African flags because there are SIX African countries taking part in this historic African FIFA World Cup that we have been told, ad nauseum, is unlikely ever to happen on this continent again! Trust me, at least in the part of town where I looked there were no African flags to be seen, and each trader I asked would give a puzzled look and point to the SA flags he had.

Ditto for the shops and offices that were proudly displaying their commitment: all the flags in sight were of the elites of the soccer world, Brazil. Germany, Spain, Italy. Just as patience exhausted, I was about to put irate pen to angry paper, I drove out one morning and glimpsed my first Nigerian flag fluttering from the hands of a street trader, along with Ghana, Cameroon, Ivory Coast and Algeria. Phew! These are not small victories. South Africa is very often many countries in one, but there is a papable sense of national pride and achievement in making this World Cup possible, evinced outwardly in the displays of patriotism and in private conversations among South Africans of all races.

Last week witnessed another destination reached in this ‘long walk’ in the hosting of the Super 14 Rugby final in Soweto, one of the world’s symbolic black capitals. Apartheid divided everything along racial lines. This coming together, an equivalent of Mohammed and the mountain meeting, was a huge deal in ushering the hopes for transfiguration that is part of the message of this achievement.

Yes, it may be transient, and the message may at times get tossed aside in the hurly burly of all the other battles still to be won here, as seen in the muttered threats to African foreigners, just wait till after the games.

But a memory of what can be, will have been made; a political question will have been answered with the words, yes we can; Africans will have the luxury of 6 teams root and cheer for and FIFA’s cultural lens will have had its angle adjusted somewhat. We will all then go home and deal with the hangover.

What more can you ask of a party?

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FRANKLY SPEAKING: 2010: Two causes for African reflection

FRANKLY SPEAKING: 2010: Two causes for African reflection

Nigerians
visiting South Africa for the opening game of the 2010 World Cup on
June 11 may not appreciate that they are experiencing not one African
first – a World Cup on African soil; but two! May 31, 2010 marked the
end of the first century of South Africa’s existence as a state in its
current boundaries with internal autonomy, akin to the other British
dominions of Canada, Australia, and New Zealand.

The Act of Union of
May 31, 1910 combining two former colonies- (the Cape Province and
Natal)—and two former Afrikaner republics—(the Orange Free State and
the Transvaal Republic) -into one state liberated white South Africans
from colonial rule while entrenching the oppression of non-white South
Africans by white South Africans. In fact, all South Africans were to
cast their first vote in one election only in 1994; hence the view of
many Africans that South Africa became “independent” only in 1994. As a
matter of law, that popular view is false. South Africa was the first
European colony in Africa to acquire autonomy over its internal affairs.

Should the
formation of South Africa in 1910 be counted as an event worthy of
celebration by Africans? The answer turns on two other questions.
First: were white South Africans “Africans” and have they behaved like
other “Africans” since 1910? Second: did May 31, 1910 signify the end
of some anti-colonial struggle in Africa? There is no doubt in my mind
that the Afrikaners were “African” by 1910. They had lived in Africa
for a couple of centuries, elevated their own dialect of Dutch into an
independent language, forged their own history, and formed themselves
into a distinct community. The non-Afrikaner speaking white immigrants
(then known as “Uitlanders”) have become Africans.

Like many other
African tribes, which succeeded British colonialists, the Afrikaners
and the English speakers used freedom from colonial rule to oppress
their fellow citizens. Through apartheid, white South Africans
confirmed their place as a quintessential first generation African
ruling tribe in independent Africa. Like the Asantes who fought against
the British in the Yaa Asantewa war of 1900-1902, the Afrikaners fought
the British Empire from 1899 to 1902 to control their own destiny and
the gold resources within the Transvaal Republic.

The British spent
the equivalent of 16.2 billion Pounds (in today’s money) to win the
South Africa war (also known as the “Anglo-Boer war”), the deadliest
war fought by the English between the defeat of Napoleon and the First
World War. At least 20,000 white men, women, and children and 10,000
black and colored people died in the 20th century’s first concentration
camps opened by the British on the South African veld. South Africans
lost that war, but they won the peace and freedom on May 31, 2010 for
themselves, and, eventually, other Africans! South Africa presents an
urban face of “First World” development to the world. Johannesburg and
Cape Town can hold their own, with ease, against many a European or
American city. Indeed, many white South Africans use that face to
suggest that they were effective rulers of South Africa until 1994.
That face is used also to characterise any number of South African
attributes as the “best” in Africa. But, they forget to mention that,
as a dominion, white South Africa received the majority of foreign
investment poured into Africa during the 20th century, and is,
therefore, likely to be the “best” in Africa. Consequently, I prefer to
measure the performance of South Africa’s rulers against the
performance of other former British dominions, which received similar
levels of investment.

How do South
African living standards stack up against those of Australia, for
example? Using the real wage rate of white workers in the building
trade in 1910 in South Africa as a base, Australian building workers in
1910 earned 97.6% of South African wages. A South African plumber today
earns about 80,000 Rands (about $11,000) while his Australian
counterpart earns at least A$75,000 (or $63,750). South Africa has been
the poorest of the dominions for at least one generation! Why? Its
rulers spent its first century concentrating on extracting unjustified
compensation from those devoid of political power instead of baking a
bigger pie for all their citizens. They should devote their second
century to deepening the productive capacity and living standards of
all South Africans.

In a few days the
World Cup will open South Africa to the world. Let the 2010 World Cup
fiesta usher in a productive African century.

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Who should be INEC Chairman ?

Who should be INEC Chairman ?

For many years, I’ve had this
unshakable belief that my vote will count one day. In spite of the
humiliation of June 12th, I’ve faithfully – or blindly voted since
then! I believe President Jonathan has the golden opportunity to
facilitate credible elections come 2011.

I think I speak for many Nigerians when
I say we are glad that Mr. Maurice Iwu was sacked. Whether Mr.
President was motivated by public opinion, international pressure or
sound advisers – we don’t know. We are only glad to be rid of Iwu. We
are however not deluded in thinking that Iwu was the only impediment
towards credible elections.

I am not an expert in electoral
matters, but I’m passionate about competitiveness, fairness and good
leadership. I’ve studied, observed, read articles and listened to
commentaries. I recently asked a group of “Concerned Nigerians” a
simple question: which three stakeholders could affect the outcome of
elections the most? I asked them to choose from the following: the
ruling party, INEC chairman, the Police, the voting public,
registration process and authentication, media, electoral officials and
party officials.

The ‘unrigged’ results came in – and
80% of those surveyed chose INEC chairman, the voting public and the
voters’ authentication process. While a survey of 20 people cannot be
compared to the detailed, yet-to-be-implemented Uwais report, I’d like
to focus on two of these results.

I believe an inspired voting public, a
courageous INEC chairman and a sound registration/authentication
process can counter the evil machinations of the ruling party, corrupt
electoral officials, misled policemen and desperate politicians. Of all
the stakeholders above, only the media seems to have scored above
average – and they should continue to sustain the coverage and in-depth
analysis of the players, factors and issues Choosing an INEC chairman
who has a proven track record of ‘delivering’, whose integrity cannot
be questioned and who can withstand pressure from the Presidency and
rogue politicians is the first step to restore confidence to the voting
public and the international community. We need someone who will spur
apathetic voters – those who complain more but have no faith in the
‘system’ – to rise up, register, participate and defend their votes.
This is the first step on this journey to credible elections.

May I recommend (to Mr. President and
his advisers), names like Nuhu Ribadu, El Rufai, Dora Akunyili, or
Christopher Kolade. While I believe there are many more Nigerians who
can fit the bill, we need ‘popular, renowned’ names that will re-jig
the ‘usual’ voters, motivate the ‘siddon-lookers’ – and strike some
fear in the hearts of rogue politicians.

Retired justices and university
chancellors’ may have integrity, but may also fail to bring the added
dimension of vibrancy and public inspiration – through regular
communication, assurance – and threats! Iwu was right about one thing –
voter apathy is a major issue. While experiences like June 12 and 2007
may seem to justify our ‘siddon look and complain’ stance, Nigerians
need to persevere. Most Nigerians want competence over zoning. If the
next president is a ‘youth’ at 45 and can provide us 8 hours of power
daily (let’s start with that!), we don’t care. If the next president
hails from Rivers, Bauchi or Edo – but rehabilitates our failing
educational and health systems – Nigerians in the Diaspora will vote!
If the new president is a ‘Madam’ President, and she can facilitate a
functional rail system, efficient ferries (and fixing the Lagos-Benin
expressway), …no shaking! All we are saying, President Jonathan is
‘consider the Uwais report, give us a vibrant and tough chairman and
let’s get on with the registration process. To Nigerians, I say this.
When we don’t register, vote and protect our votes – we facilitate
rigging. Prayer is good – but we must act too. We can’t blame INEC (and
government) for everything.

Will I prefer the status quo – and
elections in January/April 2011 or a reformed electoral process – and
deferred elections in November 2011; a two-party system, 10-party
system or unlimited? Should Jonathan run or not? These are debates for
another day!

Akanimo Ekong is Executive Director – Resourcery Plc

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Nigeria crash out in South Africa

Nigeria crash out in South Africa

The hopes of
Nigeria retaining the COPA Coca-Cola football trophy, won last year
came crashing yesterday as the country’s representative were defeated
3-1 by Uganda in a penalty shoot out.

The Nigerian team
held their Ugandan counterparts one all at regulation time, but failed
to hold on in the ensuing penalty shoot out and thus got eliminated at
the quarter final stage of the competition. Former Super Eagle player,
Victor Ikpeba, and coach of COPA Coca-Cola Nigeria team however rained
praises on his boys for giving the match all their best but stating
that it was unfortunate that the boys lost through penalty shoot out.

Ikpeba who spoke
with journalists after the Nigeria team was eliminated said the
tournament has helped the young players to show case their talents in
the game of football. The former Super Eagles striker added that the
game has helped to bring unity among different African states and the
championship players have had the opportunity to learn from each other.

He congratulated Coca-Cola and the participants at this year’s
competition, and stated that some of the young footballers will soon
rule Africa sometime in the future. He used the opportunity to plead
with the team’s sponsor to continue the sponsorship of the game while
also soliciting that they should take the game round other
participating countries in order to give the hosting team a sense of
belonging.

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Danny shines as Portugal breezes past Mozambique

Danny shines as Portugal breezes past Mozambique

Portugal winger,
Danny took full advantage of the opportunity presented by an injury to
Nani with a goal and an assist in his team’s 3-0 win over Mozambique in
their final friendly before the World Cup.

With Nani ruled out
of the tournament earlier on Tuesday due to a shoulder injury, Portugal
coach Carlos Queiroz chose the safe option and started Cristiano
Ronaldo on the bench. The 28,000-strong crowd at the Wanderers cricket
ground were disappointed not to see the world’s most expensive player
start, and made the stands shake when he finally came on in the 62nd
minute.

Danny was the
liveliest Portuguese player from the start, linking up well with Deco
and Simao as Portugal missed a host of chances. It was the African
team, however, who came closest to scoring, when midfielder Hagy fired
a thunderous long distance shot that crashed against Eduardo’s post on
40 minutes.

The Portuguese took
control in the second half, with Danny sidestepping keeper Lama after a
Deco through ball to score on 52 minutes. The Zenit player turned
provider in the 75th minute, making a fine assist for substitute Hugo
Almeida to tap in. Ronaldo’s main contribution to the match came in the
83rd minute, when his powerful drive was parried by Lama straight to
Almeida who scored his second with another simple finish.

Portugal begin their World Cup Group G campaign against Ivory Coast on June 15 before matches with North Korea and Brazil.

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Tevez set for Eagles test

Tevez set for Eagles test

Though Carlos Tevez
faces stiff competition for a place in Argentina’s attack line, with
six strikers selected in the squad by Coach Diego Maradona, the
Manchester City forward says he is raring to go full throttle in their
Group B opener against Nigeria on Saturday if given the chance.

“I hope to get the
chance to show the coach what I can do even though I know we have great
players and I don’t feel my place is assured,” Tevez told reporters
after his team’s training session in Johannesburg on Tuesday.

The Manchester City
highest goal scorer for last season also went on to state his
unflinching affection playing inside the national colours of Argentina.

“For the national
side, I play for the sheer love of the shirt and not for money,” he
said. “I love this shirt, my country and my people. I couldn’t care
less about the money side as I earn that in Europe.”

Nigeria take on
Argentina on June 12 at the Ellis Park Stadium in Johannesburg, and the
team would be confronted with the array of stars in the Argentine
squad. For many, the attention is on Barcelona’s wunderkind, Lionel
Messi, who emerged as Europe’s goal king in the just concluded season.

However the likes
of Tevez; Real Madrid’s Gonzalo Higuain; and Diego Milito, scorer of
both Inter Milan’s goals in the Champions League final win over Bayern
Munich, pose as much a threat as Messi.

Between them, the trio netted more than 80 league goals last term for Manchester City, Barcelona and Real Madrid.

Currently Argentina’s coach, Diego Maradona is under pressure to
deliver at the World Cup after numerous false starts during qualifying
series; with the highlight being a 6-1 drubbing by Bolivia.

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Yakubu targets Golden Boot

Yakubu targets Golden Boot

The Super Eagles
are not one of the favourites for the World Cup but the team’s leading
marksman, Aiyegbeni Yakubu, believes he has the ability to emerge the
competition’s highest goal scorer, and win the Golden Boot.

FIFA have always
accorded recognition to the World Cup’s top goal-scorer since the
tournament’s debut in 1930, but it wasn’t until the Espana ‘82 that the
Golden Boot award, donated by Adidas, was handed out to whoever emerged
as the top marksman.

Italy’s Paolo Rossi
won it in 1982 ,while Miroslav Klose of Germany claimed the honour at
the last tournament in 2006. Yakubu now hopes to be the next recipient
of the award that has also been claimed in the past by the likes of
England’s Gary Lineker and legendary Brazilian, Ronaldo.

Speaking on Everton
TV, the Nigerian international, who believes South Africa 2010 will
smash the 147 goals record set at Germany 2006, said: “It is
unbelievable when you hear how many goals were scored but I think there
will be more goals this summer because every country and every player
has improved. The strikers aren’t the only ones who can score goals too
because they can come from midfield and defence. I think there will be
more goals in this World Cup. I would love to be the top scorer. For me
as a striker I want to score goals in a World Cup. It won’t be easy but
I believe in myself.”

Pele’s prediction

Brazilian football
legend Pele, predicted many years ago, that a team from the continent
would win the tournament by 2010. That prediction doesn’t look likely
to come to pass in South Africa as the Super Eagles and the continent’s
other five representatives are not considered among the favourites for
the big prize.

“As a player you
have to believe, and for me I still believe that an African country
will win the World Cup,” said Yakubu. “I don’t know when that will be,
I don’t know if it will be this year or in four years time. I still
believe though that an African nation will win it.”

Expectations

Africa’s best
performance at the World Cup has been quarter final appearances by
Cameroon, in 1990, and Senegal, in 2002. There are great expectations
that a team from Africa will make it to the semi finals, and Yakubu
hopes that playing on African soil will go a long way in making that
dream a reality.

“I think the
African nations have an advantage because there will be a lot of
African people packing the stadiums,” he said. “Hopefully their support
can give us something extra against the other countries. However the
other teams are used to that pressure so the African players have to
give it their best and make our countries proud. We are going to give
it our best and make the people back home happy.”

Decade long career

Yakubu has been
synonymous with the Super Eagles since making his debut in a World Cup
qualifier against Eritrea in April 2000. Ten years later, and with 54
caps to his credit, as well as 20 international goals, the 27-year-old
still derives plenty of joy appearing in the green and white of Nigeria.

“For me, when I am called to play for my country, I enjoy it,” he
said. “I enjoy playing and being part of the team. As a football player
you want to play for your country and it fills you with pride. For me,
my memories of being with the national team have been good and
hopefully we can continue that at this World Cup.”

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Nigeria wins mock World Cup

Nigeria wins mock World Cup

With two days to
the commencement of the first World Cup in Africa the fever is
spreading and not only the grown-ups are feeling the heat, kids all
over the country are also joining in the frenzy.

Over the weekend in
Lagos, a primary school, Estapore Schools, situated in Gbagada held a
mock World Cup in the school. The surprise was that Nigeria won that
World Cup and a replica trophy to boot.

Proper representation

Speaking to the
head teacher of the class that won, Lola Jibowu, said it was a thing of
joy most especially because, her class depicted Nigeria and won the
trophy. “After all that has been said about the Super Eagles, it was
good that we represented Nigeria well and I hope this will be
replicated in South Africa.” The school played hosts, South Africa and
the 16 classes in total chose countries at random from a pot; Year 3
(Primary 3) drew Nigeria.

Jibowu added that,
“After drawing Nigeria, we were derided as losers as the national team
has been derided and the kids in the class were really downcast as we
were given no chance right from the beginning.” “Fortunately at the end
of it all,

God vindicated Nigeria and I won a free trip to watch matches at the World Cup.”

They called us losers

The competition was
not about football matches but about displays depicting each player in
the countries chosen, missing players and the reasons for missing the
Mundial.

Jibowu was ecstatic about the overall victory. “I believe it was our
presentation to the parents that won us the competition.” When Nigeria
was called as the winner, all of us went mute for about two seconds and
the next thing I knew was I was somersaulting across the field. I was
overtaken with joy. The kids just went gaga, running around with the
Nigerian flag, shouting – “They called us losers but see what God has
done.” It will be a fairy-tale straight from Disney, if Nigeria ends up
as champions of the real 2010 World Cup, but at least for now, Year 3
students of Estapore Schools and their teacher, are World Champions.

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Super South Africa!

Super South Africa!

Africa as a
collective (perhaps rightfully) is claiming a piece of the glory being
fawned on South Africa for being on the verge of successfully hosting
the World Cup in Africa for the first time. Every superlative should be
ascribed to the hosts for quite a few reasons. Immediately after
liberation from apartheid and their first democratic elections in 1994,
vision with regards to the country’s policy on sports was clearly
demonstrated. They hosted their first international sports event in
1995 by co-staging and winning the Rugby World Cup. They followed it up
the next year by hosting and winning the African Nations Cup in 1996,
and then hosted the Cricket World Cup in 2003 which Australia won. At
least they don’t have the franchise to “host and win.”

Now they are on the
verge of hosting the world’s biggest sporting event for a singular
sport, the FIFA World Cup. Technically, the hosting has started as most
of the teams have already arrived South Africa and at least, all the
preparations of years are being tested in full. However, it will be
appropriate for us to examine key aspects in which they’ve excelled.

Administration/Organisation

They have made the
successful transition from organising and running successful domestic
sports to the international stage. As an effective base for this World
Cup, they have a thriving domestic soccer league with a large
passionate following of the teams. Their matches are broadcast
internationally and promoted like the best thing since sliced bread!
The Local Organising Committee also successfully managed the various
political factions and demands by several more cities to host matches
by spreading the 64 matches across nine of them. The commencement of
the tournament will throw up a few challenges, but the experience
gathered over 15 years should stand them in good stead.

Infrastructure

The government
clearly decided to use the event as a catalyst for massive spending on
badly needed transport infrastructure, as well as beefing up
telecommunications, police numbers and equipment. Their achievements in
this area are highly laudable. South Africa has invested heavily in
constructing new stadiums in Durban and Cape Town, and renovating
others to world-class standards; upgrading roads and public
transportation (trains, buses, signalling and general system-wide
upgrades) to constructing Africa’s first high-speed train system (The
Gautrain Project) that will ease transportation from the OR Tambo
International Airport into the swanky Johannesburg suburb of Sandton
for prices far less than comparisons the world over.

In a speech to the
National Treasury, Deputy Minister of Finance, Nhlanhla Nene stated
that new construction and refurbishment of the 10 event stadiums has
had an R15billion economic impact on the country. Clearly, the
investments have been made with a vision of long-term benefits. There
can be little dispute that the World Cup has already had an enormous
positive impact across South Africa. In the long run, the ‘Rainbow
Nation’ is expectant of a long-term financial boost that will dwarf the
success of the Rugby World Cup hosted in 1995.

Creativity

The event is
observing the expression of creativity to the fullest. There are art
exhibitions like the one in Johannesburg endorsed by FIFA, which
showcases works from contemporary artists from Africa and the Diaspora
during the FIFA World Cup. Organisers hope the exhibit will show South
Africa’s commitment to hosting a truly African event. How about ‘Heroes
immortalized?’ It consists of 32 murals produced by a team of Cape Town
artists; each one paying homage to an international soccer star, as
part of its integrated effort promoting ESPN’s comprehensive coverage
of the 2010 World Cup.

The murals take
inspiration from African street signage and movie posters, and also
contain symbolic Easter Eggs for fans to discover. The world’s biggest
Vuvuzela has also been unleashed in Cape Town! The 35metre horn breaks
the Guinness World Record for size of horns by 3metres and will be
blown each time a goal is scored in the tournament. Some pessimists are
protesting the noise for potential hearing loss. I will round this up
with the imaginative studio built by SuperSport Studios.

Supporting Bafana Bafana

The passion and
building momentum in support of the national team in spite of their
average credentials is also admirable. Today, June 9 has been declared
Bafana Bafana day. All South Africans have been encouraged to come out
waving national flags and wearing colours in support of ‘the boys’
throughout the day. That has translated to increased confidence in the
squad but also heaped added pressure of greater expectation from the
passionate public used to global success.

Fittingly, over the next four weeks or so the attention of the
largest viewing audience the world has ever known will be firmly fixed
on the Rainbow Nation. Not really on these listed achievements but on
the 10 stadiums hosting 32 nations and 736 players focused on lifting
the World Cup on July 11, the last day of competition. Really, the rest
of Africa has a lot to learn from the worthy example set by the South
Africans.

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European football market hits N2.8 trillion

European football market hits N2.8 trillion

One area of life that continues to grow despite the global economic recession worldwide is the football trade.

In a report
released by Deloitte Annual Review of Football Finance on Monday, the
European football market grew to €15.7 billion in 2008/09. The ‘big
five,’ leagues in England, France, Italy, Germany and Spain boosted
revenues in 2008/09 to a collective total of €7.9 billion (N2.8
trillion); up from €7.7 billion (N1.39 trillion) in 2007/08. The
Bundesliga, Serie A, and Ligue 1 achieved growth across all three major
revenue streams; broadcasting, match-day, and commercial revenue.

Dan Jones, partner
in the Sports Business Group at Deloitte, said: “European football’s
continued revenue growth demonstrates an impressive resilience to the
extremely challenging economic times; underlying the continued loyalty
of its fans and the continued attractiveness of football to sponsors
and broadcasters. Unquestionably, football’s biggest challenge is not
revenue generation, but rather the need for much greater cost control;
notably over players’ wages and transfer fees.”

Wage bill growth

The ‘big five’
leagues’ wages increased by €305m (N55 billion) to exceed €5 billion
(N907 billion) for the first time. In England and Italy, wage growth
was greater than revenue growth, putting further pressure on operating
profits. The Bundesliga became Europe’s most profitable league as its
clubs generated increased operating profits of €172m (N31 billion) to
comfortably overtake the Premier League, whose profits fell markedly to
€93m (N17 billion). Serie A and Ligue 1 remained loss making. In Spain,
Barcelona and Real Madrid generated substantial operating profits but
the remaining clubs recorded a significant aggregate operating loss.

Alan Switzer,
director in the Sports Business Group at Deloitte, said: “Since the new
UEFA Club Licensing and Financial Fair Play Regulations will first
apply for financial statements ending in 2012, with no sanctions before
2013/14, clubs should have sufficient lead time to adapt but need to
start preparing themselves now. In addition to continuing to grow their
revenues, including through investment in their facilities, clubs must
focus on ensuring their cost base better reflects their revenues and
has sufficient flexibility built in to deal with any revenue shocks.”

The new UEFA Club Licensing and Financial Fair Play Regulations,
which were approved in May 2010 and applied for entry into UEFA
competitions, will require many European clubs to take action to better
balance their revenue and expenditure. A key part of the regulations is
the ‘break-even’ requirement which, in basic terms, means clubs will be
required to spend no more than they earn after taking into account
certain exempt expenditure. Examples can be made of Portsmouth that
became the first Premiership club to go into administration.

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