Thursday, January 3, 2013

Selling Zaha: What's at Stake for Crystal Palace




With the January transfer window open, speculation on player movement is once again rampant. Every fan is eager to see who their club will buy/sell, while every blogger wants to be the one to pass along the rumor that turns out to be true. Over the course of the next month teams will be linked with players they have no interest in, and a large portion of players will be set to join multiple teams (if you are to believe the reports). Not all transfers and transfer rumors are created equal, meaning a select few will capture the footballing world’s attention; perhaps none more so than the fate of Championship team Crystal Palace’s young starlet Wilfried Zaha.

Zaha has become a hot commodity with sparkling performances domestically, as well as recently catching the eye of England manager Roy Hodgson. His meteoric rise has prompted a legion of fans, writers, reporters, and managers to comment on which top Premier League team will earn his signature. Zaha has come out recently suggesting he would like a greater challenge and would be ready for a move to the Premier League, but has somewhat contradicted that by offering to stay the rest of the season to help Crystal Palace get promoted. The latter would be the best case scenario for both club and player for a myriad of reasons. For Zaha it will offer him a chance to play meaningful football and show clubs he can handle the pressure of being counted on to perform, and for Crystal Palace their chief gain will be financial. The naiveté that comes with being a football fan means that we often forget that this is a business and clubs are in it to make money first and foremost. Crystal Palace is no different.

Some will try to argue that Crystal Palace would be smart to take the rumored £15m that Zaha is currently worth as his value likely won’t get much higher, but they would in fact be foolish to make such a move when Premier league promotion is within their grasp. Promotion is every clubs dream and it certainly has its benefits. Last season the Premier League brought in an estimated £1.17b in TV revenue from overseas sales that after deductions netted each team a cool £18.7m. In addition to the overseas revenue, each club then nets money from domestic sales. This money is split three ways; an equal share, facility fees, and a merit payment. The equal share came to £13.78m. Next, the facility fees were paid based on how many TV appearances a club had (every team is guaranteed at least 10), with each appearance equaling roughly £522,000.  This means the pay range from the facility fee went from £5.2-£13.4m. Lastly is the merit payment which is awarded based off of the clubs finish in the league. Last place Wolverhampton took home £755,000, while champions Manchester City raked in an astonishing £15.1m. All told teams made anywhere from £39m-£60.6m just from TV money.

Crystal Palace is surely aware of how much they stand to benefit from promotion to the Premier League, and are undoubtedly taking this into account. As stated, the figures above represent only the TV revenue and don’t include the gains from ticket sales and merchandise. The question now becomes do Crystal Palace have a long term plan in place that could see them succeed financially, or will they cash in for a short term fix? This fan hopes they see the big picture.

Credit to NYTimes & @SportingIntel for figures

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