Chapter 972: Voting with Your Feet
"For a long time, I have been thinking about a question."
Having said that, Yang Huan squinted his eyes and glanced at the group of people sitting around the round table. He found that their expressions were very interesting. He also felt that the scene was very weird.
Why do you say that?
Because he is so young!
Many of those present were in their fifties or sixties, or at least in their early forties, but Yang Huan was only in his twenties.
Just imagine, a young man in his twenties said in front of a group of middle-aged old men, I have been thinking about a question, Nimei, what is going on?
But now that the pen has been installed, no matter how weird it is, we have to finish installing it, right?
"I'm wondering, how long can the current rapid development momentum of the Premier League continue?"
Yang Huan shook his head, "I don't have an answer!"
Many people present also showed a thoughtful look.
Yes, as practitioners in the Premier League, whether they are bosses or professional managers, they must care about this issue because it will affect their decision-making and development direction in the next few years.
If the Premier League collapses within two or three seasons, it is estimated that in the next one or two years, many foreign owners will quickly cash out and run away.
"I don't know if you have noticed that in recent years, the European economy has been sluggish and the UK economy has not improved, but our domestic broadcasting fees have increased significantly compared to before."
Yang Huan smiled coldly, "To be blunt, Sky TV said that this is the result of their optimized resource allocation, so in the past few years, Sky TV's paying users have not increased their prices much. But the question is, do you believe this explanation?"
Everyone present looked at each other in bewilderment.
Yes, do they believe it?
If it is true as Sky TV said that this is the result of optimizing resource allocation, then what was Sky TV doing before?
If Sky TV could make hundreds of millions more a year by optimizing resource allocation, it would have rushed into it desperately.
Ultimately, there is only one thing: football resources are irreplaceable!
The rise of Sky TV is based on football events and the Premier League.
But now, there are other television organizations that want to defeat Sky TV with the help of the Premier League, so they have to fight hard!
At this point in time, for Sky TV, the so-called risks and the so-called returns on investment are all nonsense.
They only care about one thing, that is market share!
We must never allow other competitors such as British Telecom and Bein Sports to have the opportunity to rise!
We must nip the threat in the bud at all costs.
You know, Sky TV is not just pay TV, it also includes a series of other supporting services such as broadband, mobile terminals and mobile phones. Pay TV is only a part of them, but it is the core business that can retain users the most.
So what does it mean to optimize resource allocation?
A very important part of this is to develop different charging packages based on the popularity of the matches.
This is what is called a disguised price increase!
It is completely foreseeable that the wool comes from the sheep. Whether it is Sky TV or British Telecom, they will pass all this on to the audience. There is no doubt about it.
"One thing I want to mention is that I don't know if you have noticed that I have read your financial report. Although your ticket and match day revenues have been increasing, your attendance has declined to a certain extent. The increase in revenue is because your ticket prices have increased."
"You can justifiably raise prices because you have invested in the transfer market, and the money you invested in the transfer market comes from the share of broadcasting fees, and the increase in broadcasting fees comes from TV viewers paying more money to watch the games. Am I right?"
"But I wonder if you have ever thought about what happens when the fans can't bear it anymore?"
When Yang Huan said this, the whole place was dead silent.
Even Michael Ashley, the most noisy one, fell silent.
Everyone was listening and thinking, what should they do when the situation Yang Huan described occurs?
"In the past few years, before each season started, there were always some fans who stood up to protest, thinking that the ticket prices were too high, and even launched countless strikes, but in the end, nothing came of it, because many people said so with their mouths, but their bodies were honest, so our attendance rate has always remained good, but have you ever thought about what will happen when the economy continues to be sluggish and fans can no longer afford to watch the game in person, or even watch it live on TV?"
"I roughly calculated that in the 2014-2015 season, we lost about 250,000 live audiences compared to the 2013-2014 season. I don't have the data from the TV station, so I don't know, but I believe this is enough to explain the problem."
Yang Huan gave his answer very confidently, "Some fans are voting with their feet!"
The entire conference room was still dead silent.
No one present was stupid, and everyone knew very well how the increase in broadcasting fees occurred.
But they are all beneficiaries. They clearly know the truth but are unwilling to expose it.
And Yang Huan is going to play the role of the child who exposes the emperor's new clothes.
But even Michael Ashley or Abramovich knew in their hearts that Yang Huan's worries were correct.
If the Premier League continues like this, big problems will arise sooner or later.
When will Europe emerge from the economic crisis?
When will the next economic crisis come?
When will the UK economy return to its pre-crisis level?
In an age of widespread use of computers and mobile phones, how can football compete with games, online videos and other entertainment services for users? How can it attract more fans to the football stadium?
Everyone present looked at each other, but no one made a sound.
Richard Scudmore looked around the room and then at Yang Huan, and couldn't help but admire him.
Young Master Huan's words are truly shocking and thought-provoking.
"Master Huan, I believe that everyone here is very interested, and even can't wait to hear your views and opinions on the future development of the league." Schudmore said with a laugh.
Daniel Levi also nodded at this time and said, “Yes, Master Huan, tell me about it!”
"Please give me some advice, Master Huan!" Mubarak also invited.
Others also sent out invitations one after another, even Chelsea's Granovskij, with Abramovich's tacit consent, made a gesture of invitation to Yang Huan.
"OK!" Yang Huan spread his hands, "Then I will briefly talk about my ideas, and everyone can listen casually."
Everyone nodded in unison, and the venue suddenly became quiet again.
"First of all, I want to say something offensive. A healthy and sustainable league does not mean that all teams' financial income and competitive strength should be brought to the same level. This is impossible!"
"I guarantee that if the income and competitive strength of the 20 Premier League teams were similar, it would be a disaster!"
Even with a league management model like the NBA in the United States, it is impossible to guarantee that all teams are treated equally.
"A healthy league needs to have levels, strong teams, weak teams, levels and division of labor. Only in this way can there be competition, it will be interesting and it will be more popular with fans."
"In my opinion, the mid- and lower-level teams are the foundation of a league. They determine the competitive level of a league, which is beyond doubt. However, the upper-level teams are the leaders of the league. They determine the upper limit of the league and the popularity of the league. They need to take on the responsibility of expanding the territory of the league."
Everyone present basically agreed with Yang Huan's remarks.
The top teams are the hallmark of a league, there is no doubt about that!
"Back to what I said just now, you asked me where the future sustainable development of the Premier League is going. I believe that many people have an idea in their minds. That is in the overseas market. In the short term, it is North America, Oceania and the Middle East. In the longer term, Asia has great potential."
"Then I would like to ask, how to develop these major markets?"
At this point, Yang Huan changed his tone, "Everyone should know that we are developing La Liga, Bundesliga, and even Serie A. They are also developing overseas markets. What can we use to compete with them?"
"La Liga has Real Madrid and Barcelona, the Bundesliga has Bayern Munich, but what do we have?"
Manchester United has begun to decline since Ferguson retired.
Not to mention Arsenal and Liverpool, Chelsea has also been in poor form in the past two years.
Although Manchester City has risen in the Premier League, its influence in the Champions League and around the world is still not enough.
Southampton is now the standard-bearer of the Premier League, but its rise has been too short and its foundation is not solid enough. God knows what will happen in the future?
"If you want to develop overseas markets, you have to rely on achievements, outstanding performance, eye-catching stars, and excellent business operations. Among all these, high-quality and high-level star resources are the most important."
"But have you noticed that over the years, we have been losing Premier League stars, from Beckham to Henry, to Cristiano Ronaldo, Robben, Gareth Bale, Neymar, Modric and other stars. We have been losing them all the time."
Yang Huan felt a little ashamed after saying this.
A large number of these players were sold by the Saints.
"The Champions League and the Europa League are very interesting platforms. They provide a stage for European giants to compete. The Champions League, in particular, represents almost the highest level of world football and has even become a touchstone for giant teams."
"If Premier League teams want to further develop overseas markets, they must show their level in the Champions League, just like they did a few years ago, occupying three of the top four spots in one go. That is a demonstration of the strength of the Premier League."
"If you want to achieve something and make a breakthrough in the Champions League, you have to rely on a strong team."
If almost everyone agreed with the concerns Yang Huan expressed before, then what he said now was obviously unacceptable to some people.
Because this is simply naked, looking at the problem from the perspective of the strong team.
So, after Yang Huan finished speaking, Michael Ashley of Newcastle stood up again.
"Master Huan, frankly speaking, I admire you very much. You are young, but you think deeply about things. I basically agree with your point of view that developing overseas markets is crucial, and your several top teams are the key to the success of overseas market development. I personally also admire Southampton's great success in running the team in the past few years. It is worth learning for all our teams."
Yang Huan listened calmly and smiled slightly.
This guy flatters me as soon as he comes in. He doesn't have good intentions.
Sure enough, Michael Ashley quickly changed the subject.
"But I don't agree with your point of view. We can't sacrifice the interests of the middle and lower-level teams just because of the role of the top teams. That will only make the strong stronger and the weak weaker, just like the La Liga."
I have to say that Michael Ashley is definitely not the kind of person who only knows how to talk big.
Therefore, as soon as he finished speaking, he immediately gained the approval of many people.
"Isn't it? Although there are Barcelona and Real Madrid in the La Liga, except for them, all other teams are struggling to operate, and some are even on the verge of bankruptcy. This kind of league is not healthy at all!"
"That's right, Master Huan, you only consider the top teams when you say this, why don't you consider our mid- and lower-level teams?"