Recession hits football catering hospitality

As the credit crunch bites, the corporate prawn-sandwich brigade are also feeling the chill of the recessionary wind. Clubs have long since taken their core supporters for granted, so the decreasing number of wealthy fans is far more significant to their hopes of keeping the gravy train running and the gravy boat moving.
The downturn in the lucrative hospitality market is seriously hurting top clubs and no more so than at Arsenal, where catering revenue appears to be well below expectations. Delaware North, an American company, paid £15 million up front for a 20-year catering contract, only to find that many executive box-holders who pay £100,000 a year for the privilege are refusing to pay a further £100 a head for pre-match meals. For the first time, Arsenal have also put Champions League tickets on general sale this season.
A Premier League seat was once the hottest in town. Now even Liverpool regularly put seats on general sale, while Aston Villa, whose win away to Arsenal last weekend confirmed their Champions League credentials, cannot get gates up to last season's 40,000 average.
Troubled Newcastle United have suffered the biggest exodus of fans in England, with gates down almost 5,000 per game. Only the match against Hull City in September has topped 50,000 this season and that was because the supporters wanted to shout abuse at Mike Ashley, the owner, and Dennis Wise, the executive director (football). Newcastle's club shop has also slashed 25 per cent off replica shirts.
Much as the rest of the country's supporters find it hard to resist laughing at the Toon Army, the empty seats at St James' Park and Ashley's failure to find a buyer for the club are as much to do with the credit crunch as the way Newcastle are run. And now even the Premier League's top four are feeling the effect.
Even before the turndown, the Virgin Money Football Fans' Inflation Index showed a 21 per cent rise in match-day costs since last season, with an estimated outlay of £106.21 per fan, the first time it has been above £100. Scott Mowbray, a Virgin Money spokesman, said: “In the past year fans have had severe pressure on their finances from rising mortgages, fuel prices and energy bills. The recent fall in oil prices might see a small drop in our next index in January, but fans are still paying a lot more.“It will also be interesting to see whether clubs attempt to put their prices up even higher as revenue from programmes, food and replica shirts falls.”
Train fares have also rocketed way above the rate of inflation. Steven Powell, of the Football Supporters' Federation and an Arsenal fan, said: “Most fans can't afford the train because there are no longer cheap advanced booking fares. So they go on the official coach, on a minibus or drive with friends and share the petrol costs. Supporters are also cutting down their stadium spending, taking their own food and even flasks.”
The Times