Big buys versus little guys

Soccer champion Chelsea's visit to Wigan, a club promoted to the Premiership this year, is more than a contest between England's south and north.

Their first game on Monday (NZ time) pits a team that cost 270 million ($675 million) against one assembled for a 20th of that.

"It's like David and Goliath times 10," said Michael Sterling, a lawyer specialising in sponsorship. "How can a promoted team challenge the likes of Chelsea or Manchester United?"

The season-opening contest highlights the rich-poor divide that's stifling competition in the world's wealthiest league.

London-based Chelsea is bankrolled by Russian Roman Abramovich, with a 7.5 billion fortune. Wigan is controlled by David Whelan, founder of JJB Sports and worth 227 million.

Abramovich, who took control of Chelsea in July 2003 for 139 million, ushered in a new era of spending.

Since the takeover, his cheques have accounted for 40 per cent of the total outlay by the Premiership's 20 clubs. Chelsea reaped its first league championship in 50 years in May and went on to invest another 29 million in three players.

At the other end of the scale, Wigan's seven new players cost at least 6.2 million.

Chelsea's latest signing is Shaun Wright-Phillips, a 21 million purchase from Manchester City. The team is the 4-6 favorite with bookmaker William Hill to retain the title.

Wigan, which was promoted last season, is rated 8-11 to finish in the bottom three of the Premiership and return to the second tier.

"In most matches, Chelsea's substitutes' bench will have cost more than the whole opposition," said Rupert Adams, a spokesman for William Hill.

Wigan was once the centre of Britain's coal-mining industry and was once better known for rugby league than soccer.

After his soccer career was cut short by injury, Whelan founded JJB in Wigan in 1971 and built it into Britain's largest sporting-goods retailer. The 68-year-old has the 17th-biggest fortune in soccer. Oil tycoon Abramovich, 38, tops the list.

 

Chelsea's on-field success lifted revenue 54 per cent to 144 million last year, making it soccer's fourth-biggest team by sales behind Manchester United, AC Milan and Real Madrid. The same year, Wigan had 4.9 million in revenue. Deloitte and Touche predict promotion may boost Wigan's sales by 30 million.

On average, premiership teams spent 41 million on salaries last financial year, compared with 9 million by second-tier clubs.

Success also brings a bigger share of the 1.02 billion British Sky Broadcasting paid to televise live games until 2007. Chelsea received 37 million in prizemoney and TV income for domestic competitions last season and made 28 million ($49 million) from Europe's elite Champions League.

"Success is increasingly linked directly to spending power, which is dependent on the way TV money is allocated," said Joe McLean, who specialises in corporate recovery at Grant Thornton. "Where large sums of money are concentrated among the few, competition suffers."

Since 1997, 28 teams in England have sought creditor protection.

Leeds United increased spending on wages 56 per cent to 43 million in 2001 to build a team that reached the semifinals of the Champions League.

Three years later, the club narrowly avoided bankruptcy after racking up debt of more than 90 million and was demoted to the second tier.

Premier League spokesman Dan Johnson said television money was distributed more evenly than in any other major league and top teams needed more cash to help compete in foreign competitions.

"It's a balancing act," he said. "But we believe we provide a steady income, allowing newcomers to compete while rewarding success."

Promotion has benefited Wigan. It has sold a club-record 10,000 season tickets, more than twice as many as last year. A seat for 19 home games costs as much as 375, compared with a top price of 1150 at Chelsea's Stamford Bridge. Chelsea averaged 41,870 fans last season to Wigan's 11,563.

Wigan has attracted five of seven new players from second- and third-tier teams in France and England. Coach Paul Jewell said his team would not be starstruck on Monday.

"I don't want us going into games with autograph books," said Jewell. "We'll respect teams off the pitch, but when a game starts we have to fight as if our lives depend upon it."

Wealth disparity

Chelsea is bankrolled by Roman Abramovich, worth 7.5 billion.

Wigan is controlled by David Whelan, worth 227 million.

Abramovich spent 139 million to buy Chelsea and his cheques since have accounted for 40 per cent of the total outlay by the Premiership's 20 clubs.

Chelsea has since spent another 29 million on three players.

Wigan's seven new players cost 6.2 million.

- BLOOMBERG