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Cricket crisis?

I could talk all day about Cricket, but I will try to keep this brief. And you may well wonder what a piece on cricket has to do with credit management and finances? Sadly perhaps, rather a lot. Especially in the county game where there are some fairly serious problems but also some economic lessons

http://www.spincricket.com/2011/04/30/county-crickets-financial-crisis/
The above is a very good article detailing the problems, but to keep it simple, the real difficulties appear to have been caused by chasing allocation of test matches and heightened expectations for the 20/20 game.

There are seven test matches allocated each year. Three are set for Lords and the Oval which leaves the remaining four to be spread around another seven grounds involved in the “bidding process”. Not an easy fit is it? Also to be capable of making a bid, the counties need the facilities and that is where the problems start. They have invested heavily (and frankly it was badly needed at certain grounds such as Old trafford) but have actual guarantee of income. In effect the market is limited and the entry is high and I am sure that could be represented by one of those curves beloved of economists. Either way, it is creating a potentially dangerous scenario and whilst thats fine in most industries where a overextended failed business is missed by few, county cricket has a wider responsibility. Sport is different

20/20 has been a success but also a novelty. There were huge crowds initially but by expanding the number of games immensely, the crowds have collapsed. Two issues here. First there should always be a little scepticism about sudden public enthusiasm for something they have not shown great interest in before. Second, where was the market research? Didnt they realise that many of the crowd were once a year attendees? Horse racing’s audience is made up of a whopping 80% annual only visitors. Its the annual office trip, not something they are going to return to three times in the following week

I am sure that again there is an economists take on that too…

It is a game I love like no other, so lets hope these lessons have been absorbed

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