V.League clubs struggle amid economic difficulties
(Baonghean.vn) - Looking at the rankings after phase I of V.League 2023, it is quite surprising to see many names that used to be "big guys" or former kings of Vietnamese football. However, that does not mean that the teams ranked above the top 8 teams are as stable or financially abundant as before.
The economy also competes to "stay in the ranking"
Economic figures from the General Statistics Office may startle us. After the first 6 months of 2023, 100,000 businesses closed, meaning that on average 16,700 businesses closed each month. On the contrary, after the first 6 months of the year, the whole country also had 113,600 newly registered businesses and returned to the market. Of these, 75,900 businesses registered for new establishment and 37,700 businesses returned to operation.
According to the Department of Business Registration, “These are positive signals in the context of many difficulties in production and business activities of enterprises.” Obviously, these are only positive signals. In reality, the economy and enterprises are currently facing many difficulties.
Statistics show that the registered capital of newly established enterprises in the first 6 months of 2023 decreased by 19.8% compared to the same period in 2022. It is also lower than the average level in the first 6 months of the period 2018-2022. In addition, the average registered capital per enterprise in the first 6 months of 2023 only reached 9.3 billion VND, the lowest level in the first 6 months of the year since 2017.
Accordingly, business capital is considered one of the biggest difficulties that businesses are facing. Although the State Bank has adjusted bank interest rates down many times, the problem of inventory and purchasing power has forced many businesses to cut labor or restructure industries and products.
On the other hand, the slow recovery of market capital such as bonds, stocks and real estate markets is also one of the reasons why many businesses are struggling. With a not-so-bright picture of the domestic and world economy, of course, businesses investing in football are showing extraordinary efforts and attempts. Especially businesses in the real estate and securities sectors...
Accordingly, of course, the financial health of V.League clubs will also be severely affected. Because Vietnamese football does not have a definition of making a profit or football can support itself. Meanwhile, many businesses that are sponsoring and investing in football are operating in the fields of securities and real estate, which currently do not have high liquidity.
Many concerns for V.League
End of round,Lam River Nghe An, SHB Da Nang, Becamex Binh Duong, Ho Chi Minh City, Khanh Hoa and Hoang Anh Gia Lai are the teams that will have to compete to avoid relegation. Most of them are former champions, V.League champions, have brands or have good financial and sponsorship support.
It is hard to believe that teams like SHB Da Nang, Becamex Binh Duong, Ho Chi Minh City or Hoang Anh Gia Lai are facing so many difficulties in the V.League race this year. Currently, the most uncertain future is probably Khanh Hoa. The sponsor has asked to withdraw due to business difficulties. According to research, this club still owes about 18 billion VND in salaries and bonuses.
Similarly, Ho Chi Minh City club, financial difficulties have come to this club since 2022 when 90% of the players' signing-on money was cut. An uncertain future awaits this team. Meanwhile, SHB Da Nang is still stuck in the problem of financial responsibility between the locality and the enterprise.
Many teams are trying to find a way to overcome this difficult period by changing their investment strategy, training the next generation, and prioritizing the use of young players. The most typical example is Becamex Binh Duong. After a period of spending money on shopping and winning titles, the team from the capital is no longer strong in the transfer market.
After parting ways with key players, the club was forced to use young players to save costs for Mr. Duc. SHB Da Nang almost only bought foreign players. Similar to Song Lam Nghe An, after bringing in Ngoc Hai, Trong Hoang, Dinh Hoang and retaining key players like Xuan Manh, the Nghe An team tried to maintain financial stability by strongly rejuvenating its squad.
Although they have to compete to avoid relegation, it is certain that any team that overcomes this difficult period with internal resources will definitely go longer and further in the V.League. Looking at the top, in terms of finance, no team is better off than Viettel Club. But they have also chosen to follow the path that Song Lam Nghe An and Becamex Binh Duong are taking, which is to live off the players they have trained themselves. Specifically, they said goodbye to Nguyen Manh and Khac Ngoc to give opportunities to young Viettel players.
In the top 8, people are asking how far teams like Nam Dinh and Topenland Binh Dinh can go, when this team does not focus on investing in youth training. In 2022, the team owes 38.5 billion VND, this year and next year, the year after that, who can be sure that Binh Dinh will continue to be present on the V.League map and not follow the footsteps of Quang Ninh and Saigon.
On average, each club in V.League needs at least 50-70 billion to ensure operations. With other revenues accounting for less than 10% (from tickets, sponsorship, commercial) of the current total operating costs, V.League clubs will still face many difficulties. While the V.League champion only receives 3 billion VND, there is almost no revenue from television copyright and has not received adequate support from the Federation as well as VPF.
V.League “bosses” truly deserve respect and sympathy and support during this sensitive period because maintaining business operations is difficult, capital is scarce and there must always be a balance between the interests of workers and investments./.
