THERE HAS never been such a time in sports. The world of sports is experiencing a never-before slump following the upheaval in the financial market. The financial slump that has hit the world today following the bankruptcy of American insurance and investing and banking giants has not left the sports world unscathed.

Today the sports world is reeling following the slump. AIG, the insurance behemoth, is a shirt sponsor of football world champions. The amount agreed by AIG for the sponsorship rights was an English league record. But the recent upheaval has put the future of the contract in jeopardy.

But it’s not only the football world that is suffering due to the financial crisis prevailing across the world. The sports industry as a whole has suffered heavily following the recent financial crisis. All the sports are feeling the chill.

2012 Olympics

One of the victims of the crisis is the London Olympic Games 2012. There was a lot of hype about the Olympics but the preparation for the Olympics has taken a hit due to the slump.

The slump in the property prices has also left its mark on the Games. Property prices have slumped clouding the prospects of recouping money from athlete’s village and other unrequired infrastructure after the games. The number of apartments planned in the games has been reduced from 4200 to 3000. The government has also introduced other cost-cutting measures to trim expenses.

Baseball

Tribune Company owned popular baseball club, Chicago Cubs was recently up for sale. The bid was estimated at a mammoth $1 billion. While the team excelled on the field, the company looked for an exit due to the slump. Although there are three buyers interested to acquire the club, the deal is yet to be clinched. The owners feel the present turmoil may delay the conclusion of the deal and the offered price may be reduced.

Basketball

Some felt that basketball had the potential to become the most popular sport in the world and Federation of International Basketball Association (FIBA)was determined to step up its popularity by promoting the game on a worldwide basis. But the recent financial crisis has bought the planned expansion programme to a halt.

The financial crisis has taken its toll also on the National Basketball Association (NBA) and has forced it to cut down on the number of pre season games in Europe. Commissioner David Stern told reporters that the league was playing only four games in four European cities in 2008, down from seven in six cities in 2007. Stern also announced that the league would lay off about 80 employees, or nine per cent of its work force as a measure of cost - cutting.

Motor Racing

The French Grand Prix has been part of the Formula One championships since its inception in 1950. But recently, the 2009 French Grand Prix had to be cancelled following the financial crisis.

Cancellation of the French Grand Prix was not the only cost cutting measure adopted by the Fédération Internationale de l’Automobile (FIA) to effect severe cost cutting measures. The worst was still to come. Last week, the FIA proposed radical cost-cutting measures, including the possible use of standard engines from 2010, to help teams survive the global financial storm. Thus, the chances of lack of high-speed drama cannot be negated.

Former champions Williams, who made a 21.4 million pound ($37.54 million) loss in 2007 and are sponsored by both bailed-out British bank RBS and the companies owned by troubled Icelandic retailer Baugur, are now the only team not funded by a manufacturer or a billionaire.

The FIA even said that there lurks a real danger of ceasing subsidies as well that might jeopardise the future of Formula One.

Golf

It’s the Professional Golf Association (PGA) who is on route to survive this financial storm. Golf is a game with probably the biggest corporate tie up. As such the financial crisis would have harmed golf more than any other sport. But the PGA assured the fans that the global financial problems would not have a bearing on the golf circuit. The organisation said that golf’s special bond with the corporate world and a strong fan base had put the PGA to survive the current financial storm.

Football

Probably the worst possible victim of this financial debacle is football. European clubs had been in a soup following the financial crisis, the English Premier League being the worst sufferer of the lot.

European football clubs that are not bankrolled by wealthy owners are feeling the pinch of the financial downturn and could suffer further in future, at least in the medium term, as sponsorships and ticket sales are sure to get reduced. With the American insurance giant AIG bankrupt, the major EPL club Manchester United felt the pinch of the on going problem. But it’s not only Manchester United that is feeling the heat. There are other clubs in Europe who are standing at the crossroads with the fear of getting closed down.

Some questions were raised over the future of Manchester United’s record 56. 5 million pounds agreement with American International Group after the insurance company’s bailout by the American government.

Fellow premier league club West Ham United are without a shirt sponsor following the collapse of tour operator XL Leisure Group and promoted West Bromwich Albion has also failed to find a replacement for Deutsche Telekom’s T-Mobile.

Newcastle United was close to losing its shirt deal with Northern Rock bank, which had to be rescued by the British government, and Lazio, traditionally Italy’s sixth-largest club, were also without a shirt sponsor.

English football has amassed debts of around three billion pounds ($5.2 billion) at all levels of the game and a top club could fold in the current financial climate, English FA chairman David Triesman said on Tuesday (November 4). He also hinted at the chances of a reputed club getting closed down following the financial trouble.

However, earlier this month, English Premier League chief executive Richard Scudamore said that the structure of the game was sustainable despite the crisis.