[Archived] Football Finances

[Majiball]

I hate to go off topic on this board..

Yep both of us wrong there.. I just knew it was a South American club.. and no they did not get any cash.. Still if vision are in charge of him they won't hold his contract.. at least I dont think so.

I take it you noticed Pinto signed for them this year.. has played 3 whole games for them and now he is off? Good player in the eyes of Santos, I doubt it or they would not get rid so quickly.

My point is kind of highlighted by others on this board.. we have thanks to buying players from abroad increased our popularity worldwide.. this in turn increases the revenue generated workwide by merchandising, TV revenue etc.. yes we do fund foreign teams but in turn through these areas of income we recoup the money. We are not the Italian league, there has always been a bit of worldwide interest in our league.. and we dont play slow football.

I am chuffed to bits seeing regular posters on this board from scandinavia.. they are all good lads.. well most of them anyway

Sorry but I have to reply. I've moved it here to avoid the whole off topic debate.

MSI 10 year deal to run Corinthians I'll skip. So Santos signed a player they do not rate, interesting strategy, I'd heard he fell out with the coach.

Revenue in the premier league is at its highest levels for years, I do not disagree. Yes we spend our money abroad but lets look a little deeper.

I found these to be good reads when looking at the subject of Football finances.

Revenue goes up but so does Debt

2.65 Billion in debts and rising as of 2006/07 (its worth noting it was 674 million one year prior 2 billion pound increase), every available penny spent on the team in the chase for success, it football we expect no less. The premiership had a revenue of 1.5Billion, 1 Billion of that came from six clubs. Wages must be paid.

Wages reach new levels and rising

So 1 billion goes on wages alone and they are going up, New players have to be signed and so on but debt's must be re-paid. The world is about to enter a credit crunch, banks are battening down the hatches, interest rates are rising and so on. Now most football clubs have there loans on fixed term.

Credit crunch and football

As it says in the article what happens when those fixed terms expires and clubs want to re-negotiate, do you really think banks will be favourable given the current climate?

Last season saw records transfers for English clubs in the top flight with most going abroad, debt will have increased. Look at the state of our lower league clubs, they don't have a pot to ###### in. Its also worth noting that 41 clubs have gone into administration since 1992, the inception of the premiership, that's almost 50% of all clubs. UEFA are so concerned about the debt's amassed by the prem they had the veiled threat of banning clubs in debt. We should spend our money more in this country, our football leagues are the best in the world most have been around for 10's of years, but for how much longer.

More than 60% of the premiership is made up of foreign players that's higher than any other league in the world, but how many of them are top draw players. Yes its great to see all these players yes it raises the profile, but at what cost domestically and finacially. I personally would rather see teams sign British but they won't because of price, foreigners are cheaper, but British is better all round. If more money was spent in this country not only would our national teams improve but debt's would not be as big, and they will only get bigger, and then what happens.

English football is set for a fall as much as I don't like to say it, pretty soon the only way to survive will be to have a rich benefactor. Given what I've laid out I think its unfair to say we re-coup our outlay's, support your own country first others second.

[daren]

It's interesting, but not surprising to note that prior to Abramovich buying Chelsea and sinking a quite ludicrous sum of money into them, wages had flattened out. Basically what happened was that the increase in wages brought on by the increase in revenue from the inception of the Premiership had reached a peak and started to slide back.

Chelsea's spending, which was without fear of future financial consequence, shattered the equilibrium that was forming and put everyone back onto the frantic wage train. While clubs on the continent and in England nearly always had a player or two that were considered critical and thus paid more than the average, ordinary wages were relatively reasonable. That seems to be long gone now, with average players raking in huge wages because relegation is a punishment with almost unbelievable consequences.

Blackburn could probably weather it, because we have much lower debts than most of the other clubs. The situation is worrying and getting worse for the many of the other clubs, who are living too far beyond their means. Another Leeds would be horrible, no matter how much I dislike a club it's awful to see one implode. It might be coming, though.

[Majiball]

Well we maybe seeing the next leeds at man city even as we speak they have to find investment quickly surely.

Deloitte do a club by club guide:

Finances club by club

Makes for interesting reading and yes we're in there.

Chelsea's spending did have big consequences for the rest of us, they raised the bar man u arsenal etc had to catch up.

But the TV deals have as well the prem is over 50% above the rest of europes other leagues revenue wise, they are now starting to drive the prices up on us all.