Sanchez to utd affects our business

[cricketfieldclarets]

http://www.skysports.com/football/news/ ... sean-dyche" onclick="window.open(this.href);return false;

[KefkaClaret]

I don't really see it. The increased spending from lower teams is due to the TV deals.

[Vegas Claret]

gonna affect everybody. The sooner, Utd, City, Chelsea, Madrid, Barcelona and Madrid get ****** for abusing the ffp rules the better football will be

[Darthlaw]

Pretty sure Utd, Chelsea and Madrid (if not Barca too) arent abusing FFP though. They generate their own funds to cover their outlay.

PSG and City are the ones abusing FFP.

[AshevilleNCClaret]

i would say it is a combination of both. the higher wage earners raise the bar for players salaries across the board. the increase in TV revenue allows the lower teams to also spend more, but also pay more when others know they have the money. a good case in point is alex pritchard: norwich could command a higher fee from a PL club (huddersfield) knowing that TV money is there.

[Sidney1st]

We've proven its bollock, that a club doesn't have to give in to stupid wage demands for bang average players, they can stand firm and be sensible like we have.

Yeah there will be an adverse effect from top transfers but smaller clubs need to learn to grow a pair and stand firm.

£70k a week to Rodwell with no relegation clause after he'd been injured a lot at City is am example.
Wolves paying O'Hara £40k a week in league 1 because they didn't have relegation clauses is another example.

[Blackrod]

I'd prefer we missed out on a few players than pay daft wages to bang average players. Jack Rodwell 70k a week in Champ. Laughable.The club paying that derserve to get relegated.

[Vegas Claret]

Pretty sure Utd, Chelsea and Madrid (if not Barca too) arent abusing FFP though. They generate their own funds to cover their outlay.

PSG and City are the ones abusing FFP.

Man Utd are 464 million quid in debt
Barca 216 million quid in debt
Madrid 180 million quid in debt
PSG 150 million in debt

So as far as I see they re abusing all sorts of things

[duncandisorderly]

Debt has nothing to do with it.

That is to say, having debt of 400,000,000 is fine if your turnover is 500,000,000.
It's not fine if your turnover 50,000,000, or 5,000,000 etc.

[Steve1956]

I'd prefer we missed out on a few players than pay daft wages to bang average players. Jack Rodwell 70k a week in Champ. Laughable.The club paying that derserve to get relegated.

Two seasons on the trot......Sunderland is a joke

[Funkydrummer]

I think it's about time that the clubs outside the "elite" top 6 or so used their
combined power to strangle the life out of them and let them go it alone.

If a form of cartel was created I'm sure we would be a force to be reckoned with.

Well, that's my theory anyway - b0ll0cks to 'em all, let 'em drown in their own self
importance and pomposity.

GITS !!!!!!!!!

[cricketfieldclarets]

We need them and they need us. Lets not kid ourselves.

As for debt. In the case of united etc its no different really to your own mortgage.

[AshevilleNCClaret]

Debt has nothing to do with it.

That is to say, having debt of 400,000,000 is fine if your turnover is 500,000,000.
It's not fine if your turnover 50,000,000, or 5,000,000 etc.

i think debt has everything to do with it. most of the top clubs are subsidized. true, they have enormous income but their excessive debt allows them to over extended themselves. they raise the bar for fees and wages. with this debt, they are inadvertently causing smaller clubs to drive themselves into financial holes which they cant get out.

[Sidney1st]

The smaller clubs are driving themselves into a hole, no one is forcing them to pay inflated wages for meh players.
No one is forcing them into debts they can't maintain without external help.

Brighton have debts of £150 million or so and that was before they got promoted.

[Tall Paul]

Brighton aren't in a hole.

[Sidney1st]

Only because Bloom keeps them ticking over.

[Cirrus_Minor]

The whole thing has gone way beyond obscene. For the first time in my life I am now seriously starting to question why I go to a football match.

[houseboy]

Man Utd are 464 million quid in debt
Barca 216 million quid in debt
Madrid 180 million quid in debt
PSG 150 million in debt

So as far as I see they re abusing all sorts of things

Who are these debts to? Banks? Investors? Suppliers? Other clubs? Whoever it is somebody isn't getting paid so why are they allowed to spend what they do whilst owing that kind of money? I understand if it's the banks in the form of loans if they are paying their repayments regularly because as such that is not really debt as long as they pay, but if it is to suppliers that is criminal in my view. It would be very interesting to see a breakdown of exactly what they owe and to whom.

[Funkydrummer]

I'm with you on that Cirrus, it's now beyond obscene and, if it wasn't for my beloved
Burnley, I'm pretty sure I wouldn't bother with football unless, or until, things changed.

[Tall Paul]

Only because Bloom keeps them ticking over.

Yes, and as he owns practically the whole lot, he effectively owes the money to himself.

[Sidney1st]

Yes, and as he owns practically the whole lot, he effectively owes the money to himself.

See Eddie Davies and Bolton if you're curious as to how that could end.
If not, leave your head buried in the sand.

[Funkydrummer]

The losses will be offset against his tax, that's for sure. He's not doing it
totally out of his love for the club. The bubble will burst, that's for sure, and
when it does they will join the ranks of Notlob, Portsmouth et al.

I for one, can't wait.

[Sidney1st]

Who are these debts to? Banks? Investors? Suppliers? Other clubs? Whoever it is somebody isn't getting paid so why are they allowed to spend what they do whilst owing that kind of money? I understand if it's the banks in the form of loans if they are paying their repayments regularly because as such that is not really debt as long as they pay, but if it is to suppliers that is criminal in my view. It would be very interesting to see a breakdown of exactly what they owe and to whom.

Glazers borrowed money to buy the club, but borrowed it against the club or something weird like that, hence the debts.
That's when the green and yellow scarf brigade started complaining and stopped complaining when Fergie kept winning trophies.

If UTD did an Arsenal I'd expect the scarves to be dusted off again.

[NottsClaret]

The whole thing has gone way beyond obscene. For the first time in my life I am now seriously starting to question why I go to a football match.

Really? The cash swilling around is all from oligarchs, arabs and Sky subscribers sat on their sofa. The ticket for me and my lad is better value than it's ever been for what we're seeing, i.e. a good Burnley side playing against some of the world's best players.

[JohnMac]

Players and their agents will keep demanding more until the well dries up. How long that will be depends on too many factors for me to worry about.

As long as we remain competetive at a level no lower than the Championship (a bit of realism) that'll do for me.

[houseboy]

Glazers borrowed money to buy the club, but borrowed it against the club or something weird like that, hence the debts.
That's when the green and yellow scarf brigade started complaining and stopped complaining when Fergie kept winning trophies.

If UTD did an Arsenal I'd expect the scarves to be dusted off again.

The Glasers borrowed a small fortune to buy the club. I believe that not long ago United's debt was somewhere in the region of three quarters of a billion, staggering amounts of money.
The rate of inflation in football is absolutely mind blowing and if it was replicated in the 'real' world there would be a financial crisis of unbelievable proportions. The problem is while it's allowed to go on it's not going to stop because no club wants to be left behind and the whole vicious circle just continues. I believe it's going to take some kind of outside intervention to stop it but what that would be I don't know. All I do know is that at the moment football operates in a completely different world to the rest of us and it seems like it's only going to get worse.
Question: how long before the first 1m pound per week footballer - or will that never happen?

[nil_desperandum]

Man Utd are 464 million quid in debt
Barca 216 million quid in debt
Madrid 180 million quid in debt
PSG 150 million in debt

So as far as I see they re abusing all sorts of things

Presumably their assets more than cover these debts?
How much could PSG sell Neymar for?

[Hipper]

Football operates in a market place, just like the real world.

At the moment it is still adjusting to enormous potential that is television, not just here but around the world. The income from that is still going up. These markets will become saturated but we're not there yet.

We at Burnley are riding on this wave. We've been fortunate in our timing compared with just a few years ago.

Banks continue to lend to the top clubs because of this potential. Rich people look at the big football clubs as status symbols. These people's investment may even give them financial and other benefits in other parts of their life.

There will be others who try to buy onto the band wagon and mess up - our friends down the road are a good example.

All this is how business generally works - borrow, take risks, maybe succeed but also can fail.

[Sidney1st]

Presumably their assets more than cover these debts?
How much could PSG sell Neymar for?

It's rumoured that Real will be paying £300 million plus in the summer...

[RocketLawnChair]

Man Utd are 464 million quid in debt
Barca 216 million quid in debt
Madrid 180 million quid in debt
PSG 150 million in debt

So as far as I see they re abusing all sorts of things

The value of these businesses and their assets far outweighs the values of the balance sheet debt so its totally sustainable. This isn't like running your current account subsidised by a weekly wage.

[skibum84]

As long as United are in the champions league and a huge football brand the glazers will make a lot of money on their investment. I’d love to see them drop away in the league, miss out on champions league, then eventually get relegated. Then they would be screwed! Unfortunately it’s not going to happen.

[houseboy]

Football operates in a market place, just like the real world.

At the moment it is still adjusting to enormous potential that is television, not just here but around the world. The income from that is still going up. These markets will become saturated but we're not there yet.

We at Burnley are riding on this wave. We've been fortunate in our timing compared with just a few years ago.

Banks continue to lend to the top clubs because of this potential. Rich people look at the big football clubs as status symbols. These people's investment may even give them financial and other benefits in other parts of their life.

There will be others who try to buy onto the band wagon and mess up - our friends down the road are a good example.

All this is how business generally works - borrow, take risks, maybe succeed but also can fail.

Good post and very true. I think though that eventually the bubble will burst because, as in the world of business, there is the possibility of over-trading, in other words you get to the point where you invest (buy players, pay wages etc. in this case) and suddenly that investment isn't matched by income: end result - serious financial difficulties with the banks suddenly not wanting to know. I'm sure that things will right themselves naturally simply because you have to assume that clubs are run by people who understand a balance sheet and would cease this ridiculous inflation before it causes untold damage. Whether the agents and players come to the same conclusion is another matter.

[Sidney1st]

Agents and players will grab anything they can right now and rightly so to a degree.
We'd all do the same.

Smaller clubs just need to stand firm and be realistic about the wages they're offering.

Bournemouth paying Defoe £100k a week on a 3yr deal is an example of giving to agents demands and considering he's not scoring like he was at Sunderland you'd say they've been had.