By the way Haarlem is a great town. Had a brilliant night out there a few years back, met some lovely girls from Groningen.I know this has been bought up before, my biggest issue with FFP is the £105M limit. It has been this way since 2013 and doesn't take into account the rise in inflation. Wages and transfers have sky-rocketed in this time. It would probably work if it took inflation every year.
It's the same for everyone. This is the one bit of FFP that barely registers a concern for me.I know this has been bought up before, my biggest issue with FFP is the £105M limit. It has been this way since 2013 and doesn't take into account the rise in inflation. Wages and transfers have sky-rocketed in this time. It would probably work if it took inflation every year.
There is no chicken or egg.
Newcastle are going through a commercial transformation because the owner injected capital.
That allowed the clubbto compete more effectively.
The competition improvement allowed them to be more commercially viable, selling more shirts to existing fans.
Etc.
The reason that there is a top 6 or 7 broadly that winning on field confers commercial advantages.
For the top clubs, the original advantage was gained in 1960s and was directly related to stadium capacity, which produced a legacy of winning.
By the 1990s, this was consolidated in the emergence of the revenues from TV and UCL.
This powered the advtages that keep growing since the late 2000s with inflating TV licensing.
Its pretty much path-dependent.
Any club trying to break into it needs external investment first to create a momentum that pulls advantage toward them. It's super difficult to maintain without continual investment.
Some clubs have followed a methodology in which external investment can be boosted by player development and sales in the attempt to stay the race.
There's a concept in evolutionary economincs known as the 'Red Queen Effect', in which lagging competitors are said to need to "run twice as fast just to stand still." It's a quote from the Red Queen in Alice Through The Looking Glass, when Alice and the Quee have a running race. Its metaphor about the maintenance of long term advantage relative to contemporaneous performance.
If you listen to the Price of Football podcast, or catch Keiran Maguire in the media, he often uses the phrase "its not just about the size of the pie but how the pie is sliced."
You can think of the advantage as an absolute gap in a relative landscape. For a quick example think of two competitors sharing a 100 unit pie, one having 80 units the other 20 units. The gap is 60 units. If the pie doubles in units, to 200, but the slices stay the same relative percentage, the gap also doubled to 120 units.
To maintain the absolute gap of 60 unit, the laggard competitor would have to take 4 times their original share - grow their share "twice as fast" as the whole pie.
Sorry for the long post, but there is no chicken and egg.
It's the same for everyone. This is the one bit of FFP that barely registers a concern for me.
Well spotedEnglish was optional
There's still the £35m allowable losses each year for someone to cover.What I don’t really understand is, what is the use of having billionaire owners if they’re not allowed to pump their money in to avoid the ffp sanctions.
If clubs are truly losing this much money how in the world is the structure not being changed. Or are these paper losses? Why would anybody want to own a football club?
You're actually regular on this forum. You must have noticed that 99.99% of fans think they could make better decisions than any incumbent owner, manager or player.If clubs are truly losing this much money how in the world is the structure not being changed. Or are these paper losses? Why would anybody want to own a football club?
Right, but this is far deeper than the fools and their money. Like honestly, what is the point of the industry? Totally going to pull the American card here - look at the state of American professional sports - those people are printing money. How is it that our professional leagues allow for such profit whereas football in general is a race to be able to just barely see the surface of the water above your head?You're actually regular on this forum. You must have noticed that 99.99% of fans think they could make better decisions than any incumbent owner, manager or player.
So now imagine that one in a million fan who has been successful financially, decides to act on that foolish arrogance.
Because, quite simply, you have closed leagues in America - no relegation.Right, but this is far deeper than the fools and their money. Like honestly, what is the point of the industry? Totally going to pull the American card here - look at the state of American professional sports - those people are printing money. How is it that our professional leagues allow for such profit whereas football in general is a race to be able to just barely see the surface of the water above your head?
Solid points. Kinda wish the US would have relegations.Because, quite simply, you have closed leagues in America - no relegation.
Owners, and commercial partners, are quite willing to invest millions and millions in the franchises in the NFL, NBA, NHL, MLB, MLS and any other acronym you’d care to maintain, because they know those „teams“ are going to be in the same „league“, year after year, with the same guaranteed revenue.
Look at the drop-off in income between the Premier League and Championship.
Commercially, the Championship is a joke. In the Premier League, you get that season, and if you get relegated, you’re f**ked.
No such problems in American sports, where some teams purposely tank to get first pick at the upcoming college talent in the draft, all the while knowing their position in the league is absolutely secure, and so is their income.
Dirty get.won a foursome, unbelievable. 14 over for 9 holes, so not tournament quality, but amazing - a row of single bogeys instead of exotic scores...
The issue with that, is this is a matter each league. But in Europe, the leagues are competing against each other for resources and talent.Solid points. Kinda wish the US would have relegations.
Also wish European football capped spending on transfers and wages at the average of the middle 8 club's revenue in their respective leagues.
Every PL club, except Burnley, should have their accounts in by tomorrow. Companies House will start publishing next week.