EPTOn July 25 2014 05:22 Rebs wrote:
its not my logic lol, its well accepted fact, every other journal on the subject has the same to say. I think there was a book a few years back called soccernomics that had quite an interesting take on it aswell. It tried to over rationalize alot of things but it was pretty accurate on how football clubs are bad busness.
Real Madrid does not earn 2 billion dollars a year . I think last year it was like between 600 and 800million depending on accounting practice and where you check it. Please do not pull numbers out of your ass if you havent looked it up. Or just look here
They consistntely spent above that in wages and ops costs and transfers, because they can.
in the 90's United was super profitbale and Fergie was a genius at winning and making money. The only one of his kind. He to however went and fucked up by getting into Horse disputes with the part owners who he managed to get edged out of the club and then Glazers went and leveraged a billion dollars in debt for the takeover. United will probably make it up.. at some point in our lifetimes if things go at the current rate.
Football is a bad business and no one really makes any money on the long term. Turning a year on year profit for a while does not eclipse the fact that these clubs are leveraging debt like its not even funny.
Sure its getting better, much better, but only for the big clubs.
Why do you think in this "cutthroat as fuck manager turnover central of a football world" where the average life of a manager in Europe is a little over a year or like 1.2 years to be exact (aggregated across all managers in The top 5 leagues) did Wenger manage to hang around without winning shit for years ? Because he handled the club properly and the people on top knew what he was doing and were ok with it.
Wenger overachieved massively compared to the resources he had at his disposal. Why wouldnt he? He was a smart foreign manager breaking into a very anglo centric managers pool, had a first mover advantage on European Talent, the cheap kind, not your Cantona's and Ginola's who.He practically got half the all conquering French national team for penny's, getting his Veira's and Henry's on the cheap, aswell his diets and training shit was more like you see employed all the way down to the employ now all the way to the conferences let alone the top 4 divisions. As soon as everyone else got on that wagon and started scouting the continent he was no longer ahead of the curve.
The new fashion is throwing money to win. So hes been forced to join the club and now also throw money at his problems. The only reason he had to wait was because he is responsible and waited to pay off their stadium. He just didnt move first on it and the teams that did benefited.
Year on year profits is like me saying I have 1000's dollars to pay off. But for the last year I made 20 dollars in profits at my lemonade stand so Im in great shape Ill pay it off in the next 50 years.
Teams are consistently having debts written of into equity or shares. At the end of the day football clubs are safer than any bank because they just get phoenixed.
Which as far as I am concerned is fine.If football clubs are institutions and a burden on the ones that support them its their own pressure on the ppl runningthe clubsthat causes it, so its a fair trade.
Its the players who benefit the most in this scenario (unless clubs go into administration, then they are pretty much fucked)
But lets get real. Running a football club is the last thing you want if you want to be a profitable business.
This is the kind of stupidity and ignorance that reminds me why I got tired of making any sensible comment. I will not address this.
Also loling about something you lol'd about is also very stupid. There is no way to temper that im afraid, hate to sound so aggressive and I apologize for the forward nature of my tone, but its true.
its not my logic lol, its well accepted fact, every other journal on the subject has the same to say. I think there was a book a few years back called soccernomics that had quite an interesting take on it aswell. It tried to over rationalize alot of things but it was pretty accurate on how football clubs are bad busness.
Real Madrid does not earn 2 billion dollars a year . I think last year it was like between 600 and 800million depending on accounting practice and where you check it. Please do not pull numbers out of your ass if you havent looked it up. Or just look here
They consistntely spent above that in wages and ops costs and transfers, because they can.
in the 90's United was super profitbale and Fergie was a genius at winning and making money. The only one of his kind. He to however went and fucked up by getting into Horse disputes with the part owners who he managed to get edged out of the club and then Glazers went and leveraged a billion dollars in debt for the takeover. United will probably make it up.. at some point in our lifetimes if things go at the current rate.
Football is a bad business and no one really makes any money on the long term. Turning a year on year profit for a while does not eclipse the fact that these clubs are leveraging debt like its not even funny.
Sure its getting better, much better, but only for the big clubs.
Why do you think in this "cutthroat as fuck manager turnover central of a football world" where the average life of a manager in Europe is a little over a year or like 1.2 years to be exact (aggregated across all managers in The top 5 leagues) did Wenger manage to hang around without winning shit for years ? Because he handled the club properly and the people on top knew what he was doing and were ok with it.
Wenger overachieved massively compared to the resources he had at his disposal. Why wouldnt he? He was a smart foreign manager breaking into a very anglo centric managers pool, had a first mover advantage on European Talent, the cheap kind, not your Cantona's and Ginola's who.He practically got half the all conquering French national team for penny's, getting his Veira's and Henry's on the cheap, aswell his diets and training shit was more like you see employed all the way down to the employ now all the way to the conferences let alone the top 4 divisions. As soon as everyone else got on that wagon and started scouting the continent he was no longer ahead of the curve.
The new fashion is throwing money to win. So hes been forced to join the club and now also throw money at his problems. The only reason he had to wait was because he is responsible and waited to pay off their stadium. He just didnt move first on it and the teams that did benefited.
Year on year profits is like me saying I have 1000's dollars to pay off. But for the last year I made 20 dollars in profits at my lemonade stand so Im in great shape Ill pay it off in the next 50 years.
Teams are consistently having debts written of into equity or shares. At the end of the day football clubs are safer than any bank because they just get phoenixed.
Which as far as I am concerned is fine.If football clubs are institutions and a burden on the ones that support them its their own pressure on the ppl runningthe clubsthat causes it, so its a fair trade.
Its the players who benefit the most in this scenario (unless clubs go into administration, then they are pretty much fucked)
But lets get real. Running a football club is the last thing you want if you want to be a profitable business.
This is the kind of stupidity and ignorance that reminds me why I got tired of making any sensible comment. I will not address this.
Also loling about something you lol'd about is also very stupid. There is no way to temper that im afraid, hate to sound so aggressive and I apologize for the forward nature of my tone, but its true.
I actually checked it out... Of course they don't earn that "a year". The numbers are for the last 5 years. The TV income is 140+M euro per year(that's just for La Liga). In the link I posted it clearly says 674M dollars annual revenue. Whatever. The point is - football actually brings more money every year.
Transfer fee and salary cap are indeed needed tho...
