End of Spending Era? (1 Viewer)
- Thread starter Boudz
- Start date
haha 6 yrs. that's too much 
The common fallacy is that by spending big in the transfer market raises costs which in turn reduces the profit. Hence Moggi tries to reduce the transfer fee and tries to look for bargain basement.
Juve is a PLO, and the aim of management is to maximize shareholder value . Share price is the sum of expected discounted flow of earnings. If an investment i.e. spending on young players, is expected to increase the flow of revenues and thus enhances long-term profits, share prices will rise even if there is reduction of short term profits.
Therefore, I confidently reject the claims that Moggi is pursuing this low investment policy in order to maximize profits. The end of spending era is more to do with change in strategy regarding how Juve should maximize shareholder value. Whether it is a right strategy or not is debatable, but there is a philosophical difference between this hypothesis and those that I intend to reject. So what is the practical difference? Difference is that Moggi should look for players that gives value for money and not just cheap FA signing. That is where scouting and negotiation comes in, and that should be the basis for competitive advantage in FC. Signing 28+, IMO, is not a good policy and that is where I think Moggi is taking a wrong line, presuming the reports coming out are true.
Juve is a PLO, and the aim of management is to maximize shareholder value . Share price is the sum of expected discounted flow of earnings. If an investment i.e. spending on young players, is expected to increase the flow of revenues and thus enhances long-term profits, share prices will rise even if there is reduction of short term profits.
Therefore, I confidently reject the claims that Moggi is pursuing this low investment policy in order to maximize profits. The end of spending era is more to do with change in strategy regarding how Juve should maximize shareholder value. Whether it is a right strategy or not is debatable, but there is a philosophical difference between this hypothesis and those that I intend to reject. So what is the practical difference? Difference is that Moggi should look for players that gives value for money and not just cheap FA signing. That is where scouting and negotiation comes in, and that should be the basis for competitive advantage in FC. Signing 28+, IMO, is not a good policy and that is where I think Moggi is taking a wrong line, presuming the reports coming out are true.
i agree.moggi tends to overlook the values players are able to pay back to us in terms of performances and potential for the future,but rather looks at his price tag and decides whether juve could possibly coach him into a somewhat decent player.some have paid off big time,some struggled to justify even their small transfer fees, and then we have our paramattis and baioccos.
i must say man utd are a club which usually sign relatively cheap(where youngsters are concerned) and get returns by the truckload.
i must say man utd are a club which usually sign relatively cheap(where youngsters are concerned) and get returns by the truckload.
++ [ originally posted by Desmond ] ++
i agree.moggi tends to overlook the values players are able to pay back to us in terms of performances and potential for the future,but rather looks at his price tag and decides whether juve could possibly coach him into a somewhat decent player.some have paid off big time,some struggled to justify even their small transfer fees, and then we have our paramattis and baioccos.i must say man utd are a club which usually sign relatively cheap(where youngsters are concerned) and get returns by the truckload.
i agree.moggi tends to overlook the values players are able to pay back to us in terms of performances and potential for the future,but rather looks at his price tag and decides whether juve could possibly coach him into a somewhat decent player.some have paid off big time,some struggled to justify even their small transfer fees, and then we have our paramattis and baioccos.
i must say man utd are a club which usually sign relatively cheap(where youngsters are concerned) and get returns by the truckload.
It's not that hard to get a smaller club to agree to take top-class youngsters on loan regularly. The reason Man Utd did it was the restriction in the EPL that clubs couldn't loan players to teams in the same division. That's been relaxed now, but it was in force when Man U set up their agreement with Antwerp. Juve have the option of loaning players to smaller clubs in Serie A, and shoud use that to greater effect than they do. And if Juve's youngsters aren't Serie A standard, then I'm sure Antwerp have plenty of rivals who'd love to have their advantages!
As for a coach who encourages youth, it's a matter of finding one and sticking with him. That won't happen in Italy.
As for a coach who encourages youth, it's a matter of finding one and sticking with him. That won't happen in Italy.
Mikhail is spot on. The reason why Serie A team likes to field a team of veterans is more to do with culture than anything else. Coaches in Serie A are expected to produce result from day 1, which often forces them to play more established stars than "unknown" youngsters. As a result, Serie A has lost precious young talents for peanuts, Henry and Viera to name a few. I am hoping that Capello will buy and stick with young players rather than signing veterans: While I wont mind Canna especially if it only means giving up Di Vaio, signing likes of Oddo is not a good transfer policy IMO.
And certainly no more Biaocco's, Fresi's, Legros, Paramatti's. We want young talents! Chellini is a good start and I hope Moggi buys likes of Gilardino, Rosicky, Mexes; world class young talents!
And certainly no more Biaocco's, Fresi's, Legros, Paramatti's. We want young talents! Chellini is a good start and I hope Moggi buys likes of Gilardino, Rosicky, Mexes; world class young talents!
