[SPA] La Liga 2010/2011 (43 Viewers)
- Thread starter Dostoevsky
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I'm not really familiar with the economics of these two clubs. However, Real as far as i know is the club with the biggest revenue, followed by Barcelona. season 2008-2009 Real had an income of 409m Euros.( i think barca surpassed it last season though)
And yes, both the EPL and La Liga have serious economic troubles, however the teams that would suffer the most are the smaller sides. See, Mallorca won't compete in the europa league due to finance problems and they're already looking for a buyer.
Barcelona and Real would have no problems since there will always be someone willing to bank role their debts as they're global companies.
La Liga has a negative return of assests (ROA) of -7%, EPL ROA is of -5%, and Serie A's ROA is of -12%
The three big leagues are in trouble and as far as i know if one of the leagues falls down it would drag the other ones and the system would fall apart kinda like the greece situation.
The whole football economic system is messed up and its practically a bubble about to explode, that's why UEFA are implementing new rules. I assume.
Look, if the EPL, La Liga and Serie A were normal companies they would declare bankrupcy in less than 2 years.
That's according to my understanding and what i've read. someone with better economics knowledge could make it more clear.
And yes, both the EPL and La Liga have serious economic troubles, however the teams that would suffer the most are the smaller sides. See, Mallorca won't compete in the europa league due to finance problems and they're already looking for a buyer.
Barcelona and Real would have no problems since there will always be someone willing to bank role their debts as they're global companies.
La Liga has a negative return of assests (ROA) of -7%, EPL ROA is of -5%, and Serie A's ROA is of -12%
The three big leagues are in trouble and as far as i know if one of the leagues falls down it would drag the other ones and the system would fall apart kinda like the greece situation.
The whole football economic system is messed up and its practically a bubble about to explode, that's why UEFA are implementing new rules. I assume.
Look, if the EPL, La Liga and Serie A were normal companies they would declare bankrupcy in less than 2 years.
That's according to my understanding and what i've read. someone with better economics knowledge could make it more clear.
Nice explanation Enginehead, 
but if the UEFA is implementing the new rules how come Man City spent so much money?
but if the UEFA is implementing the new rules how come Man City spent so much money?
They don't seem to care about the new homegrown rule in EPL though.
To be honest i don't think they even have a serious business plan.
The rule as far as i know is that the club won't be able to spend more than the income they get. However, the rule is not implemented yet so City is spending while they can i would think.
However, they don't seem to care about the new homegrown rule in EPL.
I don't think they even have a serious plan.
However, they don't seem to care about the new homegrown rule in EPL.
I don't think they even have a serious plan.
Just remember 4 or 5 seasons ago they struggled to attract players like Bellamy.
Yet they made a lot of signings lasts seasons and they're trying to get rid of several of those players that are on gigantic wages, and as no clubs would want to pay that sort of wages they're stuck with the players, like Juve for example. I wouldn't want to pay the bills of a team where every player is on 150k p/w, besides that would mean that whenever they want to get rid of one of those they would have to pay them compensation or won't be able to sell thus the player leeching their money.
That's what i'm saying they don't even seem to have a serious business plan, they're only stocking "superstars" and have no vision whatsoever towards the future.
They're ignoring the rule that sets a minimum of english players in their team also and keep buying foreign players.
That's what i'm saying they don't even seem to have a serious business plan, they're only stocking "superstars" and have no vision whatsoever towards the future.
They're ignoring the rule that sets a minimum of english players in their team also and keep buying foreign players.
Many "big" companies in the world have huge debts yet they've been functioning for years now without any problems.
The U.S federal debt is 8 and a half trillion dollars, yet they're the biggest most influential market in the world by far. Debt isn't healthy thats true but it doesn't mean you'll go bankrupt if you have a big debt....
The U.S federal debt is 8 and a half trillion dollars, yet they're the biggest most influential market in the world by far. Debt isn't healthy thats true but it doesn't mean you'll go bankrupt if you have a big debt....
