The Financial Situation (69 Viewers)

LiquidPLP

Senior Member
Jun 9, 2012
12,237
@LiquidPLP yeah well I agree that lots of things should not be limited, but we all read about the great depression and how unlimitedness had to be limited in order to bring order!
There's no 'the great depression' for sheiks it seems then. So why all the trouble? :)

Almost all western countries print money these days - it's one of the main reasons the prices are inflated and it's visible everywhere, not only in football. Italy also suffers because of EU and Euro.

Overall I hate all the 'to bring order' arguments. It's not like people can't take care of themselves. Besides there were already some that tried to bring 'the order'. It ended up very bad in some cases you know.
 

Ronn

Mes Que Un Club
May 3, 2012
20,867
I don't think putting financial restrictions on the football clubs "to bring order" is wrong. in US, NFL salary cap rules have been implemented for years, and that is part of the reason NFL is the most commercially successful sports league in the world. Similar rules, although less strict has been in effect for NBA as well. Yet pretty much everybody in US, especially NFL owners, are big proponents of free market and "let market correct itself" doctrine.
If there is no regulation with regard to spending, football leagues will lose their competitiveness and popularity. That's partly what happened with MLB in US, which has dropped it in terms of popularity to NFL.
Now, I agree that FFP rules, as is, are ridiculous, and probably won't work. But they are a first step to solve a major problem.
 
Jul 13, 2010
6,790
I don't think putting financial restrictions on the football clubs "to bring order" is wrong. in US, NFL salary cap rules have been implemented for years, and that is part of the reason NFL is the most commercially successful sports league in the world. Similar rules, although less strict has been in effect for NBA as well. Yet pretty much everybody in US, especially NFL owners, are big proponents of free market and "let market correct itself" doctrine.
If there is no regulation with regard to spending, football leagues will lose their competitiveness and popularity. That's partly what happened with MLB in US, which has dropped it in terms of popularity to NFL.
Now, I agree that FFP rules, as is, are ridiculous, and probably won't work. But they are a first step to solve a major problem.
i agree although not convinced by nfl, as there is too much commercial. lets say from 3 hours of broadcast 1 hour is for commercial things. SAme goes with nascar (especially on fox), I don't know how ffp could be related with this, but I don't want this to happen to football, I'd like to see it as natural as possible
 

Ronn

Mes Que Un Club
May 3, 2012
20,867
i agree although not convinced by nfl, as there is too much commercial. lets say from 3 hours of broadcast 1 hour is for commercial things. SAme goes with nascar (especially on fox), I don't know how ffp could be related with this, but I don't want this to happen to football, I'd like to see it as natural as possible
NFL has salary cap rules in place since 1994. It means that a team can give a combined limited amount of money to its players. It prevents a rich team to aquire all of the talent in the league. If there was no salary cap, perhaps teams like Packers would not have any chance to compete with Cowboys. Ironically, Cowboys have not won a Superbowl since 1995.
Since there is no "transfer fee" in NFL, players are transferred either through free agency, draft or player-player trades. It means that the biggest amount of money a team spends is on player compensation. Limiting that would limit accumulation of talent in one team, and increase competitiveness in the league.
It is interesting that most of the NFL owners, as well as a big chunk of their fan base, are proponents of republican ideas or Laissez-faire economics, yet they understood they could make more money by implementing these regulations.
 
Jul 13, 2010
6,790
NFL has salary cap rules in place since 1994. It means that a team can give a combined limited amount of money to its players. It prevents a rich team to aquire all of the talent in the league. If there was no salary cap, perhaps teams like Packers would not have any chance to compete with Cowboys. Ironically, Cowboys have not won a Superbowl since 1995.
Since there is no "transfer fee" in NFL, players are transferred either through free agency, draft or player-player trades. It means that the biggest amount of money a team spends is on player compensation. Limiting that would limit accumulation of talent in one team, and increase competitiveness in the league.
It is interesting that most of the NFL owners, as well as a big chunk of their fan base, are proponents of republican ideas or Laissez-faire economics, yet they understood they could make more money by implementing these regulations.
so when a player goes from team A to team B, team B pays all the contract money (if that player still had, lets say, till 2016 to stay) to team A, and if the salary was 5M a year team B has to pay 10M(2 years x 5M)? thats 'compensation'?
 

Ronn

Mes Que Un Club
May 3, 2012
20,867
so when a player goes from team A to team B, team B pays all the contract money (if that player still had, lets say, till 2016 to stay) to team A, and if the salary was 5M a year team B has to pay 10M(2 years x 5M)? thats 'compensation'?
No. Most players wait until they become free agent and then move to another team. If a player is under contract, and wants to leave, he should be traded with one or more players. multi-team trades are also possible. Trades (especially multi-team ones) are more common in NBA, but common in NFL as well. Compensation is basically player's wages. I haven't seen a case that a team has paid cash to another team for a player. I don't think it even exists under NFL CBA(collective bargaining agreement)
Now, if a player is under contract of Team A until 2016, and is traded to team B, by default he'll have contract with team B until 2016. Team B has to immediately negotiate a contract if they want to keep the player.
 

AFL_ITALIA

MAGISTERIAL
Jun 17, 2011
31,785
I hate the way American sports are run, I think the system in place here is much better. Even how leagues are set up, with promotion and relegation. Playoffs are so stupid.
 

Ronn

Mes Que Un Club
May 3, 2012
20,867
Yeah it is designed to maximize profit. I agree with you on NFL, because the playoffs are so cruel. But I'm not sure if they can do anything else, since the physical toll of American football on players is way higher that our football. So basically the number of games should be limited.
But NBA playoffs are the best. Teams usually play their best basketball in playoffs. absolutely thrilling. I'm not a hockey expert but I heard NHL has a very exciting playoff too.
 

Zacheryah

Senior Member
Aug 29, 2010
42,251
Belgium has playoffs to, and many dislike it

I do find myself largely uninterested by the compeitition but will check the proceedings once its playoff time


And basically see how brugge tosses away another title
 

Bjerknes

"Top Economist"
Mar 16, 2004
115,984
Part of the reason transfer fees continue to increase is because prices of everything continue to skyrocket due to central banks printing money across the globe. Stocks, food, textiles, and commodities are still going higher, so the cash clubs had several years ago doesn't buy as much today. But it's even worse now due to the inflation in football from cheap access to money from billionaires.
 

Ocelot

Midnight Marauder
Jul 13, 2013
18,943
If prices in football would only rise as much as the general rate of inflation there wouldn't be a problem specifically related to football though.
 

Ronn

Mes Que Un Club
May 3, 2012
20,867
Inflation in sports is in some part due to increased revenue of rich clubs, because of new markets, better marketing and unbalanced distribution (especially in case of Spain), as well as outside money. Think about it. If you are a oil-rich sheik who wants to buy a new toy, how many toys are really available? In US, since there is no transfer fee involved, the value of the teams themselves increased tremendously. LA clippers, which has been overall the worst team in the NBA from its inception was sold for $2B. They don't even own their own stadium.
 
Jul 20, 2012
20,044
Juventus remain the Serie A club with the biggest revenue, while Inter and Roma have increased their income, but Milan’s fell.

La Gazzetta dello Sport released its findings after the news Real Madrid are the top earning club in the world with €603m in revenue.

Juventus are top of the pile in Italy with an expected €270m-280m for 2014-15, though there will be an extra €50m if they progress past the Champions League group phase.

La Gazzetta also published another set of statistics, namely the debtors who owe money to the Serie A clubs.

Inter are owed a remarkable €74m for 2012-13, almost double the sum for second placed Udinese on €40m.

Milan are owed €26m, Roma €23m, Juventus €15m and Napoli just €10m.
Future is looking really bright
 

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