We start this morning with an interesting perspective by sports economist Stefan Szymanski on the subject of Financial Fair Play.
Writing in The Times today, Szymanski puts forward the following.
"Adopting Uefa’s rules will only make it harder for small clubs to break into the elite," he claims.
"Manchester United, Spurs, Liverpool and Arsenal are quietly lobbying the chief executive of the Premier League to limit the spending power of Chelsea and Manchester City. It is no surprise that some of the big clubs advocate the adoption of Uefa’s Financial Fair Play (FFP) rules. Clubs are struggling to be profitable and insolvency is rife.
"Under FFP, clubs have to maintain solvency and must not spend more than their football income — the so-called break-even rule — which restricts the ability of owners to cross-subsidise the team from other business income. According to Uefa, this would “protect the long-term viability and sustainability of European club football”. Worthy goals indeed, but the rules may have less virtuous consequences.
"Given that the more successful teams generate the largest incomes, the only way lesser teams can challenge them is for someone to inject money from outside. It’s no coincidence that the only teams to break the dominance of the established clubs in the past 20 years have been Blackburn Rovers, Chelsea and Manchester City, all of whom had “sugar daddies”. FFP would make it harder for upstart clubs to challenge those already at the top.
"Uefa presents itself as a benevolent regulator with the best interests of football as its sole objective. But it has a financial interest as well. According to its 2010-11 accounts it generated €1.4 billion from the sale of rights, primarily to the Champions League, and paid out €1 billion to clubs, thus keeping 28 per cent to spend as it sees fit. The relationship is analogous to that between a car manufacturer and its dealers, a brewer and the pubs that sell its beer or a newspaper publisher and the corner shops that sell papers.
"EU competition law prohibits companies competing in the same industry from making agreements that restrain competitive behaviour. This protects consumers from conspiracies to raise prices or lower the quality of goods and services, and protects workers from employers ganging together to cut wages.
"Restrictions imposed from above can be good for consumers if they ensure that the product is delivered to them in good condition. Joaquín Almunia, the European Commissioner in charge of competition, appears to have approved FFP, thinking that it will benefit fans. This may be true when it comes to requiring clubs to pay their debts (including players’ wages) and maintain solvency. But by appearing to endorse the break-even rule the European Commission is failing to uphold the best interests of the fans.
The likely effect will be to ossify competition and maintain the dominance of established clubs (ironically, Chelsea and Manchester City may be the greatest beneficiaries, having already paid to join the elite). Less competition will reduce the pressure to spend on players’ salaries. While few may shed a tear for multimillionaire footballers, the quality of competition will also fall, as owners funnel their income into profits, not players.
"The Premier League case seems even simpler. Chapter One of the Competition Act prohibits agreements between undertakings that “have as their object or effect the prevention, restriction or distortion of competition within the United Kingdom” and this applies to agreements that “limit or control production, markets, technical development or investment”. This move by some of the Premier League clubs would appear to be an open-and-shut agreement to limit investment, and therefore illegal.
"To those who say that these rules are necessary to preserve the fabric of English football I would ask how many professional clubs have gone out of business in the past hundred years. Of the 88 members of the Football League in 1923, 85 still exist today, most still in the top four divisions (the exceptions being Aberdare Athletic, Merthyr Town and South Shields). Insolvency and restructuring of the limited liability companies that own football clubs are commonplace but should not be confused with the termination of the club, which almost never happens.
"English football is healthier than it has been for decades — the quality of the game has risen immeasurably in the past 20 years, attendances have almost doubled despite astronomic increases in ticket prices, upwards of £2 billion has been invested in stadiums. The Premier League is a global phenomenon, generating as much money from selling rights overseas as at home. And foreign investors have flocked to put their money in.
"Having thrived in a competitive environment, why on earth should the big clubs now be allowed to end that competition? If they manage to persuade the rest of the Premier League to adopt FFP it will be time to call in the Office of Fair Trading."
john68 wrote:[highlight]This is one battle we HAVE to win, Losing is NOT an option.[/highlight]
john68 wrote:What the fuck is happening? For the very first time in my living memory, our club are getting some good press.
I sincerely hope that our media have reached a point where they consider the final grab for total control a step too far.
Mancio4ever wrote:john68 wrote:What the fuck is happening? For the very first time in my living memory, our club are getting some good press.
I sincerely hope that our media have reached a point where they consider the final grab for total control a step too far.
Perhaps You won't realize it, because it was just anticipated by the clueless italian wum who once explained why Mancini was not a caretaker, nor a negative catenaccio nightmare from the italian past, but You have been told that CIty now have a professional senior CEO and a professional senior sporting director.
Amongst the benefits, You are starting to see what professionals can do.
or perhaps some insider at the Club have suggested You that those journalists, all the sudden, have seen the light of the TRUTH and the GOOD?
piss funny.
next stop, the first market summer window, professionally run (i.e. get targets at market price)
The Clueless WUM has sponken, once again (also because is getting sick of idiocy)
btw, Mods, may I start a fourth thread on the same subject, as in the last 2 weeks we have toppe BlueMoon on the League of Threads Starting, apparently? I mean, if this was a serious topic, it would be schizophrenic to jump from thread to thread in order to follow it.
nah, it can be true, it's just the clueless italian wum
Slim wrote:Roger, I think you're a great guy and you know I am your biggest fan, why in heaven's name are you coming across like a prick all of a sudden?(I think, still trying to get a handle on your posting style, it's a great source of amusement to me) I don't think this is you and john is a well respected member around here and I have told him the same thing. We have enough cunts around here, there is no club so stop trying to join it.
Chinners wrote:Slim wrote:Roger, I think you're a great guy and you know I am your biggest fan, why in heaven's name are you coming across like a prick all of a sudden?(I think, still trying to get a handle on your posting style, it's a great source of amusement to me) I don't think this is you and john is a well respected member around here and I have told him the same thing. We have enough cunts around here, there is no club so stop trying to join it.
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