News2 mins ago
Is It About Time This Madness Stopped?
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£111 million for a footballer!!!!!
£111 million for a footballer!!!!!
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Football inhabits a different planet to every other business. Many clubs pay out more than 90% of their income in wages - principally to the players. There is constant criticism when the CEO of a large company is paid a few million in salary and bonuses when heading up a company that employs many thousands of people. But nothing when a footballer is paid two or three times that sum when the only responsibilities he has is to turn up.
NJ @ 08.26,
I've been saying this for years. Football exists inside its' own bubble. Regardless of anything else that's happening in the world, the money keeps pouring into a small number of pockets. The figures are obscene but it's got that way because people buy into it and tolerate it. But one day the bubble will burst.
I've been saying this for years. Football exists inside its' own bubble. Regardless of anything else that's happening in the world, the money keeps pouring into a small number of pockets. The figures are obscene but it's got that way because people buy into it and tolerate it. But one day the bubble will burst.
That's the entertainment business for you. Charge the public whatever they can get away with, then inflate every cost with little regard to real world values.
At least with transfers much of the money stays in the industry I guess.
I've never really understood the football industry system anyway. A team employs a footballer under a contract, then when the contract ends they have the gall to demand money for the employee to go to a different employer. That's not how the real world works. When a contract ends it ends, an employee is then free to go sign a new contract wherever and with whoever they want. Any old agreement is over and done.
At least with transfers much of the money stays in the industry I guess.
I've never really understood the football industry system anyway. A team employs a footballer under a contract, then when the contract ends they have the gall to demand money for the employee to go to a different employer. That's not how the real world works. When a contract ends it ends, an employee is then free to go sign a new contract wherever and with whoever they want. Any old agreement is over and done.
Hoppy, i recall Burnley's first match of the season when we were first promoted to the PL. We were at home versus Man Utd and, shortly after half time, United brought on their sub. The commentator introduced him thus;
"And here comes United's new £70m (i think) signing, Angel Di Maria. Which is more than Burnley have spent in transfers, in total, in their entire existence."
Sort of brought home just how level a playing field the PL really is.
Oh, by the by, we beat 'em 1-0 thanks to a brilliant 19th min goal from Robbie Blake :-)))
"And here comes United's new £70m (i think) signing, Angel Di Maria. Which is more than Burnley have spent in transfers, in total, in their entire existence."
Sort of brought home just how level a playing field the PL really is.
Oh, by the by, we beat 'em 1-0 thanks to a brilliant 19th min goal from Robbie Blake :-)))
//That is how it works already OG.... Players can leave for free when contract ends.//
Indeed OG. The current situation (i.e. player free to leave when his contract expires) came about as a result of the “Bosman” case in 1995. Prior to that the club who held the player’s registration could demand a fee for his release, even though he was no longer under contract. The ruling came from the European Court of Justice and was founded on the EU’s freedom of movement principle.
//…if that's the case NewJudge why don't you earn millions playing the game?//
Because you’re confusing responsibility with ability. The only responsibility a professional footballer has is to turn up as directed for training and matches. A CEO has responsibility towards the company’s shareholders, staff and customers for the its performance.
Don’t get me wrong – I’m not criticising footballers for making a fortune out of what is otherwise a fairly unusable talent. Good luck to them. They’ve managed to persuade fans who attend the matches to shell out seventy or eighty quid to watch them for 90 minutes, when many of those same fans earn less in five years than the player is paid in a week.
It’s the entire business model of football that astounds me and in particular the money the clubs spend to buy and pay their players. No other business would spend £100m to engage a staff member when that £100m is written off by the end of his contract.
Looking at Manchester City’s last reported accounts (to June 2022) they had a matchday income of £54m and a broadcasting income of around £250m. Their accounts show they wrote down as amortisation (i.e. depreciation) £140m on their player registrations. This means they wrote off almost half the income from their core activity. Their pay costs were £353m (i.e. 16% more than their core income). Although they made an operating profit on their core activity (i.e. playing football) this was completely written off – and a lot more besides – by player transfer and amortisation costs
No other business would survive with this kind of balance sheet. That’s why “Planet Football” really is in a class of its own.
Indeed OG. The current situation (i.e. player free to leave when his contract expires) came about as a result of the “Bosman” case in 1995. Prior to that the club who held the player’s registration could demand a fee for his release, even though he was no longer under contract. The ruling came from the European Court of Justice and was founded on the EU’s freedom of movement principle.
//…if that's the case NewJudge why don't you earn millions playing the game?//
Because you’re confusing responsibility with ability. The only responsibility a professional footballer has is to turn up as directed for training and matches. A CEO has responsibility towards the company’s shareholders, staff and customers for the its performance.
Don’t get me wrong – I’m not criticising footballers for making a fortune out of what is otherwise a fairly unusable talent. Good luck to them. They’ve managed to persuade fans who attend the matches to shell out seventy or eighty quid to watch them for 90 minutes, when many of those same fans earn less in five years than the player is paid in a week.
It’s the entire business model of football that astounds me and in particular the money the clubs spend to buy and pay their players. No other business would spend £100m to engage a staff member when that £100m is written off by the end of his contract.
Looking at Manchester City’s last reported accounts (to June 2022) they had a matchday income of £54m and a broadcasting income of around £250m. Their accounts show they wrote down as amortisation (i.e. depreciation) £140m on their player registrations. This means they wrote off almost half the income from their core activity. Their pay costs were £353m (i.e. 16% more than their core income). Although they made an operating profit on their core activity (i.e. playing football) this was completely written off – and a lot more besides – by player transfer and amortisation costs
No other business would survive with this kind of balance sheet. That’s why “Planet Football” really is in a class of its own.
//11.29 NJ whats planet football?//
Planet Football is the planet which the people involved in top level professional football inhabit. It's where the normal conventions of business and commerce do not apply. Such conventions as not paying nine figure sums for assets which will devalue to zero in a very short time and which are unlikely to ever give the business anything like the return which a normal business would expect for such a short-lived asset.
One thing is for sure - the people involved do not live on Planet Earth.
Planet Football is the planet which the people involved in top level professional football inhabit. It's where the normal conventions of business and commerce do not apply. Such conventions as not paying nine figure sums for assets which will devalue to zero in a very short time and which are unlikely to ever give the business anything like the return which a normal business would expect for such a short-lived asset.
One thing is for sure - the people involved do not live on Planet Earth.
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