Niall Quinns Discopants wrote:johnpb78 wrote:The clubs that will always struggle will be the Uniteds, Barcelonas, Real Madrids, etc because they will take forever to pay down their debts, and servicing the liability will automatically reduce their ability to compete in the transfer markets and pay top dollar wages. Until a benefactor takes them over, they will remain in this circle of debt and will struggle to move forwards. As the transfer market becomes more normalised, the clubs without debt, eg us, Chelsea, will be able to exploit this, and still sign the top players on greatly reduced terms than would be the case today.
No. That is exact opposite of what would happen. Rags, Barcelona, Real, Milan etc despite being DEEP in red constanly make operational profits. Operational profits don't including the repayments of the debts (of umbrella company in U***d's case). It's just money spent on operations and money gained from matchday revenue, merchandise etc. Therefore this will make it impossible for Club like ours, or even more so for any other club that would end up in our situation, to ever challenge the big clubs. Since you have to speculate to accumulate, but according to these restrictions you can't really financially speculate or simply invest on the business to push it to next level and eventually through on field success (and marketing value this will give us of course) generate operational profits (this is what we are aiming for), you will never be able to make any professional clubs take giant steps forward and punch above their weight.
This will hurt most clubs like us and Chelsea. But also likes of Wigan and Fulham. They too, like us, are living beyond their means in order to make their clubs bigger in long term (well who knows what the fuck Dave Wallace thinks but anyway) even if they are lower in hieararchy. Clubs who will benefit from this are likes of Leeds and Sheffield clubs in lower end of the scale and in higher end the former G14 clubs. As far as our position in league table goes we will not fall too much as we are easily among seven biggest clubs in England as far as the income goes but the gap between us and rags+Arsenal+Liverpool will be enormous and will make Premier League eternally three horse race.
What Platini's aim is, doesn't interest me one bit but he is trying to restrict the competition in open business and shouldn't be able to do that.
I agree if what you say is true, but where has it been said conclusively that the fiscal measure of a club will be operating profit?
The intention of the rule is to calm wages, calm the transfer market and bring some much needed financial stability back to all leagues across Europe, but particularly England and Spain where it has gotten out of hand. The only way that can happen is by making it unattractive for owners to borrow against future earnings which may never materialise, hence stopping the top few clubs spending silly money on the top players, only to see those transfer fees paid to the smaller clubs leave the game into the coffers of banks. Using operating profit as a measure would achieve none of this.
I stand to be corrected, but I think it has gotten in the board psyche here that operating profits is the measure to be used, maybe from reporting saying that you can only spend what you earn etc, but if "what you spend" includes your debt interest, or dividends to owners who then pay the debts of the holding company - then these clubs will be up shit street in no time. However, I dont believe it has ever been stated that operating profit will be the measure used, and I do think the impact on the establishment will be massive
I believe there may be some transitional period for those in the most debt, which is perhaps understandable, but I just dont see how it is detrimental to us
