Barcelona need loan for players wages

[dww]

That is certainly a factor that has to be considered, but Germany and France have similar rules. Whilst they don't have the huge names so much the Germans have a very competitive league and develop a good number of players. The football in the PL in the last season was woeful and really only the closeness of the 4th CL place and UEFA spots made the whole thing entertaining.

Given the high revenues from TV and ticket prices I would suspect that the PL could be run along German lines and be more globally competitive (than they are).

[SB]

That is certainly a factor that has to be considered, but Germany and France have similar rules. Whilst they don't have the huge names so much the Germans have a very competitive league and develop a good number of players. The football in the PL in the last season was woeful and really only the closeness of the 4th CL place and UEFA spots made the whole thing entertaining.

Given the high revenues from TV and ticket prices I would suspect that the PL could be run along German lines and be more globally competitive (than they are).

So how do Bayen keep players like Ribery who must be on mega bucks? And the rest of their squad for that matter?

[dww]

So how do Bayen keep players like Ribery who must be on mega bucks? And the rest of their squad for that matter?

They are one of the most cash rich clubs in the world because they have kept to budgets for years and years and have strong revenue from sponsorship, match attendance and TV. They really are a model of how a club should be run (unlike Barcelona). Although they do have the advantage of being the sole glamour club of a big nation.

[Chazza]

They are one of the most cash rich clubs in the world because they have kept to budgets for years and years and have strong revenue from sponsorship, match attendance and TV. They really are a model of how a club should be run (unlike Barcelons). Although they do have the advantage of being the sole glamour club of a big nation.

CNN Article

Bundesliga overtakes Premier League as world's most profitable

he German Bundesliga has overtaken the English Premier League as the most profitable in the world, according to financial analysts Deloitte.

Despite predicting that the Premier League's revenue will top $2.8 billion in the season just gone, Deloitte said clubs' profitability has more than halved between the 2007-08 season and the 2008-09 campaign.

Deloitte's annual review of football finance also showed that the total European football market grew to a record $19.3 billion in 2008-09.

According to Dan Jones, a partner in the firm's Sports Business Group, the reason the Bundesliga has leapfrogged the Premier League is due to its clubs' control of wages.

"The simplest measure to explain why the Bundesliga has overtaken the Premier League is that their clubs exercise more restraint over the wage bill," he told CNN.

"In the Premier League, the wages to revenue ratio is 67 percent, but it is just 51 percent in the Bundesliga. There are two reasons for this. Firstly, the licensing of clubs is stricter in Germany in terms of the financial regulations they have to adhere to.

"Secondly, rather than being private enterprises under the control of an individual, like Roman Abramovich at Chelsea, clubs are under control of the fans.

"The clubs' fans are required to own 50 percent plus one of the shares -- with the exception of Wolfsburg and Bayer Leverkusen, who are owned by corporations."

Jones said the Premier League should be "streets ahead" of its German counterpart in profitability, due to the huge television revenue it receives.

But Deloitte's figures show that although Premier League clubs managed to increase their revenue by three percent in 2008-09, operating profits were reduced from $267 million in 2007-08 to $114 million in 2008-09.

This is largely due to increased wage levels, with statistics revealing the $70 million increase in Premier League clubs' revenue was less than half the $190 million increase in wage costs.

Deloitte believes that trend cannot continue, but predicts the Premier League's new broadcast contracts will drive revenue up to over $3 billion in 2010-11.

Fans keep football afloat

So, why does football seem to be immune to the financial pressures being felt by many industries across the globe?

"Football has got an incredible amount of customer loyalty, which helps. A lot of clubs have been fairly good at freezing or cutting their prices," Jones said.

"It is a fairly accepted truth that live sports audiences are about as good as it gets for broadcasters. People will get together to watch it, it inspires those water-cooler moments.

"If you want live sports as a broadcaster then you're going to want the biggest sport in the world, and if you want the biggest league in the world then you want the Premier League."

'Spectacular mismanagement'

As for Portsmouth, who became the first club in Premier League history to sink into administration this season and were subsequently relegated, Jones thinks their situation was an anomaly.

"We see clubs get into difficulty because performance on the pitch is poor, with relegation and the like, but with Portsmouth actually performing well and winning an FA Cup, for them to be in this situation it has to be a fairly spectacular case of mismanagement."

Deloitte also warned that Premier League clubs would have make the necessary adjustments to their business plans to meet European governing body UEFA's target of becoming "break even" by 2013-14.

http://edition.cnn.com/2010/SPORT/fo...iga/index.html

[Fernandinho]

i say that we should start sniffing around for players i.e bojan!

[SB]

They are one of the most cash rich clubs in the world because they have kept to budgets for years and years and have strong revenue from sponsorship, match attendance and TV. They really are a model of how a club should be run (unlike Barcelona). Although they do have the advantage of being the sole glamour club of a big nation.

Sorry but I thought you were saying they were governed by similar rules to our ARL or A League with a salary type cap. Hence my questioning how they can keep such talent under the cap. I take it I misunderstood you Dave?

[SB]

CNN Article



http://edition.cnn.com/2010/SPORT/fo...iga/index.html

Quote "In the Premier League, the wages to revenue ratio is 67 percent, but it is just 51 percent in the Bundesliga. There are two reasons for this. Firstly, the licensing of clubs is stricter in Germany in terms of the financial regulations they have to adhere to.

Can anyone expand on this in a simple to understand way ( or don't bother trying as I'm tired and the final state of origin match is on soon )

[dww]

Sorry but I thought you were saying they were governed by similar rules to our ARL or A League with a salary type cap. Hence my questioning how they can keep such talent under the cap. I take it I misunderstood you Dave?

I can see where the misunderstanding comes from. They have rules that govern what they can do financially, which obviously includes wages, but it's not an ARL style flat salary cap across the league.

I should have been clearer - my point was that you can have financial regulations that limit (directly or otherwise) the wages you can pay to players and still have a successful and competitive club even in an international context.

[SB]

We've had clubs underpaying players (to keep them under the salary cap) and then employing them to work at the club as a bar tender and paying them 4 times the normal wage. There's always ways around it but if the fines/ punishment is severe enough it should work.

[Chazza]

Barcelona admit to big 2009/10 losses
Reuters - 2 hours ago

An audit of Barcelona's accounts by new president Sandro Rosell has uncovered a post-tax loss of 77.1 million euros for the 2009-10 season compared with a net profit of 11 million reported in June by the previous board of directors.

The loss, which the La Liga champions said was the first in seven years, highlights the financial state of many Spanish clubs, with even wealthy Barca - second behind Real Madrid in the latest ranking of the richest clubs by revenue by accounting firm Deloitte - slipping into the red.

The new Barca audit, conducted by Deloitte, showed operating income of 408.9 million euros and costs of 477.9 million compared with previous figures published under former president Joan Laporta of 445.5 million income and 429 million costs, the club said on their website on Tuesday.

Javier Faus, a Barca vice president, told a news conference the club's net debt had swelled to 442 million euros from 329 million at the end of the 2008-09 season.

"There is a structural problem," Faus said. "The sporting excellence of the past few years has not been reflected in excellence in economic management."

A deep recession, the collapse of the real estate market and surging wage and transfer costs have combined to push many of Spain's top-flight clubs deeper into the red and forced some, such as Real Mallorca, into administration.

After Laporta's exit at the end of June, Barca admitted cashflow difficulties and were forced to seek a 150-million-euro bank loan to address "liquidity problems".

One of the reasons for the poorer clubs' woes is the dominance Real and Barca command over revenue from television rights.

Unlike in rival European leagues, television deals, a key revenue stream, are negotiated individually and Real and Barca rake in about half of the 600-million-euro pot.

A study by University of Barcelona professor Jose Maria Gay published in May showed the 20 clubs in La Liga had combined debt of 3.526 billion euros in 2008/09, up from 3.49 billion the previous season.

http://fourfourtwo.com/news/spain/60381/default.aspx

Might stop any moves for Fabregas and/or Mascherano then

[Assassin]

So Platini's darlings are riddled with debt

[Nick77]

Let's make a cheeky 5 million pound bid for Messi!!
Sorry, I forgot we were skint - make that 5 thousand pounds!!!!

[Craig_H]

If we could get Messi for £5000, i'd personally pay for it out of my own pocket.

[red g]

If we could get Messi for £5000, i'd personally pay for it out of my own pocket.

ohhhh check out rockefeller

[PTP]

Football is a mess......

I think a wage cap and spending limit needs to be brought in across Europe...it can’t just happen in one league. I like that idea of the ‘marquee player’ ‘homegrown marquee player’ and ‘under 23 marquee’ player – it doesn’t have to be as set in stone as that, but it’s an interesting thought.