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The promised land. Getting further away......



N

narly101

Well-known member
Feb 16, 2009
2,683
London
Interesting spin on the Premier League finances on the BBC this morning.

http://www.bbc.co.uk/news/business-32931345

I was particularly interested in the quote "It may mark a turning point in football finance and "a new age" of significant profitability for top clubs, they said."

Whilst this may be true, it will also have a huge impact on the rest of the league - it will fuel increased spending on wages in the top tier, and create a larger gap between the Championship, and indeed the rest of the divisions.

The fact that combined revenues in the PL "soared by 29% to £3.26bn", with a comparison of the pitiful Championship "the combined revenue increased by £54m, or 12%, to a record £491m". Taken into consideration that there are 4 less clubs in the PL than the Championship, this is stunning.

Now I'm no mathematician, but WTF!
 




DavidinSouthampton

DavidinSouthampton

Well-known member
NSC Patron
Jan 3, 2012
16,569
I am confident there will be some sort of collective realisation in the not too distant future that things can't go on like this, and something will have to be done to limit the earnings of the premier league clubs, and/or to redistribute income to support the lower leagues.

Either that, or we bring in Sepp Blatter to sort it out! He seems to have had a mission to champion the underdogs in championing football in less football oriented parts of the world. I hear he will be looking for a job soon.
 


Simster

Simster

"the man's an arse"
Jul 7, 2003
54,166
Surrey
On the positive side, at least Phil Gartside and Bolton Wanderers are still on the wrong side of the divide.
 




Icy Gull

Icy Gull

Back on the rollercoaster
Jul 5, 2003
72,015
I don't really care that much about getting to the Premier League. The Championship is a great division and as long as we are entertaining and scoring goals whilst flirting with the top few places I'm happy to stay here. The problem is hanging onto decent player at this level when the wages from the PL are even more astronomical.
 




D

Deleted member 22389

Guest
All good things must come to an end at some point, and the clubs who have sensible like us will be the ones who benefit in the end. I reckon we will be thanking Bloom in a few years time.
 


G

gordonchas

New member
Jul 1, 2012
230
"The transformation of Premier League club profitability will fuel even greater global investor interest in Premier League clubs," said Dan Jones, head of Deloitte's Sports Business Group..." the risks associated with investment in Premier League clubs seem to be diminishing."

No it won't. For the top six this is generally good news, for the rest it further jeopardises their future position as none of them have a guaranteed continuation in the Premier League.

What has just happened is what always happens when new TV money is added to the pot, there is a lag before wages catches up with the additional income. There are at least 12 teams at any one time in the Premier League who will not make any significant profit, certainly not enough to guard against the risk of their relegation at some point in the future.

When that day, inevitable as it is, arrives they will be stuck with their PL cost-base (an ever-increasing cost-base by the looks of it) and an even greater income drop than normal.

In order to put that day off, the relegation threatened half of the table will spend like there's no tomorrow.

But Dan Jones is a friggin expert.
 






gregbrighton

gregbrighton

New member
Aug 10, 2014
2,059
Brighton
It will keep rising. There is no limit to the finances being poured into football. It's a very successful product at the top. The gap will only widen between the Premiership brand and Championship but that's life isn't it....
 


Goldstone1976

Goldstone1976

We Got Calde in!!
Helpful Moderator
NSC Patron
Apr 30, 2013
13,782
Herts
I opened this thread thinking it was going to be about continental drift.
 


Pavilionaire

Pavilionaire

Well-known member
Jul 7, 2003
30,559
Ernest said:
It's simply not sustainable, a business model built on SKY paying ever increasing amounts for TV rights will crash at some stage.
Click to expand...

I disagree, I actually think the Premier League IS finally sustainable. They've reached the point where the worldwide TV markets are so big even exorbitant wages (up 7%) can be covered by TV money (up 29%). Fvck you Championship, all aboard the Prem gravy train!
 




Gullflyinghigh

Gullflyinghigh

Registered User
Apr 23, 2012
4,279
DavidinSouthampton said:
I am confident there will be some sort of collective realisation in the not too distant future that things can't go on like this, and something will have to be done to limit the earnings of the premier league clubs, and/or to redistribute income to support the lower leagues.
Click to expand...

I like the idea but who is going to be able to do that?

I can't see that the FA, even if it had the stomach for it, would actually be able to. The PL Is a runaway train in terms of finances, the only thing to do is wait for it to either slow down or crash.
 


Tricky Dicky

Tricky Dicky

New member
Jul 27, 2004
13,558
Sunny Shoreham
DavidinSouthampton said:
I am confident there will be some sort of collective realisation in the not too distant future that things can't go on like this, and something will have to be done to limit the earnings of the premier league clubs, and/or to redistribute income to support the lower leagues.
.
Click to expand...

Zero chance of that happening.
 






DavidinSouthampton

DavidinSouthampton

Well-known member
NSC Patron
Jan 3, 2012
16,569
wsupp said:
Mmmmm. And pigs might fly !
Click to expand...

Gullflyinghigh said:
I like the idea but who is going to be able to do that?

I can't see that the FA, even if it had the stomach for it, would actually be able to. The PL Is a runaway train in terms of finances, the only thing to do is wait for it to either slow down or crash.
Click to expand...

.
Tricky Dicky said:
Zero chance of that happening.
Click to expand...

I have always been an optimist.

But I have always thought - and it could happen several years down the line - that the "Big Clubs" will one day realise that, unless they do something for smaller clubs and leagues not out of altruism but out of commercial sense, there will be no more talent around that they can poach from the lower tiers because the clubs there won't have
the facilities to develop it
 
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happypig

happypig

Staring at the rude boys
May 23, 2009
7,956
Eastbourne
I can see a move to get rid of promotion/relegation to the PL altogether; the clubs would argue that it provides stability, the TV companies would be happy enough as long as their armchair supporters continue to stump up cash.
 


Tricky Dicky

Tricky Dicky

New member
Jul 27, 2004
13,558
Sunny Shoreham
happypig said:
I can see a move to get rid of promotion/relegation to the PL altogether; the clubs would argue that it provides stability, the TV companies would be happy enough as long as their armchair supporters continue to stump up cash.
Click to expand...

Nah, the TV companies won't be happy when most of the games for the second half of the season have nothing riding on them, therefore less excuting and fewer viewers. They also make a lot out of the play offs.
 


El Presidente

El Presidente

The ONLY Gay in Brighton
Helpful Moderator
Jul 5, 2003
39,701
Pattknull med Haksprut
gordonchas said:
"The transformation of Premier League club profitability will fuel even greater global investor interest in Premier League clubs," said Dan Jones, head of Deloitte's Sports Business Group..." the risks associated with investment in Premier League clubs seem to be diminishing."

No it won't. For the top six this is generally good news, for the rest it further jeopardises their future position as none of them have a guaranteed continuation in the Premier League.

What has just happened is what always happens when new TV money is added to the pot, there is a lag before wages catches up with the additional income. There are at least 12 teams at any one time in the Premier League who will not make any significant profit, certainly not enough to guard against the risk of their relegation at some point in the future.

When that day, inevitable as it is, arrives they will be stuck with their PL cost-base (an ever-increasing cost-base by the looks of it) and an even greater income drop than normal.

In order to put that day off, the relegation threatened half of the table will spend like there's no tomorrow.

But Dan Jones is a friggin expert.
Click to expand...

Disagree. Current TV deal was a tipping point in terms of PL finances. The next one will increase profitability even further, and that's before the overseas rights are renegotiated.
 






Blue Valkyrie

Blue Valkyrie

Not seen such Bravery!
Sep 1, 2012
32,165
Valhalla
happypig said:
I can see a move to get rid of promotion/relegation to the PL altogether; the clubs would argue that it provides stability, the TV companies would be happy enough as long as their armchair supporters continue to stump up cash.
Click to expand...
The problem with that is you would then get even dodgier owners, who would pocket all the TV cash, and just fund pub standard teams, safe in the knowledge that they will still be able to do it all again the next season, and the next, and the next etc. etc.

It would turn Premier League teams into instant 'money trees'.

So what if they lose 7 or 8 nil each week... The owner is still garanteed 50+ million a year for just owning the club, and why on Earth would they bother to share that with players.

There would be 5-6 teams chasing European football, and 14-15 rubbish outfits acting as ATMs for their owners.
 
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