The Premier League model and its negotiability

AndIt’s an economic model Premier League More than ever in discussion, having signed on Manchester cityInvestigation (and potential punishment) for breaking more than 100 financial rules. European football, with league and its chief, Good JavierIn the introduction, he raises questions about the viability of a system that spends billions and throws many losses year after year. The shadow of the entity that regulates spending looms large, in the form of the economic control that governs Spanish clubs, over the English Premier League.

According to the data processed by LaLiga, Between 15/16 and 20/21 the Prime Minister earned 1.8 times more money than the Spanish Championship1.7 times more than the Bundesliga, 2.1 times more than the Italian League and 2.7 times more than the French League. The investment gap has risen to much higher levels for these. The Prime Minister has spent 17 times more than LaLiga And about 25 times more than the Bundesliga. A number that increases if we go back the last two seasons: spending 22.3 times more than in LaLiga and 46.4 times more than in the Bundesliga.

  • Income from the first issue between 15/16 and 20/21
  • 1.7 times more than the Bundesliga
  • 1.8 times more than LaLiga
  • 2.1 times more than the Italian league
  • 2.7 times more than the French League
  • First class tuition between 15/16 and 20/21
  • 5 times more than the Italian league
  • 17 times more than La Liga
  • 25 times more than the Bundesliga

How does he explain that the difference in income is (almost) double and the difference in expenditure is 22 times greater? LaLiga is clear: the premier is based on a loss-making model, Backed by billionaires Than put the lost money from your pocket. Spanish club employers believe that this model is unsustainable and that in the long term, when the “game” owners get bored, Destroy clubs and the rest of footballwho will want to imitate the great English clubs in order to compete.

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Journalist Matthew Brooker pointed out a few days ago in an article on bloomberg That the path taken by English clubs “Without a wealthy donor to cover the losses, it is risky for the financially weak teams.”. In the same column, focus is on salary-to-income ratio from the Premier League. UEFA recommends that salaries should not exceed 70% of a club’s income to maintain a good financial balance. In the Premier League, the percentage was 71% in the 20-21 season and 73% the previous season. And in the English second division championship, by 125%, according to figures from Deloitte. And this is taking into account only salaries and not the cost of transfers (what in LaLiga’s economic control is known as depreciation), which makes the ratios even worse.

financial times I also dealt with this problem in recent days. The economic newspaper talks about financial rules that prevent teams from living beyond their means in Spain or from Germany’s 50 + 1 rule, which prevents foreign investors from acquiring majority stakes in teams, making clubs dependent on their income to finance themselves. Javier Tebas who in recent weeks Prime Minister described as a “drug market”The Bundesliga has always set an example.

Financial Fair Play approaching the English Premier League? The government has already expressed its intention to set up an independent regulatory body. Indeed, as Matthew Brooker points out, it is feared that the prime minister’s investigation into Manchester City is merely a gesture in response from the Premier League to these government intentions, To prove that you have the tools to place the order. In England they are already beginning to consider that there is a problem, especially with the teams of the second tier of English football, whose debts are increasing. Investors who view football not as a business but as a way to improve their international image or unleash passion, such as the Saudi fund that controls Newcastle, are viewed with some suspicion. Billionaires for whom financial performance is not the goal.

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We must see its impact on European football in general, and English football in particular, Fair Play in UEFAwhich will limit staff spending to 90% of the club’s income from next season and 70% in the next two years.

Chelsea spend the winter market

The last ‘bullshit’ to come from the market premiers was the expenses incurred by Chelsea in the winter window. almost 330 million euros What the “blue” box spends is more than the sum of all the rest of the big leagues put together in the last market. However, one fact is noteworthy, which was noted by the Financial Times: no top-flight club has made any of the five most expensive transfers in history. Enzo Fernandez is sixth. Nor has he been awarded the Ballon d’Or since Cristiano Ronaldo in 2008.

LaLiga, despite the difference in investment, is proud of the results of its teams in European competitions. Real Madrid have won five Champions Leagues since 2014, and Barcelona’s treble between 2006 and 2011. In addition, Atlético, Sevilla, and Villarreal have won the Europa League, the Rojiblancos have reached the Champions League final twice, and the yellow team have played some semi-finals recently. … the Spanish championship is still competitive. Employer of Spanish clubs He realizes that the PM has bigger muscles (It’s a bigger country, with a greater penetration of pay TV…) And to reach their level economically is a long way off, but Fighting so that the difference in spending is commensurate with the difference in income. In short, that there is greater control over the finances of English clubs.

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