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"Money in Football"

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Tue 23/10/01 at 22:44
Regular
Posts: 787
As the level of money pumped into sport rises at a staggering rate, it can only be a matter of time until commercialism takes over fully and sport loses its meaning.

In football both transfer fees and salaries are rising, the divide between the clubs in the top flight and the clubs occupying lower divisions is massive, yet it is still growing. This is to the extent that we a just starting to see the emergence of a new breed of super-club, who are simply unbeatable. It is now common place in the wealthier leagues in Europe, that is Spain, Italy and England to see vast levels of commercial cash injected in the forms of advertising, sponsorship and broadcasting rights, and these are essential along with rising ticket prices to fund the players salaries. Top players are now commanding a wage of around £3 million a year, yet this figure is still rising and faster now than ever before.

In the past year alone the transfer fee world record has risen from £29 million to £46 million which is the price paid to Juventus by Real Madrid for Zidane. Before this Real also splashed out on £37 million for Luis Figo, which also smashed the highest transfer record at the time.

Such is the state of the European transfer market that Real Madrid have taken forceful steps to ensure that their star, Figo wonít be going anywhere. On his six year contract is a £110 million buyout clause, but with the turmoil that exists at present, who is to say that this figure will not be unheard of during his six year reignÖ

But how is it possible to justify such prices? In my eyes it is not, however it all depends on what someone is prepared to pay. So, in the not too distant future will it be a case of pick a big number and treble it?

Obviously talent and performance are key factors, but this is not the full story, are some players bought more for their image than their skill?

Gate receipts make up a large amount of a clubís revenue and to maximise this prices must rise, or the fans must be made to want to see their favourite players. Players are also chosen for their ability to generate revenue both on and off the pitch. The later includes merchandise and the clubs ability to demand more from sponsors and broadcasting deals. Other players are seen of as an investment, their skills and market price will be improved during a short-term stay at a club, whose view always was to sell their investment when the price was right. Examples of this include Gabriele Ambrosetti, bought for £0.5 million and later sold to Chelsea for £3.5 million.

The question, why are English clubs paying these vast amounts of money to develop foreign players? has to be asked. Half of the money spent is on importing foreign talent, and this surly must contribute to the England managerís job being described as the worst job in the country. English players are cheap relatively speaking, and it would be nice to see their skills being developed at home.
Tue 23/10/01 at 23:59
Regular
Posts: 15,579
The new FIFA transfer system should sort out the price structure.
Tue 23/10/01 at 22:54
Regular
Posts: 2,982
Nice Post....... I also think money is getting a bit out of hand in todays world, although I do find it quite exciting when I see a player has been bough for £20 million or so....

As for the English Players, Id like to see more English Players abroad, as really we only have McManaman and Owen Hargreaves. When you look at the French Squad most of the players arent actually playing for a team in France, this is also similar to Brazil and Argentina.

These 3 teams are probably the top 3 in the world, so it must be the way to do it.
Tue 23/10/01 at 22:44
Regular
"I dnt wnt a Tagline"
Posts: 104
As the level of money pumped into sport rises at a staggering rate, it can only be a matter of time until commercialism takes over fully and sport loses its meaning.

In football both transfer fees and salaries are rising, the divide between the clubs in the top flight and the clubs occupying lower divisions is massive, yet it is still growing. This is to the extent that we a just starting to see the emergence of a new breed of super-club, who are simply unbeatable. It is now common place in the wealthier leagues in Europe, that is Spain, Italy and England to see vast levels of commercial cash injected in the forms of advertising, sponsorship and broadcasting rights, and these are essential along with rising ticket prices to fund the players salaries. Top players are now commanding a wage of around £3 million a year, yet this figure is still rising and faster now than ever before.

In the past year alone the transfer fee world record has risen from £29 million to £46 million which is the price paid to Juventus by Real Madrid for Zidane. Before this Real also splashed out on £37 million for Luis Figo, which also smashed the highest transfer record at the time.

Such is the state of the European transfer market that Real Madrid have taken forceful steps to ensure that their star, Figo wonít be going anywhere. On his six year contract is a £110 million buyout clause, but with the turmoil that exists at present, who is to say that this figure will not be unheard of during his six year reignÖ

But how is it possible to justify such prices? In my eyes it is not, however it all depends on what someone is prepared to pay. So, in the not too distant future will it be a case of pick a big number and treble it?

Obviously talent and performance are key factors, but this is not the full story, are some players bought more for their image than their skill?

Gate receipts make up a large amount of a clubís revenue and to maximise this prices must rise, or the fans must be made to want to see their favourite players. Players are also chosen for their ability to generate revenue both on and off the pitch. The later includes merchandise and the clubs ability to demand more from sponsors and broadcasting deals. Other players are seen of as an investment, their skills and market price will be improved during a short-term stay at a club, whose view always was to sell their investment when the price was right. Examples of this include Gabriele Ambrosetti, bought for £0.5 million and later sold to Chelsea for £3.5 million.

The question, why are English clubs paying these vast amounts of money to develop foreign players? has to be asked. Half of the money spent is on importing foreign talent, and this surly must contribute to the England managerís job being described as the worst job in the country. English players are cheap relatively speaking, and it would be nice to see their skills being developed at home.

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