A sizeable chunk of this article is known to most posters but I think it is worth a read anyway. Already I have seen a couple of posts about how Zlatan's shirt sales will cover his wages and all. I expect those posts to increase if Zlatan is successful in England. In the past I remember several posts on how David Beckham's shirt sales accounted for his Madrid transfer fee and wages. In fact I believed that for several years. This article shows the fallacy in such arguments.
Despite being the most popular sport in the world, there are some widely held myths about how the football industry works, especially relating to the financial aspects.
This is largely due to an intentional lack of transparency surrounding football finances, mainly regarding transfer fees and wages. This is in stark contrast to other popular sports, such as the NBA and NFL, where player costs are publicly reported and every single deal is viewed through the lens of how it will affect the salary cap.
With privately-owned football clubs free from most public reporting standards, the wider fan base get most of their information about what this player cost or what that player is earning third or fourth-hand through newspapers and online media.
But why are player costs important? After all, it’s not our money, right?
Disregarding that it is kind of our money – the huge increase in Premier League TV revenue, for
example, is being paid for in the form of Sky and BT subscription fees from UK viewers – with domestic and UEFA financial regulations, clubs are prevented from spending much more than they earn. In practice, this results in individual spending caps for each team.
Whenever a club signs a bumper new commercial deal or a league gets a huge new TV contract, that brings an advantage with regards to spending power. However, each club has a finite amount it can spend on player costs and, therefore, it is essential to maximise value.
Understanding how clubs calculate player costs helps us to see how they really value certain players, as well as how the money is being spent, which players provide good value, and which players do not.
For the rest of the article -
Read more: http://thesetpieces.com/features/transfer-window-myth-busting/#ixzz4FFXtw0kr
Despite being the most popular sport in the world, there are some widely held myths about how the football industry works, especially relating to the financial aspects.
This is largely due to an intentional lack of transparency surrounding football finances, mainly regarding transfer fees and wages. This is in stark contrast to other popular sports, such as the NBA and NFL, where player costs are publicly reported and every single deal is viewed through the lens of how it will affect the salary cap.
With privately-owned football clubs free from most public reporting standards, the wider fan base get most of their information about what this player cost or what that player is earning third or fourth-hand through newspapers and online media.
But why are player costs important? After all, it’s not our money, right?
Disregarding that it is kind of our money – the huge increase in Premier League TV revenue, for
example, is being paid for in the form of Sky and BT subscription fees from UK viewers – with domestic and UEFA financial regulations, clubs are prevented from spending much more than they earn. In practice, this results in individual spending caps for each team.
Whenever a club signs a bumper new commercial deal or a league gets a huge new TV contract, that brings an advantage with regards to spending power. However, each club has a finite amount it can spend on player costs and, therefore, it is essential to maximise value.
Understanding how clubs calculate player costs helps us to see how they really value certain players, as well as how the money is being spent, which players provide good value, and which players do not.
For the rest of the article -
Read more: http://thesetpieces.com/features/transfer-window-myth-busting/#ixzz4FFXtw0kr