How about this soccer-related business idea?

Discussion in 'Finance, Investing & Economy' started by pc4th, Feb 16, 2006.

  1. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    1) Create a sports agency.
    2) Try to sign most if not all elite soccer players (Ronaldinho, Rooney, Beckham, Eto, Henry etc...)
    3) These elite soccer players do a "Ballack" aka become free agents or Bosman as dictate in your agreement.
    4) They will make a killing on the free agency market by either much better contract or a huge sign-on fees. (see below)
    5) As their sports agency, you will benefit along with them.

    Need:
    1) Capital
    2) Secretcy --> prevent imatators for as long as possible

    Why would this work?

    Real, Chelsea, Man U, AC Milan has around $30-40 million each year in transfer expense. If they get players for free, they have $30-40 million extra in profit. As we all know, sports team will use this profit to bid for the top players.

    You can think of this the other way around. If RedSox/Yankees has a $30 million expense for transfer fees instead of $0 mil each year, their profit would take a $30 mil plunge. Their ability to sign Ramirez or Arod would decrease. Can the Yankees afford a $25 mil a year contract for Arod if they have $1 mil profit instead of $31 mil?

    Revenue reported by Deloite and Touche

    Real: 328 mil
    Man U: 293 mil
    AC Milan: 279 mil
    Juventus: 273 mil (will increase by around 30-40 million thanks to a $120 mil a year TV deal starting in 2007)
    Chelsea: 263 mil



    p.s. From the poll on this thread, each elite player might get a raise of around $3 a year. Who wouldn't want that?

    https://www.bigsoccer.com/forum/showthread.php?t=275224


    So any takers? I am looking for partners.
     
  2. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Salary # for some elite players.

    Samuel Eto'o : $6,000,000 a year

    Ronaldinho: $6,250,000 a year

    Zidane: $6,708,000 a year

    Ronaldo: $5,336,400 a year

    Luis Figo: €4,500,000 a year

    David Trezeguet: $2,600,000 a year

    Kaka: $2,000,000 a year

    Owen: $9,122,880 a year

    Lampard: £4,680,000 a year = $8,049,600 a year

    Rio Ferdinand : $9,838,400 a year using the 110,000 figure
    [£85,000 per week but includes annual loyalty bonuses which take it up to £110,000]

    Rooney: $ 4,472,000 a year

    Cassano: $4,500,000 per year

    Damien Duff: €5,000,000 a year
     
  3. Sachin

    Sachin New Member

    Jan 14, 2000
    La Norte
    Club:
    DC United
    You couldn't sign them all. You'd have to prove your negotiating skills before any player above, say, David Stokes, would sign with you.

    Also, now that you've given this away, I may do it. There goes your secrecy. :)

    Sachin
     
  4. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Good luck to ya :)

    Negotiating skills? nah, just the lure of a $3-4 million raise each year should do the trick. "I know your agent can get you $10 million a year, but with my agency, you can get at least $14 mil. Interested?"

    If you have a monopoly of most of the top players, you can make some series cash (for yourself and for the elite players).

    Of course, you will also violate a bunch of laws if you try to break up a contract between a player and his agent.

    Anyway, I am just curious why this hasn't been done before?
    It's not like it's a huge secret.

    Campbell did it and went on a free transfer from Spurs to Arsenal (and got several death threats because of it). As a result, he was the highest paid player for Arsenal and might have been the highest paid player in England at that time. Ballack is doing it right now. Couldn't his agent figure out that if he can get more elite player to do a "Campbell/Ballack" he can make some serious money?

    p.s. Henry might be next. There was an article written about how Henry might do a Campbell.

    p.s.2: If Major League Soccer signs Ballack August 2006 and pay him $15 million a year in a 4 years contract and in August 2007, sold him for $15 million, MLS breaks even.

    Can MLS sell Ballack for $15 million in a year time? Probably unless a major injury took place or something.
     
  5. Wingtips1

    Wingtips1 Member+

    May 3, 2004
    02116
    Club:
    Liverpool FC
    where did you come up with these numbers? the Spanish and Italian leagues trump the EPL when it comes to pay. your analysis of the 'star' players from those leagues is quite short (Zidane, Kaka, Ronaldinho, etc..).
     
  6. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    I only list the number for those that I have found. How? Google search
    "Kaka annual salary"

    or "Kaka annual wages" or something similar and got a hit from some news articles
     
  7. afgrijselijkheid

    Dec 29, 2002
    mokum
    Club:
    AFC Ajax
    agents make more from big money transfers than from big bosman moves
     
  8. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    TRUE. That's why they want to keep the status quo. If you can change the status quo, the elite players will BENEFIT and you will too along with them.

    Arod is making $26 milllion a year and Rooney is making $4.5 million a year. Something is wrong especially when you consider that Manchester United is richer than the Yankees in term of revenues and probably profit.
     
  9. Fleck

    Fleck New Member

    May 14, 2004
    Sacramento
    whats to stop the team that owns the player to sell him before he goes to free agency?
     
  10. Ian Lozada

    Ian Lozada Member

    May 29, 2001
    The Pick Four Pool
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Yeah, but Rooney scares little children. And grandmothers.
     
  11. Glenwood Lane United

    Apr 28, 2001
    Hanover Park, IL
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    Woman (Idle): Well, I gave him my baby to kiss, and he bit it in the head!
     
  12. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    The player has to agree to a transfer. You can't transfer a player against his will. Munich would love to transfer Ballack for $10-15 million in Jan 2006 rather than lose him for nothing in June 2006. But they can't.
     
  13. Fleck

    Fleck New Member

    May 14, 2004
    Sacramento
    see thats weird. I dont think that should be. :rolleyes:
     

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