Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les Oh good lord, now you're not actually reading. I nowhere claimed he's "not any good". No kidding. That's why this is so tragically funny. No, they make a lot of money because there are only 32 teams and there's a limited amount of players and the tv contracts are ludicrously rich. Its not because there are no transfer fees. Keep in mind, baseball does actually allow trades for cash in limited circumstances. In addition, baseball allows "salary dumping", which is effectively the same thing - when the Braves traded for Mike Hampton, his bloated salary was partially paid for by the Marlins. This had no impact on salaries. Baseball has a fundamentally different structure - it only has 32 teams. Whereas in football purchases of players are commonplace, because they track through divisions (i.e., I sell Carrick to Utd to buy Chimbonda from Wigan who buy Aghahowa from another club who buys a player from the second division, etc.). In baseball, only the very rich clubs would start buying players if they could, because there's no one for the poor clubs to buy from. Thus, its actually highly unlikely transfer fees would make any difference to salaries. Why would this money come out of their payroll? Teams have operating expenses, that's what it would come out from. You are making terrible analogies because you don't understand EITHER sport.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les You still haven't answered the question of why this money would come out of payroll. I don't see why it should. If the Yankees are already spending 200M on salaries, I don't see why they wouldn't spend another 30M to acquire players. Furthermore, if the Yankees bought players, but middle of the road clubs like, say, the Giants, didn't, the Yankees wouldn't be able to lower salaries, because the top players' market would be set by all clubs. No one would agree to be sold to the Yankees if they had to take a pay cut.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les If there were no transfer fees, then United would have more money from not buying Carrick, but they'd also lose the money from selling Van Nistleroy and Mikel.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les I have researched into this and found out that from 2001 to 2005, the big teams lost money on transfers. Chelsea: $80 mil a year on average Real Madrid: $40 mil a year on average Man U: $30 mil a year on average AC Milan: $25 mil a year on average and so on. I posted it on bigsoccer somewhere. Will post if I can find it. However, some teams do gain on transfer fees like PSV, Lyon, Porto.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les Found it. From 2001 to 2005 Average loss per year (from 2001 to 2005) from transfer fees Chelsea: $83.7 million a year Real Madrid: $41.67 million a year Manchester United: $36 million a year Barcelona: $25 million a year AC Milan: $22 million a year Liverpool: $15.2 million a year Juventus: $15 million a year Arsenal: $3 million a year Inter Milan: $3 million a year Too see the break-down on each year and on each player, go to these threads. Liverpool https://www.bigsoccer.com/forum/showthread.php?t=268783 Arsenal https://www.bigsoccer.com/forum/showthread.php?p=6756316#post6756316 Chelsea https://www.bigsoccer.com/forum/showthread.php?p=6756302#post6756302 Manchester United https://www.bigsoccer.com/forum/showthread.php?t=268343 REal Madrid: https://www.bigsoccer.com/forum/showthread.php?t=268351 Barcelona: https://www.bigsoccer.com/forum/showthread.php?t=268585 AC Milan: https://www.bigsoccer.com/forum/showthread.php?t=268780 Inter Milan: https://www.bigsoccer.com/forum/showthread.php?t=268782[/QUOTE] Example of how I did it (lot of time on my hand in those days) Total IN: 56.51 Total OUT: 6.82 Net Loss: 49.69 million pounds
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les And the small teams gain on them, meaning they have more money to pay players. In case you missed it, transfer fees are ZERO SUM.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les To the elite players, transfer fees are not ZERO SUM because their employers have $20-40 million less each year to PAY them. The like of Yankees/RedSox/Dodgers/Mets would not pay baseball stars $18-22 mil a year if they have $20-40 million LESS each year. For for the most part ONLY the big clubs pay huge salary for these elite players (top 20-30 in the world). The "small teams gain" from transfers has nothing to do with the salary of these elite players.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les Rich football clubs are in the buying business, poorer ones are in the selling business. A club like PSV for that reason will buy players with potential who need further developing. Once they are of a certain standard, the players are sold and PSV makes money. Clubs like Chelsea typically buy the finished article because they don't have the time to develop a squad, they want results right now. This is the difference between the relatively rich and poor in football.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les Top teams in England also made money from transfers selling players like Anelka and Beckham.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les they also get the players maybe two years earlier than they could if the had to wait until their contracts expired, which to them is worthwhile. If it wasn't them why don't top clubs just wait until the players that they want are out of contract? and, has been explained numerous times without it seeming to sink in - clubs do not generally have a fixed salary budget which any transfer fees will have to be deducted from. so...... spending £20 million on a player doesn't mean the salary budget drops by £20 million. For an 'elite' club it means a £20 million expense, potentially a £20 million drop in profit. Now here's the thing. As clubs here tend to be run with the object of being sports clubs rather than with the objective of making large profits for the owners, clubs will see that £20 million as an investment. One that will make the team better, and increase revenue that way. Could you please give at least an inkling that any of the reasons you are given against your theories are at least making some impression.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les Why not? If the Red Sox payroll is close to $150 million (it may be more these days), why would spending 15% more mean players take 15% less? If, with the added money, the Red Sox reach the playoffs, for example, the team gets more money from selling tickets to playoff games.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les I'm sure they want to but it's not a must for them. For poorer clubs it's a must to survive.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les THEY ARE LOSING MONEY FROM TRANSFERS because they are paying more for transfer fees than they are getting from selling. In other words, Manchester United might get $30 mil for selling Beckham but they have to pay $60 mil to get Player X and Player Y. That's a loss of $30 mil each year. See the following. Average loss per year (from 2001 to 2005) from transfer fees Chelsea: $83.7 million a year Real Madrid: $41.67 million a year Manchester United: $36 million a year Barcelona: $25 million a year AC Milan: $22 million a year Liverpool: $15.2 million a year
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les Agree. The big clubs benefit from the transfer system. However, my claim is that the ELITE PLAYERS do not. Well if Man U, Chelsea, Real, Barca have ZERO TRANSFER FEES, it means that they will have $30-40 million MORE each year. Agree? My point is that a large amount of this $30-40 mil will be spent to recruit these ELITE PLAYERS. Thus, the elite players' salary will increase. Agree. But if they have ZERO transfer expense, it means that they will have £20 million increase in profit. Tell me what happen when all the big clubs suddenly have $40 mil extra each year? As I stated earlier. TRANSFER SYSTEM is a benefit to the big clubs. They have two choices: They pay $40 mil in transfer fee + $10 mil a year in salary for 4 years for a total of $80 mil. OR pay $0 mil in transfer fee + $20 mil a year in salary for 4 years for a total of $80 mil. The big clubs LOVE the first option because they get the players 2 years in advance. However, in term of money, the two options are the same. However, the ELITE PLAYERS do not benefit. See $10 mil in salary vs. $20 mil in salary.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les In the U.S. there is no transfer fee system. That's why the elite players get pay A LOT. Would the like of Yankees/RedSox/Mets want a transfer system in place? Absolutely. They will get the players they want 2 years in advance. However, this will depress the salary of the ELITE PLAYERS because the Yankees/RedSox/Mets now have $40 million in expense, which mean their profit decreases by $40 million, which mean they can't afford to pay $18-22 million a year to an ELITE PLAYER. I am guessing that if there is a transfer system for Major League Baseball, the elite players (top 20) salary would decrease by as much as $5-7 mil a year. Simply because the elite clubs (Yankees/RedSox/Dodgers/Mets) can not afford to pay $20 mil a year in salary for a player when they now have a $40 million a year expense in transfer fee.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les I could have sworn that the Red Sox paid fifty million for some Japanese player.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les no. no. and just for good measure, no again. As with every single other increase in revenue that's been seen in the last 10,20,30,40,50 etc years, that money might well increase salaries overall, but there is absolutely nothing, a big fat zero of evidence, to suggest that having more money will see a comparative jump in salaries for top players. Nothing. This is the basic problem. For particular reasons relating to the salary cap, and the closed market in US sports, you get a situation where the average and weaker players see their salaries squeezed to accommodate the top players. As those players have absolutely no alternative, it's like or lump it. The same situation does not exist elsewhere, which is why salaries are flatter. It does not matter whether the club has a budget of £1 million or £100 million, that is not going to change, and does not change. Again, please give at least some indication that you have grasped this fundamental point in the whole argument, or I might as well go outside and find some nice walls to talk to in expectation of it being more likely to make them understand. Ok, I'll flip it round. Say there was a baseball team. they paid 3 elite players $10 million a year, 10 players $1 million a year, and 10 others $250k a year, in a league where the salary cap is $42.5 million a year. suddenly the league drops a bombshell that from the following year that the cap is going to be cut by half, so clubs only have half the salary budget. Now you can either suggest those elite players will suffer and bear the brunt of those salary cuts (as there's now $21.25 million less money available) or you can think that teams will budget in a similar pattern as before, any everyone will be getting about half. Or you can live in world where you could imagine that Baseball become popular around the world overnight, and the budget goes up by 10 times. do you think in that case it would bonanza day for those elite players, who can now expect to get that extra $382.5 million shared between them, as the club now has $382.5 million extra to spend on salaries, or you could possibly guess that pay scales would settle down to be similar as before, with everyone making 10 times what they do now? And again, just a crumb of recognition of at least some of the reasons put to you would be nice, rather than just saying "...yes, but if clubs had $20 million more they could spend it a on salaries of elite players!" Yes, we all know they could. We all know we could take our monthly salary and stick it on a horse at the 3.15 at Doncaster, but generally we don't as we realise it wouldn't necessarily be the best thing to do.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les That's just one case. Ichiro ($11 mil transfer fee) is another case but that is like 5 years ago. Just because it happened twice over a period of 6 years doesn't mean that there is a vibrant transfer market in baseball. If the Red Sox and Yankees and Mets and Dodgers shell out $30-40 mil for transfer fees next year and every year right after, then they might be comparable to the like of Real Madrid, Chelsea or Man U who are losing $30-50 mil a year in transfer fee. -------------FYI----------- Deloitte reported that the Premiership has a net deficit in transfer fee of around $150-200 million a year (this is from memory). With Chelsea's $80 mil a year + $36 mil a year for Man U + $16 mil a year for Liverpool + etc.....you can see why.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les uhhhh..okay. Even if I take what you suggesting into consideration, that doesn't change the fact that transfer fee is a MAJOR reason why the ELITE PLAYERS are getting pay relatively less. Sure, what you suggesting might be a factor, but is it that big of a factor what would overshadow the huge transfer fee expense? Hypothetical: Imagine European soccer where the top 20 players in the world ALL GO ON FREE TRANSFER now and forever. What would this do to their salary? My theory is that their salary (only the ELITE PLAYERS) would go up considerably because the ELITE TEAMS (BIG 5-7 IN EUROPE) suddenly have $30-50 million EXTRA each year to do whatever they want. Since European soccer is a free market, these Top 5-7 teams will spend a lot of it to recruit players, particularly top players. Hence, the salary of the top 20 players in the world will increase. (don't know what will happen to the average or above average players) To quote you, just a crumb of recognition of some of my reasoning would be nice.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les Consider this: Current world: Real Madrid is willing to spend $80-90 million in transfer fee for Cristiano Ronaldo and another $10 million a year in salary. All elite players go on free transfer hypothetical world: Real Madrid now has $40 million extra each year because its transfer expense is ZERO. And Real Madrid wants Cristiano Ronaldo just as bad as they do in the "current world." Cristiano Ronaldo is a FREE AGENT. How much can Cristiano Ronaldo get a year in salary? Also, Real Madrid is not the only team that want this Bosman Cristiano Ronaldo. To sign him, Real Madrid will also have to compete with Chelsea, Man U, Liverpool, Barcelona, Juventus, AC Milan (who all now also have $30-40 million extra each year). If your answer is only $10 mil a year, you're living in fantasy land, my friend. He is worth at least $20 mil a year IF 1) he's a free agent and 2) all the elite players go on free which mean the elite teams have ZERO TRANSFER EXPENSE. Answer me that.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les Just a reminder for those that ignore this information. THIS IS THE REAL COST OF GETTING THE ELITE PLAYERS EACH YEAR. Top 3: $30 mil a year for Schevenko, $23 million a year for Essien and $21 mil a year for Drogbar. (I only assume 3 years, I could adjust it for 4 years which would lower it but not by that much). As you can see, the total cost of getting elite SOCCER players is equal to the cost of getting elite baseball players. But elite baseball players get paid about 1.5 to 2 times as much. Soccer big clubs ARE HAPPY to have the transfer system in place. They benefit by having the elite players 2-3 years ahead of time. However, elite soccer players are SCREWED. They should be earning at least 1.5 times more.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les A posting fee is NOT a transfer fee. You need to read as to what it actually is.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les no, you are just stating exactly the same thing time and time again and ignoring what is being said. There is nothing at all in the real world that actually exists to suggest what you are saying is true. but you have decided, ignoring all contrary evidence, that it's a major reason. It's not. Until you make some effort to try and understand why pay scales are flatter elsewhere than in US sports, you will never understand, but the feeling I get is that you don't want to understand. Every single one of the nine thousand threads you've started on this subject has gone the same way. pc4th: if the top clubs had $20 million more each year they could pay it to the elite players. someone else: yes, but they would because of reason "a" pc4th: maybe, but if the top clubs had $20 million more each year they could pay it to the elite players. somebody else: yes, but they would because of reason "b" pc4th: I understand, but if the top clubs had $20 million more each year they could pay it to the elite players. another person: that wouldn't happen becasue of reason "c" pc4th: yes, but if the top clubs had $20 million more each year they could pay it to the elite players. (repeat forever) you aren't entering into any degree of discussion. You are just repeating your belief over and over again without at any time trying to say why any of the reasons given by other people are flawed. Your examples are useless because they are founded entirely on the assumption that more money will lead to salaries for elite players rising hugely, and it's that very assumption that's being challenged. Just repeatedly restating that you believe something would happen isn't an argument. You have to have something to back it up beyond hypothetical examples which only work if your assumption is correct. And currently you've shown no willingness to accept that your assumption is anything less than cast iron fact. so perhaps it is time to say hello to... ...and see if I have any more joy in discussing the matter with him.
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les I think that most well-run teams if they had money to spare due to not spending money on transfer fees, would use it to increase the depth of their squads. If Man United had ten million extra a year would they spend it on giving Ronaldo and Ferdinand higher wages, or getting some reserve strikers?
Re: Is transfer fee expense 1 of the big reasons why elite soccer players are earning relatively les They will spend most of it (60% or more) on recruiting top players. Otherwise, the like of Ronaldo and Ferdinand will go and play for the like of CHelsea, REal, or Barca who offer them more money. It's a FREE MARKET. Just look at how free agency work in North American sports. Teams will try to outbid each other to sign the ELITE PLAYERS. How do you think Alex Rodriquez got $25 mil a year to begin with? His old team (Seattle Mariners) can only offer him $20 mil a year. As a result, they set up SALARY CAP (which players oppose, especially the elite players) in order to limit their competition because it was so costly. Heck, hockey players refused to play one whole year because they don't want a SALARY CAP.