Xtratime Community banner

1 - 17 of 17 Posts

·
Fine Gentlemen
Joined
·
15,599 Posts
Discussion Starter #1
Maurizio Zamparini warns, “sooner or later, English and Spanish clubs will fail” because they don't have the Italian financial rules.

It is reported a UEFA inquiry has found that the 18 recognised Premier League clubs - which do not include Portsmouth and West Ham because of their financial irregularities - have more debts than all of the remaining 714 European clubs combined.

“Italian football is not in crisis. We are doing perfectly well in financial terms, because the fenceposts put down work if anything too well,” insisted Palermo President Zamparini.

“No clubs can fail mid-season here, every transfer operation is covered by a bank statement. In terms of results we're not doing too badly either.

“The real failures are the English and Spanish clubs, even the Germans, where their finances are just frightening. They are in dire straits.”

When asked why Liga and Premiership teams do so well in the Champions and Europa League, Zamparini said the bubble would soon burst.

“They dominate and win precisely because they have no rules. The Spanish can afford to take Kaka and Zlatan Ibrahimovic away because they pay 3-4 million Euros more in wages and 60-70 million more for the transfer.

“In my view they are the crazy ones and we should not follow their example. Sooner or later the English and Spanish clubs will fail.”

Nonetheless, Zamparini feels more can be done to make the Serie A clubs more competitive.

“First of all we need to reduce Italian tax rates to the level of the other European countries.

“Then Europe should set salary caps, although I realise that is a very difficult thing to achieve. I'd do it tomorrow.”
http://www.football-italia.net/feb24r.html

Anyone agree with this?

I think he may have a point...but only to a certaindegree I think that clubs are wising up to their debt and starting to slowly peg it back.:greed:
 

·
Registered
Joined
·
32,287 Posts
It is reported a UEFA inquiry has found that the 18 recognised Premier League clubs - which do not include Portsmouth and West Ham because of their financial irregularities - have more debts than all of the remaining 714 European clubs combined.
Of course they have more debts, they have more value as well. The estimated combined worth of the EPL clubs is like 3 times higher than that of the Serie A clubs. Not to mention their higher revenue.
 

·
Registered
Joined
·
4,250 Posts
Their rational is that they make more money, so they can borrow more. However, whenever you leverage yourself, eventually you are at the mercy of that debt and the interest rates you borrow at. With interest rates very low, its not a problem, but if they go up......:scared:

Surely the debt crisis in the US has taught us something, unless the rules about paying it back do not apply to English and Spanish football clubs?

Wait, they don't apply to Real Madrid for sure. :neutral:


Eventually the playing field will level out. However we need to add revenue, and they need to spend less.
 

·
Registered
Joined
·
11,657 Posts
the tax rate bs cannot be used any more. UK have the same and I'm sure i read that the Spanish were also going to be removing the foreigner tax rate and put it in line with the rest of the Spanish players, which I think maybe a still a little lower but not by 20odd percent any more.
 

·
Registered
Joined
·
32,287 Posts
The Spanish tax advantage isn't insignificant, but Barca and RM would still be way better off than the Big Italians without it.
 

·
Registered
Joined
·
12,237 Posts
The Spanish tax advantage isn't insignificant, but Barca and RM would still be way better off than the Big Italians without it.
Of course Real and Barca would be better off, but equal tax brackets would level the playing field somewhat at least. It's not only about the biggest names, the difference obviously has significance for squad and role players as well.
 

·
Registered
Joined
·
2,518 Posts
Of course they have more debts, they have more value as well. The estimated combined worth of the EPL clubs is like 3 times higher than that of the Serie A clubs. Not to mention their higher revenue.
That's right.

"It shows the total debt of the Premier League clubs as being worth 3.4 billion pounds (3.8 billion euros) -- 56 percent of the European club total.

But it also reveals that the Premier League's 3.8 billion pounds (4.3 billion euros) worth of assests constitute 48 percent of footbal club wealth across the continent."
http://sports.sg.msn.com/football/uefa-champions-league/article.aspx?cp-documentid=3908241

So if you compare the debt : assets value, the EPL clubs are only slightly higher than the rest.
 

·
Fine Gentlemen
Joined
·
15,599 Posts
Discussion Starter #10
http://www.guardian.co.uk/football/2010/feb/23/premier-league-clubs-europe-debt

http://www.guardian.co.uk/football/blog/2010/mar/28/barcelona-real-madrid-spain

Found these and thought of this thread...

I personally agree with Zamparini...but only because really Italian clubs have had a head start in the whole debt management area. That being said I don't know how far along Italian clubs are with their debt management from the turn of the century.

I remember iirc in 2001 Lazio and Roma being told they would not be allowed to enter for the years league games...I would hope that from 2001 till now Lazio and Roma have made head ways into managing their debt levels.

What I find interesting is that EPL clubs are effectively now just slaves to their debt and banks and it is just a matter of time before their knocking on the door of an administrator! Man U alone have more debts then the entire Serie A clubs...that in itself is never a good thing which ever way you slice it and look at it.
 

·
Laziale, Independent
Joined
·
6,075 Posts
Zamparini is a total idiot, but on this point he may actually be right.
 

·
Registered
Joined
·
32,287 Posts
EPL has way more assets and is way more popular in the emerging markets. If they crumble at large, they're effing stupid.
 

·
Fine Gentlemen
Joined
·
15,599 Posts
Discussion Starter #13
EPL has way more assets and is way more popular in the emerging markets. If they crumble at large, they're effing stupid.
You obviously did not read the UEFA License report and those links...

One of the main things that has allowed the EPL to prosper so much more is TV money...SKY has been allowed to buy and sell these rights left, right and centre...with each new contract SKY has paid more and more.

Ofcom though has been coming down on what they see as a monopoly and SKY over-charging rivals for SKY subscriptions.
For example they charge Virgin £14 per subscriber the Ofcom want them to charge £10 that's pretty much a third off revenue gone from each subscriber.

For the next round of TV deals SKY will also be buying less game what with a break up happening of this SKY monopoly across all sports from cricket to golf to rugby! SKY will not cough up more for less. :smileani:

Just like the TV bubble burst in Italy in the late 90's the bubble in England is about to burst!

Oh and as for the assets arguement it has been squashed by the UEFA report...that being said yes the EPL does make more money commercially but that doesn't exactly level out as the way the clubs are run are not as financially regulated.
 

·
Registered
Joined
·
32,287 Posts
No, I haven't read the report.

I should like to see such a report on Serie A though, one which wasn't done by Moratti's accountant.
 

·
Registered
Joined
·
564 Posts
I have no idea why he mentioned German clubs. French and German clubs have no debt as they are not allowed to have any. If Italian clubs are good for the future, German ones are even better off.

But that's not really true. EPL clubs have the most debt, but by far the most marketability, viewers and billionaire owners. Serie A fell a little too early, before globalization and the internet. These days, with all the attention (good or bad) the EPL is getting, they should stay on top for good.
 
1 - 17 of 17 Posts
Top