tag:blogger.com,1999:blog-487486960623783530.post1800365543386894542..comments2024-02-29T09:58:18.342+01:00Comments on The Swiss Ramble: The Zlatan Ibrahimovic Transfer AnalysedThe Swiss Ramblerhttp://www.blogger.com/profile/11423088862174893998noreply@blogger.comBlogger60125tag:blogger.com,1999:blog-487486960623783530.post-17811237801516507382011-03-16T16:53:46.042+01:002011-03-16T16:53:46.042+01:00Can u help me? Im doing a dissertation on Spanish ...Can u help me? Im doing a dissertation on Spanish football, looking @ finances of Barca/Real et al. I live in Zurich & would like to meet up. My blog is johnnysilk.blogspot.com or you can find me on Twitter - @JSilk<br /><br />ThanksJohnnySilkhttps://www.blogger.com/profile/03808409316510919412noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-42751668471547996792010-10-17T16:41:07.633+02:002010-10-17T16:41:07.633+02:00@Idan,
All the clubs that I have analysed use the...@Idan,<br /><br />All the clubs that I have analysed use the straight-line amortisation method. It has the advantage of being simple and taking the guesswork out of valuations, though it often under-values the asset (player).The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-4401023278751196232010-10-15T11:10:34.176+02:002010-10-15T11:10:34.176+02:00Dear Swiss Ramble.
Firsty, i would like to thank y...Dear Swiss Ramble.<br />Firsty, i would like to thank you for your great blog. I'm a die hard Juve fan and a writer in football websites in israel (& also with Economics Background)and Enjoying the combinations of Football and the economic side of the game.<br /><br />Secondly, I've translated your article about Juve finance to the israeli croud (will come up soon, Email me to Idanwall@gmail.com if you want me to send you the link) and then went on to read other articels , namely the Zlatan one.<br /><br />I have a question for you about the Issue of amortisation. in your article you claimed the club accounts use the Straight line (linear) amortisation method to asses the value of a player over time and i thought to my self- will the same method be used for young and old players ?<br /><br />For example -<br />If we'll take Juan Mata (age 21), a young lad with tons of potential, Would Valencia decrease his value from the current assesment ( let's say - 20 million) or try to "guess" his price in the next few years and base the reduction on this ?<br /><br />The opposite goes for old players (30+)...<br /><br />And in addition - do you think amortisation methods like Declining balance or Increasing balance are being used ?<br /><br />Thanks for the Great work,<br />IdanAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-62544331247328823352010-09-17T23:18:47.992+02:002010-09-17T23:18:47.992+02:00Where does insurance sit on the books? I’ve alway...Where does insurance sit on the books? I’ve always assumed the club insures players against injury. I remember a dispute between Chelsea and Roberto Di Matteo. Chelsea claimed on the insurance, but Di Matteo wanted to play again either he had to buy out his Chelsea contract or wait till his contract ended. An auditor would want the full length of the contract to be insured rather than it being renewed each year. You don’t want to be in the situation where a player has a serious injury and the insurance is due to be renewed. The insurance contract could be constructed such that it is terminated if the player is sold, then the insurance cost could be amortized in the same way as the transfer fee. If it is a one off payment then it has to be accounted for as income. In the context of a transfer fee the insurance may be small, but as many as one in twenty players have their careers ended by injury. I have never seen contract insurance disclosed on club’s accounts.phineasnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-11686912840949264582010-09-15T12:38:13.034+02:002010-09-15T12:38:13.034+02:00Dear Swiss Ramble,
thank you for this extremely in...Dear Swiss Ramble,<br />thank you for this extremely insightful blog. I am amazed at your ability to explain finance and accounting in layman's terms and I just wished that your kind of sports/financial journalism was more spread throughout today's mass-media.<br />As an avid football follower and a supporter of Milan (since 1989) and Barca socio (since 1994) and also a career in finance, this particular post struck very close to home :)Unknownhttps://www.blogger.com/profile/15788882673685819301noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-18094898049306074682010-09-14T23:57:54.445+02:002010-09-14T23:57:54.445+02:00Dear Swiss Ramble, I just discovered your blog. I&...Dear Swiss Ramble, I just discovered your blog. I'm a great football fan and also an equity analyst in france (as you may know Olympique Lyon is listed on Paris Stock Exchange), so I'm very interested by your excellent work. For my knowledge, I'm looking P&L and balance sheet for Inter Milan, AC Milan and Chelsea. Could you please help me (by email if you prefer). ThanxUnknownhttps://www.blogger.com/profile/03694194537838015220noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-62917325656197904152010-09-14T10:41:03.327+02:002010-09-14T10:41:03.327+02:00Thanks for the reply , I enjoy reading your articl...Thanks for the reply , I enjoy reading your articles though i sometimes get lost when you start talking about what accountants do, slowly starting to understand that stuff after reading more of your articles.Tejnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-61508874252603102352010-09-14T08:37:47.469+02:002010-09-14T08:37:47.469+02:00@Tej,
I would certainly like to analyse more Ital...@Tej,<br /><br />I would certainly like to analyse more Italian clubs, including Juventus. Got a lot on my plate at the moment, but I hope to organise a review some time in the future.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-62438791809346607102010-09-13T21:02:49.824+02:002010-09-13T21:02:49.824+02:00@ Swiss Ramble: I know it is tough and takes a lot...@ Swiss Ramble: I know it is tough and takes a lot of time to post an article but can you do on Juventus as their Financial Strength is immense and since I am a Juve fan , I would like to know in detail whether the debt being posted is correct and whether it is financially healthy, because I believe that Juve is doing a fantastic job , one of the only clubs along with Bayern and with their new stadium coming new season it will get even betterTejnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-39027430393771755572010-09-13T18:51:43.473+02:002010-09-13T18:51:43.473+02:00@Marek,
I wrote about the UEFA Financial Fair Pla...@Marek,<br /><br />I wrote about the UEFA Financial Fair Play rules in May, which you may find interesting:<br /><br />http://swissramble.blogspot.com/2010/05/uefa-say-fair-play-to-arsenal.html<br /><br />In short, UEFA are not complete idiots and have specifically included clauses that should ensure that clubs apply market values for items such as shirt sponsorship, executive boxes, etc. It's similar to how the IRS looks at inter-company transactions. Obviously, there is still some scope for manipulation, but the most blatant excesses should be prevented.<br /><br />Share capital can be increased, but there will be a restriction on how much can be used to fund losses, as the regulations focus more on a club's ability to break-even in the P&L, as opposed to debt levels.<br /><br />Of course, clubs can employ an army of accountants to try to get around the new regulations, but football's a simple business and it would be relatively easy to identify any such attempts.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-38496651189675976422010-09-13T18:26:54.546+02:002010-09-13T18:26:54.546+02:00Hello Swiss R
Thanks for your reply. I take your ...Hello Swiss R<br /><br />Thanks for your reply. I take your point that not many clubs make a profit. Nevertheless, if there was a difference between taxation allowances in respect of player amortisation it could be a factor in the timing and arrangement of transfers.<br /><br />An analysis that is crying out to be made now, in advance of the introduction of the new UEFA financial rules, concerns how clubs could get around them. <br /><br />I have not seen the details but it does occur to me that one avenue could be the ramping up of income through transactions that are not altogether at arms length.<br /><br />For example, supposing a certain Russian billionaire wanted to increase his club's revenue, is there anything to stop him getting one of his oil companies to pay vast amounts for shirt sponsorship? Indeed, the possiblities for both sides of the profit and loss account to be manipulated could be interesting so long as the companies concerned are not part of the same corporate group. AC Milan also springs to mind.<br /><br />Alternatively, is there anything to stop a club's share capital being increased regularly to ensure solvency? Barring, of course, the taxation cost, stamp duty?<br /><br />I cannot imagine that the clubs' accountants are not already on the caseMareknoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-14330483544003536352010-09-13T08:54:15.558+02:002010-09-13T08:54:15.558+02:00@Marek,
I don't usually include tax in my ana...@Marek,<br /><br />I don't usually include tax in my analysis, as it is rarely significant for football clubs, mainly because they usually make losses. Even when a club makes a profit, tax is not that big a factor, e.g. Barcelona's revenue in 2008/09 was €366m, their expenses €361m, while the tax was only €2m.<br /><br />You're right that sometimes there is an issue in terms of tax payments. If that is the case, I would mention it in the analysis on debt or indeed cash flow.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-63926902382552311062010-09-13T08:48:27.506+02:002010-09-13T08:48:27.506+02:00@Jude,
Not a problem if you link your site.@Jude,<br /><br />Not a problem if you link your site.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-25695105143260705012010-09-13T02:43:35.409+02:002010-09-13T02:43:35.409+02:00Hello Swiss R
I enjoy your analyses though you do...Hello Swiss R<br /><br />I enjoy your analyses though you do omit the effects of corporate tax on the clubs in question. This can have a significant effect in post tax terms as well as the cash flow effect dependent on when tax payments are due.<br /><br />For example, what are the taxation allowances for player amortisation in Spain and italy ? Are they the same?Mareknoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-51874154728587691332010-09-11T01:46:57.393+02:002010-09-11T01:46:57.393+02:00Wow what an epic article! I didn't understand...Wow what an epic article! I didn't understand half of it, but I get the gist. Turns out whatever way you look at it, Barca wasted a lot of money. At least you mention that the player was not actually a flop, it was just bad business. Wonder how he'll do with the other workaholics in Milan's front line, Robinho and Ronaldinho. As good as they are it does have the air of 'reject united' about it... Similar to City and their signings of Adebayor, Toure (Kolo) and Bridge. None of their old teams seemed too sorry to lt them go, and none of them are City's best players now. The young stars like De Jong, Kompany and A Johnson are the ones that could win them the league - so they may as well stop wasting money in buying 'top' players from big teams, as they only ever sell ones they think can no longer cut it (or even never could).<br /><br />Hope I'm not breaking any rules in leaving my site address here? I'm new to this.<br /><br />Jude Ellery (FootballFarrago)<br />www.footballfarrago.comJude Elleryhttps://www.blogger.com/profile/01468148324501984439noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-58787611146011054612010-09-10T18:02:50.023+02:002010-09-10T18:02:50.023+02:00Once again bloody excellentOnce again bloody excellentDavenoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-87956202515759311572010-09-10T17:49:38.644+02:002010-09-10T17:49:38.644+02:00Dear Swiss Ramble, allow me just to drop a few lin...Dear Swiss Ramble, allow me just to drop a few lines to say THANK YOU. The pedagogical style in which you write your fun to read, amazingly researched articles makes the whole experience just sound like poetry.Needless to say, the added benefit of being free of charge, makes one wonder if there is any point in buying any sports related newspaper, considering the much lower quality of their writtings. Once again, Thank you.Ignatiousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-51569810983711487542010-09-09T17:10:23.617+02:002010-09-09T17:10:23.617+02:00Hi rambler, I have to confirm that I've never ...Hi rambler, I have to confirm that I've never heard about this blog before reading the translation of your wonderful post on ISCM today in the morning.<br />Anyway, after that, I came here directly and read the post about Inter's financial situation... and appreciate it very very much (I can understand written english quite well, even if my own is awful :-))).<br />I guess that your "irritation" might be understood as you thought that some1 was "scrounging" your job for his own aims, but I can assure you that Simone Nicoletti and others ISCM's bloggers are always very very polite and "intellectually honest" (do you remeber Josè Mourinho's fight about this matter???); in fact the link to this site was posted very very clearly at the beginning of its translation.<br />So don't be bothered about that; since today, thanks to ISCM, your blog has (at least) one more reader (but I guess they are many many more...).<br />Best regards and keep going on with your excellent work.<br />Skoglund<br /><br />ps: sorry for my english.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-44207033136917114712010-09-09T14:49:49.570+02:002010-09-09T14:49:49.570+02:00This article rocks!This article rocks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-5369231059787397412010-09-09T13:51:08.021+02:002010-09-09T13:51:08.021+02:00@Anonymous (12:37),
As someone whose work has bee...@Anonymous (12:37),<br /><br />As someone whose work has been re-published without permission, I am sure that you understand that I would have preferred being asked in advance. That's my only issue.<br /><br />Having said that, I am flattered that someone went to all the effort to translate my article, especially as it's on ISCM, which is a fine blog with well-written articles and good comments.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-59155564294290504092010-09-09T13:45:22.124+02:002010-09-09T13:45:22.124+02:00@Giacomo, @Mario
Thanks, I appreciate that.
I ma...@Giacomo, @Mario<br /><br />Thanks, I appreciate that.<br /><br />I may well have over-reacted earlier, but I've seen so many of my articles posted elsewhere with no links.<br /><br />I only really post once a week, as each article is thoroughly researched, but please drop by any time ;-)The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-71109475024944017562010-09-09T13:35:19.817+02:002010-09-09T13:35:19.817+02:00@nero,
Fair enough. I am kind of pleased that you...@nero,<br /><br />Fair enough. I am kind of pleased that you thought it worth translating my article and you were good enough to inform me.<br /><br />The only issue I have is that I would have preferred it if somebody had asked me in advance before re-posting the article, which I'm sure you understand.<br /><br />We had a good exchange earlier, so I know that you are one of the good guys.<br /><br />I also like the ISCM blog: some well-written articles and a good, healthy debate in the comments. I lived in Milan for 3 years, so I understand Italian.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-16128472108003201652010-09-09T13:06:15.967+02:002010-09-09T13:06:15.967+02:00I for one subscribed to your rss feed on google re...I for one subscribed to your rss feed on google reader.. <br />I can assure you that the many english reading followers of said blog are now loyal followers of this very website.Mariohttps://www.blogger.com/profile/16686401638650679293noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-77619843506516633792010-09-09T13:00:11.938+02:002010-09-09T13:00:11.938+02:00@Swiss Ramble, i wouldn't know this blog if it...@Swiss Ramble, i wouldn't know this blog if it wasn't for ISCM, aftter that i come almost every day to see if you have posted something new.... so maye you have gained only me as a follower but at least is better then none! :)Unknownhttps://www.blogger.com/profile/14768360742090827998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-35290095788150578522010-09-09T12:41:10.037+02:002010-09-09T12:41:10.037+02:00Swiss: i know how referrer works, thanks.
But I ca...Swiss: i know how referrer works, thanks.<br />But I can tell for sure that in the past days a lot of people came fromt that blog since your articles were posted in the comments.<br />I came here for that reason for example.<br /><br />And the good side of having a link on a very popular blog is more than just direct access from that blog. Anyway, it's not about who "gains" from the exchange. <br />I think that good journalism (or however you want to call your articles) should spread as much as possible. Because there is so little good in-depth discussions around.<br /><br />So, my hope is that this ends up in you two clearing things out. <br />I am sorry to not have thought of the thing before translating it for Simone :(<br />So I am trying to make up for my mistake :)_nerohttp://nero.noblogs.orgnoreply@blogger.com