tag:blogger.com,1999:blog-487486960623783530.post4693164032420012493..comments2024-02-29T09:58:18.342+01:00Comments on The Swiss Ramble: Will Real Madrid Be Able To Fund Mourinho's Plans?The Swiss Ramblerhttp://www.blogger.com/profile/11423088862174893998noreply@blogger.comBlogger23125tag:blogger.com,1999:blog-487486960623783530.post-27678976541375894362011-03-13T20:21:14.927+01:002011-03-13T20:21:14.927+01:0071,800 average attendance. Holy cow Batman.71,800 average attendance. Holy cow Batman.Yeast Infection Home Remedyhttp://beatyeastinfection.com/yeast-infection-home-remedy/noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-79240351463129761972011-03-13T20:19:41.127+01:002011-03-13T20:19:41.127+01:00Second richest club in the World should be able to...Second richest club in the World should be able to fund any plans no matter who thought them up.Yvette Paigehttp://yvettepaige.comnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-44120624419864902482010-10-27T11:55:58.950+02:002010-10-27T11:55:58.950+02:00Swiss Rambler
Just a couple of comments.
First,...Swiss Rambler<br /><br />Just a couple of comments. <br /><br />First, that your article is no complete if you don't mention la Esquina del Bernabeu.<br /><br />Second, that Sala i Martin, the one wearing flashy jackets obviously lies when he refers to how many shirts his main rival has to sell to recover the invested money. But this should have gone without saying, and frankly I'm dissapointed you included it in your text.Orient Bluehttp://www.google.comnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-73154416496360498662010-10-25T11:08:15.456+02:002010-10-25T11:08:15.456+02:00Excellent article again. Fascinating stuff. Madrid...Excellent article again. Fascinating stuff. Madrid are like a circus as Alex F once said, but one thing is certain - they never fail to entertain!Spudnikhttps://www.blogger.com/profile/15582705259374923073noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-40609863522271605432010-09-14T08:35:56.992+02:002010-09-14T08:35:56.992+02:00@Matt,
Yes, saw that. I would like to revisit Rea...@Matt,<br /><br />Yes, saw that. I would like to revisit Real Madrid once they publish their annual report. Can't really get enough detail from the press release to produce a meaningful analysis.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-38531235935061031292010-09-13T20:59:05.585+02:002010-09-13T20:59:05.585+02:00Reaql Madrid just announced record income for 2009...Reaql Madrid just announced record income for 2009/10, up 8.6% from last year, net profit is up 11.5% and debt was reduced by 25% (from http://www.goal.com/en-gb/news/3277/la-liga/2010/09/08/2109504/real-madrid-announce-record-income-for-2009-10-season) which are impressive figures any way you look at them.<br />They haven't performed any better on the pitch so it's either coming from sales of Ronaldo shirts or a huge TV rights boost or both... Don't know if the details have been published yet but I will keep refreshing your home page in the hope you will help us understand how it's possible to reach such a financial success without winning any meaningful silverware in a while.Matthttp://www.arsenalfootballclubnews.comnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-63039526799833749722010-06-30T03:34:25.414+02:002010-06-30T03:34:25.414+02:00http://www.forbes.com/lists/2010/33/baseball-valua...http://www.forbes.com/lists/2010/33/baseball-valuations-10_The-Business-Of-Baseball_Rank.htmlFrogSoxnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-42167164049849610342010-06-30T03:22:15.891+02:002010-06-30T03:22:15.891+02:00Regarding Anon (4:57). The Yankees have just start...Regarding Anon (4:57). The Yankees have just started their second season in a brand new, huge stadium (currently averaging 87% of capacity which is about 48000). With an average ticket price of $51.83 dollars you'd be raking in $2,487,840 per home game. They play 162 games a season and I believe it's evenly split between home and away games so 81 home games per season nets them approximately $201,515,040 a season. Then you have to factor in post season games which the Yankees almost always are involved in. The world series run last year would almost certainly have added at least another $20 million. NewYankee Stadium cost 2.3 Billion USD and 1.2 Billion was public money. <br /><br />When you see the amount of money paid to players, you have to remember that there are over 160 games per team each season, so you have to imagine the amount of additional sponsorship, tv revenue, gate receipts the teams are making in these situations. Imagine the amount of money made when a 40 game season ticket pass ranges from $3000-$10000 and there are smaller plans to ensure fans who cannot afford those high prices can still buy some sort of season pass. <br /><br />I know the Yankees are far and away the leading club in terms of cable television income. I believe clubs share the collective rights sold to ESPN, TBS, Foxsports etc evenly, but are free to negotiate their own cable deals. This is where the Yankees make a killing. From memory I believe their cable contracts alone bring in about $50 million per season.<br /><br />The Yankees have a massive market presence when you look at merchandise as well. Even people who don't follow baseball or know another team will know who the Yankees are and wear their caps, shirts etc because it's become a fashion trend (Kanye West says it's all down to him "I made the Yankee Cap more famous than a Yankee can" - dick). <br /><br />Unraveling baseball is hard though. There's the revenue sharing rules which require the big earning teams to share a portion of their revenues to help small market teams remain (arguably) competitive. That's just one of many little rules which makes it hard to judge exactly where teams are at, but needless to say there's money.FrogSoxnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-81020217599331680802010-06-15T09:18:57.820+02:002010-06-15T09:18:57.820+02:00@anonymous (4:57),
Thanks. I might well take a lo...@anonymous (4:57),<br /><br />Thanks. I might well take a look at US sports to see what lessons football could learn, but it is not really my area of expertise. On the other hand, a fresh pair of eyes might not hurt ...The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-4371226817743768462010-06-15T04:57:09.631+02:002010-06-15T04:57:09.631+02:00Many thanks for another excellent article. Keep it...Many thanks for another excellent article. Keep it up.<br /><br />You mentioned that only the Yankees have a higher wage bill. Would you be able, by way of a camparrson with football, to write a piece on how the Yankees generate enough revenue to pay their stars such astronomical wages? I'm sure that most football clubs (it seems Arsenal and to a lesser extent Liverpool are taking notes) could learn a lot from the marketing jugganauts that are US sports teams.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-48132149567378035242010-06-14T12:58:50.744+02:002010-06-14T12:58:50.744+02:00@Han,
I have no knowledge of Real Madrid's in...@Han,<br /><br />I have no knowledge of Real Madrid's incentive scheme, but maybe we can get an idea from your own Barcelona team. In 2007/08, when they "only" won La Liga, the variable compensation was €26m, while the following year, when Barca won 3 competitions including the Champions League, they had to pay out €58m - an increase of €32m.<br /><br />Assuming Real had similar incentives in place, you could estimate that CL success would probably cost them around €30m, but the revenue upside (prize money, commercial clauses) would easily compensate for that.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-22618461302566167952010-06-14T12:51:28.419+02:002010-06-14T12:51:28.419+02:00@Matt,
Yes indeed. Although it probably makes me ...@Matt,<br /><br />Yes indeed. Although it probably makes me quite sad, I'm eagerly awaiting their next accounts, so we can get a better idea of how their strategy pans out.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-81268524063772056592010-06-14T10:26:54.471+02:002010-06-14T10:26:54.471+02:00As an ardent Barca-fan I would love to draw differ...As an ardent Barca-fan I would love to draw different conclusions from this piece. Yet it is a well documented and nuanced view on the EE's finances. A high risk strategy with alot of future costs implied apparently but as you perfectly point out the question remains "how much Real would earn if they actually won something?"<br /><br />Now my question is, taking a Madrid CL-win as starting point: do they have financial incentives of similar nature and size(as Barcelona). As such would they end up paying alot of their financial gains to bonuses for players and staff?Hannoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-18482954611708784612010-06-14T03:16:08.022+02:002010-06-14T03:16:08.022+02:00Many thanks for another top-notch article. We woul...Many thanks for another top-notch article. We would still be lost in conjectures and rumours without you.<br /><br />So indeed this post has been the most counter-intuitive you've produced so far.As you wrote: "the jury’s out on whether Real Madrid’s model works" but if memory serves well it was exactly what was said at the beginning of the Galacticos era with the end result we all know. I can't wait to read your future updates on their gamble!Matthttp://www.arsenalfootballclubnews.comnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-25058296690091113232010-06-13T11:25:37.906+02:002010-06-13T11:25:37.906+02:00@walter,
Yes, the jury's out for the moment o...@walter,<br /><br />Yes, the jury's out for the moment on how Real's finances will develop, though their budget for 2009/10 shows a profit of €19m.<br /><br />Although the player amortisation increases significantly, this is largely compensated by higher revenue and lower cost write-offs. As I said in the article, I am puzzled that salaries are not anticipated to grow more, but this is something they should be able to accurately budget.<br /><br />Of course, the Mourinho factor may throw all their calculations into the air again.<br /><br />Where UEFA's fair play regulations would really impact on Real Madrid (and other Spanish clubs) is the insistence on clubs paying their transfer fees upfront, as this is the highest component of Real's debt and has been a key part of their business model.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-42972298011547386572010-06-13T00:07:13.478+02:002010-06-13T00:07:13.478+02:00Another master class article, Swiss Rambler.
My m...Another master class article, Swiss Rambler.<br /><br />My main conclusion is that we will have to wait and see in a few years time how they will develop. It could work out for them but when not they could be in deep trouble. <br />I wonder if the Spanish economy suffers even more than now, how this would reflect on the top clubs.walternoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-32130082654761840312010-06-10T17:22:33.097+02:002010-06-10T17:22:33.097+02:00@swiss rambler
That's a good explanation. In ...@swiss rambler<br /><br />That's a good explanation. In Bayern's case I do think there is some commercial "nepotism" but still this cannot account for double or triple commercial revenues vis-a-vis PL clubs.Stevennoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-19986656767837305572010-06-10T11:23:59.738+02:002010-06-10T11:23:59.738+02:00This is the first article I've ever read that ...This is the first article I've ever read that explains Real Madrid's finances without alleging corruption. Thank you. In other countries/leagues, there would probably be much worrying about the gap between it's two best teams and the rest. But Spain/Real/Barca is perhaps a little special.DS Heldernoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-43725463069939054202010-06-10T10:09:12.166+02:002010-06-10T10:09:12.166+02:00@steven,
My own view is that Premier League clubs...@steven,<br /><br />My own view is that Premier League clubs have not had to focus on commercial activities, because their TV revenue has continued to increase, but I think that my be changing.<br /><br />In addition, I would frankly question the competence of the commercial departments at many PL clubs, though some teams are moving to address that, e.g. Arsenal have recruited Tom Fox from the NBA, while Ian Ayre at Liverpool has done some good deals.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-51482931471706385892010-06-10T10:03:30.702+02:002010-06-10T10:03:30.702+02:00@anonymous (10:31),
It would indeed be interestin...@anonymous (10:31),<br /><br />It would indeed be interesting to know how much money clubs make from selling shirts, but unfortunately they don't always divulge the split of commercial revenue.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-37542112975280486292010-06-10T09:47:40.665+02:002010-06-10T09:47:40.665+02:00Why are the commercial revenues still so poor in t...Why are the commercial revenues still so poor in the PL? I understand Arsenal's situation to some degree because of the deals they put in place re the new stadium but the PL is the most popular globally evidenced by the new international TV rights, Liverpool and Chelsea selling more shirts than Madrid etc. It's slightly bizarre or am I missing some important factors?stevennoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-86664411358501624522010-06-10T02:55:45.594+02:002010-06-10T02:55:45.594+02:00"Here’s a clue, David: in fact, their turnove..."Here’s a clue, David: in fact, their turnover is £60 million more than yours – and they’re not paying the banks £70 million a year in interest."<br /><br />That was priceless. It does stink for English football though because clubs like Man Utd. and Liverpool could be better off without their owner's unproductive debts.<br /><br />While Real Madrid and Barcelona are great football institutions, I personally believe they're further exploiting their prestigious position rather than acting as exemplary clubs in the business.<br /><br />It's strictly business, survival of the fittest and all, but what happens when they're the only two standing?<br /><br />The most shameful thing is, these clubs don't even have to be bullying continental football because they will always attract the best due to their history.<br /><br />I think it's already starting to happen with all the brightest talents headed to Madrid or Barca.<br /><br />It's made most of La Liga games an exhibition :/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-46857467418396203832010-06-09T22:31:24.858+02:002010-06-09T22:31:24.858+02:00nice article.
IF real and Barcelona are forced in...nice article.<br /><br />IF real and Barcelona are forced into negotiating Tv deals collectively ( which i can see happening in the next few years). <br /><br />Then i think they will have to rethink their business model. <br /><br /><br />By the way, how much do premier league clubs make from selling shirts? <br /><br />That would be an interesting article to read.Anonymousnoreply@blogger.com