tag:blogger.com,1999:blog-487486960623783530.post5821717359371154550..comments2024-02-29T09:58:18.342+01:00Comments on The Swiss Ramble: Real Madrid And Financial Fair PlayThe Swiss Ramblerhttp://www.blogger.com/profile/11423088862174893998noreply@blogger.comBlogger71125tag:blogger.com,1999:blog-487486960623783530.post-68489536253664393312013-08-03T13:15:47.094+02:002013-08-03T13:15:47.094+02:00Hey great article !
I've got a question how b...Hey great article !<br /><br />I've got a question how big the average profit that a club receives from selling one shirt?crisnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-18977710517070659252012-09-03T06:08:28.267+02:002012-09-03T06:08:28.267+02:00Another fine Ramble! thanks really interesting stu...Another fine Ramble! thanks really interesting stuff.imsneakershttp://www.imsneakers.comnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-91179225677186547672012-05-27T05:21:35.539+02:002012-05-27T05:21:35.539+02:00I recall reading somewhere that there have been so...I recall reading somewhere that there have been some creative financial arrangements made between the City of Madrid authority and Real M. Property tax subsidies or some such. Or was that related to the sale of the training ground?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-85576645012291535422012-01-10T12:13:46.804+01:002012-01-10T12:13:46.804+01:00One thing you are missing.. The depreciation of th...One thing you are missing.. The depreciation of the £. Once taken in to account Real and Barca do not fair so nicely.. When they are kicked out of the Euro the cards will fall.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-13756556200403261662011-10-03T10:30:39.029+02:002011-10-03T10:30:39.029+02:00@Anonymous (10:27),
Thanks very much for that lin...@Anonymous (10:27),<br /><br />Thanks very much for that link.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-47705052088061598342011-10-03T10:27:16.423+02:002011-10-03T10:27:16.423+02:00Great article!
Accounts 2010-11
http://www.realm...Great article!<br /><br />Accounts 2010-11<br /><br />http://www.realmadrid.com/StaticFiles/RealMadrid/img/pdf/InformeRm10_11.pdfAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-43580127277983158262011-09-08T17:32:33.651+02:002011-09-08T17:32:33.651+02:00@Anonymous (5:10),
I take your point and often in...@Anonymous (5:10),<br /><br />I take your point and often include an assessment of cash flow movements when I review a club's finances, but it was not really relevant in this case, as this piece focused more on how Madrid would meet UEFA's Financial Fair Play regulations, which are based on the P&L.<br /><br />I also usually mention the artificially low player valuations in the balance sheet, as produced by the capitalisation and amortisation method, but I don't think that a review of an individual club's finances is really the place for an esoteric discussion of different accounting treatments.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-25630505255701988792011-09-08T17:18:02.560+02:002011-09-08T17:18:02.560+02:00Above is not meant as critic...awesome blog!!Above is not meant as critic...awesome blog!!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-16999636683144134272011-09-08T17:10:36.059+02:002011-09-08T17:10:36.059+02:00Have you considered/attempted doing cash flow anal...Have you considered/attempted doing cash flow analysis? The Income Statement is misleading, IFRS/accounting adjustments create a mess e.g. players values dont only decrease, they also go up, amortisation of players doesn't reflect the reality. It would be more appropriate to mark to market the players and push that through the IS...although that makes for overstating profit. Best just ignore the income statement.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-87389641934254230762011-08-11T22:08:20.902+02:002011-08-11T22:08:20.902+02:00Wow... Great Article!!!Wow... Great Article!!!Badhrihttps://www.blogger.com/profile/09515620947672665291noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-63085697720767121822011-07-22T21:04:59.377+02:002011-07-22T21:04:59.377+02:00Amazing article...thank you very much the Swiss Ra...Amazing article...thank you very much the Swiss Rambler...I appreciate your effort and time into describing things in to such detail..I feel like I now understand truly what is going on financially at Madrid. Thanks again! <br /><br />From a Real Madrid FanJuan Pablo Chacinnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-50096813736630979092011-07-19T00:19:59.395+02:002011-07-19T00:19:59.395+02:00Amazing article
Thanks a lotAmazing article<br /><br />Thanks a lotAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-39437547807396820742011-07-18T22:09:45.561+02:002011-07-18T22:09:45.561+02:00"Another reason could be that Fc Barcelona ha..."Another reason could be that Fc Barcelona have many more sports departments than madrid and an equally expensive Basketball department which of course increse operating costs as well as salaries. "<br /><br />I would say that wages in all those other sports such as handball are pretty much meaningless compared to the overall budget.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-58784059352085072232011-07-16T18:52:55.664+02:002011-07-16T18:52:55.664+02:00@missingpage3,
That's a fair point, though so...@missingpage3,<br /><br />That's a fair point, though some might argue that many of the adjustments put through after Rosell became president are highly judgmental, very prudent and have no cash impact. I wrote about this at some length last year: <br /><br />http://swissramble.blogspot.com/2010/08/whats-happening-with-barcelonas.html<br /><br />Quite right about the impact of the bonus scheme, which had a similar effect on Barcelona's 2010/11 results, though you do wonder why anyone would devise a bonus scheme that ends up with a loss.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-12435792685478553962011-07-15T18:26:27.502+02:002011-07-15T18:26:27.502+02:00First of all congratulations for your work!
I...First of all congratulations for your work!<br /> I'd like to ask you however whether all this is based on sand. Barcelona's finances before Rosell came looked stuning as well. The team appeared to be maiking profit every year and according to the last data given by Laporta Fc Barcelona was the club with highest revenue in the world of sports reaching aprox 500 millions. <br /> How can we know that if a new president comes in madrid he will not give a completely different economic analysis?<br /> Also Barcelona part of the reason Barcelona pay such high salaries is because of the of the bonuses that are included due to winning titles.<br /> Another reason could be that Fc Barcelona have many more sports departments than madrid and an equally expensive Basketball department which of course increse operating costs as well as salaries.missingpage3noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-3786963041774931672011-07-12T21:59:38.710+02:002011-07-12T21:59:38.710+02:00What can I say, your article is much better than m...What can I say, your article is much better than most of what you can read on the newspapers, even the economical ones. ;)<br /><br />Congratulations on your work and thank you very much for a wonderful reading.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-63410270479371964022011-07-07T17:20:49.912+02:002011-07-07T17:20:49.912+02:00The Swiss Rambler:
First of all congratulations f...The Swiss Rambler:<br /><br />First of all congratulations for another excellent article. A relief to witness a neutral and thorough piece of work.<br /><br />As other people already have commented you probably receive a lot of requets but I would still like to ask you whether you could make a similar article about FC Barcelona this summer as a comparison to the one you made last year when Rosell won the presidency. <br /><br />Thank you very much in advance.<br /><br />Louis-Ferdinand.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-25522445794625476322011-07-07T13:33:46.199+02:002011-07-07T13:33:46.199+02:00@GreekGunner,
Thanks. Yes, they would be in comme...@GreekGunner,<br /><br />Thanks. Yes, they would be in commercial revenue, but unfortunately the annual report that I have does not go to this level of detail.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-8549013376235985192011-07-07T13:31:45.607+02:002011-07-07T13:31:45.607+02:00@Alessandro,
It's a bit confusing, but it'...@Alessandro,<br /><br />It's a bit confusing, but it's essentially down to the difference between the accounting world and the real world.<br /><br />The second graph on Player Trading reflects the transfer fees paid and received, so is closer to reality (though the timing of the cash payments will almost certainly differ).<br /><br />In the first graph the Profit on Player Sales is the difference between the sales proceeds and the book value of the player, which will have been reduced for the annual amorisation charges. It's probably easier to explain with an example:<br /><br />Let's say Madrid bought a player for 12m on a 4-year contract and sold him 3 years later for 5m. In real terms, that's a 7m loss (5m sale less 12m cost). However, in the accounts that would actually produce a 2m profit on player sale.<br /><br />Here's how.<br /><br />When the player is bought the full cost of the transfer is not booked as a cost, but is only written-off over the length of his contract via player amortisation. The general accounting rule is that this is charged evenly, so in this case it would be 3m a year (12m cost divided by 4 years of the contract). After 3 years the cumulative amortisation would be 9m (3 years x 3m), so the book value of the player would be just 3m.<br /><br />When the player was sold for 5m, the profit would therefore be 5m less the book value of 3m, giving 3m.<br /><br />Hopefully, that makes it a little clearer.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-62681341799133343492011-07-07T13:05:18.410+02:002011-07-07T13:05:18.410+02:00Can't understand some points.
Here http://3.b...Can't understand some points.<br /><br />Here http://3.bp.blogspot.com/-87dnCnkGlG4/TgCzXv4WICI/AAAAAAAADis/8bbVaCxmGl8/s400/5%2BReal%2BMadrid%2BProfit.jpg we see profit on player sales every year<br /><br />Here http://3.bp.blogspot.com/-Ir_-AtaPIq0/TgC2JpyezxI/AAAAAAAADkk/_JrLndvtDEM/s400/20%2BReal%2BMadrid%2BPlayer%2BTrading.jpg we see loss and it's much more closer to reality.<br /><br />So what's with first picture?Alessandrohttps://www.blogger.com/profile/02165088244524812508noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-76774969278750977352011-07-06T15:59:27.899+02:002011-07-06T15:59:27.899+02:00The Swiss Rambler:
First of all congratulations f...The Swiss Rambler:<br /><br />First of all congratulations for another excellent article. A relief to witness a neutral and thorough piece of work.<br /><br />As other people already have commented you probably receive a lot of requets but I would still like to ask you whether you could make a similar article about FC Barcelona this summer as a comparison to the one you made last year when Rosell won the presidency. <br /><br />Thank you very much in advance.<br /><br />Louis-Ferdinand.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-74843661548656763732011-07-05T17:20:26.398+02:002011-07-05T17:20:26.398+02:00Great piece of analysis as always. Thanks!
Fasci...Great piece of analysis as always. Thanks! <br /><br />Fascinating approach by Perez from a marketing point of view. Not only higher fees support growth in commercial and media revenues but it also drives costs up for European competitors. Our beloved Arsenal with its strict salary grid would struggle against such a business model. <br /><br />Quick question: I assume image rights' revenues are included in commercial revenues. What proportion of the total commercial revenues do they represent?GreekGunnernoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-24831984355659611102011-07-05T10:28:08.830+02:002011-07-05T10:28:08.830+02:00Great pices of work. Thank you. I think every one,...Great pices of work. Thank you. I think every one, especially those Chelsea and Manchester United fans who talk about Madrid and Barcas financial doping in various forums on internet should read this one:)...Sebastiannoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-85513503536063641932011-07-01T09:29:24.107+02:002011-07-01T09:29:24.107+02:00@Anonymous (4:58),
Although you're quite righ...@Anonymous (4:58),<br /><br />Although you're quite right that Manchester United made a loss of £79.6m in Red Football Limited, I have taken the loss of £108.9m from the parent company Red Football Joint Venture Limited, as this includes the interest on the PIK loans.<br /><br />Please also note that the figures in the profit graph are in Euros, not Sterling.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-91413682461104314072011-06-30T16:58:14.267+02:002011-06-30T16:58:14.267+02:00Din't Manchester United make loss of 80m last ...Din't Manchester United make loss of 80m last season?Anonymousnoreply@blogger.com