Jean-Christophe:
I find your position surprising as it directly challenges the principles of
a free market economy (and would go just against the way that Milton
Friedman would advocate dealing with a oligopoly/monopoly/cartel). Your
proposed system is far closer to the Soviet Union than the system UEFA
currently advocates. Your system is far closer to "to each according to
their needs" than "to each according to its ability".
*Of course*, the most efficient players on the market should be able to
generate more revenues - that is the very idea behind a competitive market.
Cue how Celtic became efficient in order to be able to compete with Rangers
and so forth.
The problem with European football clubs as it stands is that the less
efficient players on the market are making unsustainable and inefficient
investments which are distorting the market for other clubs. For example,
dubious practices in terms of transfer generate inflation (don't forget
loans are the main way that private banks create money, this money is
created artificially if it can only be repaid by newly created money, e.g.
through more transfers paid by more loans... This is the perfect bubble - I
am told this is close to a practice known as cheque kiting in English or
"cavalerie" in English). UEFA's proposals are tackling this fairly
efficiently, though not perfectly.
Toodles,
D.
http://davidikus.blogspot.com
-----Original Message-----
From: Sport and the European Union [mailto:[log in to unmask]] On
Behalf Of Jean-Christian Drolet
Sent: 28 May 2010 15:33
To: [log in to unmask]
Subject: Re: [SPORTANDEU] Financial fari play
Hi all,
The problem here is that the remedy is worst than the problem. We are going
back to directed economy like in the Soviet Union! UEFA is supposed to know
how to run a football club? Please...
The problem in football is not the expenses, it is the inequality of
revenues between top clubs and marginal ones. UEFA has contributed to that
problem by designing the Champions League and Europa league to benefit the
big clubs from big football country.
Assuming that the current regime can't go on like that, the solution of UEFA
will prove ineffective. To paraphrase the owner of a baseball team I met:
"Profits reported in the annual report of teams is not the point. I can turn
1 million of it into a 1 million deficit and get every accountants in the
country to agree with me."
A simple solution would have been to force all clubs that want to play in
European competitions to split 50/50 their gate revenu at their venues and
to force leagues member of the UEFA to split television revenu equaly
between members. That would be financial fair play. A first step would have
been for UEFA to apply that to all its competitions.
The current UEFA rules will be ineffective at best or in the worst case
scenario, worsen the situation and I will welcome any one that goes after
it. It is however unlikely since no one is protesting right now, so big
clubs probably have found a way to go around it.
Sincerely,
Jean-Christian Drolet
-------- Original-Nachricht --------
> Datum: Fri, 28 May 2010 14:17:43 +0000
> Von: Jonathan Hill <[log in to unmask]>
> An: [log in to unmask]
> Betreff: Re: Financial fari play
> Hi all,
>
> If - three years into the worst economic crisis for 80 years, which
> has largely been fuelled by people lending and spending money they didn't
> really have - we entertain a legalistic position to defend a profligate
> oligopoly, then we really have lost our moral compass.
>
> Jonathan
>
>
> ________________________________
> From: Jean-Christian Drolet <[log in to unmask]>
> To: [log in to unmask]
> Sent: Fri, 28 May, 2010 13:46:46
> Subject: Re: Financial fari play
>
> Hi all,
>
> Will not be in Ghent but it screams: "abuse of a dominant position" and
> "restriction of the free market for good and services" to me.
>
> I can't see how that rule could survive a legal chanlenge from, let's say,
> Real Madrid that wants to continue to spend as they like.
>
> Jean-Christian Drolet
>
> -------- Original-Nachricht --------
> > Datum: Fri, 28 May 2010 10:47:17 +0100
> > Von: "Borja García" <[log in to unmask]>
> > An: [log in to unmask]
> > Betreff: Financial fari play
>
> > I think this will have some major implications for the future
> >
> >
>
http://www.uefa.com/uefa/aboutuefa/organisation/executivecommittee/news/news
id=1493078.html
> >
> > Looking forward to discussions in Ghent
> >
> > Best regards
> >
> >
> >
> > ---------
> >
> > NEW CONTACT DETAILS
> >
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> > Institute of Sport and Leisure Policy
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> >
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> >
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> >
> >
> >
> >
> > Sport&EU, The Association for the Study of Sport and the European Union
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>
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>
> Sport&EU, The Association for the Study of Sport and the European Union
> can be found at
> http://www.sportandeu.com
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>
--
Lawyer to the Bar of Québec (Canada)
Scout and Consultant
+49 (0)179-9257472
GRATIS für alle GMX-Mitglieder: Die maxdome Movie-FLAT!
Jetzt freischalten unter http://portal.gmx.net/de/go/maxdome01
Sport&EU, The Association for the Study of Sport and the European Union can
be found at
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Sport&EU, The Association for the Study of Sport and the European Union can be found at
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