Impact of PSR on the 'Big Six', how matchday revenues are calculated
The Price of Football
Deep Dive
How do clubs gather information about a potential transfer target's current wages and demands?
Clubs discreetly contact the player's agent to inquire about the player's interest in moving and their current salary. This initial conversation helps determine if the player is open to a transfer and if their wages align with the club's budget. If the player is settled, the conversation may end there. If not, formal negotiations begin, often with prior communication between the clubs involved.
What is the impact of PSR rules on clubs like Aston Villa and Newcastle trying to challenge the traditional 'Big Six'?
PSR rules restrict ambitious clubs with wealthy owners from investing heavily to compete with the 'Big Six'. These rules, which allow clubs to lose £105 million over three years, are seen as anti-competitive and favor historically successful clubs. For example, Manchester City's £700 million revenue allows a £490 million wage budget, while Newcastle's £300 million revenue limits them to £210 million, creating a significant competitive disadvantage.
Why are PSR rules considered anti-competitive?
PSR rules are seen as anti-competitive because they prevent challenger clubs from investing heavily to compete with established top clubs. The rules were introduced to protect the dominance of a few clubs with automatic Champions League qualification, rather than to promote sustainability. This creates a historical anomaly where newer ambitious clubs like Newcastle and Aston Villa are restricted, while clubs like Chelsea were allowed to spend freely in the past.
Can a selling club spread the profit from a player transfer over multiple years to comply with FFP?
No, a selling club cannot spread the profit from a player transfer over multiple years. The profit is recognized at the point of sale, typically on the date the transfer is finalized. This is because the registration certificate, which represents the player's value, is no longer an asset after the sale. Clubs often time deals around financial deadlines, such as June 30, to manage their FFP compliance.
What is included in a club's matchday revenue?
Matchday revenue typically includes season ticket and single-game ticket sales, but clubs have discretion to include or exclude other income streams like food, beverage sales, and parking. Some clubs may shift these revenues to commercial categories to present a more favorable financial picture. For example, one Premier League club reclassified burger and parking sales from matchday to commercial revenue, reducing their reported matchday revenue by 25%.
- Clubs discreetly contact player agents to gauge interest and current salary.
- Agents play a crucial role in information gathering and negotiations.
- Player headhunting differs from typical recruitment, with players holding significant influence.
- Salary isn't the sole factor in player decisions; personal considerations also play a role.
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