So Radz sells Eleven Sports amidst UK economy concern woes.

[Monaco_Totty]

So ELEVEN’s founder, Radrizzani will be due to a cash windfall following DAZN’s acquisition, having launched the business in 2015. Put that in context that Radz has rumoured to have agreed a £400m deal for Leeds with the 49's I've just been reading how 'Inflation & currency value' actually effect wealthy football owners & footballers in different ways as currency exchange rates affect the real value of the playing contracts of international players.

As most sports professionals who play abroad sign contracts in currencies other than that of their home country their contracts are sensitive to currency exchange fluctuations especially because they may be sending money back home to their families or for 'investment purposes'. Therefore international players need to be aware of the currency trends of the country they currently reside in as much as the currency trends of their home country and no doubt their Agents will suggest they should try to use currency fluctuations to their benefit rather than their detriment and no doubt Agents will be reminding their clients today also that revenue now earned in 'inflationary times' has a lower real value and also in terms of portfolio investments of foreign currencies, foreign stocks, bonds and real estate.

Reading the American press it appears to me that President Biden will testify the fact that it’s never especially wise to ignore your Govt Treasury Secretary. Former US Treasury Secretary Larry Summers infuriated the White House by publicly warning that the Biden Administration’s massive public spending plans designed to bail the US economy out of its Covid-19 shockwaves would create massive inflationary risk.

Fast-forward now and Mr. Summers’s worst fears have been realised with the Federal Reserve implementing monthly interest rate rises in an effort to halt the country’s inflationary fever.

But Larry Summers is not the only observer warning today that UK sterling is now acting like a risqué emerging-market currency with many European banks also raising eyebrows at the UK's PM Liz Truss master plan unveiled last week.

So it's gonna be tough times for British lower league football for sure & PL clubs own commercial activities revenue will Defo be taking a hit and possible repercussions on future Tv rights deals if folks cannot afford subscriptions.

[hopelesslyoptimistic]

So ELEVEN’s founder, Radrizzani will be due to a cash windfall following DAZN’s acquisition, having launched the business in 2015. Put that in context that Radz has rumoured to have agreed a £400m deal for Leeds with the 49's I've just been reading how 'Inflation & currency value' actually effect wealthy football owners & footballers in different ways as currency exchange rates affect the real value of the playing contracts of international players.

As most sports professionals who play abroad sign contracts in currencies other than that of their home country their contracts are sensitive to currency exchange fluctuations especially because they may be sending money back home to their families or for 'investment purposes'. Therefore international players need to be aware of the currency trends of the country they currently reside in as much as the currency trends of their home country and no doubt their Agents will suggest they should try to use currency fluctuations to their benefit rather than their detriment and no doubt Agents will be reminding their clients today also that revenue now earned in 'inflationary times' has a lower real value and also in terms of portfolio investments of foreign currencies, foreign stocks, bonds and real estate.

Reading the American press it appears to me that President Biden will testify the fact that it’s never especially wise to ignore your Govt Treasury Secretary. Former US Treasury Secretary Larry Summers infuriated the White House by publicly warning that the Biden Administration’s massive public spending plans designed to bail the US economy out of its Covid-19 shockwaves would create massive inflationary risk.

Fast-forward now and Mr. Summers’s worst fears have been realised with the Federal Reserve implementing monthly interest rate rises in an effort to halt the country’s inflationary fever.

But Larry Summers is not the only observer warning today that UK sterling is now acting like a risqué emerging-market currency with many European banks also raising eyebrows at the UK's PM Liz Truss master plan unveiled last week.

So it's gonna be tough times for British lower league football for sure & PL clubs own commercial activities revenue will Defo be taking a hit and possible repercussions on future Tv rights deals if folks cannot afford subscriptions.

Look at what just happened in the rugby premiership - Worcester Warriors suspended for inability to meet tax liabilities.

Looks like there will be a sensible conversation coming in rugby about sustainability and only spending what you can afford.

None of the clubs seem to make any money with a few just about breaking even due to the inflated salaries that they pay notwithstanding they have a salary cap.

Football has FFP but no set amount salary cap. The challenge for football is that there is so much cash involved and a ‘support’ industry that lives off the back of that (agents, consultants, media, pundits, merchandising etc ) that no one really wants to reinvent the merry go round.

All the while tv subscriptions and ticket prices go up with more clubs at risk of financial ‘shocks’ but with the governing bodies not really wanting to properly address the issues.

[Monaco_Totty]

For me there are to many Private
equity funds fueling the club owners nowadays with Asset managers having more say sadly. (Likewise in world economics with even more say than our elected politicians).

My Mum had to recently translate some Uefa papers about clubs increasing relying on debt & equity injections to stay afloat & how whole leagues are now being financed by such structure.

Both Italy & German leagues rejected private equity investment whereas Spain's La Liga's didn't and took a €2.5 bn deal from the Luxembourg company CVC Capital Partners to secure long term financing which helped 'all clubs' in their 1&2 league structure except Real Madrid &* Barcelona who opted out. Think CVC bailed out the English Rugby PL & Formula1 as well as part of their sports portfolio.

Maybe the book value of Football & Rugby clubs 'listed' is often undervalued. For starters players values tend to go up while they go down in the books due to 'artistic* mitigating' amortizations.
Then of course you'll get the value of the stadium, the infrastructure & other assets & so on all thrown in.

'Value can be created in three ways' for sure.
The one most dead-cert is the sportive success of the team. This rakes in prize money, increases players transfer value and improves the merchandise income of the club obviously.

Second, 'player trading'. Signing free agents and transferring them out a few years later ideally.

Third, 'youth training'. This way you don't have to pay any transfer fees. If the player develops well you can cash in big time on them. Ajax is great at this & is well known for its world-class player development & now are expected to cash in every season on home nurtured talent without fan discontent.

Whatever will be will be as they say.

[spaldy]

while I'm no economic expert. It's not really hard to figure out that if cost of capital goes from 1-2% to 10% there is going to be a lot of pain inflicted on the borrower.

This is a segment of business where the cost will be higher than average.

I think there are some very ugly times ahead for many football clubs.

[Monaco_Totty]

while I'm no economic expert. It's not really hard to figure out that if cost of capital goes from 1-2% to 10% there is going to be a lot of pain inflicted on the borrower.

This is a segment of business where the cost will be higher than average.

I think there are some very ugly times ahead for many football clubs.

Precisely Spaldy, ain't rocket science is it - not great for clubs further down the League chain either sadly.

https://www.bbc.com/sport/football/63059078.amp

https://www.theguardian.com/football...-energy-crisis

I mentioned Rugby Unions woes & today English Rugby League are discussing NO relegation for big gun clubs chasing Golden Eggs - new definition of Professional sports suppose.

[hopelesslyoptimistic]

Precisely Spaldy, ain't rocket science is it - not great for clubs further down the League chain either sadly.

https://www.bbc.com/sport/football/63059078.amp

https://www.theguardian.com/football...-energy-crisis

I mentioned Rugby Unions woes & today English Rugby League are discussing NO relegation for big gun clubs chasing Golden Eggs - new definition of Professional sports suppose.

For some reason many otherwise sensible business people leave all economic rigour and logic outside the front door when they get involved in sports clubs and start making projections on unrealistic expectations of success and revenue.

There is an old joke how do you make a small fortune? Take a big one and invest in a football club.