Dario Terracotta
Player Valuation: £70m
Anthony Le Tallec though,oh and Alberto Aquilani
lollollol
ECHO Comment: "Fears of Witch-hunt Against Liverpool FC" part 3
- Thread starter cronullasharks
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- liverpool
lollollol
The lad is stranded in W. A. (Rented his house in Melbourne out and went round Australia with a trailer tent, wife and 3 kids...seemed like a good idea in Jan) but the word there is that in the local hospital, after being dragged in - all hands on deck - for the big surge. The 4 week, stage 3 lockdown has - for now - stopped it and they are all more or less stood around.
Disgruntledgoat
Player Valuation: £50m
Anthony Le Tallec though,oh and Alberto Aquilani
Pongolle as well! "The French kids!"
Pegguy Arphexad
Bruno Cheyrou (I think) .... better than ronaldo apparently
ForeverBlue92
Player Valuation: £80m
Eh lad wait til we sign Bruno Sheroo eeez better dan dat pistoneee m8
There's a lot in that, I'll try to answer each point.
They made a lot of money from CL, but essentially this will be offset by wage increases. They have very incentivised contracts and winning the CL last year would have triggered a lot of bonuses to be paid that wouldn't have been the previous season. But yes, last season would have been fine. This season though, no CL final, and potentially no CL money full stop if it is not completed (or at best greatly reduced) puts them at enormous risk.
The flip of this is then the wage bill. Their wage bill at 260m was already substantially higher than Manchester Citys. It's now risen to well over 300m (about where I predicted). That rise is down to the spending splurge they went on the summer before last. Last summer, you have the CL win to factor in. FSG pay heavily on bonuses, so winning the CL, counter intuitively puts them under more pressure.
Essentially they are either matching, or at times blowing out of the water a club like Manchester City, engaging in an arms race they cant afford. Citys wage bill is artificially high. They can only afford it because the owners are happy to underwrite it. FSG have shown neither the intent, nor the resources/liquidity to be able to do it.
However all the time they kept growing sponsorship, gaining more money from European football, selling a big player every year or 2, having their younger players (on huge packets) going out on loan they were ok. There was a lot of risk, but they were ok.
Going out of the CL would have been an initial pinch point though. Lots of lost TV revenue, ground revenue, prize money etc. It may be that the whole CL package will be much less anyway this year, it may be that they dont get any revenue as UEFA wont be able to claim any if the competition isnt finished. This is the big flip of them saying cancel the CL for the league. They will be badly affected by this.
Obviously the crash that has come, is an absolute nightmare for FSG. If you are gambling (as traders tend too) on tomorrow's money being higher, tomorrow's money collapsing is terrible.
That's the wider case though. The answer to your specific question is that what happened last year really has very little resemblance to this year, when you factor it the degree of carnage we are seeing. Business that may have been very healthy and stable 2 months ago will look short now (think airlines). Business much bigger, and healthier than Liverpool will collapse. Liverpool look secure in the bubble of football, but in the real world this counts for little.
At a base level, they have a business with enormous fixed costs (players salaries) and it would seem income streams that are unreliable or none existent.
When I did the calculations, to lose 9 million revenue alone per week means you have to be turning over at least £470m per year. Only 3 clubs do this, (while Chelsea are close in 4th). Only 1 of those 4 clubs furloughed staff. It doesnt take a genius to put it all together.
That is the better case scenario if its them. The worst would be, that the business is losing 9m per week. So not just lost income, but actual losses going out the door. It would assume the wage bill has rocketed enormously on the back of winning the CL (which I had assumed had happened but this might imply a 20%+ increase).
I appreciate people are surprised. Unfortunately people are very stuck in the football bubble, where the assumption is they will always be ok and they wont have problems. If you step outside of football though, what you see is they are a big fish in a small, in truth badly run pond run. They have enormous exposure and like Leeds before too huge risks that could only pay off with revenues having to grow significantly each year.
I dont think the owners will have taken money out. That's what we are probably heading into though. They will not be selling, and nobody would want to be buying into football in this context accept the worst sort of loan sharks (especially now Saudi have gone). FSG will fight to keep them, as even if they did a Leeds and went down, the name holds some value.
If it is them losing 9 million a week, it's awful as a best case scenario. As a worst case scenario its catastrophic.
Tommy Chong
Player Valuation: £70m
In that case, that would be having a moment of silence every match after they play their funeral song.
Disgruntledgoat
Player Valuation: £50m
Never paid his paper bill, though.
Yes bingo Kevin. The entire top 6 are horrible exposed. They will not be getting revenues paid. The only respite will be for City who's owners will continue payments. United have big cash reserves, but they will be getting depleted. Arsenal and spurs in a whole manner of problems.
Shevin Keedy
Player Valuation: £35m
Shevin.
dow1978
Player Valuation: £1m
Pretty much every side in Europe is horribly exposed to be fair.
Yes of course. But obviously those with the highest outgoings, and biggest reliance on sponsorship are the worst. As I tried to tell you the other day mate, it couldn't be Arsenal or Tottenham, in spite of what people (Keys included) were saying. He was wrong. They were all wrong. He has admitted as much.
Wasn’t there an article somewhere stating why Liverpool got the better deal with cheyrou than United did with ronaldo ? Back when they were both signed ?