Frenkie de Jong

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Jombi

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Again, why are you comparing Barcelona's revenue allocation with other clubs? Does it not make sense to you that different clubs operate with different cost structures?

No, it doesnt make sense that Barca should pay twice what every other club pay their players.
 

Devils

Senior Member
How do you know that?

Because they have private shareholders who make huge profits off the club but re-invest nothing back into the club.

c18z8fr1t6821.jpg
 

Luftstalag14

Culé de Celestial Empire
Again, why are you comparing Barcelona's revenue allocation with other clubs? Does it not make sense to you that different clubs operate with different cost structures?

What cost structure? It is simply a matter of how much a club spends on staff/personnel and ours is clearly way too much.
 

Newcomer

New member
We're also a non-profit organization with no private shareholders. All the profits made by club can be re-invested back into the club.

Our revenue model differs from other clubs so saying we don't have the highest revenues is not as big of a problem revenue allocation varies based on the structure of the organization.

Look at Arsenal, they have huge revenues, but their private shareholders are more interested in profiting off the revenues than investing it into the club.

Also the nature of your organization provided you with good economic advantage : https://www.independent.co.uk/sport...rid-and-barcelona-an-unfair-edge-8749146.html
 

Luftstalag14

Culé de Celestial Empire
Because they have private shareholders who make huge profits off the club but re-invest nothing back into the club.

c18z8fr1t6821.jpg

This picture does not prove any of what you are alleging (what Arsenal does with their net profit). It shows Arsenal’s entire funding came from their own operations (rather than other sources such as loans and owners’ money etc.).
 

Jombi

New member
Because they have private shareholders who make huge profits off the club but re-invest nothing back into the club.

c18z8fr1t6821.jpg

You're posting a source of EPL club revenues and owners injecting money into their clubs like city and chelsea...
 

Devils

Senior Member
No, it doesnt make sense that Barca should pay twice what every other club pay their players.

Goes back to my original point.

Your valuation is simply based on present day benchmark and have taken no consideration into financial projections over the next 5 years when we will lose half of our top earners.

Can't help you if all you see is that high wage structure this moment but not see the possibility for it to be lowered in the next few years.
 

Jombi

New member
Goes back to my original point.

Your valuation is simply based on present day benchmark and have taken no consideration into financial projections over the next 5 years when we will lose half of our top earners.

Can't help you if all you see is that high wage structure this moment but not see the possibility for it to be lowered in the next few years.

Still doesnt make sense that our wage structure is so absurdly high compared to other clubs. And forget about Arsenal. They are not our main rivals.
 

Devils

Senior Member
This picture does not prove any of what you are alleging (what Arsenal does with their net profit). It shows Arsenal’s entire funding came from their own operations (rather than other sources such as loans and owners’ money etc.).

Arsenal's owners make profits off of the club but aren't reinvesting any money back into it.

Are you alleging that Arsenal's shareholders don't receive any money from economic growth?

My whole point is that Arsenal have private shareholders who benefit off economic growth of the club but don't re-invest that money back into the club.
 

Devils

Senior Member
Still doesnt make sense that our wage structure is so absurdly high compared to other clubs. And forget about Arsenal. They are not our main rivals.

It makes sense if the club feel that a high wage structure is necessary to maintain economic growth and sporting success and feel that this high wage structure can be alleviated in the future.
 

Luftstalag14

Culé de Celestial Empire
Arsenal's owners make profits off of the club but aren't reinvesting any money back into it.

Are you alleging that Arsenal's shareholders don't receive any money from profit growth?

My whole point is that Arsenal have private sahreholders who benefit off economic growth of the club but don't re-invest that money back into the club.

Technically speaking yes, clubs that are joint stock companies should issue dividends to their shareholders but I am asking you more specifically what Arsenal does with their net profit. You were the one who claimed that they don’t reinvest their profit and I am asking for some detailed info on it.
 

Jombi

New member
It makes sense if the club feel that a high wage structure is necessary to maintain economic growth and sporting success and feel that this high wage structure can be alleviated in the future.

No. Any club can make that excuse. If these figures are real, I'd agree with the poster; no wonder we're trying to sign players on the cheap.
 

Lutece FC

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Devils

Senior Member
Technically speaking yes, clubs that are joint stock companies should issue dividends to their shareholders but I am asking you more specifically what Arsenal does with their net profit. You were the one who claimed that they don’t reinvest their profit and I am asking for some detailed info on it.

Are profits not used to pay dividends? Are increases in profits not associated with increases in dividend payments?

Is Kroenke, who is the majority shareholder at Arsenal, not trying to buy 100% of the shares of the club? That would make him the sole receiver of dividends at the club. Currently he's the majority shareholder but as that graph I posted shows, he invests none of the money he recieved from the club (through dividends, salary or whatever).

I don't know what these dividend payments are to these shareholders, nor do I care to look them up for you, but he's not re-investing a penny of it into the club is he?
 
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Devils

Senior Member
No. Any club can make that excuse. If these figures are real, I'd agree with the poster; no wonder we're trying to sign players on the cheap.

Excuse? :lol:

Yeah like there must be another reason why the club would take on such costs.
 
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