Insanity of this transfer window

[AnotherHamster]

Clearly insane levels of spending just witnessed and many / most / all (delete as appropriate) of the prices paid seem to bear no relation to the quality of the player.

I had assumed though that this was clubs splurging their broadcasting revenues. However I read an article this morning (can’t remember now which newspaper - sure someone can find a link to it) suggesting not so.

That most of these purchases are debt driven and that private lenders / shadow banks are throwing credit at the PL clubs for player purchases. This seems to be the latest wheeze to help billionaires make more money while dodging paying taxes.

The article suggested that much like the AI bubble, this can’t keep going and sooner or later the market will go pop leaving the clubs with unpayable debts. The big clubs will be fine (too big to fail) but the smaller clubs will be in big trouble.

[Challo]

Looks how many players traded between prem clubs. The purchases outside the prem seemed to be lower and lower.

Outside of big clubs in Europe like Barca, Bayern, Real and PSG no one can afford anything close to the premier League teams. Only exits will be to Saudi to afford the fees and wages.

Some very suspect dealings going on between certain clubs related to fees to ensure they are positives on the balance sheets.

[Quhet]

Whatever it is, the money involved is pretty obscene. Over a hundred million for one player is insanity and it surely cannot be sustainable. I wonder where we'll be in 20 years?

[The jiffle king]

Where does the money come from? Ultimately the fans pay through higher ticket and merchandise prices as well as higher TV packages . Sure money comes from owners and sponsorship but it has to come from fans in the end as owners are investing in clubs, not bankrolling them

[The G Kid]

AnotherHamster said:

Clearly insane levels of spending just witnessed and many / most / all (delete as appropriate) of the prices paid seem to bear no relation to the quality of the player.

I had assumed though that this was clubs splurging their broadcasting revenues. However I read an article this morning (can t remember now which newspaper - sure someone can find a link to it) suggesting not so.

That most of these purchases are debt driven and that private lenders / shadow banks are throwing credit at the PL clubs for player purchases. This seems to be the latest wheeze to help billionaires make more money while dodging paying taxes.

The article suggested that much like the AI bubble, this can t keep going and sooner or later the market will go pop leaving the clubs with unpayable debts. The big clubs will be fine (too big to fail) but the smaller clubs will be in big trouble.

Whilst I don't disagree that this window has been crazy, I disagree that this is a bubble and clubs would be financially in danger. I think the debt issue has been overblown in a lot of comments I have seen. There is nothing wrong with debt generally, and most clubs debt is due to infrastructure rather than player purchases. The new Squad Cost Ratio rules also mean that borrowing to buy players doesn't really work, as borrowed money wouldn't (I presume) count as revenue. My club (Forest) could afford to spend a lot more cash on players, but can't due to the financial fair play rules (which are nowhere near being fair).

The biggest threat to the EPL is a massive drop in revenue from broadcasting. It is difficult to see what would trigger that. Other leagues are not as exciting, and I can't see another sport rivalling football in terms of what people want to watch. Maybe a massive global recession, leading to mass cancelling of subscribers to Sky etc?

[Edanrage]

Evertons multi billion pound owner is looking for new investors, recons he can't keep up with the cost of competing for top players. Bonkers .
Or he could be spinning garbage.

Edited by Edanrage on Friday 4th September 11:00

[bigpriest]

Football Inflation (no idea how this is calculated but...)

£4 million in 1993 is equivalent to roughly £90 million to £100 million today

[franki68]

And not one world class player in all those £100m+ transfers .

[TwigtheWonderkid]

franki68 said:

And not one world class player in all those £100m+ transfers .

I think there's an argument to be made for Enzo Fernandez. World cup winner and i think a shrewd buy by Man City. If he continues to develop, he could well be their next KDB. He's a very good footballer (but a bit of a tt).

[nicanary]

I rate Elliott Anderson as a player, but not at that insane price. He's more £60/70m in my view. In which case Morgan Rogers is worth even less. It does make you wonder what Declan Rice would now fetch.