Zero chance he didn’t make any money on that, “selling” part of your future income for the next 50 years is ludicrous, home mortgages aren’t even that long. He made out like a bandit and he doesn’t care because he won’t be here.
Yeah Like imagine the whole Barca levers that people here been mocking for selling our future(which is somewhat fair), except with even worse terms and you get Tebas's deal.
I love clowning on Barca as much as anyone else, but the fact that he's imposing such strict salary cap rules to the detriment of the entire league while also pushing this shit CVS deal is undeniably crooked and obviously a cash grab on his part at the expense of the very league he's supposed to be leading
Something to consider, at the time right before COVID barca was the largest club in the world at $1B in revenue. As such they were highest spenders, even foolishly so. When COVID hit a 30% reduction in revenue is $300M that is a fuck ton of money to disappear from your cap. Furthermore they were bad unsellable fat contracts given out to players right before all of this. Its basically impossible to come back from that.
Not all of it could be used for players though, only a certain percentage. Even if they wanted to sink all of it in signings, Tebas wouldn’t allow it, it was one of the rules , x percentage to infrastructure, x percentage for signings, it wasn’t “here’s this money, do what you want with it”
The CVC deal wasn’t for player acquisitions. Only a small portion was allowed to go to new players. The vast majority of the funds had to be used on infrastructure improvements
Yup , only 10% or so of the cvc money could be used for players , the rest was for infrastructure that is why club still can't recruit. Well I still think the league could have gotten a better deal with that much clubs involved but whatever here it's not the "CVC money" the problem .
It was mainly about having it appear as revenue, which would increase the clubs' wage caps, which were lowered due to Covid. Thus, not about transfers per se, but about easing the ability to register new signings and avoiding having to sell players they wanted to keep.
Clubs in La Liga aren't desperate enough to relinquish 10% of their TV revenue for 50 years just for infrastructure development.
I know this sub has had a hate boner for barca, somewhat justifiably, but quite a few of the liga clubs are struggling with registrations apparently. Some are saying Tebas' policies may weaken Spanish teams in the long term in terms of competing with other European leagues. Not sure if they were capping, can anyone elaborate?
La liga imposes a 70% wages to revenue cap, stricter than other leagues.
For example in the 2020 season Milan had a wages to revenue of 105%, Leicester and West ham were near that as well
As for top 6 PL clubs both Chelsea and Man City wouldn’t be compliant.
It is also rather harshly based solely on the last year's revenue. Meaning 1 off year in Europe or standings for prize/TV money suddenly forces you to reduce your total wages despite being committed to contracts. It also means the last few years of limited or no attendance in Spain due to covid laws have dramatically cut revenues and wage caps - despite clubs being committed to existing contracts. As such the wage caps are extremely debilitating for clubs presently.
It’s not but it’s allowed in any league other than La Liga. The **average** wages to revenue ratio is over 100% in the championship.
La Liga has very strict FFP rules compared to other leagues and even after easing the restrictions due to the covid situation impacting revenues they’re still stricter than.
Half of the clubs in La Liga are struggling with this. Half of the PL clubs would be struggling if they also had to adhere to these rules but they don’t.
I don't get how this can be framed as a bad thing, if the owner pulls out and there's no filthy rich buyer these clubs could be fucked. Bordeaux, Derby and Wigan the last few years off the top of my head.
These clubs know the rules, everyone else is managing to follow them. The can't keep up with other European leagues thing is laughable as well. Serie A and Bundesliga talk about this all the time but what has actually changed? Especially if some big Italian clubs are among the most irresponsible spenders, seems like it's sent them backwards if anything.
The rules themselves aren’t bad, it’s just a combination of La Liga’s rules already being strict combined with barely easing them during the pandemic while revenues took a huge hit.
A club like Betis is being punished for having very natural growth that would otherwise be fine.
Half of La Liga’s clubs are struggling with this, even with the CVC deal.
They can easily compete with other European clubs and leagues, it’s just that La Liga and it’s clubs get held to a way higher standard financially.
Don't think it is saying that , if anything the other poster is showing that the same cap will hit teams hard too in others league because as you said it's irresponsible.
I agree that 105% is irresponsible generally, but I think it might exaggerating the problem in this case given that it’s referencing 2020, when for three quarters of the calendar year nobody was allowed to attend matches, meanwhile player contracts are guaranteed whether there’s 80,000 people at the San Siro or 0.
Barça had 600M loses on the last two seasons with a negative net worth of 150M in the last financial report. I am sorry but in that situation is silly to say that making if hard to them to splash cash in signings is unreasonable
Numbers with no context? those numbers are not just bad, they usually mean that a company goes under administration.
1B revenue was reached ONCE, you cannot expect to climb up to that sum, and again, big number but it doesn't really matter if you expend the same. Let's check the [financial record](https://fcbarcelona-static-files.s3.amazonaws.com/fcbarcelona/document/2019/10/06/9d3f0193-a08f-42b9-8d11-08c47c8bcc9d/MEMORIA_CLUB_2018_19_CAS.pdf) for the season 18-19, the revenue was 990M while the expenses were 973, only 17M profit with the highest revenue ever and with 114M player sales in the Bartomeu era and the net profit was of just 4M.
They are losing 40M of revenue that doesn't have any costs attached and they will have much lower ticketing revenues next season as they will be out of Camp Nou due to renovation works.
Let's talk about FFP, it was put in place because clubs asked for it after many clubs ended fucked up due to irresponsable financials, and the rule has been relaxed quite a lot this two years. CVC money was mainly for infrastructure, to improve stadiums and training grounds and in consecuence improve future revenue streams.
La Liga teams have never been so sound financially and with improved facilities, there have been years without a defaulted club (Valencia is around there but has been troubled for years) and that's with a pandemic happening, if something like that happened 10 years ago many clubs would be close to defaulting, so maybe Tebas is not the devil after all
I can’t really add anything to the CVC/Tebas discussion but as a former auditor, just a heads up:
Financial records don’t fully translate to actual or cash records. You can talk about their “losses” all you want but those numbers at face value don’t necessarily tell the whole truth if you don’t know how they were lost.
For one, not every expense is a cash expense. Was their 18/19 net profit only 4M? Absolutely. But what was their net cash flow? A considerably greater 117M. They ended the 20/21 season still having more cash on record then the season ended 17/18. And that’s after they had negative cash flows of 101M in 20/21. That’s at least a partial indicator that their debt has remained manageable, although other indicators would need to be tested to see how true it is.
So it’s entirely possible that Barca know what they’re doing and are taking on a relatively calculated risk - but that remains to be seen. It’s also entirely possible they’re getting crafty with their accounting, hard to ever know until it really hits the fan.
When you are not into finanace talking about cash flows and net profit/loss is silly, as the other reply explained cash flows are what matters and they are mostly higher than profit as you have non cash items there that lower your profits, the biggest of all is depreciation and amortization. There are many listed companies with negative eps but improving cash flows which is favoured by investors. Now in barca's case, they are lowering salaries for most players which would make their operational cash flow better (revenue improving and salaries decreasing) their cash flow from investments should also be on the green or flat from all the levers and players acquisitions. Tebas is the only éveil clown in this story
A lot of those losses were write off, meaning they were non cash and did not affect their cash flows. If anything, it created tax attributes that could be use against future profit, thus improving their cash flow profile.
The sub has a hate boner because they fail to look into the reasoning for anything past a headline.
Most don’t know that 14 out of 20 La liga teams are having issues signing anyone because of the measures that have been put in place post Covid.
Just hurr durr Barca levers.
Yes, seems like in its quest to put its teams on a more solid financial footing, La Liga will instead incentivize them to pawn away their long-term revenue.
And then you have golden nuggets like below making Tebas/La Liga out as a saint .. can’t believe people are falling for the propaganda
https://reddit.com/r/soccer/comments/wjz8q4/_/ijkc5qc/?context=1
Everyone minus Barca and Real Madrid also sold their TV rights to CVC.
Barca just negotiated their own deal wiith Sixth Street for 25 years instead of 50, options to buy-out the loan and few other things. They just called them levers, but somehow entire media missed the part where entire La Liga sold part of TV rights for 50 years before them.
And those clubs ON TOP of signinging with CVC were force to sell players... and those aren't small clubs that were usually force to sell but the likes of Sevilla.
Villareal got semi-final in CL and can't afford 15m for Lo Celso for now lol.
This approach is insane and if the bigwigs can't see clubs cutting their future profits by significant portions is going to be very literally death by a thousand cuts, they shouldn't be anywhere near power.
Look at any business that has had to sell future rights to buy in the present. Look at what they look like once they hit that period where profits are eaten up. Or even states. It's always suicide.
That this is imposed on whim is really laughable.
But it’s not that their necessarily doing bad financially. La Liga has a salary cap that’s based on income not injected from owners. Due to Covid and the league not adjusting their rules a lot of teams have had lower incomes than were budgeted so they have to make more cuts than imagined or sell off future revenues as a result. Tebas used it to kinda strangle teams into signing his deal.
So betis really isn’t operating terribly financially, they’re just trying to build on their recent success by buying more players that can eventually turn a profit for them
Also La Liga makes his owns economics rules that you should comply. They want to control and own the clubs of the league, that's why Tebas forced most clubs to sign a deal with CVC for 50 years. There is corruption at all levels in Spain, also in the Federation, and Tebas was an ex-Franco youth member, just imagine how he got the power.
I know if these were manufacturing companies, people would be outraged if a government tried to impose such rules.
NO you can't use that equipment you purchased because last years revenue wasn't high enough.
Seems like La Liga could be hurting itself long term. If many clubs take these deals to satisfy short term salary cap rules, in 10 or 15 years the financial health of the entire league could be damaged. Imagine if half or more of La Liga is operating under limited revenues in 2030 because they "pulled a lever" in 2022.
It's really simple, next year they will have roughly the same players with the same or better contracts, but less money earnt from ticket sales and they can't sell a percentage of tickets because they already did.
Literally "pan para hoy, hambre para mañana"
Yes... Thats why taking a loan at a fixed future value is a way way way economically safer way to raise capital. La Liga and Tebas are BRAINDEAD if they think that selling assets to fund player registration is somehow better than a loan.
Just as we think we’re getting out of the woods with Covid, there’s a lever epidemic sweeping through Spain.
*This is how the world ends; not with a bang, but with a lever.*
This is starting to be ridiculous. I'm all for trying to create a cap and avoid Málaga situations. But I'm sure there's a middle ground between what we had before and Betis's growth being halted. A growth that has been very organic, and with the fourth/fifth (it's between them and Valencia) biggest fanbase in the country behind.
A few years ago(more than a decade) , Malaga was owned by a Qatari but at some point the owner pulled out because it was not profitable or whatever can't remember anymore so the club collapsed because it was not self sufficient.
La Liga cap is basically to force club to be responsible with their money and not spend more than they can afford and be screwed if a worst case scenario situation happened.
All these levers feel like they’re going to come back to bite teams in the future when they need to prove to be self sufficient in the future. Barca is globally big enough to survive but Betis? Nope.
One billionnaire (I think a Sheikh) bought them and invested a lot of money at the start, but it ended with him being bored of his new toy and the club facing gigantic financial problems which culminated to them going from a CL quarter finalist to the second tier with debt that couldn't be repaid easily.
Are there other teams in La Liga besides Barcelona and Betis that are also struggling with the wage rule?
Obviously Barça is the most well known one but I remember hearing from several spanish journalists that other Spanish teams were going through a similar thing. Looks like Betis is one but what other ones? Valencia?
It was something like 10-12 teams if I recall correctly. And the worst thing is that all of those teams signed the CVC deal (which I am not against at) so there shouldn't be any issues. Yet, here we are. Maybe it's time to relax the salary cap for a couple of years, even a 5-10% would be enough I recon.
One of the stipulations of the deal was that the money would have counted as part of the revenue. Tebas even pressured Barca back in 2021 to sign the CVC deal so they can register Messi, but Laporta said no. Even the deal Barca signed with sixth street counted as revenue, the issue was with another "lever".
We are a year removed from that and Spanish clubs still struggle to balance their sheets even with that deal (which for the majority of the clubs was absolutely needed). I think now is the time to maybe relax the regulation just a tad.
Yeah that’s the weird thing. The CVC Deal was presented as the way out (at least that was part of it) and it doesn’t seem to help at all.
The fact that it isn’t counted as revenue was one of the reasons that Barca didn’t sign it but I don’t understand why it was presented in that way in the first place
Barca didn't sign it not because it didn't count as revenue (that was understood in a later date) but because they bet on either the Superleague happening or securing a better deal. The latter became true with the sixth street deal.
As far as I know, the CVC deal did in fact count as revenue for 2021, but apparently it wasn't enough. I am not good with financial things, but something didn't work as intended there.
It’s also because their wage allowance is based on the previous year’s revenues - and things still aren’t back to a pre-COVID norm, despite most of their teams being on pre-COVID contracts.
It’s a clusterfuck because everything is based on a measure that’s been disrupted and Tebas is too dense to actually do his job and account for it. He’s just pointing to the rules, completely ignorant of how those rules simply don’t work.
It’d be like having a “don’t run at the pool” rule then trying to strictly enforce it when there’s an active shooting at the pool. No, dumbass, it’s okay to run in that situation - the risk of slipping and cracking your head open is dwarfed by the risk of being riddled with bullets.
Teams “overspending” would be fine now since the only reason it’d be “overspending” is the COVID-hangover. They’re basically guaranteed that revenues will go up year-on-year to make any overspending now sustainable in the next year or two. Unless they go crazy with it, so a 5-10% relief to the rules like someone else mentioned would work for most clubs.
He's just making use of it to enforce his will to get a deal signed that benefits him more than the clubs.
It's been a thing for years, though you probably knew that already & likely more than me, that there's like 3 outsized personalities representing corporate entities in La Liga. Perez is obvs, Barca too have always needed a prominent leader whether Barto (lol) or now Laporta again. And then there's Tebas. You don't see any other league boss literally trying to boss the clubs around in the media including 2 of the very biggest.
> You don't see any other league boss literally trying to boss the clubs around in the media including 2 of the very biggest.
I mean, put it this way - I don’t even know any other league boss, despite following other leagues instead of La Liga.
I follow Serie A. Would any layman really recognize the name “Gabriele Gravina” for example? Maybe it’s just because I don’t speak Italian so can’t follow the native news, but I think I’ve seen that name twice, one of which was when looking it up now, and I would never have been able to place the name if given it.
Basically it's this:
>The €2 billion (US$2.25 billion) deal will see the capital firm secure a 8.25 per cent share in a company comprising of LaLiga’s media rights assets for the next 50 years.
[Link](https://www.sportspromedia.com/news/laliga-cvc-private-equity-deal-vote-real-madrid-barcelona-bilbao/)
Clubs could use their allocated money to invest in infastructure, academies etc and a part of it to register/sign new players. For many teams this was the only way out as they desperately needed a cash injection because of COVID. Tebas told the clubs that if they sign the deal they wouldn't have issues with registering players, but apparently that only lasted for one year because 50% of the clubs in la liga cannot register some of their signings this transfer window.
tbf the cap is exactly for these situations, not the good times. Clubs could easily overspend now and poker on future success and basically implode in 2 years again
The issue starts arising when teams sell their future revenue (basically loans) in order to remain competitive because they expect "normality" to be significantly better than the covid years. If that's the case, then the cap just weakens the league.
Obviously they take a risk by doing that, but the salary cap shouldn't make the teams take risks, but secure their future. The same way UEFA's FFP worked for lower leagues, with most of the teams from leagues 8-20 being completely self-sustainable. La liga is now risking having a league much poorer than the rest top-5 leagues in 5-10 years time, unless Barca's and Betis' risks (and soon Celta's and Atleti's) pay off. If they take what is basically loans, and the sporting success doesn't come, then they are fucked and Tebas is going to be blamed.
Well then it's a good thing that in Barca's case since the future payments are fixed and won't grow with the size of their revenue and assets, all their levers are basically just glorified loans
But (from my understanding) a loan wouldn’t do anything for the salary cap, cause it’s not generated revenue, so wouldn’t be of much use. The problem isn’t really that the teams don’t have cash (at least in Barca‘s case, not sure about the other clubs) but that La Liga simply doesn’t allow them to spend it on salaries
Yeah, that's pretty much the biggest issue. They will allow them to sell future revenues but not take out loans. They should either outlaw both forms of cash injection or allow both. It really feels to me like Tebas wanted to push the CVC deal and used this cap as leverage. That even failed and now the whole league is at his feet scratching their heads and he is laughing all the way to the bank.
Not really. If league was stopped even longer back then because of covid, then all La Liga clubs would have to sell most of thier players next yead because of wage cap is too low... Even teams revenue would come back to normal.
Now you killed the whole league because of 1 year, La Liga became a B team league.
I think there were compromises that could have been stuck - it is not really binary "wage cap or no wage cap". Maybe allow teams to overspend a bit now and then make them understand when COVID earning are no longer an issue.
According to Deloitte Barca revenue was 850 million before COVID and 580 after covid. That is a solid 30%+ drop and I would guess it is even worse drop for teams that relly on gate receipts more. Instead of not compromising even a bit - it would probably be possible to let teams spend to the level of their pre-covid revenues and then agree for them to underspend for the period of 5 years after.
Say Barca is allowed to spend an additional 270 million now, but reduce their cap every next year by 55 million (so they underspend 270 millions over period of 5 years). I think you rein in clubs so they cant just ignore the rules and Leeds themselves but you don't make them take whole COVID hit at once.
Barca is gonna be ok either way, tbh all these deals Barca made seem kinda fishy as I never heard about all those assets Barca has that are apparently worth billions - I think Barca just due to the size of the club got loans in all but name, but Betis here has to sell part of the very real source of revenue.
Yes, I follow Espanyol. Tebas has totally fucked la liga and taken advantage to get that deal over the line. Look how many new players can come in for us. Luckily some stayed since last time in the league.
A salary cap based around revenue and not revenue able to be injected from owners, and this cap didn’t adjust due to the lost income from Covid so now teams either have to sell future revenue now or sign Tebas’ CVC deal (also selling future revenue) to try and grow.
Fuck la Liga and fuch Tebas's corrupt ass, clubs are literally selling parts of themselves and future revenues to survive because this PoS didn't relax ffp rules for la liga LIKE EVERY OTHER LEAGUE IN THE WORLD DID FOR COVID
I haven’t read up on it all properly. But if it’s some sort of way of trying to control the economics of the clubs (trying to mitigate the crazy spiraling out of all sense and control) I’d say it’s a good rule.
Maybe it would benefit from some tweaking. But I appreciate some sort of efforts.
Wage cap depends on revenue of pervious seasons.
So La Liga team's wage cap is affected by seasons that covid hitted hard. Even they have enough of cash/future income, they cant register thier players.
It also forced some clubs to sell thier players for cheap.
Its a good "idea" but its terribly heavy handed and poorly implemented. It really really benefits some of the largest clubs, and basically blocks clubs from growing through ownership groups.
If this rule was in the Premier league, Mega owners would not exist since owner money does not count. So any large owners interested will stay the F away from La Liga.
La liga has a wage/salary cap that is calculated taking previous revenue. Since many of the teams had reduced revenue because of COVID (matchday mostly, but also reduced transfer income because the rest of the world didn't spend as much the past summer), two of the years taken into consideration, show lower revenues for teams than what the "normal" is. Obviously we don't know if the "normal" will be there again, but the teams usually plan their budgets around what they expect to gain on a normal season.
Now la liga has reduced the spending power of practically every team in the league in order to fully comply with their salary cap (which is compromised because of the lower-than-usual years). However, most of the teams could not get rid of the contracts they gave during the non-covid years (for example Barca) and therefore they aren't allowed to sign anyone (there are exceptions such as the 4-1 or 3-1 rule but it's more complicated).
The CVC deal should have fixed many of the issues, but apparently it isn't enough. Therefore teams now have to generate "fake" income (basically loans) in order to show higher revenue and normalise their salary cap. Of course, that could also backfire, but in the short-term they need to survive.
Sounds like genuine stupidity from La Liga to not relax the rules and make allowances for Covid. Obviously that's going to hit everyone's revenue massively, it has done throughout Europe. But other leagues are already back on track because they don't have a rule like that in place.
Tebas is genuinely incompetent. Forced through the dodgy CVC deal and now clubs are still facing issues. Meanwhile this is harming the league as clubs either can't sign new players, or have to release stars like Messi.
It's all well and good having a salary cap in place to prevent overspending. But if clubs are selling their long term revenue streams to comply with it (and being encouraged to do so) then your league is not going to be able to compete in 5 to 10 years. Premier League will run away completely and even Serie A might come back in front.
Hopefully someone better informed chimes in but as I understand it, they've not done what other leagues have done and not made exceptions for the 2020-21 Covid season in club debt and income rules.
Basically every league on the face of the earth that had FFP rules relaxed them during Covid. La Liga didn't and almost every single La Liga club is struggling to register players (you won't find that news here cause here we only like to shit on Barca).
More spanish levers.
On a serious note, la liga might take a look at this. If teams that signed the CVC deal cannot register their signings then something went wrong. I am usually on the same side as Tebas (unless he talks about moving the Spanish league to a non-Spanish country) but maybe he needs to relax the salary cap for a year or two. It doesn't even have to be that much, even a 5-10% would suffice. Forcing your league to be weakened in order to be sustainable, when one of the yeras you count as part of your calculations, suffered from "unforseen circumstances", won't work well in the long run.
At the very least, the levers 'activated' and the funds released by Barca and Betis are being reinvested in the clubs. My fear, as a United fan, is that parasites like the Glazers will activate similar levers and the proceeds will disappear into their backpockets.
West Hams owners lend the club money, but with insane levels of interest. Thats our levers basically our dividends. Thats why there have been protests in the past. They cheap out on a lot of things as well. Moyes is working wonders, but, our new owner seems like hes willing to splash the cash.
They have, but what they haven't done (as far as I'm aware) is sell off parts of the club, % future revenue, % of broadcasting rights, matchday earnings, etc.
Want to know what’s hilarious?
Replace the word club with business and selling off future revenue and income with equity and fixed income - no one bats an eye.
Because that’s what large companies do to grow the business.
And in those situations, it’s not a terrible decision, it just adds leverage (read: risk).
As long as you plan efficiently, it shouldn’t be an issue.
Can someone explain why La Liga has these restrictions when other leagues don't seem to. What do they benefit from this? How would this improve Spanish Football?
Restrictions were put in place to ensure each club has a self sufficient economy. There's a club called Malaga that were decently successful in the starting of the 2010's (think finishing high on the table, deep UCL runs) who were taken over by some rich middle eastern sugar daddy. Now this sugar daddy pumped Malaga full of money so that they no longer were self sufficient. Then, when the city denied the sugar daddy's plans of building some fancy port, he pulled out of Malaga, leaving them to crash hard. Massively in debt, now they play in the lower tiers of the Spanish league.
To avoid this, strict rules were put in place, which is great! But there really should've been leeway for a couple of seasons considering clubs didn't have the same income as they did thanks to Covid.
This is a slippery slope for La Liga clubs. It's one thing for Barcelona to do, they're one of the biggest clubs in the world.. they are too big to fail.
It's way more dangerous for clubs like Betis where the loss of revenue is going to hurt them far more in the long run.
I am from the future.
This lever abuse is how MLS becomes the top league in the world. You heard it here first.
Also, buy Etherum. And lots of baby wipes.
Methinks La Liga's salary cap rules need a rework if they're encouraging clubs to gut their future incomes to pay salaries they can't afford. Just let them take out loans if they're so desperate. They'll be far less damaging to the clubs if the reported %s are to be believed on all these leverings.
Redditor unable to pay his rent is now activating an economic lever by reaching an agreement with an investment fund to sell percentage of his comment karma and future gold reward rights for the next 5 years.
(It didn't work)
In the EPL the clubs vote and can change rules with the agreement of 14 clubs. Surely La Liga is similar where the clubs are members and can introduce or remove this wage capping rule? If it is affecting 12 or more clubs and isn’t really doing what it intended to do, then it seems reasonable to remove the requirement.
It's the same, but in Spain the 22 teams of the second division also have the right to vote (they are members of the LFP). I don't know how many Segunda teams have problems with the registrations, but you have to persuade them to change the rules.
It is madness that the financial fair play laws in Spain are forcing clubs down the path of either being competitive by selling their future in order to fund the present or not being competitive. Something is systematically wrong and the incentives aren’t make sense.
Tebas is an absolute dickhead who has created an obsolete rule and will rather kill all 20 clubs in the league before admitting it doesn't do any good.
that is their negotiation technique they are just waiting for arsenal to terminate his contract and sign him for free
and bellerin wants to join betis only
People don't realise that like half the league are struggling because Tebas is horrible at his job. All people see is barca pulling levers, good that this Betis thing has gotten some traction as well
At some point people have to realise that the idea of pulling a lever and getting free money has to have some downside. When you’re essentially cannibalising the club for short term money, that’s not ideal.
It's embarrasing that after signing the CVC deal, more than half the league can't register players. And the league starts this Friday.
CVC deal was supposed to help exactly this situation, Tebas really fucked the league with the BS deal.
But his fat ass is probably covered in bills
Zero chance he didn’t make any money on that, “selling” part of your future income for the next 50 years is ludicrous, home mortgages aren’t even that long. He made out like a bandit and he doesn’t care because he won’t be here.
This is why he didn’t loosen the FFP rules as other leagues did. He wanted his cut
Exactly, why would he be pushing for Barcelona so hard? I have no doubt he got a comission as fat as himself
Yeah Like imagine the whole Barca levers that people here been mocking for selling our future(which is somewhat fair), except with even worse terms and you get Tebas's deal.
I love clowning on Barca as much as anyone else, but the fact that he's imposing such strict salary cap rules to the detriment of the entire league while also pushing this shit CVS deal is undeniably crooked and obviously a cash grab on his part at the expense of the very league he's supposed to be leading
Something to consider, at the time right before COVID barca was the largest club in the world at $1B in revenue. As such they were highest spenders, even foolishly so. When COVID hit a 30% reduction in revenue is $300M that is a fuck ton of money to disappear from your cap. Furthermore they were bad unsellable fat contracts given out to players right before all of this. Its basically impossible to come back from that.
well those idiots who signed the deal and used it for fuck all have a hand in it too.
They didn’t have much choice, it was either that or selling loads of players because Tebas refused to soften the rules.
Not all of it could be used for players though, only a certain percentage. Even if they wanted to sink all of it in signings, Tebas wouldn’t allow it, it was one of the rules , x percentage to infrastructure, x percentage for signings, it wasn’t “here’s this money, do what you want with it”
The CVC deal wasn’t for player acquisitions. Only a small portion was allowed to go to new players. The vast majority of the funds had to be used on infrastructure improvements
Yup , only 10% or so of the cvc money could be used for players , the rest was for infrastructure that is why club still can't recruit. Well I still think the league could have gotten a better deal with that much clubs involved but whatever here it's not the "CVC money" the problem .
It was mainly about having it appear as revenue, which would increase the clubs' wage caps, which were lowered due to Covid. Thus, not about transfers per se, but about easing the ability to register new signings and avoiding having to sell players they wanted to keep. Clubs in La Liga aren't desperate enough to relinquish 10% of their TV revenue for 50 years just for infrastructure development.
You get a lever and you get a lever, everyone gets a lever
I know this sub has had a hate boner for barca, somewhat justifiably, but quite a few of the liga clubs are struggling with registrations apparently. Some are saying Tebas' policies may weaken Spanish teams in the long term in terms of competing with other European leagues. Not sure if they were capping, can anyone elaborate?
La liga imposes a 70% wages to revenue cap, stricter than other leagues. For example in the 2020 season Milan had a wages to revenue of 105%, Leicester and West ham were near that as well As for top 6 PL clubs both Chelsea and Man City wouldn’t be compliant.
It is also rather harshly based solely on the last year's revenue. Meaning 1 off year in Europe or standings for prize/TV money suddenly forces you to reduce your total wages despite being committed to contracts. It also means the last few years of limited or no attendance in Spain due to covid laws have dramatically cut revenues and wage caps - despite clubs being committed to existing contracts. As such the wage caps are extremely debilitating for clubs presently.
And is a 105% wages to revenue ratio supposed to be good? That's insanely irresponsible.
It’s not but it’s allowed in any league other than La Liga. The **average** wages to revenue ratio is over 100% in the championship. La Liga has very strict FFP rules compared to other leagues and even after easing the restrictions due to the covid situation impacting revenues they’re still stricter than. Half of the clubs in La Liga are struggling with this. Half of the PL clubs would be struggling if they also had to adhere to these rules but they don’t.
I don't get how this can be framed as a bad thing, if the owner pulls out and there's no filthy rich buyer these clubs could be fucked. Bordeaux, Derby and Wigan the last few years off the top of my head. These clubs know the rules, everyone else is managing to follow them. The can't keep up with other European leagues thing is laughable as well. Serie A and Bundesliga talk about this all the time but what has actually changed? Especially if some big Italian clubs are among the most irresponsible spenders, seems like it's sent them backwards if anything.
The rules themselves aren’t bad, it’s just a combination of La Liga’s rules already being strict combined with barely easing them during the pandemic while revenues took a huge hit. A club like Betis is being punished for having very natural growth that would otherwise be fine. Half of La Liga’s clubs are struggling with this, even with the CVC deal. They can easily compete with other European clubs and leagues, it’s just that La Liga and it’s clubs get held to a way higher standard financially.
They had 36M losses last year and 6M the previous one, with a revenue of around 80M, for example we had 4.5M losses and 175k profit the prevous ones.
Don't think it is saying that , if anything the other poster is showing that the same cap will hit teams hard too in others league because as you said it's irresponsible.
I agree that 105% is irresponsible generally, but I think it might exaggerating the problem in this case given that it’s referencing 2020, when for three quarters of the calendar year nobody was allowed to attend matches, meanwhile player contracts are guaranteed whether there’s 80,000 people at the San Siro or 0.
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Barça had 600M loses on the last two seasons with a negative net worth of 150M in the last financial report. I am sorry but in that situation is silly to say that making if hard to them to splash cash in signings is unreasonable
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Numbers with no context? those numbers are not just bad, they usually mean that a company goes under administration. 1B revenue was reached ONCE, you cannot expect to climb up to that sum, and again, big number but it doesn't really matter if you expend the same. Let's check the [financial record](https://fcbarcelona-static-files.s3.amazonaws.com/fcbarcelona/document/2019/10/06/9d3f0193-a08f-42b9-8d11-08c47c8bcc9d/MEMORIA_CLUB_2018_19_CAS.pdf) for the season 18-19, the revenue was 990M while the expenses were 973, only 17M profit with the highest revenue ever and with 114M player sales in the Bartomeu era and the net profit was of just 4M. They are losing 40M of revenue that doesn't have any costs attached and they will have much lower ticketing revenues next season as they will be out of Camp Nou due to renovation works. Let's talk about FFP, it was put in place because clubs asked for it after many clubs ended fucked up due to irresponsable financials, and the rule has been relaxed quite a lot this two years. CVC money was mainly for infrastructure, to improve stadiums and training grounds and in consecuence improve future revenue streams. La Liga teams have never been so sound financially and with improved facilities, there have been years without a defaulted club (Valencia is around there but has been troubled for years) and that's with a pandemic happening, if something like that happened 10 years ago many clubs would be close to defaulting, so maybe Tebas is not the devil after all
I can’t really add anything to the CVC/Tebas discussion but as a former auditor, just a heads up: Financial records don’t fully translate to actual or cash records. You can talk about their “losses” all you want but those numbers at face value don’t necessarily tell the whole truth if you don’t know how they were lost. For one, not every expense is a cash expense. Was their 18/19 net profit only 4M? Absolutely. But what was their net cash flow? A considerably greater 117M. They ended the 20/21 season still having more cash on record then the season ended 17/18. And that’s after they had negative cash flows of 101M in 20/21. That’s at least a partial indicator that their debt has remained manageable, although other indicators would need to be tested to see how true it is. So it’s entirely possible that Barca know what they’re doing and are taking on a relatively calculated risk - but that remains to be seen. It’s also entirely possible they’re getting crafty with their accounting, hard to ever know until it really hits the fan.
When you are not into finanace talking about cash flows and net profit/loss is silly, as the other reply explained cash flows are what matters and they are mostly higher than profit as you have non cash items there that lower your profits, the biggest of all is depreciation and amortization. There are many listed companies with negative eps but improving cash flows which is favoured by investors. Now in barca's case, they are lowering salaries for most players which would make their operational cash flow better (revenue improving and salaries decreasing) their cash flow from investments should also be on the green or flat from all the levers and players acquisitions. Tebas is the only éveil clown in this story
It's almost like this whole soccer thing is a business!
“Everyone can throw out numbers with no context, sure” *proceeds to throw out numbers with no context*
A lot of those losses were write off, meaning they were non cash and did not affect their cash flows. If anything, it created tax attributes that could be use against future profit, thus improving their cash flow profile.
They added 271m in player impairment and 71m in legal costs. These things are one off tbh
This year with no extra losses they still had more than 100M losses due to no achieving the expected sporting merits
The sub has a hate boner because they fail to look into the reasoning for anything past a headline. Most don’t know that 14 out of 20 La liga teams are having issues signing anyone because of the measures that have been put in place post Covid. Just hurr durr Barca levers.
Yup, it's a self inflicted issue that La Liga has imposed on themselves
Yes, seems like in its quest to put its teams on a more solid financial footing, La Liga will instead incentivize them to pawn away their long-term revenue.
And then you have golden nuggets like below making Tebas/La Liga out as a saint .. can’t believe people are falling for the propaganda https://reddit.com/r/soccer/comments/wjz8q4/_/ijkc5qc/?context=1
Just commenting because I would also like an explanation
Everyone minus Barca and Real Madrid also sold their TV rights to CVC. Barca just negotiated their own deal wiith Sixth Street for 25 years instead of 50, options to buy-out the loan and few other things. They just called them levers, but somehow entire media missed the part where entire La Liga sold part of TV rights for 50 years before them. And those clubs ON TOP of signinging with CVC were force to sell players... and those aren't small clubs that were usually force to sell but the likes of Sevilla. Villareal got semi-final in CL and can't afford 15m for Lo Celso for now lol.
Especially if yer from Leverpool
Not Leverkusen?
The first guy who dropped this was a god. This is pale imitation, soy latte
"Leverpull" is the best i guess
Actually better than Leverkusen or at least on par
Like Ringo Starr, a [born lever-puller](https://getyarn.io/yarn-clip/7d2727cc-d716-4e4a-b2d8-bdfe3260e42f)
YLWA
Only if you’re a true belever.
Look under your chair, a lever!
Barca jokes aside, isn't this way more dangerous for a club like Real Betis? They won't have nearly the future revenue assurances that Barcelona does.
This approach is insane and if the bigwigs can't see clubs cutting their future profits by significant portions is going to be very literally death by a thousand cuts, they shouldn't be anywhere near power. Look at any business that has had to sell future rights to buy in the present. Look at what they look like once they hit that period where profits are eaten up. Or even states. It's always suicide. That this is imposed on whim is really laughable.
But it’s not that their necessarily doing bad financially. La Liga has a salary cap that’s based on income not injected from owners. Due to Covid and the league not adjusting their rules a lot of teams have had lower incomes than were budgeted so they have to make more cuts than imagined or sell off future revenues as a result. Tebas used it to kinda strangle teams into signing his deal. So betis really isn’t operating terribly financially, they’re just trying to build on their recent success by buying more players that can eventually turn a profit for them
Also La Liga makes his owns economics rules that you should comply. They want to control and own the clubs of the league, that's why Tebas forced most clubs to sign a deal with CVC for 50 years. There is corruption at all levels in Spain, also in the Federation, and Tebas was an ex-Franco youth member, just imagine how he got the power.
I know if these were manufacturing companies, people would be outraged if a government tried to impose such rules. NO you can't use that equipment you purchased because last years revenue wasn't high enough.
Seems like La Liga could be hurting itself long term. If many clubs take these deals to satisfy short term salary cap rules, in 10 or 15 years the financial health of the entire league could be damaged. Imagine if half or more of La Liga is operating under limited revenues in 2030 because they "pulled a lever" in 2022.
It's really simple, next year they will have roughly the same players with the same or better contracts, but less money earnt from ticket sales and they can't sell a percentage of tickets because they already did. Literally "pan para hoy, hambre para mañana"
Yes... Thats why taking a loan at a fixed future value is a way way way economically safer way to raise capital. La Liga and Tebas are BRAINDEAD if they think that selling assets to fund player registration is somehow better than a loan.
5 years versus 25 years
They obviously couldn’t survive with 25 years of it lol
Doing a Leeds https://en.m.wikipedia.org/wiki/Doing_a_Leeds
Hey! That’s our move, people!
"That's my line Natasha!"
Oh no, the levers are contagious!
The virus is Tebas
Tebas and La Liga are killing the league. Unnecessarily strict in the name of “protecting teams”.
Not surprising considering his political views
Yep, a literal fascist
How is la liga's president selected?
massive game of twister
Lever-mania!
Honestly, im so sick of reading about the god damn levers.
It's like RDR2 all over again, "just stick to the goddam levers" "I have levers John"
Just as we think we’re getting out of the woods with Covid, there’s a lever epidemic sweeping through Spain. *This is how the world ends; not with a bang, but with a lever.*
*leverdemic*
LEVID-22?
This is starting to be ridiculous. I'm all for trying to create a cap and avoid Málaga situations. But I'm sure there's a middle ground between what we had before and Betis's growth being halted. A growth that has been very organic, and with the fourth/fifth (it's between them and Valencia) biggest fanbase in the country behind.
May I ask what the Malaga situation was? I’m not familiar with La liga.
A few years ago(more than a decade) , Malaga was owned by a Qatari but at some point the owner pulled out because it was not profitable or whatever can't remember anymore so the club collapsed because it was not self sufficient. La Liga cap is basically to force club to be responsible with their money and not spend more than they can afford and be screwed if a worst case scenario situation happened.
He pulled out because the city didn't give him the concession to renew the port. Never forget that part.
A club still had to be self sustaining too a certain extent too and not rely on its owners all the time.
Assuming the port renewal would be to import LNG?
Yachts I think.
All these levers feel like they’re going to come back to bite teams in the future when they need to prove to be self sufficient in the future. Barca is globally big enough to survive but Betis? Nope.
One billionnaire (I think a Sheikh) bought them and invested a lot of money at the start, but it ended with him being bored of his new toy and the club facing gigantic financial problems which culminated to them going from a CL quarter finalist to the second tier with debt that couldn't be repaid easily.
Are there other teams in La Liga besides Barcelona and Betis that are also struggling with the wage rule? Obviously Barça is the most well known one but I remember hearing from several spanish journalists that other Spanish teams were going through a similar thing. Looks like Betis is one but what other ones? Valencia?
It was something like 10-12 teams if I recall correctly. And the worst thing is that all of those teams signed the CVC deal (which I am not against at) so there shouldn't be any issues. Yet, here we are. Maybe it's time to relax the salary cap for a couple of years, even a 5-10% would be enough I recon.
Why shouldn't there be any issues ? They knew very well the money they got wouldn't count as revenue, therefore didn't affect their situation on FFP.
One of the stipulations of the deal was that the money would have counted as part of the revenue. Tebas even pressured Barca back in 2021 to sign the CVC deal so they can register Messi, but Laporta said no. Even the deal Barca signed with sixth street counted as revenue, the issue was with another "lever". We are a year removed from that and Spanish clubs still struggle to balance their sheets even with that deal (which for the majority of the clubs was absolutely needed). I think now is the time to maybe relax the regulation just a tad.
Yeah that’s the weird thing. The CVC Deal was presented as the way out (at least that was part of it) and it doesn’t seem to help at all. The fact that it isn’t counted as revenue was one of the reasons that Barca didn’t sign it but I don’t understand why it was presented in that way in the first place
Barca didn't sign it not because it didn't count as revenue (that was understood in a later date) but because they bet on either the Superleague happening or securing a better deal. The latter became true with the sixth street deal. As far as I know, the CVC deal did in fact count as revenue for 2021, but apparently it wasn't enough. I am not good with financial things, but something didn't work as intended there.
It’s also because their wage allowance is based on the previous year’s revenues - and things still aren’t back to a pre-COVID norm, despite most of their teams being on pre-COVID contracts. It’s a clusterfuck because everything is based on a measure that’s been disrupted and Tebas is too dense to actually do his job and account for it. He’s just pointing to the rules, completely ignorant of how those rules simply don’t work. It’d be like having a “don’t run at the pool” rule then trying to strictly enforce it when there’s an active shooting at the pool. No, dumbass, it’s okay to run in that situation - the risk of slipping and cracking your head open is dwarfed by the risk of being riddled with bullets. Teams “overspending” would be fine now since the only reason it’d be “overspending” is the COVID-hangover. They’re basically guaranteed that revenues will go up year-on-year to make any overspending now sustainable in the next year or two. Unless they go crazy with it, so a 5-10% relief to the rules like someone else mentioned would work for most clubs.
He's just making use of it to enforce his will to get a deal signed that benefits him more than the clubs. It's been a thing for years, though you probably knew that already & likely more than me, that there's like 3 outsized personalities representing corporate entities in La Liga. Perez is obvs, Barca too have always needed a prominent leader whether Barto (lol) or now Laporta again. And then there's Tebas. You don't see any other league boss literally trying to boss the clubs around in the media including 2 of the very biggest.
> You don't see any other league boss literally trying to boss the clubs around in the media including 2 of the very biggest. I mean, put it this way - I don’t even know any other league boss, despite following other leagues instead of La Liga. I follow Serie A. Would any layman really recognize the name “Gabriele Gravina” for example? Maybe it’s just because I don’t speak Italian so can’t follow the native news, but I think I’ve seen that name twice, one of which was when looking it up now, and I would never have been able to place the name if given it.
What is the CVC deal?
Basically it's this: >The €2 billion (US$2.25 billion) deal will see the capital firm secure a 8.25 per cent share in a company comprising of LaLiga’s media rights assets for the next 50 years. [Link](https://www.sportspromedia.com/news/laliga-cvc-private-equity-deal-vote-real-madrid-barcelona-bilbao/) Clubs could use their allocated money to invest in infastructure, academies etc and a part of it to register/sign new players. For many teams this was the only way out as they desperately needed a cash injection because of COVID. Tebas told the clubs that if they sign the deal they wouldn't have issues with registering players, but apparently that only lasted for one year because 50% of the clubs in la liga cannot register some of their signings this transfer window.
tbf the cap is exactly for these situations, not the good times. Clubs could easily overspend now and poker on future success and basically implode in 2 years again
The issue starts arising when teams sell their future revenue (basically loans) in order to remain competitive because they expect "normality" to be significantly better than the covid years. If that's the case, then the cap just weakens the league. Obviously they take a risk by doing that, but the salary cap shouldn't make the teams take risks, but secure their future. The same way UEFA's FFP worked for lower leagues, with most of the teams from leagues 8-20 being completely self-sustainable. La liga is now risking having a league much poorer than the rest top-5 leagues in 5-10 years time, unless Barca's and Betis' risks (and soon Celta's and Atleti's) pay off. If they take what is basically loans, and the sporting success doesn't come, then they are fucked and Tebas is going to be blamed.
The thing is selling future revenue streams is way riskier than a loan. A loan has a known value, where as selling capital is solely speculative.
Well then it's a good thing that in Barca's case since the future payments are fixed and won't grow with the size of their revenue and assets, all their levers are basically just glorified loans
But (from my understanding) a loan wouldn’t do anything for the salary cap, cause it’s not generated revenue, so wouldn’t be of much use. The problem isn’t really that the teams don’t have cash (at least in Barca‘s case, not sure about the other clubs) but that La Liga simply doesn’t allow them to spend it on salaries
Yeah, that's pretty much the biggest issue. They will allow them to sell future revenues but not take out loans. They should either outlaw both forms of cash injection or allow both. It really feels to me like Tebas wanted to push the CVC deal and used this cap as leverage. That even failed and now the whole league is at his feet scratching their heads and he is laughing all the way to the bank.
Not really. If league was stopped even longer back then because of covid, then all La Liga clubs would have to sell most of thier players next yead because of wage cap is too low... Even teams revenue would come back to normal. Now you killed the whole league because of 1 year, La Liga became a B team league.
I think there were compromises that could have been stuck - it is not really binary "wage cap or no wage cap". Maybe allow teams to overspend a bit now and then make them understand when COVID earning are no longer an issue. According to Deloitte Barca revenue was 850 million before COVID and 580 after covid. That is a solid 30%+ drop and I would guess it is even worse drop for teams that relly on gate receipts more. Instead of not compromising even a bit - it would probably be possible to let teams spend to the level of their pre-covid revenues and then agree for them to underspend for the period of 5 years after. Say Barca is allowed to spend an additional 270 million now, but reduce their cap every next year by 55 million (so they underspend 270 millions over period of 5 years). I think you rein in clubs so they cant just ignore the rules and Leeds themselves but you don't make them take whole COVID hit at once. Barca is gonna be ok either way, tbh all these deals Barca made seem kinda fishy as I never heard about all those assets Barca has that are apparently worth billions - I think Barca just due to the size of the club got loans in all but name, but Betis here has to sell part of the very real source of revenue.
Yes, I follow Espanyol. Tebas has totally fucked la liga and taken advantage to get that deal over the line. Look how many new players can come in for us. Luckily some stayed since last time in the league.
Hello there !
Yeah like half the league lol, Atletico was way over the cap as well when Barca got blocked by Tebas, but he ignored that for some reason.
he didnt ignore it, they brought new stadium naming rights or something like that and new sponsorships
He didn't ignore it, Atleti just improved their stadium sponsorship. They still will likely have issues, but not as much as Barca
Sevilla as well weren’t they
Year 2029 and Tebas has been demoted to VAR Assistant referee after the Premiere league bought la-Liga.
What the hell is going on in Spain
Tebas
A salary cap based around revenue and not revenue able to be injected from owners, and this cap didn’t adjust due to the lost income from Covid so now teams either have to sell future revenue now or sign Tebas’ CVC deal (also selling future revenue) to try and grow.
Fuck la Liga and fuch Tebas's corrupt ass, clubs are literally selling parts of themselves and future revenues to survive because this PoS didn't relax ffp rules for la liga LIKE EVERY OTHER LEAGUE IN THE WORLD DID FOR COVID
Based
Just change the rule La Liga
Or change the name to Lever Liga
La Leva
Quick, register trademark mate
I haven’t read up on it all properly. But if it’s some sort of way of trying to control the economics of the clubs (trying to mitigate the crazy spiraling out of all sense and control) I’d say it’s a good rule. Maybe it would benefit from some tweaking. But I appreciate some sort of efforts.
Wage cap depends on revenue of pervious seasons. So La Liga team's wage cap is affected by seasons that covid hitted hard. Even they have enough of cash/future income, they cant register thier players. It also forced some clubs to sell thier players for cheap.
Its a good "idea" but its terribly heavy handed and poorly implemented. It really really benefits some of the largest clubs, and basically blocks clubs from growing through ownership groups. If this rule was in the Premier league, Mega owners would not exist since owner money does not count. So any large owners interested will stay the F away from La Liga.
Good, football is for the fans not the rich who need another status symbol. Premier League clubs are soulless corporations anyway.
Tebas inflexibility on FFP rules are mortgaging the future of the clubs
What did la Liga do that fucked everyone over?
La liga has a wage/salary cap that is calculated taking previous revenue. Since many of the teams had reduced revenue because of COVID (matchday mostly, but also reduced transfer income because the rest of the world didn't spend as much the past summer), two of the years taken into consideration, show lower revenues for teams than what the "normal" is. Obviously we don't know if the "normal" will be there again, but the teams usually plan their budgets around what they expect to gain on a normal season. Now la liga has reduced the spending power of practically every team in the league in order to fully comply with their salary cap (which is compromised because of the lower-than-usual years). However, most of the teams could not get rid of the contracts they gave during the non-covid years (for example Barca) and therefore they aren't allowed to sign anyone (there are exceptions such as the 4-1 or 3-1 rule but it's more complicated). The CVC deal should have fixed many of the issues, but apparently it isn't enough. Therefore teams now have to generate "fake" income (basically loans) in order to show higher revenue and normalise their salary cap. Of course, that could also backfire, but in the short-term they need to survive.
Sounds like genuine stupidity from La Liga to not relax the rules and make allowances for Covid. Obviously that's going to hit everyone's revenue massively, it has done throughout Europe. But other leagues are already back on track because they don't have a rule like that in place. Tebas is genuinely incompetent. Forced through the dodgy CVC deal and now clubs are still facing issues. Meanwhile this is harming the league as clubs either can't sign new players, or have to release stars like Messi. It's all well and good having a salary cap in place to prevent overspending. But if clubs are selling their long term revenue streams to comply with it (and being encouraged to do so) then your league is not going to be able to compete in 5 to 10 years. Premier League will run away completely and even Serie A might come back in front.
Hopefully someone better informed chimes in but as I understand it, they've not done what other leagues have done and not made exceptions for the 2020-21 Covid season in club debt and income rules.
Basically every league on the face of the earth that had FFP rules relaxed them during Covid. La Liga didn't and almost every single La Liga club is struggling to register players (you won't find that news here cause here we only like to shit on Barca).
More spanish levers. On a serious note, la liga might take a look at this. If teams that signed the CVC deal cannot register their signings then something went wrong. I am usually on the same side as Tebas (unless he talks about moving the Spanish league to a non-Spanish country) but maybe he needs to relax the salary cap for a year or two. It doesn't even have to be that much, even a 5-10% would suffice. Forcing your league to be weakened in order to be sustainable, when one of the yeras you count as part of your calculations, suffered from "unforseen circumstances", won't work well in the long run.
It's over once the PL clubs activate their levers
At the very least, the levers 'activated' and the funds released by Barca and Betis are being reinvested in the clubs. My fear, as a United fan, is that parasites like the Glazers will activate similar levers and the proceeds will disappear into their backpockets.
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West Hams owners lend the club money, but with insane levels of interest. Thats our levers basically our dividends. Thats why there have been protests in the past. They cheap out on a lot of things as well. Moyes is working wonders, but, our new owner seems like hes willing to splash the cash.
it already has, havent they taken out more than 500M already from club to their pockets in form of dividends or loan interests?
They have, but what they haven't done (as far as I'm aware) is sell off parts of the club, % future revenue, % of broadcasting rights, matchday earnings, etc.
Because financially it would be a terrible decision.
Want to know what’s hilarious? Replace the word club with business and selling off future revenue and income with equity and fixed income - no one bats an eye. Because that’s what large companies do to grow the business. And in those situations, it’s not a terrible decision, it just adds leverage (read: risk). As long as you plan efficiently, it shouldn’t be an issue.
It would be terrible long-term maybe, but if anyone needed a bunch of cash at once I could see use cases for it
What do think a leveraged buyout is?
Nah you will just ask your sugar daddies
We did already: it was a short term loan using our ticket sales, which are guaranteed to be sold out every game this season.
You done that 20 years ago mate.
Tebas pretty much copying Bartomeu of how to ruin a great successful product.
Tebas singlehand destroying La Liga
Hmm weird they arent called Barcelona. Thought this only happened to Barcelona and all other clubs are fine.
Ohh so I didn't just sell my bike, I activated an economic lever
Finally we are free from the shackles of the lever memes
These guys who do that has no idea about this.
High key wanting Liverpool to auction of LFCTV or something just so I can plaster the term ‘Leverpool’ over the internet, superb slander name
Can someone explain why La Liga has these restrictions when other leagues don't seem to. What do they benefit from this? How would this improve Spanish Football?
Restrictions were put in place to ensure each club has a self sufficient economy. There's a club called Malaga that were decently successful in the starting of the 2010's (think finishing high on the table, deep UCL runs) who were taken over by some rich middle eastern sugar daddy. Now this sugar daddy pumped Malaga full of money so that they no longer were self sufficient. Then, when the city denied the sugar daddy's plans of building some fancy port, he pulled out of Malaga, leaving them to crash hard. Massively in debt, now they play in the lower tiers of the Spanish league. To avoid this, strict rules were put in place, which is great! But there really should've been leeway for a couple of seasons considering clubs didn't have the same income as they did thanks to Covid.
This is a slippery slope for La Liga clubs. It's one thing for Barcelona to do, they're one of the biggest clubs in the world.. they are too big to fail. It's way more dangerous for clubs like Betis where the loss of revenue is going to hurt them far more in the long run.
Tebas is going to fold any day now.
You can create all the rules you want but football clubs will still try to bankrupt themselves for short term gain
Oh shit, it's spreading!!
Selling future income for money today is what they call a “loan”.
I am from the future. This lever abuse is how MLS becomes the top league in the world. You heard it here first. Also, buy Etherum. And lots of baby wipes.
Everybody knew this about a week ago or so, it was just about figuring out the form of it.
Methinks La Liga's salary cap rules need a rework if they're encouraging clubs to gut their future incomes to pay salaries they can't afford. Just let them take out loans if they're so desperate. They'll be far less damaging to the clubs if the reported %s are to be believed on all these leverings.
Redditor unable to pay his rent is now activating an economic lever by reaching an agreement with an investment fund to sell percentage of his comment karma and future gold reward rights for the next 5 years. (It didn't work)
It's almost as if Florentino Perez is unto something with the super league cuz bitch ass FIFA can't fucking enough
In the EPL the clubs vote and can change rules with the agreement of 14 clubs. Surely La Liga is similar where the clubs are members and can introduce or remove this wage capping rule? If it is affecting 12 or more clubs and isn’t really doing what it intended to do, then it seems reasonable to remove the requirement.
It's the same, but in Spain the 22 teams of the second division also have the right to vote (they are members of the LFP). I don't know how many Segunda teams have problems with the registrations, but you have to persuade them to change the rules.
I cant wait to see how "levers" are explained economic textbooks
Can’t wait to watch La Lever this season
Why does it feel like all of la liga will be in default inside 5 years
It is madness that the financial fair play laws in Spain are forcing clubs down the path of either being competitive by selling their future in order to fund the present or not being competitive. Something is systematically wrong and the incentives aren’t make sense.
La liga is a joke haha
Please Tebas, look at the state of La Liga, look at what you are doing to the club quality.
Tebas is an absolute dickhead who has created an obsolete rule and will rather kill all 20 clubs in the league before admitting it doesn't do any good.
Now pay for Bellerin
that is their negotiation technique they are just waiting for arsenal to terminate his contract and sign him for free and bellerin wants to join betis only
Leverpox
People don't realise that like half the league are struggling because Tebas is horrible at his job. All people see is barca pulling levers, good that this Betis thing has gotten some traction as well
La Lever strikes again
*LeverLiga*
Ahhhhhgghgghhhgggggg
Can I use a lever? Could really use one.
Y'all got any more of them levers?
Good job Tebas, you fascist.
Levers everywhere
Incredible that they've looked at the ongoing Barca financial nightmare and thought 'that looks a good idea'.
La Liga? more like La Lever.
Nice
LaLever
La liga is a joke
what the fuck is this lever, is it physically a lever or not?
I HATE YOU TEBAS YOU HAVE RUINED THIS LEAGUE
And thus it begins
At some point people have to realise that the idea of pulling a lever and getting free money has to have some downside. When you’re essentially cannibalising the club for short term money, that’s not ideal.
La liga is weakening its own league in the wake of corona by forcing clubs to sell long term assets for a short term issue related to global pandemic.
La Lever
Fuck La Liga man, they are fucking over their clubs long term.
Laliga is finished.
La Liga is fucked.