Chapter 114: Justification

Because of the Southampton Club incident, Arthur, who had lunch, temporarily changed his itinerary and returned to the "Southern Daily Echo" newspaper office with Jerry Fuller.

In the editor-in-chief's office, Jerry, Arthur and the butler Paul respectively took the coffee from the secretary, and while drinking coffee, Arthur listened to Jerry, a veteran media person, and introduced him to the details of the entire English football league and clubs.

For the Saints Southampton, this time the violation was punished and relegated to League One, as a supporter of the Saints, Jerry can be said to have deeply felt the hundred tastes of the world.

From perennial Premier League players, to underdogs in the Championship, to League One teams next season, the Saints Southampton's tragic experience may have just begun. All Saints fans, like Jerry, feel sorry and sad for the Saints from the bottom of their hearts.

Although it is understood that the club's shareholders are going to sell the club, the current Saints are undoubtedly a hot potato, whether it is debt, poor operation and performance, it is a stumbling block for buyers.

Without the manpower to turn the tide and regroup, the Saints' prospects in League One next season are in doubt. The biggest wish of all Saints fans is that the club will not sink too long in League One and return to the stage that should belong to the Saints as soon as possible.

Therefore, when he heard that his owner was interested in Southampton Club, Jerry was very excited, and of course, he also knew that as a subordinate, even if he very much hoped that his owner could join the Saints, turn the tide, and lead the team back to glory and glory.

However, Jerry must not deceive his boss into making wrong judgments and decisions because of his own selfishness, therefore, Jerry adheres to his professional ethics and fair mentality, and begins to tell his boss some of the information he knows and has mastered and the real situation of British football without reservation, without any personal opinions.

Arthur, through Jerry's detailed introduction, also has a deeper understanding of English football, although he was a senior fan, but only from the perspective of fans, only care about the club's record, rarely pay attention to other aspects of the league.

And Jerry's introduction is like a concise popular science article, which gives Arthur a very clear understanding and judgment of the Premier League, the Championship, and League One.

Entrepreneurs who invest in the Premier League are motivated by the fact that they are inseparably separated from the success of football and the success of economic performance. From the Glazer family behind Manchester United to the desert tycoons behind Manchester City, business people have seen how they can increase the value of a club by helping it improve, or simply enjoying the crazy rise in income that comes with televising.

From Abu to Chelsea, the pattern of the Premier League was completely broken by Jinyuan Football. The rise of Manchester City and Chelsea under the huge takeovers has gradually ousted the former giants of Manchester United and Arsenal from the championship. Subsequently, Manchester City and Chelsea, all the way to Liverpool, were on the path of buying players with heavy money.

This also makes the Premier League present a diversified competition pattern, and it can be said that in the future, the Premier League will always be in a situation where these teams are competing for four Champions League qualifications.

“。。。 There are two key features of the new economy in football. The first is to pool the efforts of the people to generate income, which is then distributed unequally among the clubs. In this regard, it performs extraordinary.

But at the same time, it has no ability to control the cost of doing business, and the money comes in and immediately flows out from the other end. The Premier League's total annual revenue is now over £2.3 billion, the highest among football leagues around the world, but there are few clubs that are truly profitable.

Moreover, professional football has always been unfair competition, and the income gap between the various leagues and the league is huge. The Premier League's biggest clubs now earn four to five times as much as their lower clubs.

In 2008, Manchester United, Chelsea and Arsenal all generated more than £220 million, while Blackpool, Birmingham and Blackburn Rovers had only a quarter of that figure. But even these Premier League downstream clubs have more than three times the average Championship club's annual revenue.

The average club in League One and League Two generates around £5 million. As for the bottom two league revenues, each with only £3.5 million, the overall industry size is smaller than Manchester United and Arsenal alone.

Fair or not, it may be assumed that with the club's owners and board of directors at their disposal, these tidal incomes must have brought substantial profits.

But perhaps the most surprising thing about this so-called new economy of football is that it is barely profitable. In the most lenient terms, the Premier League as a whole has made a small profit in most seasons, but even this profit is minimal.

If you also include the capital account, such as debt expenditure. The depreciation of assets such as the value of players, the losses in the player transfer market, and taxes, whether it is the Premier League or other leagues, there is no profit at all.

For example, in 2008 Premier League clubs lost more than £100 million before tax, while Championship clubs lost more than £100 million in the same year. The operating losses in League One and League Two were in the tens of millions of pounds and millions of pounds respectively.

At least in terms of spending, the new football economy has a role for everyone. Because no matter how much or how little, all leagues lose money equally. Also this year, League One clubs are expected to make an average of £5 million a year, with a loss of at least half. League Two is slightly better, with an average annual revenue of more than two million pounds and a loss of hundreds of thousands of pounds. ”

Well, hearing this, Arthur was a little speechless, originally thought that buying the Saints Club would run it well, do a good job in youth training, play games, earn some broadcast shares, sell players, and make at least a few million pounds a year, but now it seems that he thinks too much.

"How can you create such a business model where revenue increases and losses increase?"

Faced with his boss's frowning question, Jerry shook his head and said with a wry smile: "The problem is not in the capital account. The problem lies in the operating accounts. Because the amount of money flowing into the ball game is staggering, but it is just a 'sour plum juice effect', which flows in and out immediately. Now it's the world of brokers.

Seventy percent of the club's income has been split among the players. Championship players get a higher share, accounting for about 90% of the club's revenue in 2011. At least six of these clubs spend more money on player salaries than they earn in total. The league level is from low to high, the income jumps up layer by layer, and the salary of the players is the same.

As for why players are able to get such a big share of the new money wave in football, and why do clubs not hesitate to pay sky-high salaries even if they lose money for a long time? The core reason is that in English football, there is a direct relationship between salary and winning rate. The higher the salary, the more points you can earn, and the higher your league position at the end of the season.

The competition in the Championship is the fiercest, not only because of the number of league teams, the intensity of the schedule, but also the difference in strength between the teams. The Premier League side was relegated to the Championship, which meant they had to wait until the Year of the Ox to return to the top flight.

Complemented by the fierce competition is the valuable prize money, which can be used by three or six teams who break through the play-offs to the Premier League, and as far as I know, they can get at least £170 million, which is a lot of financial problems for some small teams that have been in the Championship for many years!"

After hearing this, Arthur was silent for a moment, took a sip of the coffee cup and put it down, looked at Jerry with some sharp eyes and asked, "Since this is the case, the probability of loss is so high, why do you support me so much to take over Southampton?"

Jerry did not hide from the sharp eyes of the young owner, but said very frankly: "Because Southampton is definitely the most affordable and value-for-money club at the moment." ”

"Reason!" Arthur asked with a nonchalant expression.

"First of all, although the Saints are going to play in League One this year, it is not caused by lack of power, but was relegated after being punished and deducted points, since the relegation to the Championship in 05, the Saints have been working hard to return to the Premier League, which means that its current squad has the power to impact the Premier League.

It's just that there is a problem with the club's internal management, plus the team has a bunch of people, but they can't use it. To put it bluntly, the overall style of play can't be integrated, you play yours, I run mine, the team can't be integrated into a whole, it's just that there is a lack of a good coach. It is bound to be an easy return to the Championship next year.

Now relegated to League One, the price of the club will be very low, if it is bought at this time, even if it returns to the Championship next year, it can be sold again to make a profit.

Then there is the Saints Southampton, although they are not a big team, but they are very well-known and have a huge fan base. Founded in 1885, the greatness of the club's die-hard fans lies in their unwavering support for their beloved team. Despite the team's poor record, it did not shake the loyalty of the fans. If the acquisition is really successful, the box office income of the team's games is also a lot of money. “