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Chapter 114 Reason

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

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

For Saint Southampton, this time he was demoted to the English League One. As a fan of Saints, Jerry can be said to have deeply felt the hundreds of flavors of the world.

From playing teams all year round to underdogs in the Championship, to the League One team next season, Saints Southampton's tragic experience may have just begun. All Saints fans, like Jerry, feel sorry and heartbroken for the Saints from the bottom of their hearts.

Although I learned that the club shareholders were going to sell the club, the current Saints are undoubtedly a hot potato. Whether it is debt or poor operating conditions and results, they are stumbling blocks that buyers are deterred.

If there is no manpower to turn the tide and regroup, the Saints' prospects for the next season in the League One will also become a question. The biggest wish of all Saints fans is that the club will not sink in the League One for too long and return to the stage that should belong to the Saints as soon as possible.

So, when he heard that his boss was interested in the Southampton Club, Jerry was very excited. Of course, he also knew that as a subordinate, even if he really wanted his boss to take over the Saints, turn the tide, and lead the team to regain glory and regain glory.

However, you must not deceive your boss into making wrong judgments and decisions because of your own selfishness. Therefore, Jerry adhered to a professional ethics and fair attitude and began to tell his boss some of the information he knew and mastered and the true realization of the British football world without reservation and without any personal opinions.

Arthur also gained a deeper understanding of the British football world through Jerry's detailed introduction. Although he was a senior fan, he only cared about the club's record from the perspective of the fans and rarely paid attention to other aspects of the league.

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

The motivations of entrepreneurs who come to the Premier League to invest are between the success of football and economic success, and the two cannot be separated from each other. From the Glazer family behind Manchester United to the desert tycoons behind Manchester City, business people can see that by helping a club improve, or simply enjoying the crazy increase in revenue brought by TV broadcasts, the value of a club can be enhanced.

Since Abraham took over Chelsea, the Premier League situation was completely broken by gold and dollar football. The rise of Manchester City and Chelsea under huge acquisitions has gradually driven away from the championship throne of former giants such as Manchester United and Arsenal. Subsequently, Manchester City and Chelsea, and to Liverpool, were on the road of acquiring players with a lot of money.

This also makes the Premier League present a diversified competition pattern. It can be said that in the future, the Premier League will always be in a situation where these teams compete for four qualifying for the Champions League.

"…The new football economy has two key characteristics. First, it is to gather the efforts of everyone to create income and then distribute it to clubs in an unequal way. This is extraordinary.

But at the same time, it has no ability to control operating costs at all. When the money comes in, it immediately flows out from the other end. The annual total revenue of the Premier League is currently more than 2.3 billion pounds, ranking first among football leagues in various countries around the world, but there are not many clubs that are truly profitable.

Moreover, professional football has always been an unfair competition, and the income gap between leagues at all levels and the league is huge. Premier League giant clubs now have revenues of 4 to 5 times that of downstream Premier League clubs.

In 2008, Manchester United, Chelsea and Arsenal all had revenues of more than £220 million, while Blackpool, Birmingham and Blackburn were only one-quarter of that number. But even these downstream Premier League clubs had annual revenues of more than three times the average budget of the Championship clubs.

The average revenue of the clubs in the League One and League Two is about 5 million pounds. As for the two bottom leagues, each with revenue of only 3.5 million pounds, the overall industry scale is smaller than that of Manchester United and Arsenal single furniture clubs.

Whether fair or not, the outside world may guess that under the planning of club owners and board of directors, these tides of revenues will probably bring considerable profits.

But the most surprising thing about this so-called new football economy is that it has almost no profit. Judging from the most favorable calculations, the Premier League overall has made small profits in most seasons, but even this profit is minimal.

If the capital account is also included, such as debt expenditure, player value and other assets depreciate, losses and taxes in the player transfer market, then there is no profit in both the Premier League or other leagues.

For example, in 2008, Premier League clubs suffered pre-tax losses of more than one billion pounds, while in the same year, the Championship clubs suffered a total loss of more than one hundred million pounds. The operating losses of the English League One and English Two were tens of millions of pounds and millions of pounds respectively.

At least in terms of spending money, everyone can be considered to have a share in the new football economy. Because no matter how much or how little, all levels of leagues will lose money. Also this year, it is expected that the average annual revenue of the League One club is 5 million pounds, and the loss is at least half. The League Two is slightly better, with an average annual revenue of more than 2 million pounds and a loss of hundreds of thousands pounds."

Well, after hearing this, Arthur was a little speechless. He originally thought that he could buy the Saints Club to manage it well, do a good job in youth training, play games, earn some broadcasting and sharing, and sell players, and earn at least a few million pounds a year. Now it seems that he is thinking too much.

"How could we create such a business model that increases revenue and losses and increases?"

Faced with his boss' frowning and questioning, Jerry shook his head and said with a wry smile: "The problem is not in the capital account. The problem is in the business account. Because the money flows into the football game is amazing, but it is just the "sour plum juice effect", it flows in and out immediately. Now it is the world of agents.

70% of the club's income has been divided by players. The proportion of English champion players is even higher, accounting for about 90% of the club's income in 2011. At least six of the clubs spent more players than the total income. The league level has gone from low to high, and the income has been leaping up layer by layer, and the salary of players is the same.

As for why players can get such a big share of the new money trend in football? Why do clubs pay sky-high wages even if they suffer long-term losses? The core reason is that in the English football world, salary and winning rate are very direct. The higher the salary, the more points you can win, the higher the league ranking at the end of the season.

The competition for the English Championship is the most intense. Not only is there too many league teams and the schedule is dense, but the strength gap between teams is not large. Premier League teams are relegated to the English Championship, which means that they don’t know that they will have to wait until the Year of the Ox and Horse Month to return to the top league stage.

What is in line with the fierce competition is its valuable bonus. Teams that have broken through 3 to 6 play-offs and promoted to the Premier League, as far as I know, they can get at least 170 million pounds of bonuses. For some small teams that have been in the Championship for many years, this bonus can solve many of the club's financial troubles!"

After hearing this, Arthur was silent for a moment, picked up the coffee cup and took a sip, then put it down, looking at Jerry with a sharp look and asked, "Since this is the case, the chance of losing is so high, why do you support me in taking over Southampton?"

Jerry did not dodge the sharp light in the eyes of the young boss, but said frankly: "Because Southampton is definitely the most affordable and worth the money club at the moment."

"Reason!" Arthur asked indifferently.

"First of all, although the Saints are going to play in the League One this year, it is not caused by insufficient power, but is relegated after being punished and deducted points. Since relegated to the Championship in 2005, the Saints have been working hard to return to the Premier League, which means that its current lineup is capable of impacting the Premier League.

However, there are problems with the club's internal management, and the team has a lot of people, but they can't use it. To put it bluntly, the overall style of play cannot be integrated. If you play yours, I run mine, the team can never integrate into a whole, but it just lacks a good coach. You will definitely be able to return to the English Championship easily next year.

Now that the club is relegated to the English League One, the price of the club will be very low at this time. If you acquire it at this time, even if you return to the English League next year, you can make a sure profit.
Chapter completed!
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