How do we compare in the transfer market? - Can we compete with the best?

Liverpool Football Club - General Discussion

Postby Redrider » Sun Sep 05, 2004 9:57 am

11 Rooney's would be pretty useless aswell. :D
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Postby azriahmad » Sun Sep 05, 2004 11:57 am

To put things into perspective, the present transfer market (in money terms) has shrunken quite a lot as most football clubs barely make any profit.

Even manure are paying Everton in instalments 10 million now, 10 million at the end of the season and the balance 7 million depending on a number of things like England appearences, how manure end up in the league and in Europe etc. Only Chelski pays up-front and that comes from their mad owner. Real also do instalments for their bigger transfers. Right now Real are in black, and has just announced profits due to them wiping out their debts from the sale of their former training ground in the suburbs of Madrid.

As for us, in real terms (if you exclude Chalsea), when assessing transfer war chest, Liverpool is probably behind Manure and Arsenal by quite a bit, but perhaps on par or ahead of Newcastle (Newcastle had just made a fortune on Woodgate). Success, especially in the CL (making the QF would be considered a financial success) will allow more exposure of the club's "brand" and will in turn attract more lucrative sponsorships and will increase the turnover.

We definitely need to be in the CL every year, and not necessarily winning it, just have to make decent progress during the knock-out phases. The bigger your "brand", the more money you can make from the spin-offs - merchandising etc. If manure or Real had won the CL, they would have made much more than what Porto made by winning the CL because of their more established "brand".
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Postby laza » Sun Sep 05, 2004 1:42 pm

Well looking at the financial benefits from last years CL it really does highlight how important it is to be playing CL every year , the gap between the CL teams and others will only continue to widen. I was reading somewhere that Liverpool are guaranteed at least 14 million for just reaching the group stages but i havent been able a definate reference to this

Financial benefits for élite sides
Tuesday, 8 June 2004
UEFA is to distribute €415m to the 32 clubs who took part in the 2003/04 UEFA Champions League from the group stage onwards.

English success
The amount represents 75-82 per cent of the total revenue with the clubs receiving payments in proportion to their endeavours in the competition. Champions League winners Porto received €19m while runners-up AS Monaco FC collected €26.4m, with their larger amount due to their higher revenue from the market pool. English clubs fared best with Arsenal FC, Manchester United FC and Chelsea FC all netting more than €26m.

Fixed amounts
The distribution of the revenue generated by UEFA from television rights and sponsorship deals is split among the participating clubs according to fixed amounts including a starting bonus (€1.6m), a match bonus in group matches (€328,000), a performance bonus in group matches (€328,000 per win, €164,000 per draw), a knockout round bonus (€1.64m), a quarter-final bonus (€1.97m), a semi-final bonus (€2.6m) and then €3.9m for the runner-up and €6.6m for the winner.

Market pool
Added to this is the market pool, which is distributed according to the proportional value of each TV market represented by the clubs taking part, and is split among the number of teams participating from a given association. Half of this amount per market is split among the clubs based on their performance in the previous domestic league championship and the other half is paid in proportion to the number of matches played by each team in the season's Champions League.

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