Some time ago we had an article that discussed FFP around the circumstances with the recent rise to prominence of Monaco. I have taken the position that FFP is really a smoke screen that Platini and co are selling for PR reasons as well as to keep the status quo for the big boys in European club footie while ensuring that the small fries remain in their designated place. This said I don`t take lightly the need for financial prudence which in my mind is different and distinct from FFP.
That said current examples abound of what financial prudence looks like and what it does not look like. I want to highlight one high profile such example to show how I would like us to conduct our business this transfer window as well as how I would like us not to do our business if we are to be serious about financial prudence.
Any one who has even a passing interest in global football in the last 5 yrs knows who Neymar is. Those of us fans of Chelsea know how our interest and pursuit of him began a few years ago as well as how the odyssey of his move to Europe evolved. Thankfully the whole melodrama is over but what may not be obvious is how the final act in this story went down.
As it turns out many were on the bandwagon of the soap opera train seeking to sign Neymar. It is clear that beyond us, Real and Barca, Pep Guardiola was another one of Neymar’s many admirers and he reportedly made this clear to his new bosses at Bayern Munich. He wanted Neymar in Bavaria and it is reported that Neymar had a mutual admiration for the Catalan and would have loved to join him at Bayern. So what happened? Financial prudence happened. Whatever is said of Pep`s ability as coach, an on field tactitian and a master of developing young talent as some of our VC members like KAKUfrank have eloquently detailed one area of his CV that has been dodgy at best is his record with transfer acquisitions. This tale is a clear example why having a solid administrative structure with experienced football and administrative minds is so important at a club. Reportedly while Pep indicated his interest in Neymar the Bayern brain trust (who must sanction and ratify all transfers in and out of the club) that includes seasoned footie minds like Uli Hoeness, Karl Hienze Rumminegge, Matthais Sammer etc told Pep no and rather suggested another player who was way cheaper, who was a little younger and who they felt was as good if not better than Neymar and who they could get and still stay within their budget.
That player was Mario gotze. That the guy plays for bayern`s only credible competition in the Bundesliga and thus would give the added benefit of weakening their main opposition was another plus for this signing. Those who have seen Gotze play when he is fit know how good this guy is. When he and Neymar lined up when the Mannscraft met the Selecao a few years back on that day the Mannscraft took the Selecao to school, won the match 3-2 and Gotze was the man of the match while Neymar was a passenger whose lone significant contribution to the match was his injury time goal which made the final score look far more respectable for the Selecao than the actual match proceedings were.
It is to Peps credit that the man listened to those wiser in transfer window dealings than he is and agreed with their judgement to go for Gotze instead of the Neymar circus. I am certain that the Bayern top brass reminded him that in the bundesliga unlike in La Liga clubs only buy what/who they have actual money on hand to afford. They don`t function on credit be it to Banks or Middle East consortiums and nor are they allowed to make payments in installments ala the Atletico Madrid arrangement for their purchase of Falcao from Porto.
When the final act of Neymar`s transfer to a European destination was finally completed there were just two suitors left at the table. Thankfully we had either been prized out or by then been smart enough not to even bother any more. Barca got their big prize but while the Barca top brass like to tout that they paid only ~28 million Euros to Santos for their big catch (remember his Santos contract was up and he refused to sign a new one), even in Catalonia the secret of what this deal really cost is now widely known; the 28 mill to Santos was just the beginning of the penance they paid to get King “Neymar”. Add to that ~ 32 mill euros paid to Neymar`s 3rd party owners (seem familiar..remember the Hulk fiasco and the mess with Falcao?).
You may ask what these 3rd party owners do and it is one of the murky dirty secrets of footie financing especially in South America. To be thoroughly blunt these agencies are essentially PR systems that by hook or crook tout the player and create a mirage hyped up persona of the player they “manage”/partially own. When the gullible then bite hook line and sinker they insist on getting their cut on the deal. The penance is not done though; Add on another ~ 40 mill euros paid to Neymar`s dad (who is his agent ) as well as directly to the player (this is apparently legal and acceptable in South America unlike in continental Europe). Also another ~ 10 mill euros had already been paid by Barca to his agent again as a pre contract agreement last year ensuring they remain in pole position for his highness`s signature and then finally there is the actual stipend he is to earn at ~ 7mill euro per season for a 5 year deal. Our math majors on VC can do the math..when it is all said and done in 5 yrs the Neymar signing would have cost Barca a whopping ~ 145 mill euros.
You think that is steep? Remember this a team waist deep in debt (To Spanish banks who are being propped up by money from the EU) , operating in a country in major financial doldrums where other than they and Real all the other footie teams are barely able to pay their players and are generally close to shoulder deep in debt. You ask where they got the money to pay for this. As always in the Spanish model of operation; on credit; to Spanish banks and other murky benefactors like the Qatari foundation that is now emblazoned on the blaugrana shirts rather than the old UNICEF logo which obviously wasn`t providing enough cash rewards.
I don`t know about you but for me even if it were Messi himself who was available I would not want Chelsea coughing up that kind of money for just one player. As ludricous as this is though, Neymar actually decided to take less money; to as he put it; “play for a side with managerial stability” because Real actually offered to pay substantially more; to Santos they offered ~ 30 mill euors, offered Neymar and his dad ~ 60 mill as agent + player fees (compared to the 40 barca paid) and an additional ~ 50 mill euros to offset the pay of for the precontract agreement they had with Barca. Wrap your mind around that and you will understand why frankly I think Real should be thanking Barca for saving them from themselves the way we should be eternally grateful to Daniel Levy for saving us from ourselves when he refused the crazy offer of ~ 40 mill + Alex that we supposedly offered to get Modric only for him to one year later accept much less in cash and with no player added on to send him to Real Madrid.
When you see these numbers you understand the financial prudence and wisdom of the Bayern brian trust in steering absolutely clear of this circus and insisting to Pep that they would not join this bidding war. For the future take note of the careers and actual accomplishments on the pitch of Neymar and Gotze and time will tell who made the wise decision.
As the transfer season goes into overdrive again I am hoping that our decision makers resemble more those at Bayern rather than those at Real or Barca because you can rest assured the day is coming when the bottom will give way on the way these sort of clubs keep spending on credit money they don`t actually have. UEFA’s FFP is not what needs to be feared.It is the harsh reality of bubble bursts that eventually happen when expenditure continues to run amok way beyond actual value and resources available. History is replete with examples but it appears people never seem to learn. Last summer I was so proud of the way our decision makers handled the Hulk fiasco and refused to be essentially robbed in daylight by a dubious player and his agent who seemed to take us for fools with demands for payments to a smoke screen third party owner that was probably just a front to channel close to ~ 10mill additional funds to the player and his agent.
I hope that this summer Buck, Gourlay, Tennenbaum and all the others who make our money decisions will continue to be financially prudent and insistent even when and if the person who has to be told “No” is Jose himself. A close marriage of football smarts and financial smarts is required to run a pro football team that is fiscally buoyant and successful on the pitch and yet which will survive when economic storms come. It is great to have Roman as our benefactor and “Santa Claus clone” but we would be best advised not to follow the senseless monetary models of clubs like Real Madrid and Barca just “to keep up with the Joneses” nor is it wise to take Roman`s presence and purse for granted and make it a license for irresponsible spending habits. I fear that what has hit the Serie A in its entirety and is already ravaging much of La Liga will eventually visit clubs that make financial prudence irrelevant in their daily dealings..even clubs as big as Real and Barca.
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