Sunday, 31 August 2014

A Rogue Transfer System Made By FIFA & UEFA

Manchester United's £60 million purchase of Angel di Maria from Real Madrid might serve to trigger the blow back that forces football Authorities to admit the inconvenient truth: the transfer market is over heating, with outlandish player valuations making a mockery of the theories and norms that underpin the transfer system.

Eleven of the biggest transfer fees ever paid, have taken place in the last five years.That underlines the fact that FIFA's creation of the transfer window has broken the system. Imposing time-lines on such trading, basic economics tells us, inevitably leads to artificial scarcity, that generates a spike in prices for players, who are in this case, de  facto commodities.
 
It's the simple maxim of too much money, chasing too few ( available ) commodities. If you widen the time frame for such transactions to take place, and maybe limiting it at the climax of the season (for example April and May) you then give clubs more than enough time to make assessments,  and do business without the panic of deadlines. Now, Clubs fear if they lose a player, there might not be enough time to get a replacement; so they over-value the asset they have to part with, in order to mitigate a potentially unfavourable circumstance.
 
The UEFA Financial Fair Play Regulation is another one of them flawed ideas. The theme is supposedly to make clubs live within their means. If not, get fined or banned from UEFA competition for spending more than they earned.
 
How can  UEFA contrive the same rule for all the clubs in Europe, when Clubs are formed and run distinctly, from country to country!
 
Why not allow national associations deal with such regulations, rather than overly centralising checks and control. If Clubs are made de facto legal entities,  whether owned by one person, a group, or share holders, in theory, the dynamics of capitalism would cleanse the system. Clubs that rack-up unaffordable debt would go bust, and out of business; or an investor may choose to buy the club, and pay the debt. Ken Bates bought Chelsea for a nominal fee of £1.00, and ended up selling to Roman Abramovich for a healthy profit. UEFA's puppeteers did not have to get involved. 
 
The likes of Chelsea, PSG, and Monaco, would find loopholes to get round UEFA's rules, or worse still, the  assets (players) they hold get sold for disproportionate sums, in order to buy, then balance the books, Much like Chelsea sold Brazilian defender David Luis for £50 million to PSG; and Belgian Striker Romelu Lukaku for £28 million to Everton to fund the purchase of Diego Costa, Felipe Luis, and Cesc Fabrigas
 
The likes of Real Madrid have also got in on the act. After paying the exaggerated price of £63 Million for the world cup's top scorer James Rodriguez, to part off-set their outlay, they sold Angel di Maria for £60 million to Man United. Just like they did last season, selling Mezut Ozil for £42 Million to Arsenal to allay the £86 million, world record transfer fee for Welsh star, Garreth Bale. To stay within the rules, Clubs are resorting chicanery and maximalist bargaining ploys. It's a clear indication of how these ill-conceived regulations by football authorities, has sent player valuation and transfer fees spiralling, artificially. Free up the market, and you put this rogue business back in line.
 
Cristiano Ronaldo: Celebrates with Gareth Bale
Silly Market regulations tend to conjure unintended consequences, as proven by the number of times the transfer record has been broken since the transfer window came into effect eleven years ago.
 
Trying to control how much Clubs spend is an exercise in futility. Clubs only resort to gamesmanship, authenticity dies as a result. Allow Clubs spend what they want to spend, and let the market sort itself out. Demand and supply are interdependent variables, and sustain themselves
 
FIFA and UEFA have unleashed a synergy policies that is harming foot ball. The game is getting heavily monitised, and frivolous. Clubs at the bottom of the rungs who are disconnected from the gravy train will suffer more, because everyone is looking for a star player. Who goes to the lower leagues to check on players? aren't Clubs in that bracket being undermined and isolated by all of this fixation on bigger names? Who remembers the practice of going down a division to scout for  emerging talent, who will join to Club to play as an understudy, waiting patiently till he gets his chance. Wasn't that much cheaper ?
 
To the ordinary fan, big prize tags for players, equates talent. He or she is duped into believing paying more to see games on commercial TV, or as a season ticket-holder, is a quid pro quo for enhanced value of entertainment. Fans have become restless, frustrated, and acerbic, when their team fails to buy "expensive talent". Our pundits and commentators who shape opinion, spout away regularly that only when you buy players like PSG and Real Madrid do can you be counted as serious contenders, further exacerbating the negative trend of events in the transfer market.
 
The game is being irreparably harmed if the current state of affairs continues.  Blame it on the interventionist policies, morons at the European Commission, FIFA, and UEFA put in place, that Joe Bloggs has a £30 Million price tag! You and I know he is not worth that much!