INVESTMENT FUNDS IN FOOTBALL II



In the previous article I showed my distrust of these practices as they are currently carried out. But this does not mean that it is radically against it or that it fails to recognize that it could be otherwise and that they could be useful and fulfill an aid mission by facilitating a different type of financial operations in the complicated world of international transfers. We are going to delve into some important aspects that help us better understand the how and why of this matter.


The first thing to do is to know the difference between federative and economic rights of a player registered in a club. The former are always from the club and the economic ones are to the extent that the club is able to keep them under control, which is not always the case. This is one of the key issues of the problem because as a club loses control of the economic part of a player's rights in favor of a third party, dependence on that third party begins because of the money invested by the third party in the player or in the club. And this does not like the governing bodies at all because they understand that it is contrary to the policy of financial fair-play and budgetary balance that it wants to implement in the clubs.


They understand that it allows and facilitates excessive indebtedness, weakens the decision-making capacity of the clubs and puts in the hands of third parties a capacity for influence and decision that they cannot control and which they consider alien to the world of soccer. It is well reasoned, but it is very difficult not to recognize that behind that there is concern and fear for the foreseeable loss of power that this way of acting would cause. As there is also due to the excessive power of the Agents (top) of players that can hinder the necessary fluidity, transparency and capillarity of a difficult, opaque and rogue market such as that of the transfer of footballers. It is understandable that concern and fear are triggered when the causes of it act together and add media and influence. There begins a fat problem.


The first and last cause is, as almost always, money. But not the money that the investment fund puts to earn its corresponding dividends, but the money that the selling club wants to earn by "holding" the footballer for as long as it can, the one that the footballer wants to start earning as soon as possible and the one that the Buyer club aims to save money by getting along well with fund managers. The general situation of football in the corresponding market contributes a lot to all this and it is no coincidence that these funds have prospered especially in Portugal and Spain, where the legislation protects, protects and facilitates an opaque, special and light operation in terms of tax, financial and labor obligations of the clubs. Also in strictly soccer. We must recognize that something is changing and that there is more rigor and demand in this matter. It is there where the issue of funds does not fit and where the alarms have been turned on to prohibit or redirect them appropriately and in accordance with the new times.


In my opinion, there are two other very important factors that should be pointed out in order to fully understand the phenomenon in its proper measure. On the one hand, it is necessary to clearly define how far football is special and how far its particularity should go. If it must have specific aspects (ordinary or sports jurisdiction, legal obligations, authentic and true responsibilities of the managers and not easily avoidable simulations) and intrinsic to the very essence of soccer that are implemented as soon as possible and that is for the good. For example, if clubs can use these types of operations to finance their contracts and transfers, why shouldn't they? If small, medium and large savers invest their money in all kinds of stocks, financial assets, pension plans and pension plans and savings, insurance, etc, etc, why could they not do it in these types of assets if they were well defined, they were clear and transparent, with adequate legislation and with a correct and controlled operation ?. Football is special, we already know, but it should not be so much as to not take advantage of what, being legal, favors and allows you to solve your problems and meet your objectives. And this issue of funds, well managed, could contribute to it, but for now, there is opacity and benefits for a few who do their thing, leaving worrying traces.


On the other hand, it is convenient not to be deceived and to stop recognizing that the matter is complex, difficult, encompasses the different actors of that great theater that is soccer and touches their ego and their portfolio in different ways, affecting their decision-making capacity. and influence in a world full of vanities, prominence and covers. At the end of the day, it is very difficult to prevent a club's disastrous transfer policy from ruining it if its presidents over the decades go out of business and if the fans want goals and titles without caring about anything else …… or that another club lives beyond its possibilities for many years, although this implies the bankruptcy or disappearance of the entity. The lower divisions are full of cases like this, although nobody wants to notice it. The policy that seems to prevail is ... "the last one to turn off the light.".


In the end we come to other types of questions that are at the core of all this, such as:


Why is so much money paid for a footballer in “top” transfers? And have you stopped to think kind reader, that almost all the money is for and to pay the footballer on duty (as it should be, although I do not know if so much) who must respond to enormous expectations that are rarely met?…. In short, if the blessed funds serve to improve all this, that they arrive in due form and as soon as possible… ..but really it is for good.


Author: Eduardo Silva

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