Investment funds in football II

In the previous article I showed my distrust towards these practices as they are currently carried out. But this does not mean that he is radically against or that he stops recognizing that it could be otherwise and that they could be useful and fulfill a mission of help facilitating a different type of financial operations in the complicated world of international transfers. We are going to delve into some important aspects that will 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 with 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, the dependence of that third party begins because of the money invested by this in the player or in the club. And the governing bodies do not like this at all because they understand that it is contrary to the policy of financial fair-play and budgetary balance that they want to implement in the clubs.

They understand that it allows and facilitates excessive indebtedness, weakens the decision-making capacity of clubs and places in the hands of third parties a capacity for influence and decision that they cannot control and which they consider foreign to the world of football. 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 footballers transfers. It is understandable that worry and fear are triggered when the causes of it act together and add means and influence. There begins a big problem.

The first and last cause is, as almost always, money. But not the money that the investment fund puts in to earn their corresponding dividends, if not the money that the selling club wants to earn by "holding out" the footballer for as long as possible, the money that the footballer wants to start earning as soon as possible and the one that the Buyer Club wants to save money by getting along with the 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 flourished 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 football. It must be recognized that something is changing and that there is more rigor and demand in this matter. This is where the issue of funds does not fit and where the alarms have been set to prohibit or redirect them in an appropriate way 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 understand the phenomenon in its proper measure. On the one hand, you have to clearly define how special football is and how far its particularity should go. If it must have specific aspects (ordinary or sports jurisdiction, legal obligations, responsibilities of the authentic and true managers and not easily elusive simulations) and intrinsic to the very essence of football that are implemented as soon as possible and that it is for the better. For example, if clubs can use this type of operation to finance their contracts and transfers, why shouldn't they? If small, medium and large savers invest their money in all kinds of actions, financial assets, pension plans and provident and savings plans, insurance, etc., etc., why couldn't they do so in these types of assets if they were well defined? clear and transparent, with adequate legislation and with a correct and controlled operation.? Soccer is special, we already know it, but it should not be so special that it does not take advantage of what is legal in its favor and allows it to solve its problems and fulfill its objectives. And this issue of funds, well managed, could contribute to it, but for now what there is is opacity and benefits for a few who go about their business, leaving worrying traces.

On the other hand, it is convenient not to be deceived and stop recognizing that the matter is complex, difficult, encompasses the different actors of that great theater that is football and touches their ego and 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 avoid that the disastrous transfer policy of a club leads to ruin if its presidents over the decades go to pieces and if what the fans want are goals and titles without caring about anything else. …… or that another club lives beyond its means for many years, although this means the bankruptcy or disappearance of the entity. The lower divisions are full of cases like this, although no one 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 heart of all this, such as:

Why do you pay so much money for a footballer in the "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 don't know if that much) who must respond to enormous expectations that are rarely met?…. Anyway, if the happy funds serve to improve all this that they arrive in the proper form and as soon as possible… ..but it really is for the best.

Author: Eduardo Silva

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