The next big thing? An alternative view.

[colourmeblue]

The taxman cometh indeed. The question is why has it taken so long? Im no financial whizz nor do I fully understand the ramifications of the Rangers crash but it would seem quite a few clubs are in panic mode and changing up their operations in lieu of the dreaded knock on the door.

For me this poses a few questions albeit from a laymans point of view and at the very real risk of appearing naive I would like to know:

Why has the taxman seemingly allowed these practises to go on for so long? Has there been a change in tax laws that allows HMRC to pursue transgressors?

Would the obscene amount of remuneration that players can demand have been possible to afford without what are deemed to be (alleged) criminal activities?

Given the global recession is it likely that clubs being brought to task will mean a more affordable experience for the average supporter? Will wages and transfer fees be reviewed across the board? (if clubs cant afford the upkeep of players through legitimate means). Will this mean a downsizing of revenue generated by football in general and therefore reflect in the perception of value for money experienced by the typical fan?

I have always felt that football had generated its own false economy(no shit sherlock). Without realising the machinations going on behind the scenes to make it all possible, I've always suspected that it was a very big bubble that was always going to burst and the effect could be catastrophic both to the game and to the wider economy.

As we speak, members of parliament are rushing to the aid of a stricken club who, in my opinion, have no one to blame but themselves for their predicament. Why? What sets football clubs apart from any other organisation/club/business entity? Is it really just the numbers of potential voters involved or is there value in showing special dispensation to (if found guilty) a business who have knowingly and wilfully defied the laws of the land? A note to Rangers supporters, this is a genuine question and not designed nor posed to undermine and would be equally pertinent to anyone in that particular situation.

My main bone of contention in all of this is the culture of entitlement that football has generated through a generation of ever increasing greed. Would all clubs be prepared to bite the bullet (as I suspect they will have to) to create a more level playing field for everyone concerned? Personally I believe we need to change and change quickly. FFPR is a step in the right direction, however, it appears that on its own it may create more problems than it addresses. When one part of the economic jigsaw involved moves, the rest needs to move along with it to achieve a common objective. This includes sponsors, TV and media and anyone with a vested interest in the particular economy. I believe that the Rangers case has set a precedent that is irreversible and will have long reaching implications for every club in the UK and beyond and as such we will see a very different landscape in a decades time. I also believe that unless this culture of entitlement is addressed it will destroy the game as we know it.

Thoughts?

 

[davymcfc]

It's a never ending spiral mainly caused ironically by the money initially being pumped in to the game by big sponsorship deals and tv coverage rights. With uniteds success coinciding with the glamorous introduction of the premier league they have benefitted greatly but you can't help thinking that other teams have had to try and generate some kind of none existent money just to compete. Take us for example. If it wasn't for the money that we have recently come in to then we would be nowhere near challenging for anything.
With fans lack of patience for teams to have instant success they often pressure boards to try and spend against their means, either that or try and sell it to a wealthy investor (everton fans would be a good example).
The game is now stuck in a rut because the equation we have right now is money = success and unfortunately some teams without money who are just trying to compete with the big boys are the ones that will ultimately suffer........just glad it's not us.

 

[colourmeblue]

It's a never ending spiral mainly caused ironically by the money initially being pumped in to the game by big sponsorship deals and tv coverage rights. With uniteds success coinciding with the glamorous introduction of the premier league they have benefitted greatly but you can't help thinking that other teams have had to try and generate some kind of none existent money just to compete. Take us for example. If it wasn't for the money that we have recently come in to then we would be nowhere near challenging for anything.
With fans lack of patience for teams to have instant success they often pressure boards to try and spend against their means, either that or try and sell it to a wealthy investor (everton fans would be a good example).
The game is now stuck in a rut because the equation we have right now is money = success and unfortunately some teams without money who are just trying to compete with the big boys are the ones that will ultimately suffer........just glad it's not us.

Agree totally mate. But what will it ultimately mean for the future of football? At the minute there seem to be more questions than answers. With HMRC closing in with what would appear to be a long thought out and carefully constructed strategy, it seems that, all things considered, the rich will get richer and the poor will go to the wall.

Maybe Im jumping the gun here but I envisage a perfect storm of courses of action that will conspire to run a scythe through the game in general and unfortunately there could be many casualties. As you say, thank fuck we got the investment at the right time. Had it not been for our owners we may well have been in line for the kind of scrutiny that will no doubt make life extremely uncomfortable for many clubs in the upcoming months.

 

[Big G]

The HMRC are just small fry in this whole setup, and the system is actually setup against the HMRC.
Take our club, owned by a foreign owner with foreign money made in a foreign country, in reality, how can the HMRC tax that? they can only look so far before its out of their boundary, and with so many people and companies having legitimate investments abroad to save themselves being taxed to the hilt, the HMRC are in a way buggered.
What the HMRC need to do it be careful, they could quite easily get stung themselves by being to eager to sting others.

 

[colourmeblue]

The HMRC are just small fry in this whole setup, and the system is actually setup against the HMRC.
Take our club, owned by a foreign owner with foreign money made in a foreign country, in reality, how can the HMRC tax that? they can only look so far before its out of their boundary, and with so many people and companies having legitimate investments abroad to save themselves being taxed to the hilt, the HMRC are in a way buggered.
What the HMRC need to do it be careful, they could quite easily get stung themselves by being to eager to sting others.

Fair enough, HMRC are a small cog in a much bigger machine if were talking about a global economy. In the UK theyre the only game in town as far as how companies conduct their business pertaining to tax laws though. That gives them a substantial amount of say in how transactions should take place. As I've said previously thank providence for our owners, many more clubs wont be so lucky and I cant see how it (HMRC's approach) wont affect the vast majority of them.

 

[davymcfc]

It's a never ending spiral mainly caused ironically by the money initially being pumped in to the game by big sponsorship deals and tv coverage rights. With uniteds success coinciding with the glamorous introduction of the premier league they have benefitted greatly but you can't help thinking that other teams have had to try and generate some kind of none existent money just to compete. Take us for example. If it wasn't for the money that we have recently come in to then we would be nowhere near challenging for anything.
With fans lack of patience for teams to have instant success they often pressure boards to try and spend against their means, either that or try and sell it to a wealthy investor (everton fans would be a good example).
The game is now stuck in a rut because the equation we have right now is money = success and unfortunately some teams without money who are just trying to compete with the big boys are the ones that will ultimately suffer........just glad it's not us.

Agree totally mate. But what will it ultimately mean for the future of football? At the minute there seem to be more questions than answers. With HMRC closing in with what would appear to be a long thought out and carefully constructed strategy, it seems that, all things considered, the rich will get richer and the poor will go to the wall.

Maybe Im jumping the gun here but I envisage a perfect storm of courses of action that will conspire to run a scythe through the game in general and unfortunately there could be many casualties. As you say, thank fuck we got the investment at the right time. Had it not been for our owners we may well have been in line for the kind of scrutiny that will no doubt make life extremely uncomfortable for many clubs in the upcoming months.

I can't see anything other than a lot of clubs going down the path of Chester, Darlington, northwich victoria etc before going out of business all together. Clubs like rangers are too big to go because at some point the investment will come but it's the smaller clubs that I worry about. The way Portsmouth have been treated by foreign owners is criminal. No football supporters deserve that! Well maybe apart from a certain team in red perhaps.

 

[mat]

The rangers example shows what politicians would do down here if the rags suffered the same fate.

WTF does the first minister have to do with sport?

 

[colourmeblue]

The rangers example shows what politicians would do down here if the rags suffered the same fate.

WTF does the first minister have to do with sport?

Thats the bit I dont get either. I can only presume its all political and the SNP are soft soaping Rangers fans for vote catching purposes. Theres a rising tide of supporters of other clubs becoming disgruntled though. Its a gamble that might not pay of if that is what theyre doing.