Saudi Sovereign fund

[kerem gokmen]

and talking about capitalism (free market) etc, it has rules. it ias never 100% free.
i am a finance academican/exbanker also sport management master graduate, ex club director anyway.
briefly, finance has some assumptions
- investors are rational
- value of an asset is equals to the today's value of future cash flows.

you cant buy messi for EUR 1 billion. that is not rational. messi will not generate you that much cashflow. you are manuplulating the market. in finance there are regulating bodies (SEC in US or FCA in UK). you can not pay a stock a tremendous amount, or create a monopoly, it is not allowed(check the microsoft - blizzard case for example). it is not capitalism, it is manupulation and it is illegal.
at the moment there is no regulation body in UEFA. it should be.

was city a good investment in 2008, or still? yes. was it fair? yes. the guys made their projections well, and it generated cash flows. more than expected. maybe the best investment of 2000s

manupulating the market by giving maura icardi EUR 100 mio should not be legal. regulations will come soon or later. but upcoming years will be difficult.

i like discussing those issues with you, thats why i opened the thread. your opinions are important. you are experienced about those stuff. so thanks.

 

[BrianW]

But say, for the sake of argument, a club in Saudi paid us 200 million for Mahrez.

What could UEFA do about it? They have no jurisdiction over Saudi. If you are going to start saying that irrational payments somehow do not count as income, what happens to the money? Why are noodle sponsors in Thailand OK?

 

[I'm With Stupid]

Have you been to Saudi?

Not really. Been through the airport. But I've had a few friends who live there. From their reports, it's fine if you live in the expat enclaves, but can you really imagine someone like Jack Grealish living there? We've got players whose wives don't want to live in Manchester. Do you really think they'll be falling over themselves to move to Saudi Arabia? A couple of years at the end of their career, maybe. But early 20s, giving up the chance to play in the biggest tournaments? No chance.

I've heard the argument that Muslim players would be keen to go there, and while that might be true for any devout Muslim players, in my experience, going to a country with strict Islamic laws is a far bigger issue for people who are culturally Muslim. They don't expect us heathens to follow the rules. They are far less tolerant of a perceived Muslim not doing so. I've known a few atheists from a Muslim background having issues in Muslim countries, because they just assume that you follow the religion, even in most cosmopolitan cities in Malaysia and Morocco.

 

[kerem gokmen]

But say, for the sake of argument, a club in Saudi paid us 200 million for Mahrez.

What could UEFA do about it? They have no jurisdiction over Saudi. If you are going to start saying that irrational payments somehow do not count as income, what happens to the money? Why are noodle sponsors in Thailand OK?

yes, thats the issue... legal experts (governments for sure) should start to involve in this fucking market...

 

[I'm With Stupid]

The government don't seem to give a shit when Saudis buy up half the property in London and price out the people who actually live there, so why would they give a shit about a few overpriced footballers?

 

[kerem gokmen]

Not really. Been through the airport. But I've had a few friends who live there. From their reports, it's fine if you live in the expat enclaves, but can you really imagine someone like Jack Grealish living there? We've got players whose wives don't want to live in Manchester. Do you really think they'll be falling over themselves to move to Saudi Arabia? A couple of years at the end of their career, maybe. But early 20s, giving up the chance to play in the biggest tournaments? No chance.

I've heard the argument that Muslim players would be keen to go there, and while that might be true for any devout Muslim players, in my experience, going to a country with strict Islamic laws is a far bigger issue for people who are culturally Muslim. They don't expect us heathens to follow the rules. They are far less tolerant of a perceived Muslim not doing so. I've known a few atheists from a Muslim background having issues in Muslim countries, because they just assume that you follow the religion, even in most cosmopolitan cities in Malaysia and Morocco.

:)) if you are a christian in a full islamic country.. no problem
if you have a muslum background and they understand that you are an atheist. it is death penalty.. really...

 

[kerem gokmen]

The government don't seem to give a shit when Saudis buy up half the property in London and price out the people who actually live there, so why would they give a shit about a few overpriced footballers?

yes, same issue in turkey at the moment. russians.... after the war esp in southern regions.

 

[KS55]

In the long term can clubs in Saudi and the Gulf make money? I’m doubtful. What happens next?

 

[baggy]

The government don't seem to give a shit when Saudis buy up half the property in London and price out the people who actually live there, so why would they give a shit about a few overpriced footballers?

they dont. For the same reason is why i'm confident that the EPL will be put back in their box regarding these alleged charges...

 

[Shirley]

Many expats and their families working in Saudi spend a lot of time in Bahrain, wonderful place.