Good Grief, the P³ gets an economic analysis right!

Where in buggery did this miracle come from?

It is notable that this breakaway movement appears to be largely US-inspired, with billions of dollars of backing from JPMorgan. The motivation would appear to be the replication of the elite status of some American sporting clubs in their supposed competitions where relegation, and so failure, has been made an impossibility, resulting in the possibility of perpetual super-normal profits for those clubs who at the point that a League is created are considered exceptional, and so worthy of this guaranteed income stream.

Bit overwrought but at core accurate. Yep, it’s to create a cartel.

Think about this in terms of economics, and what becomes apparent is that this represents a straightforward intention to lock in monopoly profits for the benefit of these clubs, at cost to the rest of the Football League, football fans, society at large and the whole idea of competition which should underpin sport.

Didn’t last long though, did it? The major losers are football players, the workers. The winners the capitalists – as usually happens with monopsonistic cartels.

Yep, he entirely misses the impact upon the players. So, not so right after all.

14 thoughts on “Good Grief, the P³ gets an economic analysis right!”

  1. Good spot Tim! Amongst long-term losers from this proposal will be players. If there is no alternative available, the clubs will be free to introduce the salary-csp they dunt now ever mention but would love to have.
    My personal view is, the players add the value, they should get the money. Right now that is what happens. If a proposal threatens that, it’s a bad proposal.

  2. Did Herr Oberst Professor Kartoffel get in a lather when that other cartel call UEFA expanded the European Cup into the Champions League by admitting runners-up and also-rans?

    Just another anti Banker (i.e the jooooz) diatribe that we have come to expect from Professor Fuckwit.

  3. National leagues will still exist. How is this different from the Premier League vs the rest? Other CLUBS will be prevented from entering this league but players will not. I don’t see how this affects demand and supply of players at all.

  4. If the permanent clubs – and then others – decide to impose a salary cap, to whichbother league does the player turn? Where is the alternative? What other league generates the TV revenue once there is a primary league and ‘feeder’ leagues?

  5. Rob – one of the threats from UEFA et al is that players will be barred from all other competitions administered by UEFA etc.

    So, no FA Cup, no Champions League and no European Championships. Possibly, no World Cup.

    Depends on the individual player of course, but on the whole, I reckon they won’t fancy that much.

  6. If they introduce a salary cap players will go elsewhere. Plenty of TV rights and big clubs outside the Super League. Indeed it is notable that many of the clubs in the Super League have won the Champions League recently or even ever (Arsenal, Spurs, Man City).

  7. Closed competitions like the NFL or the NRL tend to be socialist in outlook.

    No one team (or player) gets too big for their boots.

    If one team is lagging, it gets first pick of the best youngsters for a leg up.

    Equality between the teams becomes the ideal.

    If the EU were behind this contest, he’d have no problem.

    His problem is he doesnt get to be the equaliser.

  8. Ducky McD, I wonder… a lot of these millionaires consider playing for their country to be a chore.

    Quetin Letts described the Premier League as the literal lunatics taking over the asylum. This Super League is Broadmoor. UEFA have not done their cause any help by expanding the Champions League to 36 teams and giving the French an extra berth.

    And also Spurs ( who haven’t won a League title since 1961) will be without Mourinho (lol).

  9. I wonder which side of the Bosman ruling Snippa comes down on – based on his affection for Ipswich when there was widespread restrictions on workers having rights, like being able to negotiate their own pay and with whom, I’m not so sure.

  10. Otto – yes, it comes across that way. I suspect though that England games expose them to a different level of criticism from fans and the media really quite quickly – which they don’t like, at all.

    There’s some thinking around that this is simply a tactic to extract more cash from UEFA for the CL overseas rights – and UEFA haven’t done themselves many favours in the past. And I wonder whether the PL clubs are the main drivers – Real and Barca seem to be right up the proverbial in terms of revenue right now. The Italians are probably in the same boat. Not sure about the Hun, or the Frogs.

    As far as the players go – this might work out like cricket with Packer, the IPL or South Africa.

    If I was Levy, looks like a good day to bury good news.

  11. Leagues like the NHL with salary caps are basing them on total league revenue share (including tv rights), total salary players can max out at x% which means team still has some money left to make a profit on.
    In the NHL the players even have an escrow fund they put part of their wages into through the year so that there can be a ‘true up’ at the end of year and they either get money back or at least don’t get a bill if the revenue share is off.
    Lots of good ways to work a salary cap that can be fair to both sides and less teams isn’t in the players favour either.

  12. Personally its an interesting one. I want clubs (businesses) to be free as possible to run their businesses but i hate sporting stitch ups.

    Boris has an opportunity to cement the position in the redcar wall to claim credit for kaiboshing this. I mean it might not happen anyway so do something and claim credit for it not happening.

    How about a national law? league games have promotion and demotion or have a super normal profits tax imposed. Games conducted abroad won’t (can’t) attract the tax but expect fair value transfer price for use of brand value to be paid to team’s domestic HQ, where yep if its a stitch up league game – the tax is applied. (How much is the revenue of Liverpool vs Arsenal in Shanghai is down to the domestic brand of those teams?- probably slightly complicated i grant if that IP is owned by/in dubai or Sibererianosk or Delaware)

  13. Quality stuff this – defections beginning, Woodward gone.

    Who fails first? ManU, Barca or Real?

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