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Navigating the Changing Tides: Financial Inequalities in Brazilian Football

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In football, “ideologies” always fluctuate according to the circumstances. Bahia fans – like any fan of a club from the Northeast – have always been staunch critics of the system of financial inequalities that have harmed the club in recent decades, something that decimated its much-believed protagonism after the 1988 title.

Now owned by the largest, richest and most sophisticated multi-club network on the planet, the City Football Group, a conglomerate literally controlled by a state, Bahia fans will obviously be offended by any proposal for financial regulation.

Especially if it comes from people linked to some big club in Rio de Janeiro or São Paulo, and even more so if it comes from another one. powerful-but-not-as-powerful-as-us American billionaire owner of a multi-club chain. How it happened.

In an interview with GE, John Textor, owner of Botafogo’s SAF and the multi-club network Eagle Football Holdings, said: “This is my warning to Corinthians, Palmeiras, Flamengo… If we don’t do something, we will wake up in 70 years, under the current administrative structure, with the people who are here today, Bahia will win the Brazilian Championship in 17 out of every 20 years”.

“They are Abu Dhabi (…) I am competing with a country, not an owner. A model of unbridled spending, without restrictions,” Textor said shortly after. See below:

“If we don’t do anything now, Bahia will win 20 championships in a row”, says Textor

Suggestions of financial fair play – or salary caps, as John Textor suggested in an interview with GE – are absolutely nothing new. Ten years ago, UEFA created its own financial control system, and later each league created its own internal model, with some substantial differences.

The most sophisticated and rigid model is that of the Spanish La Liga, something that has already been discussed on this blog. In force for ten years, the “Squad Cost Limit” imposes on local clubs an advance control of expenses, which considers the club’s revenue capacity as a parameter for combined costs related to transfers, agents’ commissions, athlete remuneration, coaching staff salaries and even women’s football. Read more details here.

The “salary cap” is not a common reality in football in general, but it has existed for a long time in North American sports leagues, which have structural models that are completely different from the “European model football” we are used to (federative, pyramid of divisions, relegation/promotion, etc.).

“Fair play” x “salary cap”

Whether it’s the NBA, MLS or NFL, American sports have been used to a system where the league itself is a closed company for almost a century. The dozens of participating teams are mere “franchises” of this large company, belonging to different owners, but always subject to strict rules established by the parent company, the “league”.

Historically, considering the financial disparities between the main North American urban centers – there is a population, economic and structural gap between Los Angeles and Milwaukee –, and although highly commercialized since its beginnings, North American sport has always been guided by regulations capable of guaranteeing greater sporting balance and, consequently, greater financial sustainability for franchise owners.

As a result, there are usually rules that limit the amounts paid to athletes according to their history, which ensure that different franchises can have top athletes in their squads and that young athletes are not harassed by competitors. These measures ensure greater competitiveness and commercial attractiveness for the league (although there are always loopholes that favor some franchises).

That is why John Textor wants a “salary cap”, not a “financial fair play” (FPF) system, which he has been treating for some time as a system of “maintaining the status quo”. Although this is a somewhat unfair definition of the purpose of the mechanism, what has in fact been noted over the years is that the FPF has generated a hardening of financial power relations as a side effect.

But “fair play” was created as a measure to preserve the financial sustainability of clubs, not necessarily to ensure sporting balance. What was happening? In the late 2000s, there were many cases of European clubs going bankrupt, being administratively relegated or being abandoned by their owners due to high debts.

At the other extreme, this is a period of unprecedented entry of new types of owners: American billionaires, Russian oligarchs, Asian tycoons, Arab sheikhs and sovereign wealth funds from the Persian Gulf.

Although we are talking about different origins and approaches among them, in the end almost all examples of this generation of new investors were guided by the use of football clubs for political purposes. This means that it did not matter much how much money was “lost” in football, because the ultimate goal was to convert the sporting gains into political capital, to clean up the image and to establish “new friendships” in Europe.

For FIFA and UEFA this would not be a big problem. More money in football, better salaries, higher commissions, higher amounts in international transfers. Money is money. But money also has relative value. The side effect of this huge flow of money was an unsustainable wage hyperinflation for the vast majority of clubs – that is, those that were not “blessed” with an owner interested in using the club as a propaganda instrument. READ FULL STORY HERE>>>CLICK HERE TO CONTINUE READING>>>

Financial fair play therefore emerges as a mechanism to curb this trend of hyperinflation and unsustainability in the football production chain. Clubs could only spend something close to what they were able to collect from broadcasting rights, player sales, membership plans (or season tickets), ticket sales, sponsorships and other commercial lines.

This logic, however, limited the ability of many owners to inject new capital directly – as has always been the case in football, which is accustomed to patronage schemes. Investors in smaller clubs, with little or no international projection, always found themselves at a great disadvantage against the already consolidated super-clubs.

That is why criticism of “fair play” is so consistent among investors in emerging clubs. Meanwhile, powerful funds took advantage of loopholes to continue standing out: they began using other companies they owned to pay inflated amounts for sponsorships, camouflaging the injection of resources that “fair play” sought to limit, by presenting them in their balance sheets as conventional revenues.

The “home sponsorship” move is something that has been happening ever since with clubs owned by sovereign wealth funds, as John Textor himself states:

– “We have to compete against Qatar [PSG] in France. I am competing with a country, not an owner. A model of unbridled spending, without restrictions. As long as they can generate enough revenue, and they can because of the relationships with Qatar and the sponsorships. Then they can put the revenues exactly where they need to, to spend what they want because they want to win the UEFA Champions League.”

Although there is much talk about the City Football Group, and it is already in Brazil through the Bahia SAF, it is not the only multi-club network with “state funding”. Neighboring countries that are equally theocratic have developed their own networks, later being inspired by the conglomerate model developed by Abu Dhabi (UAE).

The emirate of Qatar, which hosted the last World Cup, has owned Paris Saint-Germain since 2011. It began expanding the operations of Qatar Sports Investment (QSI), buying a minority stake in Portuguese club SC Braga. QSI is a direct subsidiary of the Qatar Investment Authority, the Qatari sovereign wealth fund. Several QSI companies have sponsored PSG. QSI representatives have already indicated their intention to expand the network in the coming years. Brazil, as is known, could be one of the destinations.

Much newer, much richer and much more threatening than these two, Saudi Arabia’s sovereign wealth fund has also entered the game. The Public Investment Fund (PIF) caught the attention of the entire planet last year when it nationalized the four biggest clubs in the Saudi league, injecting fortunes and signing top-tier football stars such as Cristiano Ronaldo, Karim Benzema, Sadio Mané and Neymar Jr.

The PIF had recently taken over ownership of Newcastle United FC at the time, after fighting a long battle for approval of the purchase within the Premier League – achieved after an arrangement in which the Saudis appeared as mere members of a consortium that involved two other investment funds (PCP Capital and RB Sports).

Once owners, the PIF selected four different companies it owned to act as sponsors of Newcastle United: STC, Sela, Noon and Saudia. One can imagine how this impacts the club’s financial fair play calculations when the “revenues” are analyzed.

Amanda Steveley, a representative of this consortium, has revealed on several occasions the intentions of forming a multi-club network. But not in the conventional way, which is slower and more laborious. The group saw itself acquiring or becoming partners in already established networks – to the point that the acquisition of 777 Partners was speculated at the time.

If the big Brazilian clubs and businessman John Textor are worried about the possibility of City Football Group pouring money into Bahia, they may not have yet considered the scale of the impact that a network like the Saudi PIF would have on unregulated Brazilian football. On a scale that may incite pro-regulation positions among Bahia and City’s own fans.

The “salary cap” devised by John Textor has precedent, and may not fit perfectly into the Brazilian system, but it has a fair purpose. The big question is whether Eagle Football Holdings would be in favor of such a measure if there were no City Football Group, or if CR Flamengo did not raise more than R$1 billion so easily.

And vice versa and vice versa. After all, “ideologies” always fluctuate according to circumstances.

2024-07-17 20:20:04
#Salary #cap #Bahia #City #understand #John #Textors #idea #irlan #simoes #blog

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SAD|| 10 Players Who Lost Everything After Divorce, Number 5 Will Shôck You

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The Hidden Financial Struggles of Footballers: Divorce’s Costly Toll

The glamorous image of professional footballers, with their luxurious lifestyles and multimillion-dollar contracts, often obscures a harsh reality: the financial devastation many endure through divorce. Behind the fame and fortune, several high-profile players have seen their wealth significantly depleted after parting ways with their spouses, a stark reminder that no amount of money can fully shield one of the financial pitfalls of personal relationships gone awry…Click Here To Continue Reading>> …Click Here To Continue Reading>>

 

One of the most shocking examples is that of former Arsenal defender Emmanuel Eboué, who lost not only his properties in England but also custody of his children following a bitter divorce. Despite earning millions during his career, Eboué found himself stripped of almost everything. His situation became a cautionary tale, underscoring that even the wealthiest footballers can fall victim to the financial ruin that divorce can bring.

Eboué is not alone. Football legends such as Thierry Henry and Ryan Giggs have also experienced significant financial losses due to divorce. Henry reportedly paid £10 million to his ex-wife, while Giggs parted with an astonishing £40 million after his marriage ended. Louis Saha and Wes Brown, both former Manchester United players, also suffered substantial financial hits, with Brown declaring bankruptcy despite earning £50,000 per week during his time at the club. His case highlights how even vast earnings can quickly evaporate when faced with legal settlements and financial mismanagement.

David James, the former England goalkeeper, faced a particularly dire situation, losing much of his fortune after divorce and being forced to auction his personal belongings to make ends meet. Similarly, Ray Parlour, another Arsenal great, saw his ex-wife receive half of his £10 million fortune, including a £2.5 million house. Jamie Redknapp, a former Liverpool star, also faced a hefty settlement, parting with half of his estimated £15 million fortune after his marriage ended.

These are just a few of the many footballers who have faced financial disaster due to divorce. Keith Gillespie, once a key figure in the Premier League, lost over £7 million, leading to his bankruptcy in 2010. Despite earning significant wages during his career, his divorce and poor financial decisions left him in financial ruin. READ FULL STORY HERE>>>CLICK HERE TO CONTINUE READING>>>

Perhaps the most shocking case is that of Tendai Ndoro, a Zimbabwean striker who lost everything after registering all his properties in his wife’s name. Following their breakup, she kicked him out of the house, leaving him with nothing. Ndoro’s story serves as a grim reminder of the dangers of not protecting one’s assets, even in relationships where trust is implicit.

For footballers, whose careers often peak early, these financial setbacks can be devastating. While their salaries are among the highest in professional sports, the combination of short career spans, legal fees, and divorce settlements can quickly erode their fortunes. Many players also face additional challenges in managing their finances due to a lack of financial education or oversight during their playing years.

These stories underscore the importance of safeguarding personal wealth, especially for high-earning individuals like footballers, who may be more vulnerable to financial upheaval. Proper financial planning, asset protection strategies, and prenups are increasingly necessary tools for protecting one’s earnings and securing a stable future.

In conclusion, while the public sees footballers as insulated by their wealth, the reality is that they are just as susceptible to the financial hardships of divorce as anyone else. The personal struggles behind the scenes reveal that their lives, though glamorous on the surface, are often fraught with the same vulnerabilities and challenges faced by ordinary individuals. These cases serve as sobering reminders that financial security is never guaranteed, even for those at the pinnacle of success.

 

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NFL | The best was yet to come, and then no

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In February 2022, the Bengals missed the Super Bowl by three small points, but regardless, the future seemed bright in Cincinnati.


Posted at 1:13 a.m.

Updated at 7:00 a.m.

In any case, that’s what we, the most seasoned experts in American football, believed, capable of seeing the future each season, often in a very impressive way; for example, this column has been predicting since 1970 that the New York Jets are not going to win the Super Bowl, and that’s still exactly what happens.

The Bengals have never won anything, but their presence on the big stage two years ago suggested that, a bit like the Nordiques in 1990, the best was yet to come.

Well, no.

As of this hour, the Bengals are a dismal 1-4, and even then, their only win came against the Carolina Panthers, who are about as bad as they are.

The good news for the Bengals is that this “landing” is fairly easily explained: their defense is pretty awful. The less good news is that it is probably already too late to try to solve this problem.

In five games, the Bengals have allowed a total of 145 points, which gives a pretty staggering average of 29 points per game. No one else in the American Association looks this bad, and in the league as a whole, only the Carolina Panthers are even worse in this regard.

Meanwhile, the Bengals are wasting the best years of Joe Burrow, who turns 28 in December. He wouldn’t be the first quality quarterback to waste his talent in this uniform.

Is it necessary here to remember that in American football, as in life in general, there is never anything certain? This reality reminds us of this sublime quote from Jean-Jacques Rousseau, who once wrote that “supreme happiness is a hundred times sweeter to hope for than to obtain”.

Rousseau must have been a Bengals fan, obviously.

You are probably aware that the New York Jets fired their coachbut that’s not the worst. The worst part is that poor Robert Saleh would have been escorted to the door like a pauper by security agents.

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Former New York Jets head coach Robert Saleh

It’s undoubtedly one of the worst moments in the history of a club that collects the worst moments, from Mark Sanchez dropping a ball on his lineman’s pussy, to a visibly hot Joe Namath trying to to kiss a reporter live on TV (we’re going to move on to the naughty photo of Brett Favre because there are children here).

We can never repeat it enough: in football, as in life, everything starts from the top. The leaders of the Jets, who display a level of competence similar to that of the inventors of Pepsi Crystal, thus opted for the easy way, instead of realizing that their ground game is non-existent, and that their quarterback who hears voices in his head is finished.

In addition, barely installed, new coach Jeff Ulbrich decided to give control of the attack to assistant Todd Downing, who will call the plays from now on. This is not a detail because this task previously fell to offensive coordinator Nathaniel Hackett, close and confidant of Aaron Rodgers.

It’s obvious that this is going to end very badly. As per usual.

Someone whispers in my ear that the inbox is overflowing again, so let’s get to it right away.

First, Luc Girouard from Sept-Îles sends us this timely little comment: “Would Prince Rodgers have plotted to kick Robert Saleh out in order to take his place? »

We all see what you did, Luc.

Then, there is a certain Nicolas B. from Laval who sent this: “Hi Richard. Great weekly column on football. Really entertaining. In addition, you allow my teenagers to read about football in French, which is still a challenge […] If you ever make a reference to my comment, my sports travel gang is buying me a beer on our next trip. »

You will demand a micro beer, Nicolas. Finally, there is Marco Campanozzi who can no longer hear about “mixing” and the right chair: “I can’t do it anymore!!! »

We are Marco.

It will be another great opportunity to lock yourself in front of the TV while pretending to do something constructive, because Sunday’s menu is particularly spicy.

Thus, Commanders in a state of grace will go to Baltimore to prove that they are serious, the Chargers will go to Denver in the hope of recovering after two defeats in a row, and the Cowboys will host the Lions, in a match that they can’t really let slip away, just to build something following the little miracle last Sunday night in Pittsburgh.

Don’t forget to check out the colors during halftime.

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A young badminton player realizes his deceased father’s dream

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Only 13 years old, badminton-player-honors-fathers-dream-at-nationals/” title=”13-year-old Saskatchewan badminton player honors father’s dream at nationals”>Gautham Sumesh is preparing to realize the dream of his father, who died six months ago: he will soon participate in the National Badminton Championship.

My father was really addicted to badmintonrecalls the Saskatchewan teenager. He really liked that I played.

Gautham Sumesh has been playing badminton since he was old enough to handle a racket. The first time he managed to beat his father, Sumesh Pulavathil, he was offered a drink to celebrate the event.

Sadly, Sumesh Pulavathil died in a road accident near Estevan last October.

Despite the tragedy, the teenager continues to carry his family’s dreams: Gautham Sumesh won the provincial championships this year and is preparing to participate in the National Championship in New Brunswick.

He would be really happyhe believes.

Dreaming of badminton

The young player’s parents left India in 2022 in the hope that their son would become a top badminton player.

: Gautham badminton”,”text”:”When we moved to Canada, we only had one thing in mind: Gautham badminton”}}”>When we moved to Canada, we only had one thing in mind: Gautham badmintonexplains the latter’s mother, Gayathri Ramdas. It is the foundation of our family life.

Her husband put everything in place to help his son play. He bought him shoes and racquets, in addition to devoting many hours to coaching him and other children.

Sumesh Pulavathil (front) was an avid badminton player. (Archive photo)

Photo: Provided by Gayathri Ramdas

Although the family was devastated by Sumesh Pulavathil’s death, there was never any question of the teenager quitting badminton. READ FULL STORY HERE>>>CLICK HERE TO CONTINUE READING>>>

Since the death of his father, Gautham Sumesh has undergone intensive training, particularly in preparation for the provincial competition which took place in April.

He remembers that no one knew him when he started competing provincially, but that changed after his victory at the provincial championship.

: “Hey, good job!” Everyone started talking to me and becoming friends with me”,”text”:”After I won, everyone said to me: “Hey, good job! “Everyone started talking to me and becoming friends with me”}}”>After I won, everyone said to me: “Hey, good job!” Everyone started talking to me and becoming friends with meexplained Gautham Sumesh.

A portrait of Sumesh Pulavathil (far left) and his family.

Photo: Provided by Gayathri Ramdas

Despite his son’s success in the championship, Gayathri Ramdas believes the victory was bittersweet due to his father’s absence.

Despite everything, she watched her son grow up and demonstrate the values ​​of sportsmanship and good play that she and her husband wanted to instill in him, as he harbored ambitions of becoming a professional badminton player.

I’m little by little catching up on all the dreams we had.

With information from Janani Whitfield

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