Guest speedmonk42 Posted November 8, 2005 Share Posted November 8, 2005 I have a curious business/economics project study idea. I would like to see a 'normalization' of the numbers. People say MLS has lost xxx amount of money in it's first 10 years. What did European leagues 'lose' when they first started? Since MLS is starting the league in a completely different economic picture, where players are paid, they have to build their own stadiums or pay for them in part ect.... If those leagues had to pay for players with adjusted salaries and pay for the stadium infrastructure what would their economic picture look like? Would they ever have gotten started at all? The same goes for Hockey. Hockey got its public money boost through infrastructure as well, just decades earlier. Now many of these organizations are not/were not privately owned but non profit entities. It's a curious question. Perhaps the economics of MLS are lightyears ahead of every league ever created, yet unsustainable becuase it is private money. Or perhaps it is way behind. [?] Link to comment Share on other sites More sharing options...
dbailey62 Posted November 8, 2005 Share Posted November 8, 2005 quote:Originally posted by speedmonk42 I have a curious business/economics project study idea. I would like to see a 'normalization' of the numbers. People say MLS has lost xxx amount of money in it's first 10 years. What did European leagues 'lose' when they first started? Since MLS is starting the league in a completely different economic picture, where players are paid, they have to build their own stadiums or pay for them in part ect.... If those leagues had to pay for players with adjusted salaries and pay for the stadium infrastructure what would their economic picture look like? Would they ever have gotten started at all? The same goes for Hockey. Hockey got its public money boost through infrastructure as well, just decades earlier. Now many of these organizations are not/were not privately owned but non profit entities. It's a curious question. Perhaps the economics of MLS are lightyears ahead of every league ever created, yet unsustainable becuase it is private money. Or perhaps it is way behind. [?] Apparently, Real Sociedad is in debt to the tune of over $30 million (US) and I seem to recall reading that Barcelona is in debt ovr $300 million (US) meanwhile Sporting Gijón's legal administrators have calculated their outstanding debt at €51 million. This in a country that does support their soccer. Obviously this is a case of ludicrous management, not lack of support, but holy cow! db Link to comment Share on other sites More sharing options...
Cheeta Posted November 8, 2005 Share Posted November 8, 2005 Not quite sure if European Leagues lost more than diddly when they 1st started. Most where semi-pro (at best), playing out of parks and grounds our kids wouldn't play out of. When "proper" grounds did come along they weren't exactly up to 21st century building and security code. So Hampton or Wembly (at a 100,000 capacity) in adjusted dollars might have cost something closer to what's on the books for Ex. (at 20,000) and not Millenium Stadium. Guessing but you get the picture. Hell, look at Tynecastle. One grandstand grew into two. Terraces replaced bleachers and so on. The city grew around the stadium over the years and now the property is a developers wet dream. And player salaries have skyrocketed (directly and indirectly through transfer fees) over the last 25 years. Think NHL hockey. I remember when Essensa became the 1st and only million dollar goalie. Of course you could still afford to trot the family off to watch more than one game a year in those days. So all in all, I'm not sure MLS isn't economicaly worse off than many of the old European leagues. But it realy is impossible to compare 19th century Europe with 1900s USA. Think the biggest difference between MLS and many of the EURO leagues when they started up is that the EURO leagues developed because of a strong grassroots demand. MLS on the other hand is maybe lacking that advantage somewhat. P.S. By the by, time heals all wounds apparently. The EURO leauges are a graveyard of failed and contracted clubs who's numbers would make a pretty damned thick Book of Remembrance. It's just this all happened a very long time ago more or less. So there's one for you. Everybody's got to have their growing pains. Link to comment Share on other sites More sharing options...
piltdownman Posted November 8, 2005 Share Posted November 8, 2005 Well Arsonals new stadium is going to leave them with £260 in debt. Thats double what the MLS had lost. Just another number to throw out. And check this out: http://www.footballeconomy.com/statistics.htm Link to comment Share on other sites More sharing options...
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