All of this on top of the fact that at least in most American sports leagues the value of the franchises are constantly rising. The NBA owners cry about loosing money constantly while the value of their ownership sky rockets. If I told you that if you give me $10,000 up front, and every year you had to pay me $500, but every 4 years your $10,000 would double, would you really be running around crying that you are loosing money? 12 years in you would have $80,000 and it would have cost you $6000. This is essentially what owners do all the time. And thats not even factoring your point that they may be playing accounting games and not truly loosing any money.
Official: Pirlo Signs With Nycfc... Soon?
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All of this on top of the fact that at least in most American sports leagues the value of the franchises are constantly rising. The NBA owners cry about loosing money constantly while the value of their ownership sky rockets. If I told you that if you give me $10,000 up front, and every year you had to pay me $500, but every 4 years your $10,000 would double, would you really be running around crying that you are loosing money? 12 years in you would have $80,000 and it would have cost you $6000. This is essentially what owners do all the time. And thats not even factoring your point that they may be playing accounting games and not truly loosing any money.
On a side note. Pirlo is not the only Italian in NYC today. Just friggin saw Fiorentina Forward and NJ native...Giuseppe Rossi kicking a ball around Columbus Circle lol. Apparently he was training with the cosmos yesterday?! Wonder if he stays to watch the game.
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Yeah, this doesn't sound very right to me. I'm an accountant, so this peaked my interest a bit and I decided to do a quick google search on this.
Teams can depreciate players' contracts if they just purchase a team. So for example, if NYCFC was to be sold, the new owner would capitalize all current contracts, and then depreciate them over the remaining useful life (contract life). So in essence, the players wages hit a depreciation expense account instead of a regular wages/salary account.
Additionally, if this "de-valuing of players" were able to be done, you better bet the IRS would argue that some players need to be "valued-up" and have gains reported.
Most of the "creative accounting" when it comes to sports are done in college athletics. Universities will often shift donations back and forth and can attribute them to athletic programs or report them university wide which would result in less profitable athletic programs. Additionally, the shifting of costs. A school that builds a facility to tutor student-athletes may lump the expenses elsewhere instead of the athletic programs to show a more profitable team.
None of the above "creative accounting" is illegal as the revenues/expenses are the same and the result on the bottom line is null. The only difference is how you report to the board and what they want to see.
Sorry for the off-topic rant here, but I get a bit excited when I get to talk about nerdy accounting shit thats relevant to sports, haha.
I'll find the article. I think someone here cited it. It was about how the Nets say they haven't made a profit since moving to Brooklyn. Looking into it, it was about depreciating player values and accounting for it.
I'll save you the work. Found an article on it. http://deadspin.com/5816870/exclusi...-7-million-profit-look-like-a-28-million-loss
I was definitely wrong on this. From my accounting-mindset, it doesn't really make sense to me as you're deducting salaries twice ultimately. And as the quote from the article says "This can't be emphasized enough: Every year, taxpayers hand the plutocrats who own sports franchises a fat pile of money for no other reason than that one of those plutocrats, many years ago, convinced the IRS that his franchise is basically a herd of cattle."
The thing about that is though, you aren't also paying the cattle any wages. But I digress, I don't know much about sports accounting obviously, haha.
That's crazy. It's amazing how famous players can come to NYC and go about their day with little harassment from fans. That has to be a good selling point for some.
In Europe they use the standard amortisation rules that decrease the value of a player during the contract... Point is that selling a player on a five year contract that was bought for $25m after two years means that anything above $15m is a profit.
Nick most EPL teams have been running at a loss for most years up to the last couple. More teams are now making a profit and this will continue to grow when the new TV deal kicks in.
For example, the bottom team this past season earned £60m. This will increase to £90m after next season.
Also, most teams are getting the turnover to wages ratio down so this will also help.
I first saw Serie A when Satellite TV first emerged in the UK, and in those days all teams had great players like Van Basten, Gullit, Maldini, Baggio etc
It was definitely the best league in the world at that time. Many things have changed since then and I believe the upsurge of violence within Italian football supporters was another big factor in people stopping going to the games.
Actually I forgot about the fan problems. You're right. It's been very problematic in Italy. The fans are getting very violent. You couldn't take you family or kids to some stadiums.
Yeah it's out of place, but here's a quick video I took of Rossi before.
He's playing in the Steve Nash Chinatown showdown. Right about now, I'd guess.
He looks sad. Prolly wish he played for the USMNT
So it looks like it's done and agreed on, NYCFC just waiting to make the announcement.
That said. I'm sure Pirlo and kids will probably be in the team box this Sunday. He might be shocked at how wild this stadium is gonna be. I hope he doesn't think it's normal lol. But we should draw well vs TFC and with him and lamp, it should be better the rest of the way.
That said. I'm sure Pirlo and kids will probably be in the team box this Sunday. He might be shocked at how wild this stadium is gonna be. I hope he doesn't think it's normal lol. But we should draw well vs TFC and with him and lamp, it should be better the rest of the way.
It's a pretty solid environment all the time. We may have a postage stamp field, ill-situated in a baseball stadium, but it's never anti-septic.
If you go to RBA, you get a beautiful field and stadium. But your seat neighbors are bottle blondes from Short Hills with their shithead kids who are aghast at any loud suggestion that a player or ref sucks.
Looks like they will be making the announcement tomorrow as well as another European non-Dp
You got a name or a guess? Or even a position?
It's Benteke, isn't it? You coy bastard.
Oh my god.. Watching the LA game and they're changing the balloteli song. Whyyyyy my favorite chant of all time. We need it for Villllllaaaaaa.
No I don't know who but I've been told the last 4 days by numerous people that we are bringing in 3-5 replacements besides Pirlo, Angelino and Iraola. I'm thinking season long loans to make space. Don't see them releasing more players as facey/Angelino won't be here next year so you do need people on the roster to take their space.
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