Say ‘what?’ one more time…

The foreigners are taking over and may God forgive them if they can’t speak English or if there are too many of them in any one place.

Yes, your lovely Premiership is being overrun by the Godless foreign hordes: Brazilians-cum-Croats, African francophones, Russians, Berbatovians, Ukrainians, Americans, the Irish, and worst of all… the French. Sepp Blatter is having none of it, the English Immigration folks are having none of it, and I’m left scratching my head wondering what color the sky is in their world.

As many of you already know, I have been steadfastly against Sepp’s attempted interventions because I think they are 100% wrongheaded. He starts with the claim that he wants to address the inequality in football

Shall we let the rich become richer and say nothing? The big money is coming out of the Champions League – it’s the biggest league in the world and practically 80% of the income goes directly to the 32 participating clubs

Quotas won’t do anything but put higher premiums on players who already command outrageous sums; if you think English players are overpriced now, wait until Arsenal, Man U, and Liverpool have to have 6 a side. In that system, mediocre players like Pennant would be worth probably £40m (Shaun Wright-Phillips commanded £30m BEFORE the quotas and he doesn’t even play). And Sepp is asking for 6 a side — 6 Players of national origin in each club. You want to tear down the “rich get richer” problem in football, by making English footballers command a premium?

After an initial period where top English talent would gravitate toward the top four clubs, those clubs would start spending huge resources signing English children and scouring the English countryside for potential signings. Oddly enough, a few months ago, Platini was looking to protect the children from being transferred from club to club. Under Sepp’s proposed system, transfers of minors and minors signing contracts would be increased dramatically. In fact, clubs would have to ask for greater protection of their youth academies if the “6 a side” rule were to take effect because otherwise English players turning 16 would be able to just leave their academy and sign huge contacts at the top clubs. Sepp’s plan would, in essence, give extraordinary power to 16 years olds and their agents.

Instead of breaking the stranglehold of the top four, Sepp would concentrate their power; by making English players a premium product, only the teams with the largest stadiums and biggest operating budgets could afford them. Take Man City and Micah Richards as an example. Micah would not be playing for City right now if this rule was in effect, he would be somewhere where they could afford to pay him double what he’s worth simply because he’s got the right passport. That means that City would have to field a lesser Center Back, which weakens City and strengthens whoever Richards went to.

That doesn’t seem to alleviate the “rich get richer” problem, does it?

What’s even weirder about Blatter’s extraordinary death grip on this concept is that he’s overt about it being about “national pride.” Wait… what?

This rule will be fighting against the monopolies of clubs and leagues. But we are not fighting the problem of money but for the identity of national teams.

So, all you English fans who think that the Welsh, Scots, Irish, and the Northern Irish would count toward this quota you’re dead wrong, because Sepp Blatter wants to bring back nationalism and he makes no bones about about it. He attacks players (especially Brazilians) who “switch” nationalities and wants to ban that stuff too.

After only a two-year period, a player can receive nationality from another country and there is a danger that in 2014 half the players in the World Cup could come from Brazil!

This old thinking is really distasteful to me. Nationalism as a concept has been thoroughly discredited. If Sepp Blatter wants to hold onto an idea that died in 1945, then more power to him. But he should be relegated to the fringe of ideas. The world has changed irrevocably in the last century and we need LESS nationalism and not more. We need more freedom to move from place to place, not less. We need fewer boundaries on the exchange of culture and ideas, not fewer.

Shame on you Sepp Blatter for making this about nationalism. I’m an American who loves English football and if I support any national team, it’s France. According to Sepp, I’m part of the problem. I should be supporting some crappy team here in Tacoma and supporting Team U.S.A. Why? Because I happened to be born here? That’s the dumbest idea ever.

I love going to England to see Arsenal and the only thing that will stop that is if people like Sepp Blatter start making the beautiful game into something ugly, small and provincial. Thankfully, the EU and UEFA have promised not to let it happen.

Until tomorrow.

…Orange you glad I didn't say "Usmanov?"

Turns out Manchester United’s owner is a huge liar. Remember back in January, when ManU made the announcement that they were one of the most “profitable” teams in the history of the English Premier League? Well… they may have left a few numbers out of their calculations: £666 million numbers to be exact.

That’s the total debt that the Glazers have piled onto the club in order to acquire it. I’ll say that again, because I think it might be mildly important. “In order to acquire it.” Not to build the stadium. Not to invest in a youth program. Not to invest in the business at all. That is the money that Malcolm Glazer needed to borrow in order to buy the club.

I met a guy a few years ago. He was the proud new owner of a video rental store. I rented movies from him because he was close and cheap. (Kids: back in the old days, we used to rent movies recorded on magnetic tapes called “VHS Tapes” these “tapes” were rented by stores because we couldn’t download the movies, there was no video on demand, and there was nothing like Netflix) I think I was drunk one night and started chatting with the guy about how he was the only one ever working there and how did he get the money to open a business. A bit gosh, sure, but like I said I was drunk. Anyway, it came out that he had financed the whole business on credit cards.

Now, I’m no business guru and I’m sure that given a proper business model, one could use credit cards to open, run, and build a proper business. But you still have to take a strong look at any business that is so desperate for credit that they have to pay super high interest rates for someone to loan them money. Predictably, the Video Tape guy went out of business a few months later. I guess he’d forgotten that creditors eventually want their money back, or that at the very least you have to make the payments or they will cut you off. These creditors are smart like that sometimes.

If you read that article about Man U, there’s something in there that should send a chill down the spine of any supporter who’s club has been recently acquired through debt or who’s club is under threat of hostile takeover. It turns out that Man U owes £88m per year in interest payments but they are only able to pay £42m. The remainder of that money is being rolled into a high interest hedge fund, into which fans are paying 14% interest. Currently, that hedge fund is bloated to £152m and due to the global credit crunch, even United are unable to re-finance that fund into a lower rate. Maybe if they could make their payments they could get a lower interest rate, who knows.

I’m not saying that United is going to go out of business. I don’t know what’s going to happen to United. I do know that a lot of fans are either hiding their head right now or justifying the huge debts. I’ve even heard United fans say that they could simply “sell Ronaldo” and pay off the debt. Remember that video tape rental guy? Right before he went out of business, he sold all his video tapes. How are you supposed to stay in business if you sell all your assets?

Similarly, without Ronaldo how are you going to win trophies? How are you going to sell jersey’s? Ronaldo earns United money right now, you don’t sell your earnings, you get rid of your debt.

That’s where Arsenal comes into this story. Arsenal rang up something on the order of £300m in debt to build the new stadium. Unlike a hostile takeover, however, this new stadium is widely referred to as a “gold mine” for Arsenal as it has nearly doubled Arsenal’s gate receipts; Arsenal earn £3m per home match now. And there are some 41,000 people on the waiting list to get season tickets — season tickets which are the most expensive in the Premier League.  With these new revenues and such a large and loyal fan base, Arsenal are now also the fourth most profitable team in the world. So, Arsenal, the club, borrowed £300m in order to build an asset that will (hopefully) have a greater future return. That’s just smart business.

Once the Highbury redevelopment projects are completed, the debt on the new stadium will be paid down, and Arsenal will be the most profitable team in the world… hands down, no question about it. Which is why Arsenal have vultures circling Emirates stadium. Usmanov is currently paying double what other owners would be willing to pay for shares in Arsenal. The normal gate to share price is 1.5; Usmanov is paying 3.3 times gate in order to acquire the club. Why would he do that unless he saw a way to recoup that money? I’d say his willingness to pay such a high premium for Arsenal shares is proof that Arsenal’s board are on the right track as far as club finances.

The only problem, from a fan’s perspective, is that these are lean times. The world financial situation has been destabilized by a combination of war, a falling dollar, American lending deregulation, and speculative (foolhardy) lending and building practices. Arsenal is a global enterprise and global financial problems hit them just like all the other global businesses. Add in that the Highbury project is, essentially, a luxury condo project and you could see potential for troubling times ahead.

So, it should come as no surprise that the other day, Wenger and the club finally admitted that the transfer budget over the last few years has been slashed because of that stadium debt. Also, it should come as no surprise that Arsenal are rigidly adhering to their wage structure and thus Flamini’s departure was inevitable.

This is business 101 boys and girls. When times are lean, you keep your most valuable assets intact (Fabregas), and trim unnecessary spending (Flamini, Hleb). Despite their success in building a stadium that nearly doubles their revenue, unforeseen market forces are preventing Arsenal from fully paying that debt down at the moment. So, the board tightens the belt a little and we all have to ride out this downturn by paying more for shirts, seats, programs, television, and probably annual membership dues.

But whatever you do, you don’t panic and bust out the credit card just to put caviar on the table. I hear a lot of fans, long term fans, people I respect, saying that maybe Arsenal should trade in a few years of mid-table mediocrity for a trophy right now. I’ve heard people saying that maybe Arsenal should bring in a sugar daddy to help buy players. But I think that Man U should be a warning to us: in their case a “sugar daddy” came in and “bought” players by simply piling more debt on the team. Now, that same team can’t even make their debt payments and are rolling that debt into a larger debt that’s generating 14% interest. The “richest football club in the world” can’t pay the interest they owe on their debt?  Something is seriously wrong there.

It’s almost like some rich guy bought a football club with his credit card.

Arsenal fans should just hold on, trust Arsene Wenger, and enjoy the beautiful football. Who cares if we don’t win a trophy for 5 years? Being an Arsenal supporter isn’t about winning something today. Being an Arsenal supporter is about being part of something great, something historical, something that will always win out in the end. We don’t need Usmanov, he needs us.  Because without fans who are willing to accept a bleak future for a few shiny baubles in the trophy case today, vultures like Usmanov and Glazer can’t profit.

See you tomorrow.

…Orange you glad I didn’t say “Usmanov?”

Turns out Manchester United’s owner is a huge liar. Remember back in January, when ManU made the announcement that they were one of the most “profitable” teams in the history of the English Premier League? Well… they may have left a few numbers out of their calculations: £666 million numbers to be exact.

That’s the total debt that the Glazers have piled onto the club in order to acquire it. I’ll say that again, because I think it might be mildly important. “In order to acquire it.” Not to build the stadium. Not to invest in a youth program. Not to invest in the business at all. That is the money that Malcolm Glazer needed to borrow in order to buy the club.

I met a guy a few years ago. He was the proud new owner of a video rental store. I rented movies from him because he was close and cheap. (Kids: back in the old days, we used to rent movies recorded on magnetic tapes called “VHS Tapes” these “tapes” were rented by stores because we couldn’t download the movies, there was no video on demand, and there was nothing like Netflix) I think I was drunk one night and started chatting with the guy about how he was the only one ever working there and how did he get the money to open a business. A bit gosh, sure, but like I said I was drunk. Anyway, it came out that he had financed the whole business on credit cards.

Now, I’m no business guru and I’m sure that given a proper business model, one could use credit cards to open, run, and build a proper business. But you still have to take a strong look at any business that is so desperate for credit that they have to pay super high interest rates for someone to loan them money. Predictably, the Video Tape guy went out of business a few months later. I guess he’d forgotten that creditors eventually want their money back, or that at the very least you have to make the payments or they will cut you off. These creditors are smart like that sometimes.

If you read that article about Man U, there’s something in there that should send a chill down the spine of any supporter who’s club has been recently acquired through debt or who’s club is under threat of hostile takeover. It turns out that Man U owes £88m per year in interest payments but they are only able to pay £42m. The remainder of that money is being rolled into a high interest hedge fund, into which fans are paying 14% interest. Currently, that hedge fund is bloated to £152m and due to the global credit crunch, even United are unable to re-finance that fund into a lower rate. Maybe if they could make their payments they could get a lower interest rate, who knows.

I’m not saying that United is going to go out of business. I don’t know what’s going to happen to United. I do know that a lot of fans are either hiding their head right now or justifying the huge debts. I’ve even heard United fans say that they could simply “sell Ronaldo” and pay off the debt. Remember that video tape rental guy? Right before he went out of business, he sold all his video tapes. How are you supposed to stay in business if you sell all your assets?

Similarly, without Ronaldo how are you going to win trophies? How are you going to sell jersey’s? Ronaldo earns United money right now, you don’t sell your earnings, you get rid of your debt.

That’s where Arsenal comes into this story. Arsenal rang up something on the order of £300m in debt to build the new stadium. Unlike a hostile takeover, however, this new stadium is widely referred to as a “gold mine” for Arsenal as it has nearly doubled Arsenal’s gate receipts; Arsenal earn £3m per home match now. And there are some 41,000 people on the waiting list to get season tickets — season tickets which are the most expensive in the Premier League.  With these new revenues and such a large and loyal fan base, Arsenal are now also the fourth most profitable team in the world. So, Arsenal, the club, borrowed £300m in order to build an asset that will (hopefully) have a greater future return. That’s just smart business.

Once the Highbury redevelopment projects are completed, the debt on the new stadium will be paid down, and Arsenal will be the most profitable team in the world… hands down, no question about it. Which is why Arsenal have vultures circling Emirates stadium. Usmanov is currently paying double what other owners would be willing to pay for shares in Arsenal. The normal gate to share price is 1.5; Usmanov is paying 3.3 times gate in order to acquire the club. Why would he do that unless he saw a way to recoup that money? I’d say his willingness to pay such a high premium for Arsenal shares is proof that Arsenal’s board are on the right track as far as club finances.

The only problem, from a fan’s perspective, is that these are lean times. The world financial situation has been destabilized by a combination of war, a falling dollar, American lending deregulation, and speculative (foolhardy) lending and building practices. Arsenal is a global enterprise and global financial problems hit them just like all the other global businesses. Add in that the Highbury project is, essentially, a luxury condo project and you could see potential for troubling times ahead.

So, it should come as no surprise that the other day, Wenger and the club finally admitted that the transfer budget over the last few years has been slashed because of that stadium debt. Also, it should come as no surprise that Arsenal are rigidly adhering to their wage structure and thus Flamini’s departure was inevitable.

This is business 101 boys and girls. When times are lean, you keep your most valuable assets intact (Fabregas), and trim unnecessary spending (Flamini, Hleb). Despite their success in building a stadium that nearly doubles their revenue, unforeseen market forces are preventing Arsenal from fully paying that debt down at the moment. So, the board tightens the belt a little and we all have to ride out this downturn by paying more for shirts, seats, programs, television, and probably annual membership dues.

But whatever you do, you don’t panic and bust out the credit card just to put caviar on the table. I hear a lot of fans, long term fans, people I respect, saying that maybe Arsenal should trade in a few years of mid-table mediocrity for a trophy right now. I’ve heard people saying that maybe Arsenal should bring in a sugar daddy to help buy players. But I think that Man U should be a warning to us: in their case a “sugar daddy” came in and “bought” players by simply piling more debt on the team. Now, that same team can’t even make their debt payments and are rolling that debt into a larger debt that’s generating 14% interest. The “richest football club in the world” can’t pay the interest they owe on their debt?  Something is seriously wrong there.

It’s almost like some rich guy bought a football club with his credit card.

Arsenal fans should just hold on, trust Arsene Wenger, and enjoy the beautiful football. Who cares if we don’t win a trophy for 5 years? Being an Arsenal supporter isn’t about winning something today. Being an Arsenal supporter is about being part of something great, something historical, something that will always win out in the end. We don’t need Usmanov, he needs us.  Because without fans who are willing to accept a bleak future for a few shiny baubles in the trophy case today, vultures like Usmanov and Glazer can’t profit.

See you tomorrow.