Football Michael Broughton Soccer Sports Governance Transfer Deadline Day

Transfer ‘Silly Season’: Ludicrous prices, Financial Fair Play and clubs getting their houses in order

September 4, 2017

The ‘Silly Season’ should close prior to the season starting

This is typically a story touted by managers who are frustrated at not knowing who is going to be in their team and it is impacting their ability to plan for the season. If that was really the case then wouldn’t they need the window to close prior to pre-season so that they could spend those weeks drilling the team?

The very same managers are, of course, also busy trying to recruit so its all very hypothetical. The real reason the window should close is to provide football with a clear storyline and timetable to the season.

This year the season in most leagues has kicked off and – as usual – gone on for two or three weeks before the international break began. In the UK, at least, it is unlikely many people tuned into the France vs Holland game whilst Sky was busy touting the Deadline Day door about to slam shut.

For an organisation keen on building a week of international football intrigue it seems odd that it would leave its own creation to be cannibalised by the transfer window.

There are complications to having the silly season close prior to the leagues commencing not least as the EPL with 20 clubs needs to start sooner than most, but where there is a will there is a way.

Having an agenda that goes: pre-season, tours, transfer deadline, season kick off then international break simply makes more sense, sets a logical timeframe and offers natural components for marketing campaigns.

Let’s get it done.

Careful what you wish for

There will no doubt be articles produced by the great and the good prognosticating about how ludicrous the numbers are around transfers. Yes, in the grand scheme of things they are getting ridiculous and as you look at some of the larger social issues in society could money be ‘better spent’? Obviously.

However, if you analyse things just a little bit more you realise that the reason these numbers are getting ever bigger is perhaps counter intuitively because clubs are getting their house in order.

One of the major factors is clearly down to the new television deals in the UK starting. Clubs are flush with cash but what this has meant is that the 14 clubs outside the top six are no longer in need of selling players and as such can refuse significant offers.

Even a year ago if Southampton had been offered over £60 ($77) million for Virgil Van Dijk does anyone believe they would have turned it down?

Southampton’s Virgil van Dijk endured a frustrating summer

With the new television deal in place they can afford to say no as their own business model is no longer predicated on selling two-three top players to bigger clubs.

This is coupled with the Premier League’s short-term cost control structure (salary cap in a sense). The best description of which can be seen in full here. This has in the past limited salary increases at a club to a tune of £4 ($5.2) million per year and is now at £7 ($9) million per year alongside a number of provisos.

This has again meant that as the new television deals have come in (which sits outside the salary cap) there have been constraints that have allowed clubs to compete on a salary basis for the best players but also reduced the risk of being reliant on sales to continue to operate.

It’s a sellers’ market which is why players like Alex Oxlade-Chamberlain can go for £35 ($45) million, despite a history of injuries and only 12 months remaining on his contract. It’s not madness just exactly the results you would expect in a boom market.

UEFA has a coming nightmare

I am most certainly not a Financial Fair Play expert but on the basis that PSG have spent close to £184 ($238) million this year on Neymar – £36 ($46) million per year over five years on an accounting basis plus an additional £23 ($30) million per year in post tax salary – and have loaned Mbappe with a view to a £165 ($213) million transfer next year it feels like there is a problem on the horizon.

FFP has noble goals but the slap on the wrist Manchester City and PSG had last time round when they breached the rules did little to dissuade them from splashing the cash again.

Of course, they have been looking to, and in some cases succeeding, in selling some players but generally not at the levels that would make up the required short fall.

So, UEFA will once again need to revisit the commercial deals that have been structured to see if they are in line with market expectations.

Its going to be a fun one to watch as the Neymar acquisition has no doubt annoyed many elite clubs at the level of inflation it has created which may just embolden UEFA to take more serious action if they find that PSG have breached the rules for a second time.

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Football Michael Broughton Soccer Sports Governance Transfer Deadline Day