Originally Posted by
Burney
Surely where this sort of financial analysis of football clubs breaks down is in the fact that almost uniquely in business, big football clubs do not purchase their most significant capital assets (i.e. top-class, proven players) with a view to achieving a financial return on investment? Such returns sometimes occur, of course, but usually most 'top, top' players are purchased at a significant loss. Indeed, the more successful they are on the pitch and the longer they stay with you, the more of a loss they become, since you recoup less money (or none) through resale.
This means that, in order for such business to stay in the black and not be reliant on player sales for player purchases, it must constantly retain a significant cash reserve to allow for the possibility of further such loss-making investments. Given which, not spending that cash reserve simply because it's there would seem to me to be responsible thing to do, wouldn't it? The fact that there may be 'money to spend' is not a sensible argument for it being spent. Thus, any argument about what 'financial constraints' we did or didn't have has to factor in the necessity of holding onto cash to give one flexibility and security against an uncertain future, surely?