Goldman Sachs have forecasted a -25% GDP in USA for quarter 2 2020. This economic meltdown will be far reaching and will certainly impact us all personally, including our beloved Hibs as well as all others clubs. American owners of clubs will have a bigger problem than non American.
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21-03-2020 06:34 PM #1
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Next Crisis about to hit Scottish Football
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22-03-2020 08:49 AM #2
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It really doesn’t bother me, I’m actually not surprised at all that the over inflated wages of players is finally bursting.
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22-03-2020 08:52 AM #3This quote is hidden because you are ignoring this member. Show Quote
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22-03-2020 08:53 AM #4This quote is hidden because you are ignoring this member. Show Quote
oh it won't remain burst for too long, it's the non mega stars on non mega money i'l feel sad for
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22-03-2020 08:59 AM #5
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22-03-2020 09:05 AM #6
How will the share prices in the US greatly affect a Scottish team owned by an American?
Sorry for being a bit thick, but I don't quite get the link.
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22-03-2020 09:19 AM #7
I don't think it's worth/possible drawing conclusions at this point to how the economic impacts are going to affect the game.
There's going to be consequences, and it'll hit everything to varying degrees. I think Scottish football isn't in the worst condition really, but who knows how that will play out.
Our wages are mostly in check in that they're in line with club revenues (there's a couple of outliers there), and there isn't reliance on millions being pumped in by external investors.
Teams rely on fans showing up and supporting for the vast majority of their income. There's an argument that our commercial activities aren't good enough (Hibs and Scottish football collectively) and we've undersold TV rights for this to be the case, but in a way I think the fans being the main source of income and theoretically - although it doesn't feel it at times - the most important stakeholder is a good thing. The idea that clubs in England could play with zero fans and still be profitable premiership teams must be a fundamental problem in their game.
We're also a well supported league. Unless it's changed recently the Scottish premiership is the best supported league per capita in Europe.Mon the Hibs.
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22-03-2020 09:44 AM #8This quote is hidden because you are ignoring this member. Show Quote
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22-03-2020 09:48 AM #9This quote is hidden because you are ignoring this member. Show Quote
Goldman Sachs are talking about economic activity, not share prices.
However, thinking about our american owner, where do you think his wealth is kept? If he’s got a significant stock portfolio then that will likely have taken an absolute battering over the few weeks.
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22-03-2020 09:52 AM #10
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The sharp drop in GDP won't just be in the US and the US is better positioned to weather this kind of storm than Europe so I don't agree that it makes American club owners more vulnerable than Non-US. I'd say the clubs that should be more concerned are ones with owners who's wealth is in oil and mining. Especially if they have borrowed heavily. Especially as Saudi Arabia have chosen this moment to engage in an oil price war.
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22-03-2020 09:55 AM #11
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Will be deepest recession since second world war. Predictions of 30 million jobs lost worldwide. People hoarding for next crisis. There will be a lot less money to spend on season tickets and Sky. Big drop in players wages coming. Several clubs will go the wall or admin globally.
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22-03-2020 09:58 AM #12
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22-03-2020 10:07 AM #13
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On the one hand, a football club is way down my list of priorities - my main worries are finances and essentials for myself, my family, friends and community. I've got a lot more to worry about than some football players.
On the other hand, I'm already beginning to realise how much benefit sport and entertainment is to all our lives - we need the escape from the hum drum that it provides, together with the social element of meeting people at the game, at the cinema, for a drink or a meal.
And with a football club, like all businesses, yes, the ones at the top will probably survive it very nicely - but there are a team of support staff and ordinary people who will currently be feeling like they have no control of their futures.
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22-03-2020 10:20 AM #14This quote is hidden because you are ignoring this member. Show Quote
I understand that, but, as a club, we've survived very well without artifical investment over the years and will continue to do so.
The fact that our owner can't inject any extra money into our club is not an issue.
All in my opinion, of course.
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My comment wasn't intended as sarcasm or whatever, I genuinely couldn't see the link.Last edited by Keith_M; 22-03-2020 at 10:24 AM.
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22-03-2020 10:21 AM #15This quote is hidden because you are ignoring this member. Show Quote
Maybes aye maybes no, but you are right that he may well be fine.
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22-03-2020 10:22 AM #16This quote is hidden because you are ignoring this member. Show Quote
Yeah but we’d all rather have an owner with deep pockets.
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22-03-2020 10:47 AM #17
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22-03-2020 10:49 AM #18
Football is all relative. So long as we are better placed to weather the storm than our rivals then it’s all good. I’m not worried about players salaries.
So long as we can afford better players than Hearts, Aberdeen etc then I don’t care if they are only on minimum wage.
Fixed costs like HTC are a problem if our income drops heavily though but that’s the same for all clubs.
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22-03-2020 10:49 AM #19This quote is hidden because you are ignoring this member. Show Quote
I'd like to be married to Kaley Cuoco ...and have access to a unending supply of Viagra (the two facts are not necessarily related ;-) )
We don't all get what we want in life.
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22-03-2020 11:20 AM #20
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Of course the longer this goes on there is the possibility that many football fans will not return to the game, they will no longer be employed or earning less than previously or have just got out of the habit of going to football and found other activities to occupy them.
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22-03-2020 11:47 AM #21
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22-03-2020 11:51 AM #22This quote is hidden because you are ignoring this member. Show Quote
Footballers aren't on inflated wages, they are on wages that are reletive to the income of their employers. Same as film stars. Big business, big wages.
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22-03-2020 11:51 AM #23
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22-03-2020 11:56 AM #24This quote is hidden because you are ignoring this member. Show Quote
Maybe he bought gold or sold oil futures a few months back.
There are always ways of increasing your wealth. Pity I never thought of them
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22-03-2020 11:58 AM #25This quote is hidden because you are ignoring this member. Show Quote
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22-03-2020 12:11 PM #26This quote is hidden because you are ignoring this member. Show Quote
I wish I had shares in zoom right now...
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22-03-2020 12:12 PM #27This quote is hidden because you are ignoring this member. Show Quote
Overall this is true, but any business that is reliant on its ‘talent’ to make money will spend a high proportion of its revenues on the talent.
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22-03-2020 12:22 PM #28
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I think the entire planet’s economy will have to a ground to a halt in this quarter, whether an owner is American, Scottish or Chinese isn’t really going to make much difference.
Last edited by ScottB; 22-03-2020 at 01:05 PM.
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22-03-2020 01:08 PM #29
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22-03-2020 02:16 PM #30
After this is over the whole world will be reevaluating what's important and what isn't, especially WHO is important and who isn't. But the funny thing is that after every crisis, two world wars and the great depression for example, the one thing that has bounced back strongly is the entertainment industry and not least of all football.
People see these things as a return to normality and historically have lapped them up when things get better. It's a different world these days with so many more outlets for folks cash when they have it, but I see no reason why the clubs that do survive can't come back stronger as part of a feel good factor.
Call me an optimist, but I would like to think that as long as folk are sure its safe to return when Hibs and every other club take to the field, whenever that is, the crowds at least in the first few weeks will be very healthy indeed. I hope.
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