Premier League Financial Regulations

[LookingForEric]

This is just wrong I’m sorry.

Historically they usually cut after things have gone wrong (gfc, Covid) to fix them. Lowering rates does the opposite of harming the economy, the risk is it overheats it.

A huge part of why the real estate sector is in trouble is because rates are too high. Lowering them will be a life line.

As for the rest of it, that’s opinion I guess and you’re entitled to it. Crazier things have happened anyway.

I think you’re mixing up the raising of rates with cutting. They raised rates because covid etc caused major inflation.

When the fed starts cutting rates the markets usually tumble. This is historically what happens when rates get cut.

You’re right with what you’re saying with higher interest rates causing issues. But it isn’t as easy as cutting rates = good news, not straight away anyway. That’s why we’ve rallied quite hard in markets recently.

 

[db10_therza]

I think you’re mixing up the raising of rates with cutting. They raised rates because covid etc caused major inflation.

When the fed starts cutting rates the markets usually tumble. This is historically what happens when rates get cut.

You’re right with what you’re saying with higher interest rates causing issues. But it isn’t as easy as cutting rates = good news, not straight away anyway. That’s why we’ve rallied quite hard in markets recently.

Sigh. No. Just… no.

They lowered rates to zero / subzero on Covid. They’ve been at historically low levels since the GFC anyway. They raised them to current levels because of inflation after the Ukraine war caused a supply side shock which triggered an inflationary spiral in the extremely accommodative environment with excess liquidity from the Covid era.

What your chart actually shows is that when rates are at zero stocks go on a tear. Anyway fk the charts just use your common sense. If people can borrow money for free you think they spend more or less? And is that good or bad for the economy?

I’m not gonna beat around the bush here, I do this for a living so I’m not going to explain myself more than this, you can take it or leave it.

 

[LookingForEric]

Sigh. No. Just… no.

They lowered rates to zero / subzero on Covid. They’ve been at historically low levels since the GFC anyway. They raised them to current levels because of inflation after the Ukraine war caused a supply side shock which triggered an inflationary spiral in the extremely accommodative environment with excess liquidity from the Covid era.

What your chart actually shows is that when rates are at zero stocks go on a tear. Anyway fk the charts just use your common sense. If people can borrow money for free you think they spend more or less? And is that good or bad for the economy?

I’m not gonna beat around the bush here, I do this for a living so I’m not going to explain myself more than this, you can take it or leave it.

I also do this for a living and have a degree in economics…

You’re correct they lowered rates during covid. Inflation wasn’t just down to the Ukraine war, the amount of stimulus pumped into the economy was also a massive factor as you mentioned.

After a rate raising campaign like we’ve had (one of the biggest ever) you can ultimately expect recession after rates start getting cut.

I’m quite shocked this is what you do for a living, yet you believe FREE MONEY on top of 1 trillion+ credit card debt in America is a positive thing?

If you believe anything other than recession/boom cycle isn’t coming this year then you cannot do this for a living, sorry dude.

 

[db10_therza]

I also do this for a living and have a degree in economics…

You’re correct they lowered rates during covid. Inflation wasn’t just down to the Ukraine war, the amount of stimulus pumped into the economy was also a massive factor as you mentioned.

After a rate raising campaign like we’ve had (one of the biggest ever) you can ultimately expect recession after rates start getting cut.

I’m quite shocked this is what you do for a living, yet you believe FREE MONEY on top of 1 trillion+ credit card debt in America is a positive thing?

If you believe anything other than recession/boom cycle isn’t coming this year then you cannot do this for a living, sorry dude.

Clearly being able to read and comprehend a post is not what you do for a living anyways…

 

[LookingForEric]

Clearly being able to read and comprehend a post is not what you do for a living anyways…

Rightyo that squashes that then. Cheers.

 

[field442]

I also do this for a living and have a degree in economics…

You’re correct they lowered rates during covid. Inflation wasn’t just down to the Ukraine war, the amount of stimulus pumped into the economy was also a massive factor as you mentioned.

After a rate raising campaign like we’ve had (one of the biggest ever) you can ultimately expect recession after rates start getting cut.

I’m quite shocked this is what you do for a living, yet you believe FREE MONEY on top of 1 trillion+ credit card debt in America is a positive thing?

If you believe anything other than recession/boom cycle isn’t coming this year then you cannot do this for a living, sorry dude.

Is it a decent school and classification though? Getting a Desmond or a third might prove his point.

 

[LookingForEric]

Is it a decent school and classification though? Getting a Desmond or a third might prove his point.

Took me long enough. 3 years through the OU and I got a first.

Look there’s a lot of opinion based stuff when it comes to this sort of convo. History tends to repeat itself. And “this time it’ll be different” never happens.

I mix my knowledge with my opinions based off historical context. Granted I shouldn’t just expect people to accept that and other points of view are appreciated @db10_therza

 

[lomekian]

A few of us with Economics degrees, eh? Worked in vaguely related fields for a bit before I ran away to the circus.

Ultimately, economics in action (at least at a policy level) is as much political as any sort of scientific. We all know that they put interest rates up to curb inflation, but whether that is a good idea or bloody stupid depends on what's causing the inflation and what those behind it want to achieve, the latter seldom being the wellbeing of the multitudes.

Reflecting the debate in question, whether an action is good or not depends on what you want. But then my personal stance is that neo-con style free-market economics is absolutely insane in terms of the majority's well-being, and Milton Friedman should have been locked up before he could find ways to justify the rich convincing everyone else to be their ***** as a sort of revenge for greater mass democracy.

My instinct that there will be a collapse of sorts, but it won't really affect football because it is both an opiate of the masses and a plaything of the super rich. Even when trouble comes, it will be propped up by those who would wish to dress as saviours while knowingly doing the opposite behind closed doors.

 

[A_G]

FA sources told Mail Sport that it is unlikely any agents would be permitted to meet with their players to discuss transfers during the European Championship, not least as England’s last 16 game in Germany will take place on 29 or 30 June, which for clubs struggling with PSR is looming as a second transfer deadline day.

 

[A_G]

 

[hydrofluoric acid]

Every club in England will be deducted points before City will.

 

[LookingForEric]

This is why the summer window may be tough sales wise, every Tom **** and Harry are expecting ffp issues.

 

[db10_therza]

Took me long enough. 3 years through the OU and I got a first.

Look there’s a lot of opinion based stuff when it comes to this sort of convo. History tends to repeat itself. And “this time it’ll be different” never happens.

I mix my knowledge with my opinions based off historical context. Granted I shouldn’t just expect people to accept that and other points of view are appreciated @db10_therza

I actually studied Engineering funnily enough…

Worked at Rolls Royce Aerospace out of uni, was boring as heck and I got a job at Lehman Brothers a year before they went bankrupt which left me with no job but lots of brilliant stories. I’ve been working in trading firms and hedge funds since, I have zero interest in working for a big firm/bank.

Anyway you weren’t wrong to think we might have a recession / down turn. We may. We may not - it’s in the balance rn and the US economy keeps slapping down beat after beat when it comes to employment figures.

You’ve just got your causality the wrong way round imo

There’s a good video by Ray Dalio (founder of Bridgwater) that’s a good primer for anyone not familiar with economic cycles etc


Ps: I’m not saying you’re not familiar @LookingForEric the video is just for anyone else that’s interested

 

[North5]

They'll only deduct some points off city if it mens Liverpool win the league

 

[LookingForEric]

I actually studied Engineering funnily enough…

Worked at Rolls Royce Aerospace out of uni, was boring as heck and I got a job at Lehman Brothers a year before they went bankrupt which left me with no job but lots of brilliant stories. I’ve been working in trading firms and hedge funds since, I have zero interest in working for a big firm/bank.

Anyway you weren’t wrong to think we might have a recession / down turn. We may. We may not - it’s in the balance rn and the US economy keeps slapping down beat after beat when it comes to employment figures.

You’ve just got your causality the wrong way round imo

There’s a good video by Ray Dalio (founder of Bridgwater) that’s a good primer for anyone not familiar with economic cycles etc


Ps: I’m not saying you’re not familiar @LookingForEric the video is just for anyone else that’s interested

This is a pretty incredible story bro fair play! Mad respect @db10_therza best way to learn is first hand. Hoping one day I get to experience something similar!

Slowly learnt that markets don’t give a **** about my thoughts or feelings, price action is key haha. Although bit worried about Japan and the yen right now!

Will 100% give that video a watch, cheers bro.

 

[db10_therza]

Slowly learnt that markets don’t give a **** about my thoughts or feelings, price action is key haha. Although bit worried about Japan and the yen right now!

This is the most important lesson to learn about markets - aka “the market can stay irrational longer than you can stay solvent”.

Anyway there’s a financial markets thread somewhere around here if you want to throw ideas around.

 

[A_G]

 

[Gooner Zig]

 

[db10_therza]

I don’t mind something like this “in theory” but idk if 5x is the right multiplier (I haven’t seen the revenue numbers of promoted clubs). Also commercial revenue can be pretty volatile depending on how a club chooses to account for things. Better keeping it as some multiple of the TV rights income of the lowest placed team.

The reason I like it is because it protects the premier league in the long run. The league is one of the best in the world because the floor is higher than most other leagues, and a rule like this encourages the big clubs to keep the tv payouts as flat as possible whereas they are inherently incentivised to do the exact opposite and hoard the wealth at the top.

 

[Rex Stone]

Man City when Poch and the boys get relegated…