Hong Kong ready to pick up the pieces if La Liga crashes

[Crosby87]

Could Spains economy eventually force the end of La Liga as we know it? Hong Kong Liga?

http://www.cnn.com/2012/09/13/business/hong-kong-spain-soccer/index.html?hpt=hp_t3 (http://www.cnn.com/2012/09/13/business/hong-kong-spain-soccer/index.html?hpt=hp_t3)

[pineapple stu]

If the IMF come in to Spain, La Liga will suffer (cos Spanish players get huge tax breaks).

If the IMF come into Spain, we'll all have much bigger concerns than the state of La Liga.

The Hong Kong league is on a par with the League of Ireland. It'll make minimal gains as a result.

[Charlie Darwin]

Have the tax breaks not been rescinded, Stu? I read somewhere that it will be honoured for existing contracts but once they expire it's gone.

I have no idea how anyone would think that benefits Hong Kong though. China, at a stretch.

La Liga's structural problems predate the financial crisis, and some clubs are actually better off than they were a few years ago. The problem with La Liga is that the clubs are badly managed and have small revenues relative to clubs in comparable leagues. The downturn will have less of an effect on them as improving leagues around Europe and elsewhere poaching their players.

[pineapple stu]

Have the tax breaks not been rescinded, Stu? I read somewhere that it will be honoured for existing contracts but once they expire it's gone.
Oh. Wasn't aware of that.

[Charlie Darwin]

I had it slightly backwards. The tax break has been rescinded, but it is with immediate effect but, because most players negotiate salaries net of tax, it is the clubs who are picking up the tab.

http://iberosphere.com/2012/01/spain-soccer-tax-hike-threatens-la-liga-appeal/5194

[pineapple stu]

Ouchie. So the league is going to suffer then?

[Charlie Darwin]

I think it already is. The article cites Barcelona's negotiations with Abidal - he's since signed an extended deal, but they were probably able to negotiate it down when his health problems recurred. I suspect it's the reason you saw players like Santi Cazorla leaving for bizarrely low transfer fees recently, and he wasn't even one of the beneficiaries of the Beckham law. Even Real are getting rid of players.

[Crosby87]

I was talking with a colleague today from Spain and he said "La Liga will become like the US, there will be no middle class. There will be 4 or 5 haves, and the rest of the league will be awful, the have nots."
Not sure what either of you two would think about that. ( I dont mean the political aspects of it.)
Em jes sayin'.

[Charlie Darwin]

Will ​become?

[Crosby87]

Yeah I dont know.

[superfrank]

Has anyone heard of the players mentioned in the article?

I highly doubt the top players from La Liga would be lured to HK.

[Stuttgart88]

Spanish football is definitely facing a financial crisis. I think the clubs owe the state hundreds of millions in unpaid taxes. I'm highly critical of the English model of football but Spain is worse. In Spain the big 2 negotiate their own tv deals, leaving the rest trailing in their wake. The UK Independent wrote a great piece on it last year, I'll post it if I can find it.

There was a great post on swissramble.blogspot.co.uk on Atletico Madrid recently. I think it's the third story down. This site is a must-read for anyone interested in footy finance.

His PSG post is also worth reading and his analysis of FFP is the best I've read.