Today there are rumours of a Premier League Club in a debt crisis.
That’s not surprising. Just like the banks, some clubs pay their employees far too much money. They mortgage the hope value of future revenues and profits, whilst crippling themselves with crazy costs.
If someone wants a multi million pound wage packet they need to identify millions in revenues that they have added by their efforts. Guaranteed bonuses, high base wages and the like cannot be afforded if the business is suffering from bad loans or from lower advertising and TV revenues.
Sometime things need to be brought down to earth. I am all in favour of successful entrepreneurs making good returns, or employees earning big bonuses where they have added revenue and profit and share the success with their shareholders. What cannot be sustained is high base wages and guranteed bonuses out of all proportion to the earning power of the bank or football club.