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Was Cristiano Or Zidane More Expensive? FFP In EPL Is Good?
[account-removed] 1 year ago
What we are trying to look at and debate is:
1.) is the FFP needed in the Premier League?
2.) was Zidane's transfer to Real Madrid in 2001 more expensive than Cristiano Ronaldo's transfer to Real Madrid in 2009?

" he should understand if someone like Zidane was sold for 64 mil back in 2001 and Ronaldo was sold for 80 mil in 2009 doesn't mean that Ronaldo cost more because 64 mil in the early 2000s is more than it is in the late 2000s had Zidane been in his prime in 2009 he wuda gone for much more than 64 mil because there is a difference in the dollar value"

The above quote was from a user Napada. Now, the quote is true, but the reasoning is not. This here is why:
1.) the 64 million figure is in Euros, and the 80 million figure is in Pounds Sterling
2.) none of the figures have been adjusted for inflation and the decreasing purchasing power of money.
3.) in order to do point 2, a base year needs to be selected, and this was not done.
4.) a base currency has to be chosen, and this was not done.

So, is it true? Based on historical prices, Cristiano Ronaldo's transfer is more expensive than Zidane's. But what happens when both figures are converted to one currency, both figures adjusted for inflation, and of course, a base year is selected? Who then is more expensive? Cristiano Ronaldo, or Zidane?

Lets find out.

1.) the figures are to be converted into a common currency. Lets use Pound Sterling.

2.) Zidane's transfer price was actually 47 million pounds sterling, in 2001. Cristiano Ronaldo's transfer price was actually 80 million pounds sterling in 2009.

3.) but it is impossible to compare due to inflation and decreasing purchasing power of currency as years pass. So, a base year needs to selected, and the two transfer prices must be converted to that of the base year chosen.

4.) 2012 is chosen as the base year (since 2013 is still hard to place a value for, due to the fact the year 2013 has only just started)

5.) plainly speaking, the pound sterling had more purchasing power in 2009, and even more in 2001, when using 2012 as the base year (same would be the case, most likely, if 2013 was to be used as the base year).

6.) so, based on the inflation tables and charts. The pound sterling was 1. 4 more valuable in 2001, and 1. 1 times more valuable in 2009, when 2012 is used as the base year.

7.) so, in todays terms (2012), Zidane was worth 65. 8 million pounds sterling (47 million pounds sterling multiplied by 1. 4). So, in todays terms (2012), Cristiano Ronaldo was worth 88 million pounds sterling (80 million pounds sterling multiplied by 1. 1).

8.) this means that Cristiano Ronaldo's transfer was still worth more than Zidane's transfer. All conditions for making the comparison possible were executed, and the figures are unquestionable. Other inflation indexes could have been used, but this is the most referred to and most reliable.

9.) Cristiano Ronaldo was worth 22. 2 million pounds sterling more than Zidane. Case closed.

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Hopefully, the debate will proceed to whether or not the FFP is good for the EPL. We will also cover which clubs this will benefit, and which clubs (if any) it will harm.competition is a good thing, but at what cost and what (and how many) of the negative externalities is it worth ignoring.

Anyone wishing to participate may join in. Present facts and sound logic and lets try to make this a well fought debate.
Jujex (Juventus) 1 year ago
If we base that arguement on pounds then it is correct but what if we consider dollars as the basis of our comparison?
ATM 1 pound=1. 52$

Or is this what you meant by pounds' purchasing power?
[account-removed] 1 year ago
I can work on the calculations using US Dollars, and Euros. Pounds Sterling was used as an example, and any currency could have been used as the base currency (yen, baht, riyal, dinar, etc).

Purchasing power means, plainly speaking, how much a set amount of money can buy in a year as opposed to other years (both past and future). For example, 10 pounds today can buy you less than what it could buy for you a couple of years ago. This is called the purchasing power or money, and it often on a decreasing trend, and one of the main factors that causes this is inflation.

Lets put it this way, if I go today into a store with 5 pounds sterling, I can't buy a pack of 20 Marlboro Reds. But around 4 years back, I could buy a 20 pack Marlboro Reds with just 5 pounds. Why? Because as time passes, a set amount of money can buy you less and less. This is mainly due to inflation (and other economic, political and social factors). To combat this, wages are often increasing year on year
Jujex (Juventus) 1 year ago
I thought by power you meant pound to dollar since I thought dollar would be considered as the main currency in comparisons regarding inflation.
Can you find out what the pound dollar ratio was back then?

[account-removed] 1 year ago
2001-01-01 1. 4775
2001-02-01 1. 4525
2001-03-01 1. 4445
2001-04-01 1. 4348
2001-05-01 1. 4265
2001-06-01 1. 4020
2001-07-01 1. 4148
2001-08-01 1. 4372
2001-09-01 1. 4638
2001-10-01 1. 4501
2001-11-01 1. 4356
2001-12-01 1. 4413
[account-removed] 1 year ago
So, 1 pound sterling in 2001, was roughly between 1. 40 and 1. 47 US Dollars,  
Jujex (Juventus) 1 year ago
Its lower than I thought I guess this settles it from that perspective as well
[account-removed] 1 year ago
@khalid 7 you see how zidane is worth more today than in 2001? You see that? So the money your hypocrite club spent in the 80s 90s and 2000s is more than what city is spening today if you spent 5 mil in the 90s that's not the same as spending 5 mil today that was my point and you finally proved my point good job man I feel bad for you
Jujex (Juventus) 1 year ago
I think you clearly are trying to mess with the united guys here since he just explained it very clearly
REDDevil98 (Manchester United) 1 year ago
@Napada Can you just start with a discussion talking sense without insulting other club? It's like me starting a sentence saying City is a piece of s**t. Unless you don't want other people to taking you more seriously, then carry on
[account-removed] 1 year ago
@Napada

I already explained in a previous thread (in the United chat, actually) that City spent more than United between 92/93 season and 97/98 season. Yet, City won zero trophies and United won 4 EPLs and 2 FA Cups.

I wanted to use even older data since Sir Alex joined in 1986. But unfortunately, the data is unreliable and figures are missing (even on reliable websites like transfermarkt). Therefore, I have started using figures from the start of the EPL (92/93) since there are proper records kept from them onwards.

Also, I have already proven in the chat that from the start of the EPL (92/93) till present day, City have spent more than United in transfers (net spending). The figures I am about to state are after taking into account and adjusting for inflation and decreasing purchasing power.

City transfer spending (92/93 to 2012/13) = - 552 million
United transfer spending (92/93 to 2012/13)= - 271 million

City have spent 281 million more than United since the start of the EPL. Roughly, City have spent 204% what United has spent on transfers since the EPL has started. All these figures have been adjusted for inflation, and been converted to today purchasing power of money
Zhenwei (Manchester United) 1 year ago
Napada, you could be more polite than to refer other's club as "hypocrite club" how would you like if someone else says that of Man City? Without even looking at your arguement, your language shows you don't care about respect, and neither should people care about what you have to say.

If you want to be taken seriously, show that you take others seriously too
Barracuda (Manchester United) 1 year ago
Wow, for a guy who is doing a degree, you clearly haven't heard of a thing called punctuation.

Khalid as backed up his point with solid explanation and evidence. I suggest you do the same before you go around spouting more of your idiotic claims
Barracuda (Manchester United) 1 year ago
Well put Khalid, so when will you write about the FFP?
[account-removed] 1 year ago
I am thinking of doing a video blog and posting in on youtube. Writing a blog could take a long time. Those are my two options, and I am not sure which one users will prefer more



   
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