DerKaiser wrote:Real Madrid´s philosophy : The "too big to fail" theory asserts that certain corporations, and particularly financial institutions, are so large and so interconnected that their failure would be disastrous to the greater economic system, and that they therefore must be supported by government when they face potential failure.
quaazi wrote:endrity wrote:Unfortunately there is a lot of myths around debt and financial stability in the German football media.
Almost any business has some type of debt and there are good economic reasons to have some if you can manage it, mainly consumption smoothing, i.e keeping your overall expenditure similar while you invest in future growth instead of relying on too much belt-tightening in the short run.
Yeah see this only works in economic models where investing in future growth has clear and tangible consequences. In football, you can just as easily blow a 50 million investment as you can grow it. Considering that football clubs are in actuality quite poor when compared to top dogs in actual markets (Bayern, the biggest "firm" in the biggest European economy, has a pathetic revenue of 474 million euros, roughly around 45 times smaller than the poorest company in the latest Fortune 500 list), the traditional view of debt is quite out of place in this field.
MillaMjau wrote:Reus could be out for 6 months, claims Bild.
ramsej84 wrote:MillaMjau wrote:Reus could be out for 6 months, claims Bild.
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