Of course I understand it yeah, lol.
It is completely wrong that a club's spending can be so detached from a club's revenue, and though UEFA will inevitably get it wrong and fail to implement anything strict enough to stop such farcical spending, I am nevertheless pleased that they are trying to draft something.
If there's anything that people don't understand it's how wide-reaching the ramifications of such hideous overspending truly are.
-The wages that Man City are paying some of their players make a complete mockery of traditional wage structures. Currently a defensive midfielder is their highest paid player, and is on more than double what clubs like Arsenal or Tottenham pay their top players. This is bad for Man City because it means new signings want stupid money and it’ll mean existing players want even more come renewal time, especially their top strikers who will not be happy to be earning less than the likes of Toure.
-Other clubs have to try and compete with the ridiculous amounts City will pay in wages and transfer fees. Not only does this force clubs who aren’t run by demented oligarchs into debt, it increases the disparity unreasonably between leagues, and drives up transfer fees across the board. Maybe the Sheikh is here forever, but Portsmouth are there as a shining example of what will happen if the rich owner stops giving handouts, but the club carries on paying more money in wages than it is earning. The ratio of wage expenses to turnover is already at a dangerous level in football, and all this kamikaze spending will do is make it worse.
-It results in the ridiculous situation where Man City are paying players huge wages not to play for them; ie Robinho to Santos or Bellamy to Cardiff (and there will be many more before the squad deadline on September the 1st when clubs have to trim to 25). By ensuring these players aren’t loaned to their rivals but instead to leagues they are far too good for, the are exerting influence beyond the allotted 25 players, and I’m surprised it’s allowed.