week barrier. In September 2009, John Terry signed a new contract with Chelsea for areported £160,000-a-week, making him one of the highest paid players in the English game.The bottom-line is that this is all simple economics. When a team wants to compete with the best teams in the world, it wants to buy the best players in the world. So demand for the best players rises, thereby increasing their market prices. Taking a pay cut is not an option, because there will always be someone else ready to give the talent the big money. Off late,due to some extravagant spending in the transfer market by some individuals, these market prices have become inflated to ridiculous heights.
HOW MONEY HAS TRANSFORMED THE FORTUNES OF ENGLISH FOOTBALL
Money has transformed football from a simple game to a money-minting goldmine. There isno better example to illustrate this fact than the meteoric rise of the English Premier League,which resurrected the declining fortunes of the sport in its motherland.During the late 80s, the Football League First Division, which had been the top level of English football since 1888, was well behind leagues such as Italy's Serie A and Spain's LaLiga in attendances and revenues, and several top English players had moved abroad.As stadia improved and match attendance and revenues rose, the country's top teams againconsidered leaving the Football League in order to capitalise on the growing influx of money being pumped into the sport through various avenues.In 1992 the First Division clubs resigned from the Football League and the FA Premier League was formed as a limited company. The newly formed top division would havecommercial independence from the Football Association and the Football League, giving theFA Premier League license to negotiate its own broadcast and sponsorship agreement. Theargument given at the time was that the extra income would allow English clubs to competewith teams across Europe.
Where does the money come from?
Television has played a major role in the history of the Premier League. Television rightshave been a vital source of income, helping to create excellence both on and off the field. TheLeague's decision to assign broadcasting rights to BSkyB in 1992 was at the time a radicaldecision, but one that has paid off. At the time pay television was an almost untested