Why have we allowed this unmitigated football gluttony?

The lesson of the "they've paid 62 quid a ticket" linesman: there will be no dissent in sport's plutocratic playground.

After witnessing Arsenal once again succumb to one of the Premier League's many sporting mafias, this time Man City - whose trademark is a uniquely tacky blend of conspicuous consumption with the sprinkling of a Middle Eastern business despot's Midas touch, and whose team resembles a crudely assembled professional footballer human centipede, stuck together with molten bullion and the harvested tears extracted from the children of less financially well endowed clubs, clubs unable to compete within a financial nuclear arms race that seeks to accumulate the best footballer human capital on the planet…but I digress - a symbolic media event occurred.

A post match video soon emerged of a blasphemous linesman, John Brooks, angering the plutocratic gatekeepers of football's money cult. His crime? Merely bearing witness to an empirical reality: that away fans had paid 62 quid for the privilege of the ball-centred spectacle, and that players would be better off spending time celebrating with them than with himself, a humble linesman.

This is hard to deny. A 2011 study by Dave Boyle for the High Pay Centre found that the cheapest ticket to watch Manchester United in 1989 cost £3.50 – with a Liverpool ticket costing £4 and Arsenal £5. Adjusted for inflation, those tickets would still have been under £10 in 2011. Instead they went up between 700 per cent and 1,025 per cent, or as one senior Premier League club executive morally pronounced, "we maximise every seat for the highest amount we can get". So there! Yet as soon as the media latched on to the linesman video, the evident implication even as they silently relayed the footage without commentary was clear; the linesman's words were an underhanded attack on money in football. The response to this "transgression" by football's financial demigods was depressingly predictable.

After seeing the video I tweeted:

"This linesman is a hero, although I can't help but think he might take a figurative bullet for this comment..."

And sure enough, the next day or so, with horrible inevitability, the Sun's headline read:

"62 pound lino axed - The Professional Game Match Officials Limited removed the assistant from the third round clash at the Hawthorns and replaced him..."

So first of all praise be to Funnell, I am Nostradamus reincarnate. But secondly, how marvellous that the lino John Brooks, a man actually employed to uphold fairness and competition in the game, is effectively sacked for merely alluding to a commonly recognised injustice - obscene ticket prices - within the un-mucked-out zoo that football has become. In the aftermath to the incident it was widely reported by Sky Sports, the Sun and the Guardian that John Brook had been stood down for his next fixture as “punishment” for his remarks. Yet in the days that followed the organisation Professional Game Match Officials (PGMO) claimed it wasn’t a “punishment” but was to remove him from the limelight because he's young. This excuse is dubious at best. Why is it necessary to remove a linesman from the limelight who has expressed a popular sentiment? Fear of abusive praise from cash strapped fans? Does a linesman who possesses a disinclination for high ticket prices pose a threat to impartiality in his adjudicating? More over, if this linesman can’t handle the limelight, then why is he employed by the Premier League to work in some of most toxic pressure cooker situations on the planet?

So naturally, who were the finders of this biggest scoop since the Pentagon Papers and Watergate? Of course, none other than Sky Sports, who dutifully picked up on the story in their vintage shit stirrer style, jabbing their cameras and microphones in to the private post match formalities like an unauthorised colonoscopy and discovering the offending utterances. After all, this is Sky's self-ordained role in football. They've funded the games inglorious decline in to financial obscenity, pumping it full of coinage like a foie gras goose with all the predictable undesirable consequences: arsehole egomaniacal footballers, terrible ostentatious hair styles, diving and of course, most fundamentally, the cleansing of historically working class communities which originally gave football a soul and sense of meaning. Such folk are now priced out of stadiums, or bankrupted for the pleasure, due to a combination of the Premiers League's documented End Game: to open football to the middle classes, coupled with exponential rises in players wages that demand increased ticket revenues. This trend was set in motion by the authorisation of unrelenting competition in the player market (no wage caps) and endless increases in TV rights payments, which allows players to plead "please sir, I want some more" year after year. The Premier League has essentially, insidiously, presided over football shape shifting in to an unregulated wild west to fill the troths of the rich and, as is custom, human solidarity and general decency are the first victims to fall. After all, the premier league themselves have stated that they are "an association of interests" (financial) who have allegiance to "shareholders". So thanks SKY and the Premier League - two thumbs up.

Yet this is completely consistent within our paradigm of "the market is inherently good" in which any squalid outcome, no matter how much it self evidently offends our better judgements as sentient beings, is not only correct, but holy and inevitable. The market has spoken, Allah, Rand, Thatcher, Reagan, Greenspan be praised! Now, as the grotesque spectacle unfolds in front of us all - with Harry Redknapp only this week describing football agents parasitic behaviour as reminiscent of "gang warfare" - Sky skip around gleefully like Willy Wonka directing his own big budget porno. Sky document the decadent carnage they've helped to unleash on a handheld camera, then audaciously sell a self created scandal involving a linesman acknowledging high ticket prices (therefore their enemy) like fish food to the dribbling (and once again paying) masses via their sister news outlets. Thus Sky is the ultimate self-sustaining profit shit machine and make no mistake, despite the economic apologists protestations, football is worse for it, just ask John Brooks.

My nostalgia for football's good old 'the grass was greener before Sky' aside, what does this case illustrate about sport and football today? For me it's simple; football's foundations are rotten from the saturation of the corrupting capital it's hooked to like a crack addict; it's incredibly undemocratic and its authorities are shockingly unaccountable and unrepresentative (The FA Council has only one female member for example). The whole purpose of the game now is unfettered subservience to profit making mechanisms and its self proclaimed right to endless growth by extracting from fans, one overpriced hotdog at a time. As such, dissent, even from an obscure linesman (who didn't strike me as a part time Socialist Worker seller) is unacceptable.  Yet his nonchalant ticket price reference was a symbolic affront to the financial monopolists and cronies that dictate and own the now ugly game. Too much is at stake for this kind of '62 quid a ticket' insubordination to stand and when real power structures in our society are challenged, however subtly  (in football or elsewhere) the consequences are swift and brutal. Because sympathetic sentiments lamenting the plundering of sports fans' wallets could feasibly lead to sustained protests, reform, revolution! Sparks have to be extinguished before they blow up the fireworks, and so the linesman got whacked JFK style; Sky's camera may as well have been a sniper rifle.

And yet none of this is at all surprising. A few weeks ago the respected American Sports hack, Dave Zirin, said on Democracy Now "sport is like a weather vane for the wider political and economic culture". He's right, and so sport serves as an early warning system for the rapid decay of our communities, who continue their unstoppable free fall in to the cold grasp of an unholy alliance between profiteers and their unaccountable apparatchiks they both breed and depend upon. We need to reclaim football and subject it to a little idea called 'direct democracy' (a little bit like the Germans) and stop privatised tyrannies holding the reigns to something that should belong to us all and rightly or not elicits so much emotion.

Even today as I finish this article I notice Britain's most radical revolutionary body, the UK Parliament, has released a document calling for measures in the spirit of what I’ve described. When parliament acknowledges there's a problem with something, you know it be must rotten and its reform probably should have occurred decades ago; the UK Parliament, the eternal sea anchor to any meaningful progressive change in anything.

But for allowing this unmitigated football gluttony we must look at ourselves. As an executive of Supporters Direct put it: "Clubs have continued to exploit this reservoir of goodwill, but we have to ask ourselves whether we're prepared to continue to allow that to happen." If we don't take ownership of our democracy in sport, the economy, or civil society, we tend to become owned by others. So we must ask ourselves, why do we collectively express false outrage at drug doping cheats, and yet wilfully turn a blind eye to the greatest sports enhancing drug of all, money? John Brooks speaks for us all and he should be defended as such.

Editor's note: this article originally included a quote from a former executive of Supporters Direct; it has been updated to include a more current perspective.

A young Manchester City supporter sits among the flags at The Etihad stadium in Manchester. Photograph: Getty Images
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We're racing towards another private debt crisis - so why did no one see it coming?

The Office for Budget Responsibility failed to foresee the rise in household debt. 

This is a call for a public inquiry on the current situation regarding private debt.

For almost a decade now, since 2007, we have been living a lie. And that lie is preparing to wreak havoc on our economy. If we do not create some kind of impartial forum to discuss what is actually happening, the results might well prove disastrous. 

The lie I am referring to is the idea that the financial crisis of 2008, and subsequent “Great Recession,” were caused by profligate government spending and subsequent public debt. The exact opposite is in fact the case. The crash happened because of dangerously high levels of private debt (a mortgage crisis specifically). And - this is the part we are not supposed to talk about—there is an inverse relation between public and private debt levels.

If the public sector reduces its debt, overall private sector debt goes up. That's what happened in the years leading up to 2008. Now austerity is making it happening again. And if we don't do something about it, the results will, inevitably, be another catastrophe.

The winners and losers of debt

These graphs show the relationship between public and private debt. They are both forecasts from the Office for Budget Responsibility, produced in 2015 and 2017. 

This is what the OBR was projecting what would happen around now back in 2015:

This year the OBR completely changed its forecast. This is how it now projects things are likely to turn out:

First, notice how both diagrams are symmetrical. What happens on top (that part of the economy that is in surplus) precisely mirrors what happens in the bottom (that part of the economy that is in deficit). This is called an “accounting identity.”

As in any ledger sheet, credits and debits have to match. The easiest way to understand this is to imagine there are just two actors, government, and the private sector. If the government borrows £100, and spends it, then the government has a debt of £100. But by spending, it has injected £100 more pounds into the private economy. In other words, -£100 for the government, +£100 for everyone else in the diagram. 

Similarly, if the government taxes someone for £100 , then the government is £100 richer but there’s £100 subtracted from the private economy (+£100 for government, -£100 for everybody else on the diagram).

So what implications does this kind of bookkeeping have for the overall economy? It means that if the government goes into surplus, then everyone else has to go into debt.

We tend to think of money as if it is a bunch of poker chips already lying around, but that’s not how it really works. Money has to be created. And money is created when banks make loans. Either the government borrows money and injects it into the economy, or private citizens borrow money from banks. Those banks don’t take the money from people’s savings or anywhere else, they just make it up. Anyone can write an IOU. But only banks are allowed to issue IOUs that the government will accept in payment for taxes. (In other words, there actually is a magic money tree. But only banks are allowed to use it.)

There are other factors. The UK has a huge trade deficit (blue), and that means the government (yellow) also has to run a deficit (print money, or more accurately, get banks to do it) to inject into the economy to pay for all those Chinese trainers, American iPads, and German cars. The total amount of money can also fluctuate. But the real point here is, the less the government is in debt, the more everyone else must be. Austerity measures will necessarily lead to rising levels of private debt. And this is exactly what has happened.

Now, if this seems to have very little to do with the way politicians talk about such matters, there's a simple reason: most politicians don’t actually know any of this. A recent survey showed 90 per cent of MPs don't even understand where money comes from (they think it's issued by the Royal Mint). In reality, debt is money. If no one owed anyone anything at all there would be no money and the economy would grind to a halt.

But of course debt has to be owed to someone. These charts show who owes what to whom.

The crisis in private debt

Bearing all this in mind, let's look at those diagrams again - keeping our eye particularly on the dark blue that represents household debt. In the first, 2015 version, the OBR duly noted that there was a substantial build-up of household debt in the years leading up to the crash of 2008. This is significant because it was the first time in British history that total household debts were higher than total household savings, and therefore the household sector itself was in deficit territory. (Corporations, at the same time, were raking in enormous profits.) But it also predicted this wouldn't happen again.

True, the OBR observed, austerity and the reduction of government deficits meant private debt levels would have to go up. However, the OBR economists insisted this wouldn't be a problem because the burden would fall not on households but on corporations. Business-friendly Tory policies would, they insisted, inspire a boom in corporate expansion, which would mean frenzied corporate borrowing (that huge red bulge below the line in the first diagram, which was supposed to eventually replace government deficits entirely). Ordinary households would have little or nothing to worry about.

This was total fantasy. No such frenzied boom took place.

In the second diagram, two years later, the OBR is forced to acknowledge this. Corporations are just raking in the profits and sitting on them. The household sector, on the other hand, is a rolling catastrophe. Austerity has meant falling wages, less government spending on social services (or anything else), and higher de facto taxes. This puts the squeeze on household budgets and people are forced to borrow. As a result, not only are households in overall deficit for the second time in British history, the situation is actually worse than it was in the years leading up to 2008.

And remember: it was a mortgage crisis that set off the 2008 crash, which almost destroyed the world economy and plunged millions into penury. Not a crisis in public debt. A crisis in private debt.

An inquiry

In 2015, around the time the original OBR predictions came out, I wrote an essay in the Guardian predicting that austerity and budget-balancing would create a disastrous crisis in private debt. Now it's so clearly, unmistakably, happening that even the OBR cannot deny it.

I believe the time has come for there be a public investigation - a formal public inquiry, in fact - into how this could be allowed to happen. After the 2008 crash, at least the economists in Treasury and the Bank of England could plausibly claim they hadn't completely understood the relation between private debt and financial instability. Now they simply have no excuse.

What on earth is an institution called the “Office for Budget Responsibility” credulously imagining corporate borrowing binges in order to suggest the government will balance the budget to no ill effects? How responsible is that? Even the second chart is extremely odd. Up to 2017, the top and bottom of the diagram are exact mirrors of one another, as they ought to be. However, in the projected future after 2017, the section below the line is much smaller than the section above, apparently seriously understating the amount both of future government, and future private, debt. In other words, the numbers don't add up.

The OBR told the New Statesman ​that it was not aware of any errors in its 2015 forecast for corporate sector net lending, and that the forecast was based on the available data. It said the forecast for business investment has been revised down because of the uncertainty created by Brexit. 

Still, if the “Office of Budget Responsibility” was true to its name, it should be sounding off the alarm bells right about now. So far all we've got is one mention of private debt and a mild warning about the rise of personal debt from the Bank of England, which did not however connect the problem to austerity, and one fairly strong statement from a maverick columnist in the Daily Mail. Otherwise, silence. 

The only plausible explanation is that institutions like the Treasury, OBR, and to a degree as well the Bank of England can't, by definition, warn against the dangers of austerity, however alarming the situation, because they have been set up the way they have in order to justify austerity. It's important to emphasise that most professional economists have never supported Conservative policies in this regard. The policy was adopted because it was convenient to politicians; institutions were set up in order to support it; economists were hired in order to come up with arguments for austerity, rather than to judge whether it would be a good idea. At present, this situation has led us to the brink of disaster.

The last time there was a financial crash, the Queen famously asked: why was no one able to foresee this? We now have the tools. Perhaps the most important task for a public inquiry will be to finally ask: what is the real purpose of the institutions that are supposed to foresee such matters, to what degree have they been politicised, and what would it take to turn them back into institutions that can at least inform us if we're staring into the lights of an oncoming train?