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Money diverted to such accounts would otherwise be available to pay benefits of current retirees and to finance operating costs of other federal programs, he said.
In total, 65% of clubs acknowledged a dependence on principal shareholders to finance operating losses compared with 58% last year; for the Championship the figure is 94% and for League One it is 64%.
The authority's financial plan calls for the state and local governments to contribute an additional $600 million a year to finance operating expenses, beginning in 2010.
Robert Leib, a financial consultant to sports teams who has examined numerous balance sheets, said that debt was not necessarily a problem, even if it is to finance operating losses, as long as the value of the team is increasing.
This week, needing cash to finance operating losses and with the credit rating agencies having determined that its bonds are junk and its commercial paper unsalable, Corning came up with a glorified common stock offering that devastated an already depressed share price, which fell 50percentt in the last three days.
While the Supreme Court allowed the bond plan to avoid disrupting the new budget, which took effect July 1, it ruled out further borrowing to finance operating expenses, a decision applauded by most of the fiscal conservatives who had challenged the budget plan.
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Campaign finance operates by shaky, or even nonexistent, rules, and powerful players game the system with impunity.
That investment is important but these figures show there are huge problems with the way the private sector and private finance operate," he said.
The broad political momentum to change the way global finance operates, something felt so keenly in the early days of the recession, seems far away now.
And, as terrorist finance operates on a global scale, we know that we are only as strong as our weakest links.
But his view that it's "counterproductive" to use credit default swaps to crash an institution or a nation exhibits a certain naïveté about how the titans of finance operate now.
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Justyna Jupowicz-Kozak
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