fundy
Ryder Cup Winner
Football is big business.
The weird bit is that no one really makes any money out of it.
Take Arsenal, because that is a club I know more about.
It is worth around 2 bn. (Apparently, if the Kroenkes were to sell).
Every year it makes money from the fans, the broadcasting, the premiership, European footy, etc. May be some player sales (we are not good at this).
This money is then spent on inflated new deals, player wages, and transfers (plus running costs for the business, etc).
Before it got de-listed from the London exchange and re-listed in Denver, all the Kroenkes made was a 5m consultancy fee. The fans were livid they were taking this money out of the club. Now it is in Denver, who knows what they do, but bear with me on this.
The Kroenkes are business men. For a 2bn investment, they are only getting a 5m return? That is chump change. The only way they can make money, would be a new deal like the ESL, or heavily revised TV deals, negotiated by the club, not by the Prem. If there was enough of an increase, they could sneak more cash out without anyone really noticing.
Or, they could sell the club to the next Billionaire investor, and he would have the same problem.
Theyve "created" huge value for themselves in what the club is worth if they were to resell it compared to what they paid for it, can cash their chips in anytime they want, hes got a paper profit in the region of £1bn currently