Selling The Cash Cow
I am sure some of you will be aware of the news regarding the Glazier family potentially selling Manchester United. The family has been under fire from the fans for a number of years now as this was purely an investment and not necessarily a love for the sport.
To say they have done pretty well from the deal thus far is an understatement as 17 years ago they bought the club for £790 million. That is a misleading sum as they only invested £150 million and leveraged the other £640 million which the club paid on their behalf. The debt paid for by the club was smart and what has made them a remarkable fortune.
As you can see from the above statistics of other clubs in the Premier League and the owners investments the Glaziers have done quite the opposite. They have managed to recoup their initial investment and some whilst burdening the club in more debt. This is why the fans were anti the Glaziers as the facilities along with the stadium were being neglected. This was always about turning a profit as this has to be treated like any other business venture.
Liverpool can be seen in a similar way as Fenway Sports who own the Red Sox have been milking Liverpool since they took over funding there beloved baseball team. Liverpool are also up for sale having been purchased for £300 million and expected to sell in the region of £3-£4 billion. This would have doubled their investment every year for the last 12 years whilst milking the club at the same time.
There have been two bids reported that have been entered into the bidding process last night. One is from Qatar and the other by INEOS owner Jim Radcliffe. These are serious bids as they are expected to be in the region of £4-£5 billion.
This would mean the Glaziers after settling the clubs debt of £514.9 million with a handy sum of anywhere between £3.5 and 4.5 Billion for 17 years work. That is a successful investment as this would equate to over £200 million per year profit considering they have already recouped their investment.
I do understand that this may be the right time to sell the club as money now needs to be spent on all the run down facilities and taken in a new direction. The Glaziers have squeezed enough profit out of the club and this is their final pay day which by all accounts will be a big one.
They bought and invested into a business which actually doesn't make that much money as most clubs run at a a loss with only a handful that manage to scrape by each year.
These are the figures for the 2021/22 season which is quite scary as Manchester City actually topped the revenue charts with over £700 million in revenue but could only muster £16.1 million profit. Even that is going to be questioned due to ongoing investigations with financial wrong doings under scrutiny.
The buying and selling of the club is where the real profit is made as in between unless you can put the club into debt things will be tough to make ends meet. The Glazier's have literally pulled a master stroke move milking the club for all it is worth and will walk away with no attachment to the club as this is purely business.
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I do not know too much about this, but its very informative to read it out. Highly appreciated 👍
If the Clubs are not making profit from the leagues and other activities, then why are still exist ? may be It is due to players playing for the clubs, they are more valuable than the club itself.
No... I've never heard of them.
LOL... just being a little comic relief. Ok, ok, so it's only comic relief if you think I'm funny.
It is true now that the players play with a lot of passion who know that they are going to get more money and the matches that happen even if they are not saying for their country that this When will they get the money, then they perform such performances in them. At this time, everything has become money and every human being is in a rush to earn as much money as possible.