Now why do people invest in football when there is no direct return?
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Man city, Chelsea and PSG did not invest in football, for me they are exception to the rules.
I haven't done my homework on this but please name me someone that has invested that amount of money (apart from Man Utd) that are seeing those returns. I just don't think there is that much money to be made in football at the rate it's going .
Man city, Chelsea and PSG did not invest in football, for me they are exception to the rules.
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What, they have invested billions. Almost all clubs in the premier league are now owned by billionaires. When you buy a club you invest in football.
I don't understand what you mean? Even Venkys invested in Blackburn precisely to get marketing from the premier league. Ashley at Newcastle wanted to make his Sportsdirect brand bigger etc. Who knew about Roman before he bought Chelsea? Abu Dhabi want to be bigger than Dubai thats why they bought Man City. And so on.
Marketing is like a deep well. You can throw money in and you would never know how much impact you have on sales. Its very hard to measure your bang for the buck! Its worked for those who wanted to use football for marketing purposes.
But you can never make profit directly from football as the Americans thought you could. Thats why Aston Villa are having problems, why Gillete/Hicks left, Glazers IPO falling flat. You can in America because their sports markets, mlb, nfl, nba, nhl etc are fixed with bargaining agreements. There is no such thing in football. FFP is not going to work. This causes wage price inflation and makes it almost impossible to be self-sufficient. Especially when you have additional debts.
When I talk about investment I mean it in the traditional sense of investment. put money in, you hope to get a monetary return.
Man city, Chelsea and PSG would not at the rate they spend get a return out football.
Yes maybe football is used as ego thing but to think that it will bring a return the way these guys are spending it a fallacy. Marketing or no marketing!
Even Ashley controls a tight ship in his management of Newcastle!
The question to ask is Usmanov an Ashley type of investor or an Abomovich, I think the former!
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Usmanov
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posted on 29/8/12
Now why do people invest in football when there is no direct return?
==========
Man city, Chelsea and PSG did not invest in football, for me they are exception to the rules.
I haven't done my homework on this but please name me someone that has invested that amount of money (apart from Man Utd) that are seeing those returns. I just don't think there is that much money to be made in football at the rate it's going .
posted on 29/8/12
Man city, Chelsea and PSG did not invest in football, for me they are exception to the rules.
----------------------------
What, they have invested billions. Almost all clubs in the premier league are now owned by billionaires. When you buy a club you invest in football.
I don't understand what you mean? Even Venkys invested in Blackburn precisely to get marketing from the premier league. Ashley at Newcastle wanted to make his Sportsdirect brand bigger etc. Who knew about Roman before he bought Chelsea? Abu Dhabi want to be bigger than Dubai thats why they bought Man City. And so on.
Marketing is like a deep well. You can throw money in and you would never know how much impact you have on sales. Its very hard to measure your bang for the buck! Its worked for those who wanted to use football for marketing purposes.
But you can never make profit directly from football as the Americans thought you could. Thats why Aston Villa are having problems, why Gillete/Hicks left, Glazers IPO falling flat. You can in America because their sports markets, mlb, nfl, nba, nhl etc are fixed with bargaining agreements. There is no such thing in football. FFP is not going to work. This causes wage price inflation and makes it almost impossible to be self-sufficient. Especially when you have additional debts.
posted on 29/8/12
When I talk about investment I mean it in the traditional sense of investment. put money in, you hope to get a monetary return.
Man city, Chelsea and PSG would not at the rate they spend get a return out football.
Yes maybe football is used as ego thing but to think that it will bring a return the way these guys are spending it a fallacy. Marketing or no marketing!
Even Ashley controls a tight ship in his management of Newcastle!
The question to ask is Usmanov an Ashley type of investor or an Abomovich, I think the former!
Page 3 of 3