My understanding is that the business model of Premier League Football is something like: a billionaire buys a team for $300 million, holds on to it for 10 years, losing $30M a year, but sells for...
My understanding is that the business model of Premier League Football is something like: a billionaire buys a team for $300 million, holds on to it for 10 years, losing $30M a year, but sells for $1B to the next owner. That last bit, of course, is anything but certain, particularly in a league where you could get relegated. See
Manchester United has a huge amount of fame overseas, particularly here in the US, but in the last few years they’ve played lousy football. Not quite in the “get relegated” range but I think you’d have to be a little crazy to want to own a big piece of it.
Newcastle United was purchased in April 2020. The season beforehand (2018-19), they finished thirteenth. They were in the second division (EFL Championship) not long before. Manchester City was...
Newcastle United was purchased in April 2020. The season beforehand (2018-19), they finished thirteenth. They were in the second division (EFL Championship) not long before. Manchester City was fourteenth the season before its acquisition.
If you're a wealthy person interested in sport like Sir Jim Ratcliffe, it makes sense to purchase an underperforming club and attempt to improve its performance. He has done that across other sports before. Business-wise we'll see if it's a smart investment, but both the Glazers and Sheik Jassim inherited their wealth. At least Ratcliffe has enough business acumen to found and run INEOS. He's also worth more than either of them.
says the current deal assumes a $6.5 billion valuation. It seems like a much more interesting project to me to buy an EFL team, invest in it and try to get it promoted.
Some people are doing that. JJ Watts has an ownership stake in Burnley which is a cheaper team. I believe a few Americans own EFL teams as well. With regards to United and Ratcliffe, it just seems...
Some people are doing that. JJ Watts has an ownership stake in Burnley which is a cheaper team. I believe a few Americans own EFL teams as well.
With regards to United and Ratcliffe, it just seems he likes United and wants it to get better (on top of possibly making money).
This isn't like buying into an American franchise... each club has its own merits that might make it attractive to investors. Manchester United has been mismanaged since the Glazers took over and...
My understanding is that the business model of Premier League Football
This isn't like buying into an American franchise...
each club has its own merits that might make it attractive to investors.
Manchester United has been mismanaged since the Glazers took over and despite that they have finished top 4 most years (which is the requirement to get into the European champions league.)
With proper investment Manchester United has the potential to be the biggest sports brand in the world in any sport, it's only over a decade of clown show mismanagement working against it keeping it mediocre.
It's the least shitty of the options that's for sure. I've been a supporter for about 40 years but seeing them owned by the Qataris would probably have been the end for me.
It's the least shitty of the options that's for sure. I've been a supporter for about 40 years but seeing them owned by the Qataris would probably have been the end for me.
Great article and run down of the situation for anyone OOTL. I’m just glad Qatar is out although this is not ideal if it goes through. It’s amazing how much the Glazers have fucked this club....
Great article and run down of the situation for anyone OOTL. I’m just glad Qatar is out although this is not ideal if it goes through. It’s amazing how much the Glazers have fucked this club. Absolutely saddening.
I don't see how Ratcliffe goes for it, it's the worst of all worlds for him and the club. The plan was to get the Glazers out entirely and sort out the Class A and Class B share structure (The...
I don't see how Ratcliffe goes for it, it's the worst of all worlds for him and the club. The plan was to get the Glazers out entirely and sort out the Class A and Class B share structure (The glazers own the higher class shares which have xxx% more voting power.) So owning a public share is basically worthless in terms of voting power.
IDK why Ratcliffe would go for anything but a controlling stake. Furthermore he's not got the financial backing to buy AND also invest the billions needed to get the club back where it ought to be.
My understanding is that the business model of Premier League Football is something like: a billionaire buys a team for $300 million, holds on to it for 10 years, losing $30M a year, but sells for $1B to the next owner. That last bit, of course, is anything but certain, particularly in a league where you could get relegated. See
https://www.youtube.com/watch?v=s7N-xXGgdE4
Manchester United has a huge amount of fame overseas, particularly here in the US, but in the last few years they’ve played lousy football. Not quite in the “get relegated” range but I think you’d have to be a little crazy to want to own a big piece of it.
Newcastle United was purchased in April 2020. The season beforehand (2018-19), they finished thirteenth. They were in the second division (EFL Championship) not long before. Manchester City was fourteenth the season before its acquisition.
If you're a wealthy person interested in sport like Sir Jim Ratcliffe, it makes sense to purchase an underperforming club and attempt to improve its performance. He has done that across other sports before. Business-wise we'll see if it's a smart investment, but both the Glazers and Sheik Jassim inherited their wealth. At least Ratcliffe has enough business acumen to found and run INEOS. He's also worth more than either of them.
I think the game there is getting a cheap team and building up its value. Man United is not cheap
https://www.reuters.com/markets/deals/ratcliffe-would-pay-more-than-15-bln-25-manchester-united-stake-source-2023-10-15/
says the current deal assumes a $6.5 billion valuation. It seems like a much more interesting project to me to buy an EFL team, invest in it and try to get it promoted.
Some people are doing that. JJ Watts has an ownership stake in Burnley which is a cheaper team. I believe a few Americans own EFL teams as well.
With regards to United and Ratcliffe, it just seems he likes United and wants it to get better (on top of possibly making money).
This isn't like buying into an American franchise...
each club has its own merits that might make it attractive to investors.
Manchester United has been mismanaged since the Glazers took over and despite that they have finished top 4 most years (which is the requirement to get into the European champions league.)
With proper investment Manchester United has the potential to be the biggest sports brand in the world in any sport, it's only over a decade of clown show mismanagement working against it keeping it mediocre.
Here is the archive link that was previously the main post link.
It's the least shitty of the options that's for sure. I've been a supporter for about 40 years but seeing them owned by the Qataris would probably have been the end for me.
Great article and run down of the situation for anyone OOTL. I’m just glad Qatar is out although this is not ideal if it goes through. It’s amazing how much the Glazers have fucked this club. Absolutely saddening.
I don't see how Ratcliffe goes for it, it's the worst of all worlds for him and the club. The plan was to get the Glazers out entirely and sort out the Class A and Class B share structure (The glazers own the higher class shares which have xxx% more voting power.) So owning a public share is basically worthless in terms of voting power.
IDK why Ratcliffe would go for anything but a controlling stake. Furthermore he's not got the financial backing to buy AND also invest the billions needed to get the club back where it ought to be.