SPORTS DIRECT ARENA- Very Classy

[Dave D]

Good point Johnny.

 

By the way, I've said this many times but there quite simply isn't really any money to made in football. The money in football might seem grotesque to plebs like us, but it's actually small potatoes.

premiership clubs are just SME business that just about break even if you're lucky.

What they are, however, is the ultimate brands, and associating yourself with them can be a right boon.

 

To find any business with similar brand awareness as our premiership clubs you're looking at the like of McDonalds and BP! Try buying one of them for a paltry hundred million quid!

 

The benefits in ownership of a premiership club, therefore, lie with people who have other interests who can piggy back on the back of it. See the ludicrous recent Man City ground naming debacle for example.

 

These men will do deals for their other businesses in the board room of the clubs they own. They'll wine and dine their suppliers and provide them with corporate tickets etc and it all spins out to make them richer.

 

But making real money from the club itself? Forget it.

 

Ever heard the saying, how do you make a small fortune in football?

Easy. Just start with a large fortune!

 

I disagree.

 

For example, if a buyer can purchase Everton for a low price, which I think will be the case, the owner would have to do relatively little to make a quick profit.

 

Aside all the corporate side of things, if they could get an ageing superstar, eg- Kaka possibly, the interest in Everton and the marketing potential would rocket. The fans would beginn to dream of Glory and everything from car stickers to signed shirts would sell in their thousands.

 

Do this once a year, and the profits should stack up.

 

If the actual playing side of things picks up, then all the better.

[JohnnyH]

For the size of the brand, the profit margins are shite in football. The overheads are massive, and the required financial input each year to stay on top of the game is astronomical.

 

If you want to make big money, owning a football club is simply not the route to go down.

[SlugTrail]

I disagree.

 

For example, if a buyer can purchase Everton for a low price, which I think will be the case, the owner would have to do relatively little to make a quick profit.

 

Aside all the corporate side of things, if they could get an ageing superstar, eg- Kaka possibly, the interest in Everton and the marketing potential would rocket. The fans would beginn to dream of Glory and everything from car stickers to signed shirts would sell in their thousands.

 

Do this once a year, and the profits should stack up.

 

If the actual playing side of things picks up, then all the better.

 

Sorry Dave, but that is not entirely true. They lose too much money to be a viable business plan, throw in Kaka's wages and bonuses and you would be talking an additional 300K a week, this would bring a short term revenue stream that might cover a small portion of his wages, but in the long term they would just be pushed further into debt (see Man City).

[Tom R]

Sorry Dave, but that is not entirely true. They lose too much money to be a viable business plan, throw in Kaka's wages and bonuses and you would be talking an additional 300K a week, this would bring a short term revenue stream that might cover a small portion of his wages, but in the long term they would just be pushed further into debt (see Man City).

 

Exactly.

 

Why do we think Everton have been for sale for the last ten years and not even had a sniff?

 

There's no money to me made directly from owning a football club, only the spin offs. Unless you're just intent of running the club down and down whilst siphoning off every penny possible of course (See hicks and gillett!) but even that just devalues the brand and the value of your asset (see FSg stepping in and getting LFC for a song!) and you then lose even more money, so what's the point?

[Randy Marsh]

I agree with what Tom R said, the season ticket initiative is fantastic and he should be applauded for that. No other club would do anything similar.

[xerxes]

I disagree.

 

For example, if a buyer can purchase Everton for a low price, which I think will be the case, the owner would have to do relatively little to make a quick profit.

 

Aside all the corporate side of things, if they could get an ageing superstar, eg- Kaka possibly, the interest in Everton and the marketing potential would rocket. The fans would beginn to dream of Glory and everything from car stickers to signed shirts would sell in their thousands.

 

Do this once a year, and the profits should stack up.

 

If the actual playing side of things picks up, then all the better.

 

 

Everton are around £50m in debt, they have lost money for the past five years, need a new stadium but are the seventh highest income grossers in the league.

 

The problem is that there isn’t much more money to squeeze out of this club , but is still losing money.

 

I would love to know what you have to do to “make a quick profit”, even if the club was bought for nothing. The club has been averaging losses of around £6m a season. The going rate for a superstar now is £200k a week plus, £10m a season, so recruiting Kaka means that you are now £16m a season down before you try to claw some of that back – that,s a lot of shirts, a Pl place is worth £800k, it doesn’t stack.

 

The problem facing them ( and us) is whether the increased spend to improve sporting performance results in a profitable financial return – it almost certainly does not.

[JohnnyH]

Ì agree with TomR and JohnnyH.

[Major Tom]

Ì agree with TomR and JohnnyH.

 

Is it your view that owners buy football clubs as vanity projects?

[Dave D]

Sorry Dave, but that is not entirely true. They lose too much money to be a viable business plan, throw in Kaka's wages and bonuses and you would be talking an additional 300K a week, this would bring a short term revenue stream that might cover a small portion of his wages, but in the long term they would just be pushed further into debt (see Man City).

 

I hadnt actually checked Evertons balnce sheet. They were plucked as an example as they are looking for bidders.

 

As for Kaka, he was only used to illustrate the point.

 

Make no mistake, Everton will get sold, and it will not be to people looking to win the Premier league. It will be a vehicle for producing revenue by whatever means.

 

In an interesting case would be Middlesbrough when they were signing the likes of Ravenelli, Juninho, Emerson and the like. Is it still the same owners?

[xerxes]

I hadnt actually checked Evertons balnce sheet. They were plucked as an example as they are looking for bidders.

 

As for Kaka, he was only used to illustrate the point.

 

Make no mistake, Everton will get sold, and it will not be to people looking to win the Premier league. It will be a vehicle for producing revenue by whatever means.

 

In an interesting case would be Middlesbrough when they were signing the likes of Ravenelli, Juninho, Emerson and the like. Is it still the same owners?

 

Steve Gibson still owns Boro from the Superstar days, his is a benevolent vanity ownership in the model of Jack Walker,Sir Jack hayward and Dave Whelan, although he did buy it for £350,000.

 

You misread why Everton have not been sold. There is no more profit to be squeezed. They are the seventh biggest revenue generators in the league, they might beat Villa, but never Spurs, Arsenal,Chelsea us, Man U/City without massive investment.

 

Everton are a lousy investment. £300m on a new stadium, £100m on players- and you might be talking Europa league........................

 

The money to be made is buying a club on the rocks in tierr 2 or 3 for nothing (Sullivan/Golds purchase of Birmingham. Bates purchase of Leeds) where the premium comes from PL entry alone.

[Anubis]

Ashley showing a business predator's timing. Waits till the team is riding high when he thinks fan criticism will be fairly muted, and strikes just before a run of three tough games.

[Preston Red]

I'm expecting a protest against a man who made his money selling cheap sports clothing from people wearing cheap sports clothing.

 

How ironic..........

[Iceman]

I think it's a nice name. It has a certain ring to it.

 

I will enjoy hearing the geordies work it into one of their songs.

[aws]

..........all wi' smiling faces

 

Gawn down the sports direct to see the Blaydon Races

[JohnnyH]

Is it your view that owners buy football clubs as vanity projects?

 

In some cases yes. The likes of Chelsea, Man City, PSG and that Ukrainian crowd been prime example. But for the most part I think they go into it to make a certain amount of money, and for the joy of sport. I also think they see it as a massive chance to promote outside interests or main interests.

 

Interestingly we are probably one of those rare commodities in that we were a very attractive proposition for the price we were now available at. But for the most part a football will be overpriced and with little chance of making the kind of significant return that other business ventures can. But if you manage your spend well, then it is also a safe way to invest money, especially in global brands like ours where there will always be massive interest along with a massive and willing fan base.