I don’t really understand the football investment model
Or football corporate finance more generally.
As a business, they don’t seem to have the typical corporate goal of increasing shareholder wealth. Which is why debt is always seen as bad, compared to typical corporates for which it would be negligent not to have debt.
This is a bit of a ramble because it came into my mind, but how many football clubs are set up to generate value for the owners, and how do they actually do that?
I can kinda see it with very big clubs which have huge non football revenue streams like United or Liverpool. Maybe they generate enough cash that they can service shareholder debt and stay competitive on the pitch? Although I doubt it. Perhaps though the have enough cash flow to prop up the value of the shareholders original investment so they get repaid when they sell?
My view was always that football club ownership wasn’t an investment at all, it is just a money pit. Then things like the Ipswich deal pop up, and this has to be an investment, but how do they get the return? Must be by selling at some point, on promotion maybe?
Just a world I don’t understand.
Posted By: SimonOTBC on January 22nd 2024 at 17:13:20
Message Thread
- Press news in... (NCFC) - DrDublin, Jan 22, 15:23:41
- Varane won't leave Man Utd for us (n/m) (NCFC) - Charles21, Jan 22, 15:36:49
- Would he leave Sporting Gijon though? (n/m) (NCFC) - trafford_canary, Jan 22, 16:17:53
- On transfers. (NCFC) - Trent_Canary, Jan 22, 15:30:10
- He just means other teams players he doesn't comment on i think (n/m) (NCFC) - trafford_canary, Jan 22, 16:11:52
- They're too good for this division? (NCFC) - Cable Gap Pioneer, Jan 22, 15:29:28
- Really? This is FootySpeak 101. Big Up the Oppo (NCFC) - Henclrikus, Jan 22, 16:48:50
- To be fair, being the underdog suits us (NCFC) - SimonOTBC, Jan 22, 16:27:21
- That's the line that shouted at me (NCFC) - camcan, Jan 22, 15:42:12
- If financial muscle determines league position in the long run… (NCFC) - SimonOTBC, Jan 22, 16:15:00
- Well yes, that ship has long sailed (NCFC) - camcan, Jan 22, 16:16:48
- Indeed, yes. Without wishing to go full “Jim”…. (NCFC) - SimonOTBC, Jan 22, 16:24:51
- Was listening at the weekend to a Reading fan talking about what their ownership has done (NCFC) - Bertie Russell, Jan 22, 16:43:45
- The fit for purpose thing is a reference solely to their wealth (NCFC) - SimonOTBC, Jan 22, 17:16:30
- The owners experience has seen us outperform dozens of better (NCFC) - Cardiff Canary, Jan 22, 19:15:01
- palace have been a prem team for 11 seasons in a row but you don't hear their fans moaning (NCFC) - Tombs, Jan 22, 19:59:41
- Hope, mr tombs, hope is what it’s all about (NCFC) - SimonOTBC, Jan 22, 20:13:26
- No doubt, but football is no fun without hope (n/m) (NCFC) - SimonOTBC, Jan 22, 19:54:47
- palace have been a prem team for 11 seasons in a row but you don't hear their fans moaning (NCFC) - Tombs, Jan 22, 19:59:41
- The owners experience has seen us outperform dozens of better (NCFC) - Cardiff Canary, Jan 22, 19:15:01
- Indeed, see below (n/m) (NCFC) - CB41, Jan 22, 16:59:29
- Can't disagree with any of that (NCFC) - camcan, Jan 22, 16:58:16
- I don’t really understand the football investment model (NCFC) - SimonOTBC, Jan 22, 17:13:20
- Money laundering and sportswashing (NCFC) - Cardiff Canary, Jan 22, 19:11:47
- regarding your point about Ipswich owners .... (NCFC) - ghostof barry butler, Jan 22, 18:25:23
- Via what? Dividends? Debt repayment? Don’t think there is any debt (NCFC) - SimonOTBC, Jan 22, 18:53:47
- I don’t really understand the football investment model (NCFC) - SimonOTBC, Jan 22, 17:13:20
- The fit for purpose thing is a reference solely to their wealth (NCFC) - SimonOTBC, Jan 22, 17:16:30
- Was listening at the weekend to a Reading fan talking about what their ownership has done (NCFC) - Bertie Russell, Jan 22, 16:43:45
- Indeed, yes. Without wishing to go full “Jim”…. (NCFC) - SimonOTBC, Jan 22, 16:24:51
- Well yes, that ship has long sailed (NCFC) - camcan, Jan 22, 16:16:48
- I wonder if his attitude filters through to the players (NCFC) - Cable Gap Pioneer, Jan 22, 16:09:09
- Unless we consider this super wild possibility .... (NCFC) - paulg, Jan 22, 17:25:22
- whether it's his real attitude or not, those are his words and our record is terrible vs (NCFC) - Cable Gap Pioneer, Jan 22, 18:25:27
- Unless we consider this super wild possibility .... (NCFC) - paulg, Jan 22, 17:25:22
- If financial muscle determines league position in the long run… (NCFC) - SimonOTBC, Jan 22, 16:15:00
- Varane won't leave Man Utd for us (n/m) (NCFC) - Charles21, Jan 22, 15:36:49
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