Why do people invest in Clubs

[adrian29uk]

Is there any money to be made by doing this, or is it just a way for some of the billionaires to get rid due to tax purposes.

Every single club seems to be losing money apart from Man Utd, love them or hate them done things properly.

If we are 12 million in debt we now Falmer and we need it now.

 

[Goring Gull]

Newcastle amaze me the amount of money they spend.

 

[Stinkers Bridge]

Perhaps they just like the music and the flashing lights.

 

[Barrel of Fun]

....we now Falmer and we need it now.

Do we? I hope the board have realised this.


There is money to be made, but I think it is also a status symbol. On one hand you get a David Moores, who bought his Liverpool stake for £10m and he is set to make £75m from the imminent takeover. On another, you have a Dave Whelan, who is a football fan and wants his club to succeed at the highest level. On the third hand ( ) you get a Roman, who wants to be an icon and the people's champion.

 

[Gritt23]

I wouldn't really call it an "investment", as it is far more like a "donation" really. There are very, very few people who have made money out of buying and selling a football club, and you can bet they had to gamble with a lot of their existing wealth long before it paid a dividend.

 

[Lammy]

There is plenty of money to be made from Football clubs.

Don't forget it is not often the Chairman's personal fortune being invested, it is often done through a company.

World wide merchandising, ticket sales, TV rights and Advertising add up to a huge WEDGE. Don't forget the Chairman will be claiming a wage every year plus bonuses. So it's not jus the money made from buying and selling the club. Get a team in to Europe and the money REALLY starts to roll in!

Of course there are some chairman who are either their just for the love (Jack Walker) or simply as a play thing (Abramovich)

 

[Cadiz Seagull]

One word.

Ego.

As a business investment (other than a few clubs) it makes no sense at all.

And billionaires don't do anything for tax reasons only, the investment itself needs to stand on its own two feet, and if it gets tax breaks so much the better. That's how they got to be billionaires in the first place.

Most people who invest seriously in football clubs are there for the buzz, the kudos (often short term!) very rarely for the money.

And very few are fans in the first place. if and when they leave a club, how many can you think of who will still be a fan and still go to games?

I can only think of one - and we're bloody lucky to have him!

(pity he hasn't got a lot more money, though )

 

[Rougvie]

Eastern European/ Russian millionaires have realised that a way of making a FAST buck is to come along to a club and buy it for diddley squat, THEN transfer the debt to a bank you just happen to own (or have a major stake in) and tweak the interest rate, and rake in Thousands a year for yourself whilst you increase the spending and your standing amonst the fans.

Its a WIN WIN situation.

Its a bit like the way loansharks buy and sell peoples debts.

Its IMPOSSIBLE to make money out of the Premiership these days, but thats not to say there isn't money to be made in other things at football clubs.