Foreign Investment in English CLubs

[Guest nufc_geordie]

As much as this might sound uneducated and a stupid philosophy to follow I firmly believe that the following statement is correct. I believe that the teams that can stay away from these foreign investors and sustain their premiership position will be the strongest clubs in years to come. In the past, up until Mr Abrahmovic cam e along, the majority of clubs were ran and financed by local corporates who had feeling for the clubs that they were running. AHead there appears to be a change of times with foreigners diving into English football to milk the last of the great profits from the game, the TV revenue. Now that SKY don't have the monopoly on premiership rights and other broadcasters can sell the rights to games to other parts of the world especially, the foreigners are diving in, in the scramble to milk these profits.

 

What happens when the profits dry up, or these foreigners throw their toys out of the pram and walk away?

 

It will happen and I feel sorry for the first club to take it. Some may point to the Leeds, Nottingham Forests and Sheff Weds of the game, but their financial misfortune boiled down to short sightedness with a board of good intentions. Leeds especially, where Ridsdale gambled on the short term success, pumped money in, didn't get his rewards and crash, game over.

 

The difference with these foreign investors is that similar to Leeds but on a grnader scale they demand and expect almost immediate return for their purchase of a club. Pumping money in ala Portsmouth, offering massive wages to attract the likes of Sol Campbell etc, players that should never be playing for those sorts of clubs with all due respect, and when they leave what becomes of the club. So much money is being banded around that when one of these rich foreigners walks, they don't care what becomes of the club, they take their profits and run, leaving the clubs to self implode.

 

I hate Freddy Shepherd and the way the club is run, but I would far rather he sell to someone local with relatively good business sense (it isn't hard compared to Shepherd is it) than a multi-millionaire foreigner or foreign investment group. I we can stay afloat without the foreigners but with a change of chairman, sooner or later the money men will leave and we will be in a better position than alot of other clubs.

[Rob W]

see todays "indie "thread for what the bankers think

[Stevie]

I'd have Bin Laden bankrolling us, with a starting eleven of Shay plus 10 al quaida, if I thought we could win something.  I don't care who owns us as long as we see an improvement.

[Guest nufc_geordie]

TBH I see that as a highly immature attitude when the entire future of the club is at stake.

[Cronky]

What the Leeds example showed is the folly of pumping money on the assumption that you'll be able to recoup that investment through success on the field. Not everyone can end up winners. However, it now seems that there's a lot of money to be made just by remaining in the Premiership.

 

I've got my concerns about clubs falling into corporate hands, but this is the new reality. The Premiership is becoming a global brand, and the most widely popular sporting entertainment on the planet. Naturally it's going to attract the interest of the wealthiest people on a world scale.

 

It's happening regardless of what we think or want, and we only have the choice of joining in or being left out. If we want to stay competitive, we have to join in.

 

The biggest problem is when you have someone like Abramovich who's investing money that hasn't been generated by the game and that can't possibly be recouped. That just inflates wages and transfer fees, and threatens to kill off proper competition. Hopefully this restriction on wages as a proportion of turnover will help even things out.

[Rob W]

Well you could go along with Terry pratchetts view of Opera in one of his books

 

"Opera make money?  My dear sir - what a quaint notion!!  Opera is what you spend your money ON that you made elsewhere............."