Assumptions about the investment

[dom9]

So why would DIC invest in the club - money, prestige or as a play thing?

I think I'm coming down on the side of prestige and I hope this means restraint.

I honestly don't know the answer.

My best guess is that they are buying the club to raise the profile of Dubai, in order to generate secondary income for the Emirate from the likes of tourism. If the club are succesful, this rubs off on Dubai, which would help them in terms of marketing themsleves to wealthy tourists. You could compare it to Beckham appearing in Gilette or Pepsi adds. We would be a rolling advertisment for Dubai the product.

The amount of money they have already spent on Hotels, new Islands and other infrastructure is staggering. I guess that it's all tied in.

I wouldn't be surprised to see 'Visit Dubai' or similar splashed across our shirts next season.

[Rich]

The 'profit' united generated was reinvested in the club, be it the squad, stadium or training ground.

The fact they were able spend so much money was because of the 'profit' the club made.

Nah, obviously money was invested, however their shareholders recevied a nice dividend i.e. profit each year they made money.

[dom9]

Was the amount returned to shareholders signifiant?

[Rich]

I don't know, but for example, if people had bought ManU shares for 200p a piece, and earned 10p/15p dividend per share per year, and then sold them to Glazer for 600p a share, that's making a nice profit.

[BillobShaisley]

Well there's some assumptions!!

[dww]

It is worth noting that since Abarmovich took over at Chelsea their income has gone up manyfold (it is now comparable with United). I know that a part of that is the more expensive tickets but they have also expanded their fanbase in Asia and Russia and sell more merchandise throughout the UK. With the big players you get a lot of hatred from the existing fans of other clubs but you are far more likely to convert those with little or no alliegence.

[blacky]

Whats the general feeling on here of an increase in ticket prices? We are among the cheapest in the premiership at the minute so if we expect the club to spend big on a stadium and worldclass players would we be willing to pay say an extra five pound a ticket? if ticket prices went up a fiver tommorow that would bring in around an extra 225 grand per game

[The_weatherman]

Whats the general feeling on here of an increase in ticket prices? We are among the cheapest in the premiership at the minute so if we expect the club to spend big on a stadium and worldclass players would we be willing to pay say an extra five pound a ticket? if ticket prices went up a fiver tommorow that would bring in around an extra 225 grand per game

It wouldn´t be fair for me to comment since I have only been once to Anfield, and that cost me about 800-1000 pounds admittedly, but I think it´s OK to raise ticket prices by a couple of pounds. But the biggest factor here IMO is the TV deal and live matches over the internet - I think Liverpool would be among those who could profit from that.

[dom9]

It is worth noting that since Abarmovich took over at Chelsea their income has gone up manyfold (it is now comparable with United). I know that a part of that is the more expensive tickets but they have also expanded their fanbase in Asia and Russia and sell more merchandise throughout the UK. With the big players you get a lot of hatred from the existing fans of other clubs but you are far more likely to convert those with little or no alliegence.

I don't think that Chelsea's income is anywhere near United's yet.

I also don't buy the asian fanbase argument either. Most Asian countries tend to be in the developing world. This means that generally speaking, disposable income is lower than it is here. I just can't see many Thais buying official full priced replica shirts when they can easily get cheap fakes instead. How much official merchandise gets sold in Asia? I would bet it is a minscule amount.

Apologies for the generalisations, please feel free to correct me if I'm wrong.

[Le Chef]

I don't think that Chelsea's income is anywhere near United's yet.

I also don't buy the asian fanbase argument either. Most Asian countries tend to be in the developing world. This means that generally speaking, disposable income is lower than it is here. I just can't see many Thais buying official full priced replica shirts when they can easily get cheap fakes instead. How much official merchandise gets sold in Asia? I would bet it is a minscule amount.

Apologies for the generalisations, please feel free to correct me if I'm wrong.

I think the future income will come down to a couple of things - Individual TV deals in Europe, Asia and the US. (i.e R-Madrid), secondly the tinterweb/mobile rights - That for me will be the next explosion.

Who-ever invests or buys is going to be in it for two things - Plaything or a long term cash machine. Who else in their right mind would invest £400m plus without seeing some kind of return other than a billionaire with nothing to do.

Bugger sentiments, if I had £400m in my bank the last place I would invest into would be football.

[KingKenny]

http://www.sheikhmohammed.co.ae/

He has his own site. Interesting read.

[dww]

I don't think that Chelsea's income is anywhere near United's yet.

I actually went from a Kenyon quote. According to the football rich list Chelsea bought in £140m to Uniteds £170m in 2005 but Kenyon was saying that they have continued to increase their income this year and have now closed this gap (plausable as united did poorly in the last Champions league and Chelsea won the league).

Whatever the truth of it since Abramovich took over their income has sky rocketed.

[OldManRed]

http://www.sheikhmohammed.co.ae/

He has his own site. Interesting read.

Thats an intersting link.

This is a man who doesn't work slowly. There's a very quotable line from him - "I take decisions and I move fast. Full throttle" and another reference saying that he is not a man to take things slowly when "giant steps will do".

He sets short deadlines and expects them to be met.

[SouthAfricaRed]

When you are as wealthy as the Sheikh is, it's not always about a profit.

Yes, he would want the club to be self financed, but unlike the Glazers or Gillette, he would be buying the club with his own money, not the Banks money. The emphasis on a quick profit would not be applicable.

Owning Liverpool and the success of Liverpool would be about prestige.

Abromovich is a different subject. He has pumped his money into Chelsea to get his money out of Russia. He's protected by the current regime in Russia, but he has no guarantee that the status quo will remain with a new president.

It seems like our investor will fit in between the above mentioned investors. Not as Free spending as Roman, but less financially orientated than the Glazers.

Investing in a Football Club is not a Good investment. There are much better options available. It's more about raising your Status. The more successful the club, the more prestigious it is to own it. Pumping money into a club is needed to raise the performance. But it has to be done in a way that the club can sustain in the long run.

If DIC does buy Liverpool, I'm sure we will see the new stadium and an increased budget for players, but nothing like Chelski. That would be suicidal

[KingKenny]

Thats an intersting link.

This is a man who doesn't work slowly. There's a very quotable line from him - "I take decisions and I move fast. Full throttle" and another reference saying that he is not a man to take things slowly when "giant steps will do".

He sets short deadlines and expects them to be met.

I like his this quote
He once wrote: "In the race for excellence, there's no finish line".

bbc saidIt could almost read: "The Uefa Cup is not an option".