Tobes, even you were bigger than Chelsea around the world 20 years ago. I remember being in NZ about 2002/3 (okay, not a hotbed of football, but bear with me). Every kid I came across there, although primarily rugby, had an EPL team they followed. Yep, most United, then Arsenal and Liverpool, some Everton and Spurs, but very, very little of Chelsea, if at all. And utterly no City. I did, honestly, see more Leeds, Villa and Newcastle shirts, or bags or hats or whatever than Chelsea. My point? I'll give it a decade at most, and Newcastle will be bigger around the world than anyone except Man U and Liverpool. Easily. And that's even if in ten years time their only real competitors are Chelsea and City.
The gap they’ve got to bridge in terms of revenue between them and the likes of City is circa £300m pa.(similar to other current top PL sides) Even with some bending of sponsorship revenues the majority of that is going to have to be organic under PL FFP rules. The consortium has mentioned £250m over 5 years in terms of cash investment, that’s enough to keep them the right side of rules, but unless it’s spent extremely well by the right manager, it’ll not be anywhere near enough imo. They’ll improve I’m sure, but unless the money increases dramatically from what they’ve said, and they intend riding **** over the rules, then challenging for titles and CL footie is just an ambition and by far from a racing certainty. There’ll a whole host of clubs extremely eager to point the finger if there’s a whiff of serious doping they’ll be all over it, if the rumoured unhappiness with the Saudis being let in is true.
Ah, I only read "I agree with Tobes" and didn't see the point in reading the rest, you'd clearly had a meltdown
We have to see in this that what they publically say is one thing but in private they will be scheming a different level of investment. There'll be no organic growth
There’ll have to be organic growth, otherwise they won’t achieve their aims. Doing what City did simply isn’t possible anymore.
You.are right that what city did cannot be replicated but some other form of naked revenue boosting must be possible to accelerate the thing. They only need to sell the naming rights on st james to some saudi company and then some other crowd pick up the shirt and sleeve branding etc. They need to double that revenue quickly without fan growth or it just wont work imo. Not sure how far they can push that before they get tagged but I am sure they will. They can also invest unlimited funds in stadium and training facilities and build hotels or whatever they like subject to what they can do to build up the last side as they can get to 70k maybe I dunno. It's a cheap buy imo, the premier league standing plus that ground and the possibilities they have just shows how poor a job Ashley did. He did fine keeping it small time and turning a profit but he still could have got more for it. 50mil in transfer fees a season will not get them top half I think they will have learned from city and put nothing in writing and probably turn off the security camera and all. I doubt bruce will go down to the saudi embassy for his pay off either Look at some point they have to realise 250mil over 5 years just wont cut it.
Unless this was never a plaything to start with and was an actual investment, by an investment fund. Who for some reason needed 2 other stakeholders……
Itd be a pretty poor investment if so. If your or my pension fund bought newcastle we would be furious
Btw ashley looking at derby on the cheap reputedly. Given his love for distressed assets anything could be true.
Yes so describe how these guys exit this investment with bags of cash in the far future. I'm pretty sure Warren buffet has never bought himself a nfl team as an investment. If they are and investment fund they want to see growth and profit. Yet most in here have agreed its not about money? You disagree with them then?
You don’t need to look far for an example of an investment fund who’ve multiplied the value of their asset by a sizeable number……yet there’s no money to be made in sports you say. Ok.
Ashley has just done it so sure, but from here 300 odd to say 2billion. Who is there to buy this club after? Public floatation? Americans?
Newcastle United's new owners began plotting a spending spree of up to £190million in January. The club's new chairman, told fans in an open letter to "expect ambition" as it emerged a £190million transfer spend is within financial fair play. (The Telegraph)
Their financial year end is June. If they did spend £190m in January and the players were on 4 1/2 yr contracts the cost in the current year accounts would only be circa £20m plus wages and agents fees. If they followed that up with what you’re suggesting in the summer they’d need somewhere in the region of £180m a year from next summer on. It won’t happen.
It's a massive gap that a 50mil stadium naming rights and 100mil shirt sponsorship just cant close. I think they will go the capital route myself and invest in shiny things around st james etc
