Let's get real, rich people don't (shouldn't) buy clubs to make money

I'm sick of people thinking the rich folk of the world buy sports clubs to make money when in fact they're all sink holes, all of them! Some owners break even, some take a loss, some go ****ing belly-up. But at the end of the day, sports franchises are not a profit-making industry, and anyone who thinks chairmen are lounging in their London or middle eastern offices rolling in money are kidding themselves. The small clubs have less operating revenues, the big clubs need to spend more to maintain their market presence. Although some clubs have sold for big prices (e.g. what Ashley paid, and the debt he paid off), owners don't take on these risks expecting big sell-on profits, they do it to have a toy, advertise their business, or maybe launder money.

This isn't a misguided attempt to promote MA, I in fact dislike the guy for his lack of transparency and willingness to communicate with supporters and the community, as well as the plastering of SD on every inch of SJP. But its stupid to believe he, or any other owner run pro sports clubs expecting or attempting to profit like they do from their normal businesses, and I'm sick of fans of Newcastle or any other team (whether football, hockey, basketball, etc) moaning on about their owners just sticking around to make money, when anyone with any real sense would steer clear of the luxury sport of sports ownership if they didn't want to take a loss.

 

Cant help but feel we are simply an advertising campaign for sports direct. I mean how much would the marketing cost to have your name plastered all over sky sports for 90 mins

 

I don't think many people do think they go into it to make money. Most definitely a play thing (Ashley, Glazer, pretty much everyone else) or because they support the club (a la Whelan, SJH, etc)

However, you can definitely make money out of a club. If you bought us in 2007 and added a few decent signings, whilst cutting out the dross, you could easily have got us in Europe, and then sold us with about £70 million in the bank. Admittedly, our finances wouldn't be good, but you could leave that for the next owners

 

I won't disagree with that, he has taken every opportunity available to advertise his business as shamefully as possible. I guess we should be grateful it's as relevant a business as it is...instead of say, a tampon company? ...I'm seriously grasping at straws haha

 

and even if he isnt making money with nufc, sports direct is **** hot at the moment - must be partly to do with nufc

 

OK, it could probably be the motive for why MA bought NUFC as the club has a worldwide profile without
the pricetag after the dealings of Fat Freddy. No coincidence there's Sports Direct logos plastered everywhere
but I can't help thinking it'd be easier to just cough up the money to be the shirt sponsor? There's more to
it than this for MA surely? I reckon it's to have some kudos and respect among his circle/peers and very
publicly show how his business sense is so 'great'. Remember too not long ago he was out on the toon buying
everyone a round and everyone's best mate which would be a real ego trip (while it lasted) and possibly why
there's resentment behind the wall of silence now.

 

Exactly the kind of stuff I'm thinking of! I just get frustrated particularly during transfer season when accusations are thrown around that owners are pocketing the money to pay for holidays and gambling trips, when if they really wanted to be making a profit, they'd have stuck to investments, etc. What it really comes down to is owning prestige, a symbol of wealth to pad your ego and have conversation topics at dinner parties, while maybe having your name dropped by Harry Rednapp in Sky interviews while he tries to sell all of his squad as "top-drawer players that'd get into every European club" from Manchester to Madrid...but I digress

 

You are spot on with this and your original post. I have argued several times on here that it is ridiculous to label MA's motives towards the club as greedy.

The guy as had in the region of £200m of his personal wealth tied up in the club generating no income for him whatsoever, yet could have made a fortune by investing this capital in one of the many financial instruments available on the market.

Like you say fame, ego, prestige and who knows what other motives might be making MA and other owners buy clubs but greed and the making of money are certainly not amongst them.

 

Hear Hear! And yet again today there are countless people who've talked about "Ashley filling his pockets" with the money he's allegedly making, etc. Everyone on not606 probably spends a lot of money on football, likely more than we should... but the owners of the clubs everyone supports aren't spending their days swimming in the proceeds like Scrooge McDuck

 

As a great man once said:

 

An allegation which does not stand up to scrutiny whatsoever, but it is repeated again and again. What is closer to the truth is that many Toon fans seem to feel that MA is selfish for not squandering even more money on the club than he already does because he is actually losing money both in real terms and in lost potential income by backing the club.

The thing I keep asking myself, is why does he do this because he must know that most of the fans hate him? Personally I wouldn't contribute vast sums of money to keep something going if I only received hatred and contempt from the very people who love that thing the most. The whole situation surrounding his ownership and our (the fans) relationship with him is an enigma!

 

While I agree with this article, dont Arsenal turn a profit every year?

 

Couldn't have explained it better. It really is a bizarre situation, and I'd love to sit down for a pint with Mike and hear his motivations

 

I don't think so, I believe the only club that turned a profit (in either 08/09 or 09/10) was Stoke with £700,000

 

I didn't mean to suggest that no clubs make profits, only that owners don't become owners with the main motivation being to make money

EDIT: Whoops, reading back what I wrote late last night, I realise I emphatically suggested "they're all sink holes", but I acknowledge there likely are exceptions out there

 

I would too actually, because it confuses the hell out of me!

 

Don't Know? I think they're losing money for a couple of years but expecting to make a lot of it back off the Highbury development
Tottenham used to but now they've got Redknapp in charge so......

 

Not at the moment no. They are pumping as much of their income as they can into paying off the Emirates stadium as quickly as possible I think and the Highbury Property Development (which cost alot of money to build) is not fully generating income yet.

But once the stadium is paid off and the HPD up to speed they will be in a position to make a profit.

 

Oh I agree, it's near impossible to turn a profit and no one who is a businessman would buy a football club attempting to turn a profit. Arsenal are the exception because they get players in for very cheap and sell them for millions.

 

Don't forget their extortionate ticket prices too! (not that the real money is in ticket revenue, but London clubs try damn hard..)