Usmanov

[Blue_Berry]

I am reasonably sure that the money he has lobbed at Chelsea has been converted to equity, or if not, appears on their balance sheet as an unsecured, interest free loan. Roughly, he has sent £1 Billion their way.

The market cap of Chelsea is said to be just north of £1 Billion, and finding a buyer would be relatively easy.

Whether its equity or club debt, either would be returned to him. Moshiri is doing essentially the same thing here.

Yup, at the end of the day, the money he put in (a liability to the club) is represented by assets of the club (theoretically, but very volatile ones!), so if he is the club's 'owner' (which infers it is equity he holds), then he's paid back on sale. If it's debt, I'd assume he has a watertight document to say he's repaid on change of 'ownership'. Very happy for Moshiri to follow that model!

 

[Blue_Berry]

Three good points, and clubs are useful for comparison. All assets have value, and I'm going to bastardize the vocabulary I'm sure, but United, being a publicly traded asset, has a tangible extrinsic value. Who knows what the real value of City or Chelsea may be, but both lag behind in market value, and both had ton(ne)s of cash dumped in prior to FFP slapping the wrists and saying "Stop that!" I don't know how City sells for value, but I really don't think the Sheiks care--what else are they going to spend money on? As far as Abramovic is concerned, he has bigger issues and will sell "at a loss" as well, but Chelsea will still be valuable to a new owner.

Ironic that FFP had the effect of locking in the vast funding into the rich clubs and putting the shutters down on any other clubs joining in the fun - almost certainly the exact opposite of what it was meant to achieve...

 

[Deleted member 28206]

Reminds me of the time Steven Gerard did a twitter ama and someone asks him how he feels that after the divorce Ryan Giggs' wife has six more League medals than him.

 

[roydo]

I guess that's the issue, he gets his equity out, which is increased over what he bought it for. Can he sell for $1B? That's a lot of money, but I guess it makes sense.

*Forbes thinks they're worth $2.5B, so I guess he can. Just takes the right investment group, and rich, bored people who want to buy a club...

https://www.forbes.com/soccer-valuations/list/

£1 Billion, £2 Billion, sounds loads.

In business, it really isnt that much. Chelsea are roughly the same value as Mike Ashley. Or a fraction of the value of Uber, who make no money.

 

[SerenityNigh]

Ironic that FFP had the effect of locking in the vast funding into the rich clubs and putting the shutters down on any other clubs joining in the fun - almost certainly the exact opposite of what it was meant to achieve...

yep, unintended consequences and all that

 

[blueblue]

Reminds me of the time Steven Gerard did a twitter ama and someone asks him how he feels that after the divorce Ryan Giggs' wife has six more League medals than him.

That is very funny.

 

[SerenityNigh]

£1 Billion, £2 Billion, sounds loads.

In business, it really isnt that much. Chelsea are roughly the same value as Mike Ashley. Or a fraction of the value of Uber, who make no money.

You can probably make more sense of this than me, but this is what Forbes lists for all of these clubs. I added in the Price/Revenue and Price/Earnings (assuming Earnings ~ NOI) for comps and giggles.

In the end, a buyer pays what they want to pay for a club, and there's such a small number of clubs for sale and viable buyers, that we can't really guess the true price, like we can a used car.

 

[Khalekan]

Ironic that FFP had the effect of locking in the vast funding into the rich clubs and putting the shutters down on any other clubs joining in the fun - almost certainly the exact opposite of what it was meant to achieve...

Au contraire...l think that was exactly the desired effect.

 

[roydo]

You can probably make more sense of this than me

Marginally, at best mate!

 

[SerenityNigh]

Marginally, at best mate!

Maybe I'm confusing you with someone with an accountant's background, I only have space in my head for about 10 or so GOT users and after that everyone blends together. I'm sure we have a few armchair accountants who can damo their way through the numbers as well.

 

[roydo]

Maybe I'm confusing you with someone with an accountant's background, I only have space in my head for about 10 or so GOT users and after that everyone blends together. I'm sure we have a few armchair accountants who can damo their way through the numbers as well.

Same here. I occasionally get a PM from someone I banned or warned or sommet, and usually I havnt a clue what I did, to whom, or why ffs!

But that list you put up I couldnt get my head round. Apparently our revenue is a 1/4 of Real Madrid, but they are worth 10 times we are. Probably are like, but no idea why.

 

[formerly manx toffee]

Hi mate, this is actually a company called "Unique Sports Management"

Noting to do with Uncle Uzzy.

Oops

 

[The binman chronicles]

almost certainly the exact opposite of what it was meant to achieve...

Erm...You might want to think that one through again. Sounds exactly like it achieved what the big clubs wanted!

 

[Blue_Berry]

Erm...You might want to think that one through again. Sounds exactly like it achieved what the big clubs wanted!

Conspiracy theory...?

You reckon that's what the 'authorities' wanted?

 

[bcblue1878]

Conspiracy theory...?

You reckon that's what the 'authorities' wanted?

Very naive to think it’s not what the big clubs and subsequently their puppet masters “the authorities” wanted! Keeps the shop nice and closed for them, and more recently more rumours of changes to the Champions (I use that word loosely!) League which would appear to try make it even more difficult for clubs like Everton and others to break through!
The rich just want to keep getting richer!