Vital Football

Latest Nottingham Forest News

Football Economics Latest

Football Economics Latest

Manchester City Takeover Imminent?

Manchester City has informed the Stock Exchange that it is negotiating with four different parties, one from the United States, to take over the club. The Americans are understood to be the favourites. However, a complicating factor is the financial circumstances of majority shareholders John Wardle and David Makin. City chairman Wardle, and Makin, a former business partner with whom he founded retail giant JD Sports, are owed about £23m in loans by the club. With their loans repaid and 29.95 per cent shareholding worth about £5.4m, the pair stand to make as much as £30m from any takeover. However, any investor must strike two deals, one that satisfies Wardle and Makin for payment of their loans and one acceptable to all shareholders. The American bid is leveraged and could result in the club, which already has debts of over £50, falling deeper into the red. This would not please supporters who fear the club being saddled with a debt in much the same way Manchester United were when the Glazer family took over the club.

This factor could favour the British bid. It is fronted by former City footballer Ray Ranson who lost out in the summer to Randy Lerner in the battle for control of Aston Villa. Ranson does not rely on a player's pension and the after dinner speaker circuit for funds as he has made his own fortune in the insurance and sport finance fields.


Arsenal Running At A Loss

Arsenal lost £6.2m in the six months ending on 30 November. Their pre-tax profits rose from £14.3m in the same period in 2005 to £19.6m last year, but the loss was caused by one-off costs of £21.4m relating to the refinancing of their debt which stands at £260m and is being repaid over 25 years. The move to the Emirates Stadium has dramatically increased turnover. Match day income leapt from £15.6m to £38m with each game bringing £2.8m in ticket revenue. However, player wages rose by £12.3m.



Chelsea Losses


Chelsea cut their losses by £60m in the financial year to June 2006, but they still lost £80.2m. However, they still think they are on course to achieve their target of breaking even by 2009/10. Costs have been cut by 42.9 per cent, although players' wages by just 2 per cent, turnover was up and football activities increased income by 6.6 per cent. Public affairs director Simon Greenberg indicated that the days of big spending on players may well be over, with an increasing reliance on the club's academy. Possibly responding to criticism of the cost of watching live football, the club announced that they are freezing prices on all non-corporate tickets for Premiership matches next season, including both season tickets and match day tickets. Tickets for the group stage of the Champions League may be reduced. Chelsea continues to move towards a more self-sustaining financial model that is less reliant on the benefactions of Roman Abramovich, although rumours that he is thinking of walking away from the club clearly have little or no basis in fact.

Win FREE pizza with Vital Football!
Select your team and get 50% off if they score twice.
www.papajohns.co.uk/football


Click here to join in the debate on the club forum.

Writer:
Date:Tuesday February 27 2007
Time: 12:21PM

Comments

0
Interesting stuff. Amazing to think how many clubs are operating at a loss but are still hugely successful. Sport simply does not compare with any other kind of business - its all arse about face.
wemaybefamousagain
27/02/2007 20:46:00
Page 1/1
  1. 1

Login to post a comment

Recent Nottingham Forest Articles

De Vries Takes Player Of The Season

Goalkeeper Doris de Vries has been voted as Nottingham Forest's Player of the Season.

Fair Wolves Point For Williams

Caretaker head coach has said that ultimately he felt a share of the spoils against Wolverhampton Wanderers at the weekend was a fair result.

Stats: Nottingham Forest v Wolves

All the stats from Nottingham Forest (1) vs (1) Wolves, City Ground, 30/4/16 Att: 22,291

Nottingham Forest v Wolves - Team Sheets

Nottingham Forest are at the City Ground with Wolverhampton Wanderers the visitors today, this is a 3pm kick-off - the line-ups have been confirmed.

Archived Vital Forest Articles

Vital Forest articles from

Site Journalists

Kev Finnegan
no email
Profile
Our Kids Dad
Editor email
Profile
Those Feet
no email
Profile
WillT
no email
Profile
Galaxy42
no email
Profile
Mark2310
no email
Profile
bazforest
no email
Profile

Current Poll (see more polls)

Wolves MotM
Suggested By: Site Staff
de Vries0%
Lichaj0%
Mills0%
Fox50%
Jokic50%
Gardner0%
Tesche0%
Osborn0%
Lansbury0%
Cohen0%
Blackstock0%
Sub - Burke0%
Sub - Assombalonga0%

League Table

# Team P W D L Pts. GD
1 Burnley 45 25 15 5 90 34
2 Middlesbrough 45 26 10 9 88 32
3 Brighton 45 24 16 5 88 30
4 Hull City 45 23 11 11 80 30
5 Derby County 45 21 15 9 78 24
6 Sheff Wed 45 19 17 9 74 22
7 Cardiff 45 17 16 12 67 5
8 Ipswich 45 17 15 13 66 1
9 Birmingham 45 16 14 15 62 4
10 Brentford 45 18 8 19 62 1
11 Preston 45 15 16 14 61 0
12 Leeds Utd 45 14 16 15 58 -8
13 Q.P.R. 45 13 18 14 57 -1
14 Wolves 45 13 16 16 55 -6
15 Blackburn 45 12 16 17 52 -2
16 Reading 45 13 13 19 52 -5
17 Forest 45 12 16 17 52 -5
18 Bristol City 45 13 13 19 52 -16
19 Huddersfield 45 13 12 20 51 -7
20 Rotherham 45 13 10 22 49 -14
21 Fulham 45 11 15 19 48 -14
R Charlton 45 9 13 23 40 -37
R MK Dons 45 9 12 24 39 -29
R Bolton 45 5 15 25 30 -39
Latest F1 News
Latest Vital Boxing News

Recent Nottingham Forest Results (view all)

Nottingham Forest Fixtures (view all)

May 7 2016 12:30PM : Milton Keynes Dons (a)
Sky Bet Championship

Vital Members League Table

RankNamePoints
1.Ingy38
2.Pope John XXIII35
3.ThePromisedLand26
4.PVH24
5.the jock22
6.Apollyon18
7.orbitalforest16
8.forestfaninvegas15
9.LyttleByLyttle14
10.Old Red Fart14