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.


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

Stats: Forest v Bristol City

All the stats from Forest (1) vs (0) Bristol City, City Ground, 21/1/17 Att: 17,418

Nottingham Forest v Bristol City - Team Sheets

Nottingham Forest are at the City Ground with Bristol City the visitors for the latest Championship game.

Forest v Bristol, Vital's Match Preview.

Managerless Nottingham Forest take on Lee Johnson`s Bristol City in today`s City Ground relegation six pointer.

Officials - Nottm Forest v Bristol City (21/1/17)

The Football League have now announced the Match Day officials that will take charge of the game between Nottingham Forest and Bristol City this Saturday.

Archived Vital Forest Articles

Vital Forest articles from

Site Journalists

Kev Finnegan
no email
Profile
Our Kids Dad
Editor email
Profile

Current Poll (see more polls)

Bristol City MotM
Suggested By:
Henderson6%
Lichaj2%
Mills2%
Hobbs22%
Pinillos5%
Mancienne17%
Vaughan2%
Ward2%
Cash25%
Osborn17%
Assombalonga0%
Sub - Bendtner0%

League Table

# Team P W D L Pts. GD
1 Newcastle 27 19 1 7 58 33
2 Brighton 26 17 6 3 57 24
3 Huddersfield 27 15 4 8 49 2
4 Leeds Utd 27 15 3 9 48 10
5 Reading 26 14 4 8 46 2
6 Sheff Wed 27 13 6 8 45 5
7 Derby County 27 12 7 8 43 6
8 Barnsley 27 12 5 10 41 5
9 Fulham 26 10 10 6 40 13
10 Norwich 27 12 4 11 40 5
11 Preston 27 11 7 9 40 3
12 Birmingham 27 9 10 8 37 -5
13 Aston Villa 27 8 12 7 36 1
14 Ipswich 27 9 7 11 34 -5
15 Brentford 27 9 6 12 33 -1
16 Cardiff 26 9 6 11 33 -9
17 Q.P.R. 27 9 6 12 33 -11
18 Wolves 27 8 8 11 32 -3
19 Forest 27 8 6 13 30 -7
20 Bristol City 27 8 3 16 27 -4
21 Wigan 27 6 7 14 25 -8
22 Burton 27 6 7 14 25 -11
23 Blackburn 27 6 7 14 25 -12
24 Rotherham 27 4 4 19 16 -33
Write for Vital Football
Latest F1 News
Latest Vital Boxing News
The Vital Football Members League

Recent Nottingham Forest Results (view all)

Nottingham Forest Fixtures (view all)

Jan 25 2017 7:45PM : Leeds United (a)
Sky Bet Championship
Jan 31 2017 7:45PM : Rotherham United (H)
Sky Bet Championship
Feb 4 2017 5:30PM : Aston Villa (H)
Sky Bet Championship
Feb 11 2017 3:00PM : Norwich City (a)
Sky Bet Championship
Feb 14 2017 7:45PM : Fulham (a)
Sky Bet Championship
Feb 18 2017 3:00PM : Sheffield Wednesday (H)
Sky Bet Championship

Vital Members League Table

RankNamePoints
1.Jimmy Gordon430
2.orbitalforest296
3.Apollyon294
4.Galaxy42284
5.LyttleByLyttle255
6.Our Kids Dad247
7.the jock246
8.paplane235
9.da fuq191
10.Pope John XXIII182
Vital Football Comment