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My friend is a navigator on the ship.. He's asked him a few times to buy Everton, but he laughs and says he can't..
Certainly an interesting read, but it had me wondering a bit about something @the esk said about capital being more important than revenue. I was thinking of the most successful teams in Europe over the past few years. Barca are self-funded, Bayern are self-funded, Man Utd are self-funded, as are Arsenal and Real Madrid also.
Those teams have managed to dominate their domestic leagues and European competitions without having to rely on capital from outside, but instead on the revenue they've generated as businesses.
Now I'll gladly confess that the club have probably been incredibly bad at raising our revenue, but it got me wondering whether we can grow the club by growing revenues. Obviously one of the reasons why we're clamouring for external capital is to build a new stadium, so I had a look at two northern clubs with much larger grounds than us (Newcastle and Sunderland).
This is how revenue breaks down for last year
Revenue £120.5 (EFC), £95.9m (NFC), £101m (SFC)
Gate receipts £19.3m (EFC), £27.8m (NFC), £15.7m (SFC)
Commercial £8.4m (EFC), £17.1m (NFC), £8.4m (SFC)
So despite Newcastle and Sunderland both having average gates several thousand higher than us, their overall revenue is considerably lower, and in Sunderland's case, even their gate receipts are below ours. It's not immediately obvious just how commercially beneficial having a new stadium would be for us, baring in mind the huge costs of building one.
Those teams have managed to dominate their domestic leagues and European competitions without having to rely on capital from outside, but instead on the revenue they've generated as businesses.
Now I'll gladly confess that the club have probably been incredibly bad at raising our revenue, but it got me wondering whether we can grow the club by growing revenues. Obviously one of the reasons why we're clamouring for external capital is to build a new stadium, so I had a look at two northern clubs with much larger grounds than us (Newcastle and Sunderland).
This is how revenue breaks down for last year
Revenue £120.5 (EFC), £95.9m (NFC), £101m (SFC)
Gate receipts £19.3m (EFC), £27.8m (NFC), £15.7m (SFC)
Commercial £8.4m (EFC), £17.1m (NFC), £8.4m (SFC)
So despite Newcastle and Sunderland both having average gates several thousand higher than us, their overall revenue is considerably lower, and in Sunderland's case, even their gate receipts are below ours. It's not immediately obvious just how commercially beneficial having a new stadium would be for us, baring in mind the huge costs of building one.
I also liked Collymores thoughts that after 23 years of premier league money, we shouldn't have loans or debts.
One of 7 to be in there consistently..
One of 7 to be in there consistently..
We need better commercial deals, and a better sponsorship deal for starters. I agree, a new stadium is mainly aesthetic, for fan comfort, not money generating..
I appreciate btw that all of the clubs I mentioned there had achieved a degree of commercial clout before the various financial goldrushes struck the sport, whether that was the Premier League or the Champions League, and they've all ridden those waves incredibly well (unlike ourselves and to a lesser extent Liverpool).
Spadge Vernacular
Player Valuation: £70m
In an ideal world getting Lord G and the Moore's to take back over would be great.
I mean there are exceptions of course. Old Trafford clearly because it is so huge, and the Emirates because of its size plus location. I've followed United commercially for a long time now, and whilst you may say they were fortunate with the golden generation + Ferguson coming along just as the PL was hitting its straps, they invested incredibly well both in expanding Old Trafford and in Carrington. The only time they went externally for money was to the stock market.
As has been well publicised, the Glazers have sucked far more out of the club than they've ever put in, yet they've also squeezed every drop out of fans and sponsors possible, and commercially they're vastly more successful than they were under Edwards (and they put us to shame even then).
Donald Twain
Vide cor meum
Heathcliff
Banned at own request
Would that be last year where we had all those extra Europa League games to push gate and commercial revenues as well as receive tv top ups? And did it also include the higher league finishing reward cash from having finished fifth as well as extra games screened live money?
Some of those reasons might play a factor in why two misfunctioning clubs had lessened revenue streams. Sunderland are still dicing with extremely poor football and newcastle have a fans problem with there owner seeing some numbers purposefully stay away.
Flipside to the issue :- Would a bigger stadium with no obstructed views a proper band of corporate facilities and adequate facilities for your average supporter (toilets!) push the club on in terms of earning power and in what bracket would any naming rights cash be allocated (and is a retail partner still the prefered method of having it built).
USABlue
Player Valuation: £70m
exactly. United and Arsenal for example started to succeed consistently at the perfect time was able to ride the PL/CL wave to becoming global brands
....the problem summary so very well articulated by @the esk is a concern because there appears to be no light at the end of the tunnel. We are treading water with one key objective each season - to reach 40 points. When you tread water it's difficult to move forward, it's less difficult to sink.
I'm sure there are many factors involved, it wasn't suggested as any kind of fait accompli, but even if we go with the top end of things and say we'd get the extra 10,000 fans per game that Newcastle get each week, it probably wouldn't generate 'that' much extra cash. Obviously a few million extra each year is nice, but we also have to consider that building a stadium of that size is likely to cost us ~£150m.
I'll make some assumptions for illustrative purposes, but if we assume we have no sugar daddy and have to borrow the £150m, then at 3% interest, the interest on that alone is £4.5m a year, so the 'profit' we'd make from it is pretty marginal, although I'm obviously not taking into account naming rights or any of that. I'm just saying I don't think a stadium is our dream ticket.
The capital is liquid money which is separate from the revenue.
Capital is only available when the moneyed make it available for investment.
Option 2 in the internet age would be my choice @the esk
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