Partisanship aside- is buying shares of

[Peter R]

Manu a good investment? Is buying shares of any sports team a good investment?

[Lazie]

Manu a good investment? Is buying shares of any sports team a good investment?

Dude, this isn't a sports team ... its the MOST VALUABLE sports Empire.

[Paul Marin]

Manu a good investment? Is buying shares of any sports team a good investment?

Peter, investing in an American style club can be a good investment as they have a better handle on costs than EPL clubs. The danger in investing in an EPL club is that they have no salary caps and many have - like Manure - taken on huge debt to increase their talent pool. This is where the wheels fall off to my way of thinking as player compensation and transfer fees are by far the biggest cash hogs for a football club.

On the revenue side, revenues in all sports teams essentially come down to merchandising, TV money and gate receipts. In that regard, you can't get much better than Manure - they have top line numbers that can more than suffice for a solid business but I submit that they would not be a good investment unless and until they get to the "Arsenal model" where they a) have an aggressive debt reduction strategy (ergo - no silverware until your house is in order) and b) have a player development philosophy which places a self imposed limit on player fees and wages and focuses on development of young talent.

You'd also have to look at their financials closely and see how much cash is going towards interest debt. Right now, about $70m a year goes to interest on debt. For a company doing $440m a year in revenue, you'd think that would be okay, but not when footballers wages and transfer fees are so astronomical. The $100m they plan to raise by the way will reduce interest payments by only about $10m a year. Seems like a lot of trouble for not a lot of return, but I'm sure they will issue more shares at some point.

Anyway, if you decide to invest in them, that's your business...but be forewarned...if you put 2 cents into dat deh club a gwine disown you.

[Bricktop]

The NBA has a salary cap yet teams like Miami Heat keep losing money because of revenue sharing...

[Islandman]

Sports franchises are more like toys for very rich men than they are investments for them. Some big city teams have the market size to do well but in general I don't think franchises are run as strictly "for-profit" businesses.

[Assasin]

No better or worst than some of the IPOs I have seen. I don't know how much higher Manu "stock" can rise any further but let see the business plan. I think the Glazers however have too much vote. The B stocks(which is owned by Glazers) have 10 times the vote as the A stock which is floated.

[Sir X]

Bankruptcy in 3 years.Look at Rangers.

[Paul Marin]

No better or worst than some of the IPOs I have seen. I don't know how much higher Manu "stock" can rise any further but let see the business plan. I think the Glazers however have too much vote. The B stocks(which is owned by Glazers) have 10 times the vote as the A stock which is floated.

As you said, we'd have to see the prospectus. I suspect that you are right about the extent to which their stock can rise however, there are many untapped markets that the prem still can look forward to exploiting including the US, African and Asian markets. There is no question though, that job one is debt reduction and so the offering makes sense, even though there are no votes to go with it (not unlike Google and Facebook by the way).

What has always surprised me is just how "little" these clubs are in the grand scheme of things relative to really big business. A $500m/year club is still a "small cap" company in investment terms. You would think that football clubs could be much bigger.

[Karl]

Looks like a very bad bet to me.

[Jangle]

Peter don't listen to Paul, he's a certified eediat.

Seriously though, before investing in shares or anything for that matter, you've first got to determine how long you want to have your money tied up before you see the returns. The Empire's stocks will continue to rise within the next 5 years. That is inevitable. We will finish at the top or very close to the top of the BPL next season and we will reach at least the semi-finals of the Champions League also. That is guaranteed. The variables however, are:
1. the starting price. Hopefully they start at a conservative price to attract investors, like yourself.
2. When Sir Alex Ferguson retires and who is his successor
Those should be your ONLY two concerns. You are a risk taker so stop sweating the details. Leave that to bighead who over-thinks everything and is afraid of his shadow.
Contrary to what bighead believes, the Empire is a well managed club. The "Arsenal model" that bighead loves to extol, has been in place at the Empire for years now. The difference is, like any good corporation, its assets were leveraged to raise capital so that it can maintain and compete in a modern day business environment.....while producing results, thereby growing the product. Right now, the Empire has the biggest foothold in Asia, than any of the big clubs and is poised to grow even further with the acquisition of the Japanese. South Korea still loves us even though we soon get rid of their wild son.

If I had the crazy money like you sitting around, I would invest at least 1/3 of it into the Empire shares. So go crazy with your US$1500 and collect your 3 shares certificate (if you get that much) and watch the money roll in my friend.

[Jangle]

'If a new signing ever wanted to see the scale of the club, in all its might, then a trip to Asia is perfect.

'It's the perfect preparation for eventually walking out at Old Trafford in front of 75,000 people for your home debut.

'If they're not already aware of the size of the club, a trip to Asia will soon sort them out.'



Read more: http://www.dailymail.co.uk/sport/foo...#ixzz1zs1TWS3j

[Peter R]

Sounds like you're trying to sell me a bridge... and I really wish I had mad money... I'll stand back wid me penny ha'penny and watch de ride...

[HL]

Paul maybe I missed it--but the only part you left out is the organizational/managent structure of the company...in deciding a financial investment. And you are perfectly correct, Arsenal has the best model.

Lots of EPL clubs have past players in their corporate structure. None of them have spent a a day doing a business management course. It is the primary reason for failure through loss of money.

Newcastle, Liverpool, Manchester United comes to mind.

I would be more comfortable placing my money in a MLS franchise type business... rather than it's european counterpart.

[GazX]

Buying shares in MU? Only if yuh have money to waste.
If them never have the debt then i'd say yes. But that debt/loan mean MU hampered and with City, Chelsea able to splash the cash, and Barca and Real always in the market for top players, cant see much shares value rising success in the immediate future for MU tbh.

[Paul Marin]

Paul maybe I missed it--but the only part you left out is the organizational/managent structure of the company...in deciding a financial investment. And you are perfectly correct, Arsenal has the best model.

Lots of EPL clubs have past players in their corporate structure. None of them have spent a a day doing a business management course. It is the primary reason for failure through loss of money.

Newcastle, Liverpool, Manchester United comes to mind.

I would be more comfortable placing my money in a MLS franchise type business... rather than it's european counterpart.

Zero question about that!