Wenger: £15-20m Profit Required
"You should know that each season, it is imperative to show a profit of between fifteen and twenty million pounds," said Wenger.
Why?
Is bewaring of ambiguificationisation
They must be making close to that profit with selling out our 60k stadium and high ticket prices. Also we have been selling our best players and making money on all of them. All the Champions league profit and merchandising. Maybe its time to revisit our wage bill if they can't make the £20m profit...
Really?! Christ. Someone needs to let the rest of the league know.
I never apologise. I'm sorry, but that's just the way I am.
Don't worry im sure the billionaires and the equally dodgy, Barca and Real, will find some loophole. Probably along the lines of the team getting their underpants sponsored for £50m a year.....Originally Posted by John Jensen's Shooting Boots
FFP is about break even .. this must be target of owners .. rest could go for Arsenal .. you will not get extra points for FFP for having more profits .. is about breaking even
Just goes to prove Wenger has been finacially restricted by the board.
No, it doesn't!
Science adjusts its beliefs based on what is observed. Faith is the denial of observation so that Belief can be preserved. (Tim Minchin)
I contend that we are both atheists. I just believe in one fewer gods than you do. When you understand why you dismiss all other gods you will understand why I dismiss yours. (Stephen F. Roberts)
Any link to this ? would be good to see what context it's in.
Exactly. Without context the statement is meaningless.
Science adjusts its beliefs based on what is observed. Faith is the denial of observation so that Belief can be preserved. (Tim Minchin)
I contend that we are both atheists. I just believe in one fewer gods than you do. When you understand why you dismiss all other gods you will understand why I dismiss yours. (Stephen F. Roberts)
It's in the article about Hazard
http://www.emirates247.com/premier-l...02-07-1.441721
and here
http://www.ibtimes.co.uk/articles/29...er-rumour.htm?
and here again
http://www.goal.com/en-gb/news/2896/...senal-to-turn?
I'm not sure if it says anywhere who has set that as a target. Perhaps it's in that tiresome CEO's grand sustainable model?
Last edited by Robin van Bergkamp; 07/02/2012 at 12:43 PM.
When I despair, I remember that all through history the ways of truth and love have always won.
There have been tyrants, and murderers, and for a time they can seem invincible, but in the end they always fall.
Think of it - always.
Mahatma Gandhi
To Arsene - Thanks for the memories ; To Ivan and Stan - Thanks but no thanks
What is the purpose of a company, if it is not to make a profit?
A profit is essentially what the owners of the business are paid. You don't expect the players to play for nothing, why do you expect the owners to invest their money for nothing?
It shows just how much the rich millionaire owner is the "normal" state of football. Owners are expected to invest their money, for no return on their investment.
There is profit and there is profit.
Would a club like us require to show £15 to £20m profit? Possibly in terms of future investment but we do not seem to invest that way. At least not to me and not it appears to many others either.The club could certainly be run at a very healthy profit BUT solely for the purposes of a business and indeed someone else's business. Someone, who bought us solely for the purpose of making a profit and to whom, sporting excellence is neither here nor there. Just look at his other sporting concerns. If what has been reported here is entirely accurate, none of Mr K's sporting concerns excel in the sporting arena. They turn over a profit though.
While an element of profit is necessary in any business, we need to in the case of a sporting entity, balance profit with sporting success. Without the latter and because a sporting entity is reliant on it's following, profitability may not be something that will readily ensue in the absence of sporting success. Would for instance Utd be enjoying it's stature and financial worth if not for it's sporting successes? Worth thinking about perhaps.
IMHO
Last edited by Robin van Bergkamp; 07/02/2012 at 02:42 PM.
When I despair, I remember that all through history the ways of truth and love have always won.
There have been tyrants, and murderers, and for a time they can seem invincible, but in the end they always fall.
Think of it - always.
Mahatma Gandhi
To Arsene - Thanks for the memories ; To Ivan and Stan - Thanks but no thanks
I'm not sure what the total capitalization figure is at Arsenal (60K shares trading at about 10-15K?, so about 600-900M?), but I would expect that 15-20m would represent a very modest annual return (1%-4%?). You could probably earn more sticking it in a savings account and taking hardly any risk at all.
I think it shows how difficult it is for a business, competing with what are essentially hobby clubs. The 15-20M profit that is expected, represents one player, and not a really top player either. Hardly likely to make the difference between success and failure. I thiink we also have to remember that we as fans attribute far more certainty to success based on buying players than is really justifiable. The real question is if Arsenal bought the players and still lost whether fans would be happier than they are now, and whether that would be reflected in increased income.
Total rubbish Toledo. Do club owners for lower league teams own make a profit ? Nope. What about club owners of semi pro clubs ? They don't make a dime, it is just spend spend spend ! Owners ARE expected to invest their money in football clubs, if you can make some money thats a bonus.Do you think Sam Hammam was making money at Wimbledon ? Why do you think he moved the team to Milton Keynes !! What about Al Fayed ?
are you actually saying they buy & run clubs as a charity?
and are you actually comparing someone who bought the small club he supported since a kid with someone who came all the way from east Europe or USA, and assume both are here to run a a charity in UK?
if people run it as a charity? why no one is ready to buy Portsmouth? or many other clubs who been forced to be dissolved
you can't bring alike Abra or Shikh mansour who have lots of money aiming to use the club part of their prestige, then assume all owners are the same.. those are minority
do you actually think Stan Kroenke or Alisher Usmanov are all fan of Arsenal? why they didn't pay all club debt? why they didn't spend a dime from their pocket buying a classy player? where is their cash (aside from money they paid to buy the shares)? did they spend a dime outside those shares to make th club better?
they are same as glazers,Gillett, Hicks, Tom Werner and majority of club owners .. you can't expect someone coming all the way from USA are not here for the business
there are 2 type of owners :
A- those who run it as a charity
B- those who run it as a business.
you can tell the difference, as first one they will put their hands in their pockets and pay own money to enhance the club, the other will put his hand into the club cash safes and help himself .. now you tell me which side is arsenal owners are?
Last edited by shwan; 08/02/2012 at 02:59 AM.
Probably why buyers are so scarce for football clubs. I mean as philanthopy goes, giving your money to benefit a bunch of mega-rich players and fans that will call you all kinds of names if the team doesn't win, probably isn't the most rewarding or worthwhile cause.
You just answered your own question
A rhetorical question was asked whether or not a company, in this case a football club, is here to make profit. One of your 2 answers shows that it is not, therefore my point is proved. I would suggest in most cases sports companies do not make profits - certainly those who are not at the highest stage. If you look at F1 some teams get a lot of sponsorship but then you have teams like Force India where the owner pumps in lots of his own money, Tony Fernandes at Caterham too. Teams in lower leagues do not get the sponsorship or the attendances to cover their outgoings so for those owners it is a labour of love.
tbh that has nothing to do with Arsenal case here? your owners are not that type? if so, show me the money they put into the Arsenal account? I only see profits evaporating from the account every year.. just bcz you see others alike Shaikh mansour or Abra that doesn't mean they are too. for 80-90% of clubs in top leagues, it is pure business.You just answered your own question
A rhetorical question was asked whether or not a company, in this case a football club, is here to make profit. One of your 2 answers shows that it is not, therefore my point is proved. I would suggest in most cases sports companies do not make profits - certainly those who are not at the highest stage. If you look at F1 some teams get a lot of sponsorship but then you have teams like Force India where the owner pumps in lots of his own money, Tony Fernandes at Caterham too. Teams in lower leagues do not get the sponsorship or the attendances to cover their outgoings so for those owners it is a labour of love.
Profits can't evaporate in a Public Company. They have to be declared etc. and any money taken out is paid as Dividends. Unless Kroenke is paying himself a whopping great salary, and then paying tax on it, which I can't see happening.
Perhaps the 15-20m a year is to service the debt?
Is bewaring of ambiguificationisation
What are you talking about ? What about Ken Bates at Chelsea ? He pumped his own dosh into them for years. What about Matthew Harding ? What about Mike Ashley at Newcastle ? There are loads of owners of top clubs that put in theior own money because they love the club knowing full well they won't see that money again. How3 much did Alan Sugar make from Tottenham compared to how much he put in ?
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