So Who Wants to have a Foreign Billionaire?
Owning a Premiership club, these days, seems to be a must for the rich and notorious. The trend of foreign investors buying huge chunks of stock, in our top teams is almost becoming a fashion. But, who is out to benefit from these deals, the clubs or the owners?
Below is my analysis of the teams affected by the guys with all the bucks.
Chelsea – No need to say much about big Roman and Chelsea. An unending bank balance led to a spending frenzy when he first took over, destabilising the transfer market with vastly over inflated prices. Reports over the last year suggest a more business like approach will be taken from now on, to the possible frustration of Jose.
VERDICT – Unless Roman gets itchy feet – Chelsea will remain minted
Manchester United – The Glazer family entered the scene in 2005 to mass protest from United fans, even creating a revolt by season ticket holders and the creation of a fans alternative in FC United. The deal to buy Man U reportedly took the worlds richest club and ‘mortgaged’ it up to the hilt to finance the deal. At first the worry about tight purse strings seemed justified, but recent spending seems to suggest the owners realise money needs to be spent to compete at the top. There are rumours though, that the Glazers have only a short term business model for United and will be selling up in the near future.
VERDICT – Watch this space
Portsmouth – Although already owned by foreign money in the shape of Milan Mandaric, Alexandre Gaydamak stumped up the cash to take over Portsmouth in 2006. Maybe not quite up with ‘Roman’s of this world, but still worth a few bob. On the transfer market though, Portsmouth do have a shrewd investor in Harry Redknapp. We haven’t seen any massive signings, yet, but Harry does have a reputation to develop less expensive players into strong team players.
VERDICT – With Harry at the helm who knows – commitment of Owner, not yet known.
Aston Villa – Became the 2nd American buyer of a Premiership club, in 2006. Rumour and speculation abounded at the time of a massive warchest available to spend. Martin O’Neil was appointed manager, but the transfer window closed too soon for any real purchases. Since then, the expected gravy train must of got stuck in some other station up the line, no big signings (unless you consider Ashley Young a big signing) & nothing on the horizon.
VERDICT – Cost of owning a football club has obviously been under estimated by the Owner. I would be worried.
Liverpool – Next up for a buyout were Liverpool, earlier this year, by American businessman Gillett & Hicks. Again, a massive warchest seemed to be promised to push Liverpool’s chances of a sure title challenge. Rafa seemed to be convinced the money was going to be spent, I’m not sure the owners realise quite how much he meant! No signings as of yet and the pot is looking a lot smaller than expected.
VERDICT – Similar to Villa, early promises seem to be forgotten when it really comes down to it. I would be worried here too.
Arsenal – OK, you say, Arsenal aren’t in foreign ownership, yet. But, I include them because of the affect even the possibility, of foreign ownership can have on a club. In April this year American Stan Kroenke bought up shares to take his holding to just over 12%, sparking speculation of another foreign take over of an English club. Reports suggest that vice-chairman David Dein’s departure due to ‘irreconcilable differences’ with the board, was down to his backing of a rebuffed take over bid by Kroenke. Dein’s departure has without doubt unsettled the club from the top down, with the imminent transfer of club talisman Thierry Henry off to Barcelona & manager Arsene Wenger refusing to commit his services beyond next year.
VERDICT – Stormy times for Arsenal ahead unless they can stop others following Henry out the door and the club rotting from the inside.
West Ham – Eggert Magnusson led an Icelandic consortium to purchase the club in 2006. So far, West Ham do actually have financial backing that Magnusson promised. Whether they can attract the kind of players their budget allows them to bid for, is a different story. Multi-million pound offers for players & promises of big wages, ala Chelsea, have inflated the market somewhat – but with the Tevez/Mascherano still dragging on, they may need a successful season, or two, to prove their ambitions (Darren Bent may not be the last to turn the Hammers down).
VERDICT – Potential seems to be there for the kind of financial backing and commitment needed. In my opinion though, West Ham shouldn’t be a Premiership club next season.
Manchester City – Now this one is scary. Thaksin Shinawatra last week completed the take over of City. As former PM of Thailand, this guy come with baggage, including corruption allegations, dictatorship & treason, to name a few – all levelled at him from his own country. Exiled and with assets frozen, he has somehow managed to buy a Premiership club. Now, he may be the victim of a smear campaign by the military junta that deposed him, or it could be true – either way, the usual promises of cash have been promised, time will only tell whether this guy puts his money where his mouth is.
VERDICT – If I were a City fan, I would be terrified that after the club has sold a few shirts in Asia, that the club gets drawn into some of the owners financial/political turmoil.
And Finally,
Tottenham Hotspur – Well, we aren’t in foreign ownership – and I am sure I am not alone in being glad of that fact. From the days of near financial collapse under Irving Scholar, to the investment by Alan Sugar the club has been slowly making up ground.
In 2001, ENIC and Daniel Levy, bought the club and have accelerated our progress upwards. We now have a club not only doing better on the pitch, with a squad quietly admired by many a top club, but we are now posting profits. The management are scouting and buying both young British talent (which is the way to success in my book) and quality foreign players, none better than Dimitar Berbatov. Of course, all clubs buy a few duds along the way, but Spurs have been able to offload many of these for good money.
The result? An ever improving team, excellent sponsorship returns, healthy balance sheet and increasing share price.
VERDICT – Spurs seem to be proving, at the moment at least, prudent running of the club means that you don’t need to have a foreign billionaire, to have a stable, progressive and competitive Premiership team. Thankyou & well done Mr Levy.
What do you think??
COYS!!
Below is my analysis of the teams affected by the guys with all the bucks.
Chelsea – No need to say much about big Roman and Chelsea. An unending bank balance led to a spending frenzy when he first took over, destabilising the transfer market with vastly over inflated prices. Reports over the last year suggest a more business like approach will be taken from now on, to the possible frustration of Jose.
VERDICT – Unless Roman gets itchy feet – Chelsea will remain minted
Manchester United – The Glazer family entered the scene in 2005 to mass protest from United fans, even creating a revolt by season ticket holders and the creation of a fans alternative in FC United. The deal to buy Man U reportedly took the worlds richest club and ‘mortgaged’ it up to the hilt to finance the deal. At first the worry about tight purse strings seemed justified, but recent spending seems to suggest the owners realise money needs to be spent to compete at the top. There are rumours though, that the Glazers have only a short term business model for United and will be selling up in the near future.
VERDICT – Watch this space
Portsmouth – Although already owned by foreign money in the shape of Milan Mandaric, Alexandre Gaydamak stumped up the cash to take over Portsmouth in 2006. Maybe not quite up with ‘Roman’s of this world, but still worth a few bob. On the transfer market though, Portsmouth do have a shrewd investor in Harry Redknapp. We haven’t seen any massive signings, yet, but Harry does have a reputation to develop less expensive players into strong team players.
VERDICT – With Harry at the helm who knows – commitment of Owner, not yet known.
Aston Villa – Became the 2nd American buyer of a Premiership club, in 2006. Rumour and speculation abounded at the time of a massive warchest available to spend. Martin O’Neil was appointed manager, but the transfer window closed too soon for any real purchases. Since then, the expected gravy train must of got stuck in some other station up the line, no big signings (unless you consider Ashley Young a big signing) & nothing on the horizon.
VERDICT – Cost of owning a football club has obviously been under estimated by the Owner. I would be worried.
Liverpool – Next up for a buyout were Liverpool, earlier this year, by American businessman Gillett & Hicks. Again, a massive warchest seemed to be promised to push Liverpool’s chances of a sure title challenge. Rafa seemed to be convinced the money was going to be spent, I’m not sure the owners realise quite how much he meant! No signings as of yet and the pot is looking a lot smaller than expected.
VERDICT – Similar to Villa, early promises seem to be forgotten when it really comes down to it. I would be worried here too.
Arsenal – OK, you say, Arsenal aren’t in foreign ownership, yet. But, I include them because of the affect even the possibility, of foreign ownership can have on a club. In April this year American Stan Kroenke bought up shares to take his holding to just over 12%, sparking speculation of another foreign take over of an English club. Reports suggest that vice-chairman David Dein’s departure due to ‘irreconcilable differences’ with the board, was down to his backing of a rebuffed take over bid by Kroenke. Dein’s departure has without doubt unsettled the club from the top down, with the imminent transfer of club talisman Thierry Henry off to Barcelona & manager Arsene Wenger refusing to commit his services beyond next year.
VERDICT – Stormy times for Arsenal ahead unless they can stop others following Henry out the door and the club rotting from the inside.
West Ham – Eggert Magnusson led an Icelandic consortium to purchase the club in 2006. So far, West Ham do actually have financial backing that Magnusson promised. Whether they can attract the kind of players their budget allows them to bid for, is a different story. Multi-million pound offers for players & promises of big wages, ala Chelsea, have inflated the market somewhat – but with the Tevez/Mascherano still dragging on, they may need a successful season, or two, to prove their ambitions (Darren Bent may not be the last to turn the Hammers down).
VERDICT – Potential seems to be there for the kind of financial backing and commitment needed. In my opinion though, West Ham shouldn’t be a Premiership club next season.
Manchester City – Now this one is scary. Thaksin Shinawatra last week completed the take over of City. As former PM of Thailand, this guy come with baggage, including corruption allegations, dictatorship & treason, to name a few – all levelled at him from his own country. Exiled and with assets frozen, he has somehow managed to buy a Premiership club. Now, he may be the victim of a smear campaign by the military junta that deposed him, or it could be true – either way, the usual promises of cash have been promised, time will only tell whether this guy puts his money where his mouth is.
VERDICT – If I were a City fan, I would be terrified that after the club has sold a few shirts in Asia, that the club gets drawn into some of the owners financial/political turmoil.
And Finally,
Tottenham Hotspur – Well, we aren’t in foreign ownership – and I am sure I am not alone in being glad of that fact. From the days of near financial collapse under Irving Scholar, to the investment by Alan Sugar the club has been slowly making up ground.
In 2001, ENIC and Daniel Levy, bought the club and have accelerated our progress upwards. We now have a club not only doing better on the pitch, with a squad quietly admired by many a top club, but we are now posting profits. The management are scouting and buying both young British talent (which is the way to success in my book) and quality foreign players, none better than Dimitar Berbatov. Of course, all clubs buy a few duds along the way, but Spurs have been able to offload many of these for good money.
The result? An ever improving team, excellent sponsorship returns, healthy balance sheet and increasing share price.
VERDICT – Spurs seem to be proving, at the moment at least, prudent running of the club means that you don’t need to have a foreign billionaire, to have a stable, progressive and competitive Premiership team. Thankyou & well done Mr Levy.
What do you think??
COYS!!
posted by Scotty at 1:07 PM
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