Itwiznaeme Posted August 21, 2012 Share Posted August 21, 2012 http://www.bbc.co.uk/news/business-19206565It has been a long time since the owners of a football club in the UK sought to raise funds by selling shares in the club to professional investors or the general public. But the fact is, it is an idea whose time has come and gone. The one-time owner of Tottenham, Sir Alan Sugar, long ago explained in his typically blunt fashion just what was wrong - and still is wrong - with the finances of football. He described it as an industry that was ruled by "prune juice economics". By that, he meant the money went in at one end and then came straight out of the other end, mainly in the form of ever more extravagant salaries for players and huge payments to their agents. As a result, the past 20 years or so of unprecedented income for clubs, especially in England, has bypassed any ordinary investor who sought to make money out of it. Clubs, even in the Premier League, have been perennially loss-making as they have thrown ever larger sums of money at players, in a seemingly uncontrollable effort to stave off relegation. All the while they have, collectively, been racking up massive debts. And, over the past two decades, this has proved too much of a burden. In that time more than half of all Premier League and Football League clubs in England have been declared insolvent at one stage or another. Very few listed clubs paid a dividend and their share prices slumped. No wonder that a football club investment fund, launched in 2007 by the bank Singer & Friedlander to cash in on the new craze, was effectively wound up five years later, after initial investors had lost more than 40% of their money. New rich owners The past few years have seen most of the biggest and (potentially) wealthiest clubs being bought up by very rich foreigners who think they have the funds to subsidise a top class, or even second class, football club. The result is that today, only two football clubs in the UK still have shares quoted on the stock market - Celtic and Arsenal. In the case of Arsenal the shares are not readily tradeable as they are mostly owned by a few very rich individuals. Geoff Walters, of the Birkbeck Sport Business Centre, part of the University of London, says all this shows one simple thing: being on the stock market is fundamentally incompatible with being a football club. "Ordinary businesses will focus on profit, that will be a key motivating factor driving their behaviour," he points out. "But football clubs have to balance financial performance with on-pitch performance, and when there are huge increases in revenues, then a lot of that money is spent on player wages, who are the key aspect which helps clubs achieve their performance on the pitch. "That means clubs fail to make profits and that makes it very difficult to give dividends and for their shares to increase in value." Potential profit? While some of Manchester United's 1991 flotation went to private owners such as Martin Edwards, some was also used to fund ground development at the Old Trafford stadium. The Glazers will use the proceeds of their 10% share sale to pay off some of the club's accumulated debt, and to give themselves a hefty payment. But the key thing to realise is that the Glazers are not simply copying their club's own history. They have no intention of letting anyone else begin to have a say in how the club is run, which would be the natural consequence of opening up the share register to new investors. The owners of the new Manchester United shares will be awarded only a tiny fraction of the shareholders' overall voting rights. And they have been told that dividend payments are unlikely too. Their only real economic prospect is that the club becomes even more successful in the future and that the value of the shares rises as a consequence, to give them a potential profit if they chose to sell later on. The Glazers' latest move may be classed as a stock market flotation. But it is a very different one to those seen in the past. Link to comment Share on other sites More sharing options...
Mason Boyne Posted August 21, 2012 Share Posted August 21, 2012 Didn't read it Link to comment Share on other sites More sharing options...
Arthur Orton Posted August 21, 2012 Share Posted August 21, 2012 Didn't read it Quite interesting actually. You just keep doing your ostritch impression and keep the faith in Murray, Whyte, TBK, Bomber, Green and whoever is next. Link to comment Share on other sites More sharing options...
ForeverBlue1872 Posted August 21, 2012 Share Posted August 21, 2012 Delete this. Link to comment Share on other sites More sharing options...
keeps01 Posted August 21, 2012 Share Posted August 21, 2012 "Everybody is not Celtic minded" shocker !!!! More proof......... Tick Tock. Link to comment Share on other sites More sharing options...
youngsy Posted August 21, 2012 Share Posted August 21, 2012 Quite interesting actually. You just keep doing your ostritch impression and keep the faith in Murray, Whyte, TBK, Bomber, Green and whoever is next. No big deal about that. Football supporters will for the most part buy into their club for the emotional aspect rather than a financial aspect to make money from shares. Link to comment Share on other sites More sharing options...
Itwiznaeme Posted August 23, 2012 Author Share Posted August 23, 2012 No big deal about that. Football supporters will for the most part buy into their club for the emotional aspect rather than a financial aspect to make money from shares. Which part of the following sentence is it that you have trouble understanding: "It has been a long time since the owners of a football club in the UK sought to raise funds by selling shares in the club to professional investors or the general public." The old (now) bankrupt 'Rangers FC' were one of, if not the last football clubs that sought to raise funds by selling shares in the club to professional investors and the general public...it was unsuccessful, and one of the many reasons why the old 'Rangers FC' is now dead. Link to comment Share on other sites More sharing options...
youngsy Posted August 23, 2012 Share Posted August 23, 2012 Which part of the following sentence is it that you have trouble understanding: "It has been a long time since the owners of a football club in the UK sought to raise funds by selling shares in the club to professional investors or the general public." The old (now) bankrupt 'Rangers FC' were one of, if not the last football clubs that sought to raise funds by selling shares in the club to professional investors and the general public...it was unsuccessful, and one of the many reasons why the old 'Rangers FC' is now dead. What is the point to all this? If a football supporter wants to buy some shares of his football club what's the big deal,most fans don't look for a return on shares. As for the rights issue in 2004 which failed that has absolutely nothing to do with the liquidation of The Rangers Football Club plc. But once again just you let your hatred and bigotry towards a football club get in the way of facts. Link to comment Share on other sites More sharing options...
TheGreenMonster Posted August 23, 2012 Share Posted August 23, 2012 Why would Charlie need to sell shares to fans after all he has 3 billionaires that want to invest in the club Link to comment Share on other sites More sharing options...
Itwiznaeme Posted August 23, 2012 Author Share Posted August 23, 2012 As for the rights issue in 2004 which failed that has absolutely nothing to do with the liquidation of The Rangers Football Club plc. Rangers Football Club plc - Further re Rights Issue: http://www.plus-sx.com/newsItem.html?newsId=905043 You really haven't any idea about what you post on this forum and repeatedly consistently make a complete ass of yourself on a daily basis wee fella. I suggest that you do not post on threads discussing subjects that you have no knowledge of. Link to comment Share on other sites More sharing options...
youngsy Posted August 23, 2012 Share Posted August 23, 2012 Rangers Football Club plc - Further re Rights Issue: http://www.plus-sx.c...l?newsId=905043 You really haven't any idea about what you post on this forum and repeatedly consistently make a complete ass of yourself on a daily basis wee fella. I suggest that you do not post on threads discussing subjects that you have no knowledge of. Compared to the tedious posts that you give out is that what you mean. As for Rangers you won't beat me on anything as regards the club that's a certainy. The rights issue was put out in 2004 for subscribed shareholders initially to reduce the debt of £68 million,it failed,Murray had to underwrite it our rather,MIH did. When he sold the club we had a debt of £18 million which within 9 months Whyte more than trebled,that is the reason the company,The Rangers Football Club plc, was liquidated,there was also the potential debt relating to the EBTcase. Now take other peoples point of view on board instead of just posting shite after shite because you're achieving absolutely nothing with your posts against the club,absolutely nothing. You see we all know that The Rangers Football Club plc was liquidated but anymore scoops please feel free to let us all know. Link to comment Share on other sites More sharing options...
Henrik's tongue Posted August 23, 2012 Share Posted August 23, 2012 As for Rangers you won't beat me on anything as regards the club that's a certainy. I told you they'd be liquidated. You said they wouldn 't. 1-0 Henrik Link to comment Share on other sites More sharing options...
Double Jack D Posted August 23, 2012 Share Posted August 23, 2012 Compared to the tedious posts that you give out is that what you mean. As for Rangers you won't beat me on anything as regards the club that's a certainy. The rights issue was put out in 2004 for subscribed shareholders initially to reduce the debt of £68 million,it failed,Murray had to underwrite it our rather,MIH Lloyds TSB did. When he sold the club we had a debt of £18 million which within 9 months Whyte more than trebled,that is the reason the company,The Rangers Football Club plc, was liquidated,there was also the potential debt relating to the EBTcase. Now take other peoples point of view on board instead of just posting shite after shite because you're achieving absolutely nothing with your posts against the club,absolutely nothing. You see we all know that The Rangers Football Club plc was liquidated but anymore scoops please feel free to let us all know. Link to comment Share on other sites More sharing options...
HTG Posted August 23, 2012 Share Posted August 23, 2012 Compared to the tedious posts that you give out is that what you mean. As for Rangers you won't beat me on anything as regards the club that's a certainy. The rights issue was put out in 2004 for subscribed shareholders initially to reduce the debt of £68 million,it failed,Murray had to underwrite it our rather,MIH did. When he sold the club we had a debt of £18 million which within 9 months Whyte more than trebled,that is the reason the company,The Rangers Football Club plc, was liquidated,there was also the potential debt relating to the EBTcase. Now take other peoples point of view on board instead of just posting shite after shite because you're achieving absolutely nothing with your posts against the club,absolutely nothing. You see we all know that The Rangers Football Club plc was liquidated but anymore scoops please feel free to let us all know. Liquidated you say ... Goodness me. Where is Bendarroch, you and him will need to have words and clarify your position. Link to comment Share on other sites More sharing options...
youngsy Posted August 23, 2012 Share Posted August 23, 2012 I told you they'd be liquidated. You said they wouldn 't. 1-0 Henrik I'll give you that one Henrik but you i can converse with,the other cunto is just a tosspot with f**k all but tedium in his outlook. Not once has he posted anything about his own club,which i'm taking it to be Celtic,but whoever it is he has given nothing about them. Now that's hatred and obsessiveness against one club,quite sad really. . Link to comment Share on other sites More sharing options...
youngsy Posted August 23, 2012 Share Posted August 23, 2012 Liquidated you say ... Goodness me. Where is Bendarroch, you and him will need to have words and clarify your position. Didn't you know that the operating company of Rangers,The Rangers Football Club plc was,or rather is giong through the process of liquidation. Thought everyone knew that. That's the reason for the transference of the SFA membership from old company to new company,it keeps the historical timeline of the club continuos. The football authorities in Scotland confirm this. Link to comment Share on other sites More sharing options...
Double Jack D Posted August 23, 2012 Share Posted August 23, 2012 Didn't you know that the operating company of Rangers,The Rangers Football Club plc was,or rather is giong through the process of liquidation. Thought everyone knew that. That's the reason for the transference of the SFA membership from old company to new company,it keeps the historical timeline of the club continuos. The football authorities in Scotland confirm this. What was the name of the company it was transferred to? Link to comment Share on other sites More sharing options...
youngsy Posted August 23, 2012 Share Posted August 23, 2012 What was the name of the company it was transferred to? SFA membership transferred from The Rangers Football Club plc to Sevco Scotland,since changed to The Rangers Football Club Limited,the operating company of Rangers. Do keep up. Link to comment Share on other sites More sharing options...
MRF-LCC-RFC Posted December 2, 2015 Share Posted December 2, 2015 Nobby Link to comment Share on other sites More sharing options...
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