You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Abu Dhabi stops projects and cancels some others.
- Thread starter fbloke
- Start date
Newman Noggs
Well-Known Member
Chippy_boy said:Wreckless Alec said:That was the serious part of my post. Any rival (or fellow blue, for that matter)who regards this as the beginning of the end is sadly deluded. I'd hate to think what would happen if our owners were as strapped for cash as, taking a random example, the Glazers ! I'd love to know what's really going on in tehir business "empire".
The big difference mate is that the rags actually make money. If the Glazers walked away, United would still be profitable and viable. If the unthinkable happened and our owners walked away, we couldn't pay the electricity bill. I am not for one moment expecting this to happen, but it is a scary thought.
It is a scary thought but, just in case anyone does give credence to the wishful thinking of our rivals, it is not a realistic one.
From a business perspective, even in the worst of recessions, it wouldn't make sense to make a huge investment and then walk away leaving someone else to reap the benefits when that investment begins to pay. The point is that, for the forseeable future, City only have to break even, other clubs need to make a profit to service existing debts or pay dividends to investors. Furthermore, if we were making a profit our owners could afford to forgo dividends and reinvest that profit to make the business grow. There aren't many investors in the current climate who would be prepared not to receive a return on their investment especially if they were using those dividends to prop up their other ailing business interests.
Chippy_boy
Well-Known Member
Wreckless Alec said:Chippy_boy said:Wreckless Alec said:That was the serious part of my post. Any rival (or fellow blue, for that matter)who regards this as the beginning of the end is sadly deluded. I'd hate to think what would happen if our owners were as strapped for cash as, taking a random example, the Glazers ! I'd love to know what's really going on in tehir business "empire".
The big difference mate is that the rags actually make money. If the Glazers walked away, United would still be profitable and viable. If the unthinkable happened and our owners walked away, we couldn't pay the electricity bill. I am not for one moment expecting this to happen, but it is a scary thought.
It is a scary thought but, just in case anyone does give credence to the wishful thinking of our rivals, it is not a realistic one.
From a business perspective, even in the worst of recessions, it wouldn't make sense to make a huge investment and then walk away leaving someone else to reap the benefits when that investment begins to pay. The point is that, for the forseeable future, City only have to break even, other clubs need to make a profit to service existing debts or pay dividends to investors. Furthermore, if we were making a profit our owners could afford to forgo dividends and reinvest that profit to make the business grow. There aren't many investors in the current climate who would be prepared not to receive a return on their investment especially if they were using those dividends to prop up their other ailing business interests.
Clearly the potential for profits are there, but I would say we are still years away from breaking even and face year on year losses for some time to come. Our FFPR appeal will doubtless be based on our plans for future profitability rather than current.
And god knows what impact it would have if our Abu Dhabi revenues were cancelled (stadium naming rights for example).
Merry Christmas by the way!
S04
Well-Known Member
Given that
A) Abu Dhabi is the worlds second biggest oil exporter
B) Got trillions in assets
C) Got almost no taxes at all
D) There´s only about 400.000 Abu Dhabi citizens
E) The Emirate majlis political system seems astonishingly stable compared to military rule or the trial and error democracy that tend to dominate the arab world.
F) They are really crazy about football
I´d say that only a nuclear showdown in the area could have a bearing on City. That said if there´s a nuclear war the gulf would be a favorite spot for many.
A) Abu Dhabi is the worlds second biggest oil exporter
B) Got trillions in assets
C) Got almost no taxes at all
D) There´s only about 400.000 Abu Dhabi citizens
E) The Emirate majlis political system seems astonishingly stable compared to military rule or the trial and error democracy that tend to dominate the arab world.
F) They are really crazy about football
I´d say that only a nuclear showdown in the area could have a bearing on City. That said if there´s a nuclear war the gulf would be a favorite spot for many.