Maybe I'm being a little naive, but wouldn't they have only paid approx £24m for a 1% stake if CFG was valued at £2.4bn?
United's revenue, even with their participation in the CL, will be flat this year. Their commercial revenue hasn't moved much for the last 2 years. They've got their shirt naming deal and their kit deal in place for a few more years and those are the two biggies, probably accounting for about half their overall commercial revenue. Broadcasting revenue isn't going to move and any move will only be in line with what we and everyone else gets. They've maxed out matchday revenue without putting up prices significantly. These noodle &tractor deals don't bring in that much I reckon.The last sentence sums it up for me "moving in the right direction" all aspects of the club are thriving and kicking on, it is a lovely feeling to have. There are no nasty surprises or bumps un our road ahead. Players are happy, staff are, fans are happy and even the money men are nodding happily.
This is what utd had to a lesser extent in their pomp and it really twisted a knife in my gut. Everything was on the up for them and i thought i would never see the day we were any good let alone better that the current (at the time) best team in the country.
I get the idea our momentum in all areas is not even close to being maxed out either, would that be correct @Prestwich_Blue ? For example i understand utd's commercial opportunities are not as large as they once were, only so many noodle sponsors you can have etc.
United's revenue, even with their participation in the CL, will be flat this year. Their commercial revenue hasn't moved much for the last 2 years. They've got their shirt naming deal and their kit deal in place for a few more years and those are the two biggies, probably accounting for about half their overall commercial revenue. Broadcasting revenue isn't going to move and any move will only be in line with what we and everyone else gets. They've maxed out matchday revenue without putting up prices significantly. These noodle &tractor deals don't bring in that much I reckon.
We've got a new kit deal coming up and it seems that Etihad have increased their naming deal. If we start getting to CL semi-finals and finals regularly, our broadcasting revenue could go up £20m or more a season. I think we could catch them up in 2 or 3 years or at least close the gap significantly.
Insightful stuff, cheers for that boss. Woodward better get his thinking cap on, one thing the Glazers won't like is signs of commercial stagnation.United's revenue, even with their participation in the CL, will be flat this year. Their commercial revenue hasn't moved much for the last 2 years. They've got their shirt naming deal and their kit deal in place for a few more years and those are the two biggies, probably accounting for about half their overall commercial revenue. Broadcasting revenue isn't going to move and any move will only be in line with what we and everyone else gets. They've maxed out matchday revenue without putting up prices significantly. These noodle &tractor deals don't bring in that much I reckon.
We've got a new kit deal coming up and it seems that Etihad have increased their naming deal. If we start getting to CL semi-finals and finals regularly, our broadcasting revenue could go up £20m or more a season. I think we could catch them up in 2 or 3 years or at least close the gap significantly.
That reminds me. We'll be expanding the stadium adding to match-day revenue but the real biggie will be the development of the collar site. The revenue boost from that could leave the rest dead in the water.Hasn’t the rags stadium been reduced because of there enforced disabled seats they have to fit in. Think they going to lose around 3k seating.
That reminds me. We'll be expanding the stadium adding to match-day revenue but the real biggie will be the development of the collar site. The revenue boost from that could leave the rest dead in the water.
So in a business sense, for a short time only, we have to mind the gap, which is closing.United's revenue, even with their participation in the CL, will be flat this year. Their commercial revenue hasn't moved much for the last 2 years. They've got their shirt naming deal and their kit deal in place for a few more years and those are the two biggies, probably accounting for about half their overall commercial revenue. Broadcasting revenue isn't going to move and any move will only be in line with what we and everyone else gets. They've maxed out matchday revenue without putting up prices significantly. These noodle &tractor deals don't bring in that much I reckon.
We've got a new kit deal coming up and it seems that Etihad have increased their naming deal. If we start getting to CL semi-finals and finals regularly, our broadcasting revenue could go up £20m or more a season. I think we could catch them up in 2 or 3 years or at least close the gap significantly.
That’s not how we normally work out the total capitalised value of a company.No. They will have set a price that reflects the overall cost of a 14% stake in the group.
On a simple basis they've paid about £335m in total for 14% of the group, which would valued it at around £2.4bn compared to the £2bn it was value at when they bought the 13% stake.
Ok yeah that makes more sense. Cheers.I'll try. I've checked all the relevant documentation and the key statement is actually in the previous year's accounts, the ones to May 2016. In the note about Share Capital it says that after the year end CMC paid £3.96 a share for 18.43m shares, which is £73m. That was July 2016. After that transaction they were reported as holding about 14% of the shares. They'd already paid £3.54 a share for 75m shares in December 2015 to give them a reported 13%. So actually this is old news.
Ignore the fact they paid £265m for 13% and £72m for 1% as we simply don't know how the deal was worked out. Some of the money from the original deal was for shares bought from ADUG I believe, which would have gone through ADUG's accounts rather than CFG's. The key figure is the price per share. which rose from £3.54 to £3.96 in just over 7 months. These share prices are consistent with a group valuation of £2.1-2.2bn and that figure is itself consistent with a supposedly reliable valuation model.