Top Floor Guy there is the answer you were looking for.............
Joined: Fri Aug 15, 2008 5:49 pm
Posts: 5215 <a class="postlink" href="http://www.guardian.co.uk/sport/2009/ju" onclick="window.open(this.href);return false;">http://www.guardian.co.uk/sport/2009/ju</a> ... abramovich
Manchester City spending spree is just a present from Abu DhabiSheikhs' £500m in wages and transfer fees will not find its way on to the balance sheet
Matt Scott The Guardian, Tuesday 21 July 2009
Manchester City's record-breaking transfer-market splurge is effectively being written off as a gift by the club's Abu Dhabi owners. The sheikhs have spent more than £500m in aggregate wages and transfer fees on players such as Carlos Tevez, Robinho and Emmanuel Adebayor. But unlike for owners such as Chelsea's Roman Abramovich, the expenditure will not find its way on to the balance sheet.
Despite his immense wealth Abramovich quantified much of his acquisitions through directors' or "soft" loans, amounting to more than £700m before he converted a slug of it down to equity. That left Chelsea just under £340m in debt to its owner at the last reckoning, with critics saying it would become insolvent if Abramovich's backing were to be abruptly withdrawn.
Although Eastlands sources say the Islamic aversion to imposing debt was not a consideration, City's owners are alive to the widespread debate last yearover the levels of debt in the Premier League.
They feel the current spending is necessary to break in to the Champions League, when the club will be self-sustaining. But although that will reassure City fans, the news will only increase their rivals' sense that Abu Dhabi is "financial doping" its club.
Joined: Fri Aug 15, 2008 5:49 pm
Posts: 5215 <a class="postlink" href="http://www.guardian.co.uk/sport/2009/ju" onclick="window.open(this.href);return false;">http://www.guardian.co.uk/sport/2009/ju</a> ... abramovich
Manchester City spending spree is just a present from Abu DhabiSheikhs' £500m in wages and transfer fees will not find its way on to the balance sheet
Matt Scott The Guardian, Tuesday 21 July 2009
Manchester City's record-breaking transfer-market splurge is effectively being written off as a gift by the club's Abu Dhabi owners. The sheikhs have spent more than £500m in aggregate wages and transfer fees on players such as Carlos Tevez, Robinho and Emmanuel Adebayor. But unlike for owners such as Chelsea's Roman Abramovich, the expenditure will not find its way on to the balance sheet.
Despite his immense wealth Abramovich quantified much of his acquisitions through directors' or "soft" loans, amounting to more than £700m before he converted a slug of it down to equity. That left Chelsea just under £340m in debt to its owner at the last reckoning, with critics saying it would become insolvent if Abramovich's backing were to be abruptly withdrawn.
Although Eastlands sources say the Islamic aversion to imposing debt was not a consideration, City's owners are alive to the widespread debate last yearover the levels of debt in the Premier League.
They feel the current spending is necessary to break in to the Champions League, when the club will be self-sustaining. But although that will reassure City fans, the news will only increase their rivals' sense that Abu Dhabi is "financial doping" its club.