Spending spree is just a present from Abu Dhabi

[adammck]

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owner at the last reckoning, with critics saying it would become insolvent if Abramovich's backing were to be abruptly withdrawn.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.

http://www.guardian.co.uk/sport/2009/jul/21/manchester-city-chelsea-roman-abramovich

Love em

 

[BobbyLazarus]

You'd have to say, if you were a fan of another club, this would all seem grossly unfair. I expect the envy press to go overboard again.

I find it quite delicious. Bwahahahahaha. Bwahahahahah. Bwahahahahahahahahaha

 

[In The Know]

Hardly a gift is it, what if i dug down the back of my sofa and offloaded my shrapnell that i found on you would you class it as a gift hehehe

 

[messi_is_coming]

Now days not many clubs can run without a huge rich pay off from someone. Only Arsenal in the top four can claim to generate their own money and even then how much of that is true? I dont know but I am very glad that we have the owners we have now rather than that guy we had before. We got a lot of stick for having him in charge but I dont know many Blues who were happy with him and it was a saving grace to get the lot in we have now. Imagine if they had gone to Everton or something.

 

[bananamilksheikh]

Arsenal have debts of £416 million (Emirates stadium mainly)
ManUre have debts of £699 million (Glazier borrowed to buy the club)
Chelsea have debts of £340 million (Abramovic interest free loans to the "club")
Liverpool have debts of £280+ million (Gillet/Hicks borrowed to buy the club)

Total EPL debt totals £3.1 billion

ManUre have paid £263 million in interest in the last 3 years!

We have zero debt & zero interest. So even if the Sheikh did a runner (as some rags have speculated) he would leave accounts with a very one sided balance sheet.

CL football would also make us self-sufficient and the Sheikh may see some returns to his investment.

Good times!

 

[Biginoil]

I didn't know that the Arse were so heavily in debt. I remember reading that they made a fortune out of selling the land that Highbury was on and did some clever property developments to part-finance the Emirates (and they didn't call it that for nothing). So their recent success is based on a huge windfall and a load of borrowing.

None of the top four can really complain about the sourness of our grapes, can they?

 

[Richard]

Excellent

 

[bananamilksheikh]

Arse spent £133 million on building flats on the old Highbury site but the property slump has left them high and dry.