What return does the Skeikh expect?

Didsbury Dave said:
strongbowholic said:
You're a businessman I assume DD so must have heard the expression 'sprat to catch a mackerel'? This is what the City piece of the jigsaw is.

Assuming success, it is the prestige of owning combined with the knock on effect of being able to attract other business partners into bigger business deals/commitments on the back of it.

Call it a loss leader if you will?

As has been said before, it comes back to the oil reserves running out. City in and of itself may never produce the return on his investment into the club, but off the field, I imagine we are just a tiny piece of a bigger game where the returns warrant and merit such investment.

All my opinion of course.
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So what you are saying is that we are effectively a marketing tool for him and the country.

Credible, I suppose. I'm sure the club will move towards being self-sustainable too.

And the other posters who say that you can't make a real profit in football are right too.

If you're playing for the stakes which the Shiekh is, City is small beer.

It's a bit like Nike having an executive box at COMS.
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That's exactly how I see it. Abramovic took a large chunk of London real estate with his Chelsea purchase so that made sense for him

With us, the real estate, whilst valuable around the ground, is nothing like kthe value of West London. That said, build something fantastic, including a tremendously successful football club and you showcase Abu Dhabi capability and expertise. This in turn attracts other investments and business opportunities keen to be associated with such a successful brand. Add to that Etihad operating out of Manchester Airport and Manchester suddenly seems to be a good destination for business, which reflects again back to Abu Dhabi and so the cycle continues.

Expensive strategy, but ultimately if delivered properly is infinitely more profitable than owning a football club.

My thoughts are probably not too coherent because I'm trying to work at the same time! But there is another edge to this from a worldwide political point of view which helps propel Abu Dhabi up the ladder of prestige and munifence (for redeveloping a run down area not in their own country etc) but is probably another debate maybe!
 
Didsbury Dave said:
Damocles said:
They do this by investing large amounts of cash now, under the idea that their investments will be turning a tidy profit by the time they run out of oil. Spend while they have it, earn when they don't.
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I understand all that Dammers.

But my real question is that are they expecting a financial return from Manchester City FC?

Maybe the short term aim is the exposure, the long term is a return.
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Yeah, that's pretty much my opinion on the situation. They seem to be using City in the same way as the F1 tracks, the awe-inspiring buildings and the large new town districts.

So long term, over the course of 20-30 years, they'll want an ROI but we're safe for the present. With some of the plans that have either been confirmed or look very close to confirmation, I certainly wouldn't bet against them making a fortunate off of City. Imagine how much United would make if they had absolutely zero debt. 'A killing' probably doesn't cover it. This is also probably why they want to build their own stars rather than just buy them all like Madrid. Their ability to market them comes on leaps and bounds when they are homegrown.

Look at the recent viral ads on the internet or the Tevez poster, I don't know any other club who is as on the cusp of marketing as we currently are. Say what you want about Cook, but if there's one thing he can do, it is raise the profile of the club.
 
Now I dont want to rub salt into wounds over at OT and Anfield but this is only possible because it is done with borrowed money.

If the owner(s) were to have to find an additional £25m per year for every £250m they invested........

I just wonder if the Abu Dhabi sovereign wealth funds are the ultimate financiers for the premier leagues' debt?

Now that would be funny dont you think?
 
fbloke said:
DD, we have locked horns on this one before and I know we both agree that our owner(s) (Sorry Dam')
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The rags are supposedly worth £1bn, with Arsenal and Chelsea probably worth £600m each. A financial return is not out of the question in the long term but it would be peanuts to Sheikh Mansour so I doubt it's his main motivation.

Possibly it's the fact that Manchester is a city with a big and growing reputation internationally, in a way that Birmingham or Newcastle have never quite managed. Probably having the rags on the doorstep helps if we're honest. The Sheikh and his advisors are clearly very shrewd and possibly believe that there is a huge potential upside to physical investment (in land and proprty here).
 
I think our owner had a bet that he could turn us into CL winners in 5 years. A bit like the film 'Trading places' only we'll be replacing Manure at the top of the tree.
 
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