What return does the Skeikh expect?

[LongLang]

The return is indirect exposure on Abu Dhabi, they aren't stupid they know the oil is running out and its unhealthy to rely on it so they are seeking to invest in other avenues. Had you heard of Etihad Airways before they were brought in as a sponsor to City? They are a major airline and they've only been going for what 10 years maximum? In terms of cash spent what they are spending on City is nothing really to what they'll get in the long term.

This is the answer commonly given.

But does it really stack up?

so what your saying is, its not a satisfactory answer to the question you posed, unless you agree with it?
you said it is a question that has not been answered to your satisfaction, but then say there is a common answer being given.
so it has been answered has it not?

 

[Didsbury Dave]

This is the answer commonly given.

But does it really stack up?

so what your saying is, its not a satisfactory answer to the question you posed, unless you agree with it?
you said it is a question that has not been answered to your satisfaction, but then say there is a common answer being given.
so it has been answered has it not?

I don't know what you're getting at.

I'm asking whether the commony held belief that ADUG are in this to promote Abu Dhabi is actually viable?

I'm very interested in hbruz's comments on how the project will become profitable.

 

[fbloke]

DD I think one of the things we are not taking into account is the 'cost' of owning a football club.

Khaldoon has been quoted in the past talking about the American model of sports financing, M. Platini is doing all he can to warn of the dangers of excess and I think fans are pretty sick of players being paid massive salaries.

What we might be looking at is a salary cap or at least a realistic limit on gross expenditure as we move forward.

Add to that the new rules from UEFA and the EPL on squad sizes and it doesnt take Stephen Hawking to understand that going forward it is going to be far easier to own and run a football club with the TV monies alone.

Why are the Glazers so adamant about staying on? Likely because the limitations on salaries and expenditure will leave them with a massive profit every year.

I am loathed to refer back to the Tipping Point thread again but that is why players will be convinced not by money but by real values associated with a team.

And I know that you dont think the idea of charitable giving carries much weight, but there are no plans to limit that side of things, therefore if a player like Drogba wants to make a difference, or indeed Bellamy, a major factor will be 'what will the club do for my charity or foundation?'

So investing now to get to the top may well pay major dividends (pardon the pun) in 5 - 10 years when the remuneration of players may well have changed.

I would welcome Hbruz's opinion on whether we are in fact close to the 'Tipping Point'?

 

[Boots_]

He expects correct spellings on Bluemoon.

On the plus side, it means he's here for the long haul.

 

[Kirkstall Blue]

Maybe not! we have all attempted to give our opinions on what the owners expect on there investment and a sound business plan emerges. How does that stack up for us? "the fans" who only want to watch football, how we play,and who the manager is.

 

[fbloke]

Maybe not! we have all attempted to give our opinions on what the owners expect on there investment and a sound business plan emerges. How does that stack up for us? "the fans" who only want to watch football, how we play,and who the manager is.

It leaves us with the best owner and board we have had, at least in the modern era.

It leaves us far better off than with Swales or Bernstein or Wardle because money allows for real choices and options where none of those had anywhere near enough.

I would like to ask all who have contributed what the current owner and the board that represents him has done so far to make you think things will be anything but great for City fans of all types?

Is it simply the fear of the unknown or the basic rules of being a City fan that states 'it will go badly wrong at soon!'?

 

[Clubber]

On the reason 'Why would you own a football club, and not make a massive profit'. I think you need to ask the majority of club owners.


Many of the owners in the Prem have far less money and resources than Mansour.

The club may not have as much out-lay as city has had, but they also don't have the return.

Look at Birmingham City. Carson Young doesn't have the money the sheik has, yet he has bought a club which has less profile (No offence) than city, and will have to invest.

 

[Kirkstall Blue]

Two good posts by you fbloke I can't disagree with any of it on the business strategy.
It's, not "fear" more "baffled" by some of the footballing decisions. Mainly to do with the rapid turnover of players and staff, that's where money seems to be wasted. Flies in the face of stability and team building.
Yet we finish 5th and buy Johnson, two big steps forward.

 

[Sun Jihai's ghost]

He wont make any money out of it that is for sure. Not that it matters given the scale of his wealth.

I dont know enough about Abu Dhabi to make comment but if you take Abramovich at Chelsea, owning that club affords him protection simply through the high profile. In recent years a lot of Russian multimillionairres/Billionairres have "dissapeared", some have moved out of Russia and live in hiding. It becomes very difficult for anything to "happen" to Abramovich when thousands if not millions of people in the western world are directly or indirectly looking out for his well being simply through the common interest of a high profile football club.

 

[S04]

You have to bear in mind that figure includes assets (read oil wells) which have not yet been and may never be developed and therefore is not really a fair reflection of the Al-Nahyan's wealth. Also, I would not trust IMF estimates (they are all politically motivated). Although it is notoriously difficult to estimate the wealth of any of the Gulf royal families (hardly as if the have to fill in tax returns) I believe that figure is a gross overestimation. In addition, a lot of money is needed to develop Abu Dhabi in accordance with their 2030 plan (no short term thinking for these people) which will result in a massive development drive for the Emirate. Remember although it is a modern Emirate, Abu Dhabi infrastructure pales in comparison to that of Dubai's plus they have much more land (93% of UAE land mass is Abu Dhabi) and sea to work with, which leads to medium term investment of around 1 trillion dollars (of course this will have to be financed, it is not someones pocket change)

I have the feeling that the numbers are rather correct, it´s not like there´s a difference between government assets and family assets, the oil fields value are used by taking the standard five year reserve/price range used by IMF.
It´s also a fact the Abu Dhabi oil is very cheap to pump, it´s not like say Tar sands.

About 8.9% (and shrinking albeit very slowly), curious to know where you got the 20% figure from?

Sorry, my mistake..I intented to write 10%, which includes fields they own outside Abu Dhabi in places like Indonesia, Iraq, Canada etc.

As I have said before (and I believe Khaldoon Al-Mubarak has mentioned), money will have to be made from the 'City Project'. While this is by no means an immediate priority it is not politically acceptable to spend hundreds of millions on a foreign football team without any return (especially one that finishes 5th). A few Champions League trophies will of course lessen the antipathy and will make it easier to sell to the Emirati population (during the UAE vs City match, they tried Our Country vs Our City, but a 1-0 loss hardly went down well there).

Politically acceptable by whom? It´s not like they worry about elections is it?
The Emir himself is ccurrently building a Palace in the Maldives just for his beloved fishing trips, all materials and the workforce are sent by air to this remote Island at a huge cost.
Nevertheless City is on paper a private project, by Sheikh Mansour himself..It´s just a coincidence that people working for other Bani Fatima brothers turn up perhaps, but I don´t think so.
So far City have cost just a fraction of Sheikh Mansours stables in France really.

That said I agree with Khaldoon that City will have to make money somewhere, nowt wrong with that. It´s just healthy for the club and might ease this "gimme" attitude some fans got now.