Gulf investors shoot and score with $millions on the goal line
The Premier League, arguably the most watched among other top tier football leagues, attract some of the biggest soccer aficionados, and as a result some of the biggest financing deals on the planet.
Club ownership has its risks and rewards, because a single player can command a large sum, and even a minor injury to him can mean disaster.
Qatar owned PSG paid Barcelona $263 million to release Brazilian footballer Neymar, who signed a five-year deal with the French club.
Neymar is set to earn at least half a million dollar per week yet PSG president Nasser Al-Khelaifi was only concerned with the trophies the club would likely now get, such as the UEFA Champions League cup.
Win or lose, the love for the game is trumping risks of failure. And barring serious injuries, there is a good payoff to invest.
Go with a winner: Manchester City
Manchester City Football Club (MCFC) has recently announced on its site the Club’s third consecutive year of profitability and the ninth successive year of improved financial performance.
The Club has reported record revenues of £473.4million ($630m), marking a 21 per cent increase from the previous year and breaking £400million ($532m) for the first time in City history.
It recorded a profit of £1.088million ($1.45m).
MCFC Chairman Khaldoon Al Mubarak said, “What hopefully comes across is that the football organization and off-field business have the right symmetry and balance to allow us to continue to further strengthen and grow.”
In the report, Al Mubarak observes the revenue growth moving “towards the £500m ($665m) mark”.
Looking forward to the 2017-18 season, the Chairman says that the Club “enters this season with a justifiable sense of ambition and expectation”, a view shared by CEO Ferran Soriano who says that he is “convinced we will see further progress and silverware in the seasons to come.”
The Club plays its domestic and UEFA Champions League home fixtures at the Etihad Stadium, a 55,000 seat arena that City have called home since 2003. Today, the Stadium sits on the wider Etihad Campus, which also encompasses the City Football Academy, a modern performance training and youth development facility located in the heart of East Manchester.
A new Gulf bid
Dubai-based financier Amanda Staveley has made a formal offer to buy English Premier League football club Newcastle United, according to reports by UK broadcaster Sky News.
It reports that Staveley’s PCP Capital Partners has submitted a bid of around $397.4m to buy the club.
Staveley’s bid is a combination of Staveley’s money and that of major investors, including Middle East funds, said Sky News
“Last month, it was also reported that PCP was in talks to buy Liverpool for $1.96bn.”
Sky indicated PCP would be expected to allocate substantial transfer funds to Newcastle if the sale went through.
Newcastle was demoted in 2016 and was promoted again following its winning the UK championship league.