Connect with us

Entertainment

Dangote Cannot Afford To Buy Arsenal Football Club – Etcetera Writes..

Published

on

You have sold some shares and you’ve got some money to spend. Now you want the ultimate: Your own football club. Hold on there, are you sure? Football clubs are a nightmare to run. In fact, almost two-thirds of premiership clubs have been in receivership at some point. Remember Portsmouth FC ploughed through four owners some seasons back and landed itself a debt of £60m and relegation in the Championship.
b972c779573bb8950e9456e24aece579_L
Think of Leeds United’s tragicomic collapse; the balls-up at Cambridge United; Rotherham going into receivership in 2006 and 2008; Southampton’s sorry saga. And, of course, Crawley Town getting a winding up order years back. So, what do we know? Don’t buy a football club for the glory. So, before Dangote aspires to join Abrahamovic, Glazers and Al Mansours, he should make sure he knows his stuff.
But does Dangote know how much these football clubs really cost?
No, he can’t. New UEFA Club Licensing and Financial Fair Play Regulations already in place, require clubs to balance their income and expenses. Dangote cannot operate under such rules. The premiership is too organised and transparent for any businessman to easily manipulate. The wagestructure of footballers is too large for a businessman like Dangote to take on. Let us forget that those goons at Forbes have told us that Dangote is Africa’s richest man. As it stands, he cannot afford the outright purchase of a big football club like Arsenal. It is as simple as that. He will go broke. It is a possibility if we are talking about a club in the coast of West Africa. Dangote has most of his wealth in shares and physical assets and the football business requires liquid cash to sustain. Have we all forgotten that the same Dangote got a 3G licence and sold it to Etisalat? He is a very smart businessman who knows how to pick his areas of investments.
Can he get Bank backing?
Unlikely! No serious private equity firm would get involved with a football club. They are not proper businesses. Too much politics, too many egos. And there’s no proper exit route – the history of football clubs on the stock market is chequered, to say the least. They are rich men’s toys, great for entertaining your mates, and that’s about it. I don’t think Dangote can afford such an expensive toy.
A lot of people think it is relatively easy to make a million pounds by being the owner of a football club. That all you have to do is put in that first two million pounds. But these people should also know that since the English Premier League was formed in 1992, football finances have dried up to the extent that making a million pound profit is no longer a walk in the park. It is also the case that buying a football club is unlikely to yield that much of a return. Despite the significant TV and othercommercial revenues, football clubs in England’s top flight still struggle to break even. This is ironic, given the goal of setting up the Premier League was to stabilise club finances.
Is Dangote putting his heart over his head?
Yes I think so. Simon Jordan, in his autobiography, tells the story of how owning a football club can go terribly wrong. Jordan amassed a fortune of £75m in the early days of the mobile phone revolution. In 2000, he paid £10m to take control of South London football team Crystal Palace, becoming the youngest football club chairman at the age of 32. He was warned by many not to do it, but having watched the club since his childhood, he could not resist. Fast-forward 10 years and the club was in administration and Jordan’s personal wealth largely wiped out. It is reported that Roman Abramovich, the Russian owner of Chelsea, has written off more than one billion pounds he ploughed into the club since acquiring it in 2003.
 Catching him up fast is Sheikh Mansour from Abu Dhabi, who has invested close to one billion pounds in Manchester City since 2008. Can Dangote write off such a huge amount of money? It is in fact the amount of money he borrows to invest in businesses. But again, I think Dangote is just trying to hype himself. Most of the serious money flowing into football recently has come from the Middle East. The Qatar Investment Authority (the country’s sovereign wealth fund) bought the French Ligue 1 side Paris St Germain in 2011 and has gone about transforming them in the same way Sheikh Mansour has Manchester City. Forget those guys at Forbes, Dangote is not in the same league as these guys.
The Glazer Family bought Manchester United in 2006, recognising the immense value of its global brand as a cash generatorand the opportunities to enhance it even further. The cost of buying the club was loaded on to the club itself, with the revenues it generates used to pay the debt and interest that the Glazers undertook to buy the club. Eventually, the hope is that the club will essentially pay for itself leaving its American owners in possession of a multi-billion pound asset but till date, the Glazers are still gnashing their teeth and are still neck deep in debt. When it was speculated that a Middle East consortium was willing to pay £1.5bn for Arsenal Football Club, it was stated that Stan Kroenke, the American who owns about 63 per cent of the shares in the club, would have made just £400m on his shares. So, given the appalling financial returns, why do people buy football clubs?
Who can buy Arsenal football club?
Anyone can buy Arsenal football club, but that anyone doesn’t include anyone who obtains bank loans to fund a business. Sir John Madejski, chairman of Reading Football Club, describes the ideal football club owner as having deep pockets, mercurial, and not faint-hearted.
It is often mistaken that these clubs go for a quid. For instance, Swansea City was bought by investors for £100, and sold four years later for a £1. But beware: underneath those figures lies a pile of debt.
Does Dangote have the cash, can he do an Abramovich?

Continue Reading
1 Comment

1 Comment

  1. Hon. Donatus Okeke

    May 10, 2015 at 6:39 am

    MATTERS ARISING FROM ILLEGAL CONCESSIONING OF ENUGU STATE WATER CORPORATION.

    It is imperative, once more to the Enugu State House of Assembly in respect of the above subject matter.
    There is no doubt that the concessioning of the Enugu State Water Corporation by the Enugu State Government to the firm of AG Trust Limited of Block 2 No.843 Idris Ibrahim Crescent District Cadestral B05, Abuja from 7kobo per litre which is the original price to 42kobo per litre of prepaid measure which is 6times the original price is illegal and unlawful.
    There was no advertisement of the concession before it was done. The process was shrouded in secrecy and it did not follow the proper and due process of concessioning.
    It has come to light now that the brain behind the concessioning is the son of Governor Chime Sullivan , Nnamdi; This scion of Governor Chime brought the company to Enugu and facilitated the illegal transaction.
    Yet, he knew, like everyone else, that Governor Chime’s Administration is at its tail end. Clearly, the concessioning deal has all the trappings of a severance package for the Chime family.

Leave a Reply

Your email address will not be published. Required fields are marked *

Entertainment

Actress Lota Chukwu Celebrates Birthday With New Photos

Published

on

Lota Chukwu

Lota Chukwu

Popular Nigerian actress, Lota Chukwu, has celebrated her birthday on Sunday, November 29, 2020 with beautiful new photos.

The film star, who rose to prominence for her role as ‘Kiki’ in Funke Akindele’s hit TV series, ‘Jenifa’s Diary’, took to her Twitter account on Sunday to grace the timeline with sultry photos of herself.

She captioned her first post thus:

“Happy birthday, Queen Lota. Happy birthday to me.”

A few hours to her big day, the actress shared on Twitter that she had a simple wish for her birthday this year, which is a bouquet.

Read Also‘Happiness Is So Fragile’ – Actress Lota Chukwu

In her words:

“My wishlist was so short this year. I wanted just one thing: a bouquet. Wishlists do get shorter as you grow older. Lol. Also, when God keeps answering even the prayers you haven’t thought to pray for, There’s barely anything to wish for.”

See her post below:

The actress’ post

See photos below:

photo

photo

more photo

more photo

more photo

more photo

Continue Reading

Entertainment

BBNaija’s Khafi Issues Stern Warning To ‘Womb Watchers’

Published

on

I love you dearly, Gedoni tells Khafi on her birthday

Khafi Kareem

Popular reality TV star, Khafi Kareem has issued a stern warning to her eagle-eyed womb watchers on social media.

The reality TV star is fed up of people leaving pregnancy comments on her post and she has decided to give them a piece of her mind.

Taking to Instagram on Sunday, Khafi shared a photo of herself along with the words;

“The way I’m looking at the next person who drops a pregnancy comment on my post. Continue reading if you don’t want to get BLOCKED. (I’m not joking).
I’ve ignored them for the longest now but according to the womb watchers on social media I have been pregnant for over a YEAR. So let me get this off my heart. Some people have flat stomachs naturally and some people have big stomachs naturally. The latter is ME. And when I’m on my period it is even BIGGER. I don’t owe anyone a flat stomach but still I try to suck in my belly in every single picture and sometimes I do it better than others. The worst is that even when I’m proud of my ‘sucking in skills’ on a particular picture there is always SOMEONE who still comments something about pregnancy. This is a habit that HAS TO STOP. 

First of all, women are more than baby making machines. A woman’s fertility or decision to start a family is for her to decide, not for you to comment on in every single picture… Must our stomachs always be the first thing you look at?? 

Secondly, I’m not just speaking up for myself but for women in general. You may mean well when making pregnancy remarks but it is not always a compliment. For women who have had miscarriages, have been trying unsuccessfully for a baby, or simply conscious about their weight it can be very distressing, triggering and also puts a lot of undue pressure on them. So unless someone has announced a pregnancy or told you then please be nice and DONT COMMENT OR CONGRATULATE them on one.

Trust me when the time is right I welcome pregnancy (twins please Lord!) and starting a family at God’s time. But until I’ve said I’m expecting please stop with the pregnancy comments. I’ll have no patience for them anymore and any one who writes such comments will get BLOCKED.

To those who mean well, thank you so much, I do love you all But to the amebos please be amebos elsewhere It’s pressure enough being a woman, so let’s not add to it. Happy Sunday.”

Read Also: BBNaija’s Khafi, Gedoni Serve Relationship Goals In New Video

See her post below:

The reality TV star’s post

The reality TV star’s post

Continue Reading

Entertainment

Actress Eniola Badmus Shows Off Her Trimmer Figure In New Bikini Photo

Published

on

Actress Eniola Badmus

Actress Eniola Badmus

Popular Yoruba actress, Eniola Badmus took to her Instagram page on Sunday to put her trim figure on display.

The actress, who embarked on a weight loss journey earlier this year, shocked her fans after she posted a photo of herself rocking a leopard-print bikini.

In the photo, the 43-year-old film star looked noticeably trimmer as she struck a sexy pose beside a swimming pool.

The actress showed off her progress and she noted that nobody should come for her except they are Uber drivers.

In her words;

“Sunday Afternoon at the pool….Happy Sunday guys
#DontComeForMeExceptYouAreUber”

Read Also: Actress Eniola Badmus Debunks Reports That She Was Shot During Lekki Tollgate Massacre

See her full post below:

The actress’ post

The actress’ post

Continue Reading

Trending