theoriginalfatcat wrote: ↑Thu Jan 27, 2022 12:26 am
I think people “above” are saying that “football” is what football clubs are about - most clubs lose money in any case, as they are subsidised in one way or another.
It would be great if it were true though, but the reality is a lot more cynical...or maybe it is just that I am.
The main purpose of most clubs, and the basis for their 'investors' being their is to get a return on their investment - to return value to their shareholder NOT to their local communities.
That return is mostly monetary but can also be political (indirectly for monetary reasons).
theoriginalfatcat wrote: ↑Thu Jan 27, 2022 12:26 am
most clubs lose money in any case, as they are subsidised in one way or another.
Doesnt necessarily equate to a drop in wealth and leverage of the majority shareholders.
It's an extreme example but after losses year on year since the Glazer takeover the market cap has increased from £800m to £2.2bn. Owning 70% of that is an increase of about £1bn in wealth...which I am almost certain is leveraged for further gains.
theoriginalfatcat wrote: ↑Thu Jan 27, 2022 12:26 am
We are a football club, that’s why we exist, that’s why people come. We also run as a CIC, which is good, we can have both, it’s not one or the other.
Well by law only if you could demonstrate that we are operating the club for the benefit of the community.
Of course we could achieve both, but you have to do it in a certain way. Remember these are the objectives of the majority shareholder of the club...
- ... strengthening the bonds between the club and the community it serves
- achieving the greatest possible supporter and community influence in the running and ownership of the club
- promoting responsible and constructive community engagement...and encouraging the club to do the same
So 'community engagement' might sound like mumbo jumbo to some...but it is literally the primary objective of the majority shareholder.
Remember we are a community benefit society not a community interest company. The business has to run for the benefit of the community not just in their interests...
Don't get me wrong. I want us to do as well as we can on the pitch, but for me the primary goal is that the club exists and that it benefits as many people in the community as possible. They are not mutually exclusive but only one of those is the primary objective - so has to be the cornerstone of any club strategy.