that all depends on weather its increased or decreasing debt and what the projection short, medium and long term suggests
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The Financial Situation (107 Viewers)
- Thread starter ReBeL
- Start date
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the financial dream would be sell everyone bar 2-3
subs them with 18-19 super talented and good kids giving them 30.000 net per year
Save over 100m in wages for a year or two keeping kids on 30.000€
Gain 300-350m from player selling
Erase any debt and payoff all the installments
and start a new but keep winning or trying to
such a sweet dream
subs them with 18-19 super talented and good kids giving them 30.000 net per year
Save over 100m in wages for a year or two keeping kids on 30.000€
Gain 300-350m from player selling
Erase any debt and payoff all the installments
and start a new but keep winning or trying to
such a sweet dream
Juventus have the world’s third-richest football club owners according to the Mirror, with Inter ranking ninth.
The newspaper writes the Agnelli family have a combined wealth of £10.4bn (€11.9bn), making Juve the Serie A side with the biggest backing.
Inter, for their part, are bankrolled by Suning Group, whose owner Zhang Jindong has a personal wealth of £5.2bn (€5.9bn), putting them ahead of Tottenham Hotspur in 10th place and city rivals Milan.
The richest club owner is Red Bull Salzburg and RB Salzburg’s Dietrich Mateschitz, who cofounded Red Bull and is worth £17.8bn (€20.3bn), despite the riches of Manchester City and Paris Saint-Germain.
Top 10 richest club owners in full:
1. Dietmar Mateschitz (Red Bull Salzburg/RB Leipzig, £17.8bn)
2. Sheikh Mansour (Manchester City/City Football Group, £17bn)
3. Agnelli family (Juventus, £10.4bn)
4. Philip Anschutz (LA Galaxy, £10bn)
5. Roman Abramovich (Chelsea, £8.3bn)
6. Stan Kroenke (Arsenal, £6.4bn)
7. Nasser Al-Khelaifi (Paris Saint-Germain, £6.2bn)
8. Shahid Khan (Fulham, £5.4bn)
9. Zhang Jindong (Inter/Jiangsu Suning, £5.2bn)
10. Joe Lewis (Tottenham Hotspur, £3.8bn)
"We are so rich!"
The newspaper writes the Agnelli family have a combined wealth of £10.4bn (€11.9bn), making Juve the Serie A side with the biggest backing.
Inter, for their part, are bankrolled by Suning Group, whose owner Zhang Jindong has a personal wealth of £5.2bn (€5.9bn), putting them ahead of Tottenham Hotspur in 10th place and city rivals Milan.
The richest club owner is Red Bull Salzburg and RB Salzburg’s Dietrich Mateschitz, who cofounded Red Bull and is worth £17.8bn (€20.3bn), despite the riches of Manchester City and Paris Saint-Germain.
Top 10 richest club owners in full:
1. Dietmar Mateschitz (Red Bull Salzburg/RB Leipzig, £17.8bn)
2. Sheikh Mansour (Manchester City/City Football Group, £17bn)
3. Agnelli family (Juventus, £10.4bn)
4. Philip Anschutz (LA Galaxy, £10bn)
5. Roman Abramovich (Chelsea, £8.3bn)
6. Stan Kroenke (Arsenal, £6.4bn)
7. Nasser Al-Khelaifi (Paris Saint-Germain, £6.2bn)
8. Shahid Khan (Fulham, £5.4bn)
9. Zhang Jindong (Inter/Jiangsu Suning, £5.2bn)
10. Joe Lewis (Tottenham Hotspur, £3.8bn)
"We are so rich!"
Even in a non-growth model, if there is significant cash generation where the company can pay it off. That is the playbook of most private equity firms.
Imagine a company worth $5B, generating, $1B in cash - but declines each year - $100M. Interest rate 7%.
Step 1) Buy a company that is declining/stagnant but generates a lot of cash for a reasonable price - say 5x cash flow.
Step 2) Put in 20% equity, and fund the rest using a blend of debt - with various liens, secured/unsecured. You have to pay off interest of course.
Step 3) You have $4B in debt, and each year you pay some off over 3 years...
yr 0 - $4B debt
yr 1 - $1B cash flow, after interest of $280, you pay down debt with $720 million = $3.280 billion
yr 2 - $900M cash flow, after interest of $229, you pay down debt with $671 million = $2.609 billion
y 3 - $800 cash flow, after interest of $182, you pay down debt with $618 million = $1.991 billion.
yr 4 = $700 million
At end of year 3, you sell for 5x$700MM = $3.5B in total value - debt $1.99MM, = $1.509M in equity - initial investment of $1B (20% of $5B) = 50% ROI, or 14.5% per year. And just an FYI, a 14.5% annual return is low for what a hedge fund usually targets.
But bringing this back to Juventus: football teams don't generate cash usually because of a need to be competitive, unless you're the most profitable team like United...which can actually afford to pay dividends.
So football teams must rely on the value of the business increasing to make money. Simply put, the cash flow deficits (or annual increase in debt), must be less that the appreciation of the company value. And with record sporting rights deals, this has been possible for many teams. Football teams aren't usually value on cash flow, but could be valued on cash flow before investment in new players or EBITDA.
Example is Porto - which according to its figures is run VERY aggressively.
From 2013 to 2018, the company ran cash deficits of $20-50M Euro, and saw debt increase from $95 million to $278 million. Scary right? no. The market value of company over the same period increased from $82.3 to $302.9MM, and therefore saw equity increase from $5M in total value $15M (200%). It's share count increased by 46% so equity holders made a return of: (1+2.00)(1/(1+.46)= 2.045-1 = return on equity investment of 104.5%. Before 2013, totally different story as seen by the stock price.
Imagine a company worth $5B, generating, $1B in cash - but declines each year - $100M. Interest rate 7%.
Step 1) Buy a company that is declining/stagnant but generates a lot of cash for a reasonable price - say 5x cash flow.
Step 2) Put in 20% equity, and fund the rest using a blend of debt - with various liens, secured/unsecured. You have to pay off interest of course.
Step 3) You have $4B in debt, and each year you pay some off over 3 years...
yr 0 - $4B debt
yr 1 - $1B cash flow, after interest of $280, you pay down debt with $720 million = $3.280 billion
yr 2 - $900M cash flow, after interest of $229, you pay down debt with $671 million = $2.609 billion
y 3 - $800 cash flow, after interest of $182, you pay down debt with $618 million = $1.991 billion.
yr 4 = $700 million
At end of year 3, you sell for 5x$700MM = $3.5B in total value - debt $1.99MM, = $1.509M in equity - initial investment of $1B (20% of $5B) = 50% ROI, or 14.5% per year. And just an FYI, a 14.5% annual return is low for what a hedge fund usually targets.
But bringing this back to Juventus: football teams don't generate cash usually because of a need to be competitive, unless you're the most profitable team like United...which can actually afford to pay dividends.
So football teams must rely on the value of the business increasing to make money. Simply put, the cash flow deficits (or annual increase in debt), must be less that the appreciation of the company value. And with record sporting rights deals, this has been possible for many teams. Football teams aren't usually value on cash flow, but could be valued on cash flow before investment in new players or EBITDA.
Example is Porto - which according to its figures is run VERY aggressively.
From 2013 to 2018, the company ran cash deficits of $20-50M Euro, and saw debt increase from $95 million to $278 million. Scary right? no. The market value of company over the same period increased from $82.3 to $302.9MM, and therefore saw equity increase from $5M in total value $15M (200%). It's share count increased by 46% so equity holders made a return of: (1+2.00)(1/(1+.46)= 2.045-1 = return on equity investment of 104.5%. Before 2013, totally different story as seen by the stock price.
Juventus’ share price has fallen by more than 10 percent in wake of their Champions League defeat to Atletico Madrid.
Juve closed the Borsa Italiana on Wednesday at €1.45 but opened the following morning at just €1.29, representing a 10.01% drop.
It comes after the Bianconeri were beaten 2-0 by Atleti in the first leg of their Champions League last-16 tie.
The price of Juve stock took a similar tumble in October, when rape allegations against Cristiano Ronaldo first emerged.
Calcio e Finanza reports the Old Lady will miss out on ‘at least €10.5m’ if they fail to reach the quarter-finals of Europe’s elite club competition.
Juve closed the Borsa Italiana on Wednesday at €1.45 but opened the following morning at just €1.29, representing a 10.01% drop.
It comes after the Bianconeri were beaten 2-0 by Atleti in the first leg of their Champions League last-16 tie.
The price of Juve stock took a similar tumble in October, when rape allegations against Cristiano Ronaldo first emerged.
Calcio e Finanza reports the Old Lady will miss out on ‘at least €10.5m’ if they fail to reach the quarter-finals of Europe’s elite club competition.
