The Financial Situation (56 Viewers)
- Thread starter ReBeL
- Start date
It wasn't aimed at you in particular, just the general nonsense that goes on in this thread. But I totally agree with you that the current deal is under market value, what we're getting is ridiculous. However I don't remember any other companies offering us more money at the time. About the cricket deal, I can't imagine any other scenario than Exxor making a business decision. And business decisions are about maximising value. I believe that they considered the deal to be at market value (of course we can question that). But to listen to the rhetoric in this thread suggesting that Elkann is just throwing money away to "some cricket club" for no reason while just deliberately "shitting on Juve" is just ridiculous. I remember back in the day (2005-2006) when we signed a sponsorship agreement with Tamoil that the biggest deal at the time was held by an Indian cricket club. So big financials in the sport are apparently a thing.
There are only three ways I can think of for Exxor to invest in the club. 1) Sponsorships. 2) Equity investment. 3) Loan investment.
The problem is FFP. If a sponsorship is obviously above market value then UEFA will scrutinise it. If Exxor increases our capital with an equity investment and we use that money to buy players or open up new facilities we have to amortise those assets over time. The amortisation counts as an expense in the income statement so we need to increase income to balance that out, otherwise we end the year in a financial loss and therefore won't be adhering to FFP. The same can be said about loans, because the interest expenses will be recorded to our income statement (on top of the amortisation).
So regardless of what Exxor does we need to increase our annual income.
The problem is FFP. If a sponsorship is obviously above market value then UEFA will scrutinise it. If Exxor increases our capital with an equity investment and we use that money to buy players or open up new facilities we have to amortise those assets over time. The amortisation counts as an expense in the income statement so we need to increase income to balance that out, otherwise we end the year in a financial loss and therefore won't be adhering to FFP. The same can be said about loans, because the interest expenses will be recorded to our income statement (on top of the amortisation).
So regardless of what Exxor does we need to increase our annual income.
Yeah also understand that they can´t give us sponsorship contracts that are overvalued. what I don´t understand is how a cricket club can be worth more than one of the top 10 football clubs worldwide. If they really get profits out of this investment I would be surprised. tbh i have no fucking clue about cricket.
I agree with you. And yes, the main problem with our current sponsorship deal is, that we are in a much stronger position now, both domestic and international, than we were when the deal was made. We should see a raise in income from sponsors the coming years, even if we don't manage to win the scudetto this year
I'd pick equity investment. 
With new sponsorship agreements becoming reality, improved TV deals for both Serie A and CL, our income might surpass 350m in a few years, or reach that figure at least. There are also other sorts of income, neglected previously, but we seem to be improving these drastically in the last few years, netting close to 10-15m per year; memberships, our own broadcasting, etc... It will be interesting to see whether we are looking to sell naming rights for our training ground, upon its completion.
With new sponsorship agreements becoming reality, improved TV deals for both Serie A and CL, our income might surpass 350m in a few years, or reach that figure at least. There are also other sorts of income, neglected previously, but we seem to be improving these drastically in the last few years, netting close to 10-15m per year; memberships, our own broadcasting, etc... It will be interesting to see whether we are looking to sell naming rights for our training ground, upon its completion.
I'd pick equity.
With new sponsorship agreements becoming reality, improved TV deals for both Serie A and CL, our income might surpass 350m in a few years, or reach that figure at least. There are also other sorts of income, neglected previously, but we seem to be improving these drastically in the last few years, netting close to 10-15m per year; memberships, our own broadcasting, etc... It will be interesting to see whether we are looking to sell naming rights for our training ground, upon its completion.
With new sponsorship agreements becoming reality, improved TV deals for both Serie A and CL, our income might surpass 350m in a few years, or reach that figure at least. There are also other sorts of income, neglected previously, but we seem to be improving these drastically in the last few years, netting close to 10-15m per year; memberships, our own broadcasting, etc... It will be interesting to see whether we are looking to sell naming rights for our training ground, upon its completion.
I think the problem with the stadium is, that they paid a ridiculous amount for the rights to sell the name. In Italy, it's not normal to have company names on stadiums, neither is it in Spain - It's an english thing, and i just don't think italian companies are ready to make these kind of sponsorships, they are always so conservative and would have to see it work for years before doing it themselves, like with everything else in that country. Samsung has been reported a while ago, and it would be companies like that who could afford it.
Eithad stadium is just another way for the City owners to pump money into the club for example. Germany has a lot of strong companies, and it has been going on there for quite some while. Serie A could learn from the German model when it comes to stadiums etc, but italian industry is just not as strong as the german, so again foreign companies would be needed. And who would invest in expensive, risky sponsorships deals in Italy at the moment? I would wait a little and see how the economic situation in Europe developes if i was the one to invest, that's for sure.
Another factor is the fact that company names can't be used when we play european football, which means that this deal will only be valued in terms of Serie A. That's a blow for us, since the CL is where we really get exposure outside Italy.
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Just on top of my head, i can't even remember what Old Trafford is called for example. Actually i only remember Etihad and Fly Emirates (Arsenal, right?) from the PL. Is Stamford Bridge something with Samsung? Even in the PL, they haven't been very good at incorporating these sponsorship stadiumnames... Again the germans are steps ahead. Allianz, Signal-Iduna, Veltins etc. You just know them by those names
Eithad stadium is just another way for the City owners to pump money into the club for example. Germany has a lot of strong companies, and it has been going on there for quite some while. Serie A could learn from the German model when it comes to stadiums etc, but italian industry is just not as strong as the german, so again foreign companies would be needed. And who would invest in expensive, risky sponsorships deals in Italy at the moment? I would wait a little and see how the economic situation in Europe developes if i was the one to invest, that's for sure.
Another factor is the fact that company names can't be used when we play european football, which means that this deal will only be valued in terms of Serie A. That's a blow for us, since the CL is where we really get exposure outside Italy.
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Just on top of my head, i can't even remember what Old Trafford is called for example. Actually i only remember Etihad and Fly Emirates (Arsenal, right?) from the PL. Is Stamford Bridge something with Samsung? Even in the PL, they haven't been very good at incorporating these sponsorship stadiumnames... Again the germans are steps ahead. Allianz, Signal-Iduna, Veltins etc. You just know them by those names
