Man U Valued at $1.5 Billion -- American takes control

[Imran Siddiqui]

The economics of the NFL have changed dramatically over the last decade and Glazer was a part of that. I don't know why you think there is no potential innovation at ManU just because others haven't imagined a change yet.

Because they are VASTLY different businesses. The NFL has thrived on parity and giving the bad teams a chance with higher draft picks and easier schedules the next year. They've worked together to make the league profitable.

The EPL is a totally different beast. It requires buying the best players every year. There is no draft, there is no equalizing schedules. You have to outspend the competition usually to win the big prize.

Baseball is a false analogy because they had a passion for baseball in Japan, they just moved Japanese baseball players over. There is no such unconquered market in soccer. Glazier may try for the US, but Americans do not have a passion for the sport. It isn't there and won't be for a long time, if ever.

I don't know why you keep acting like they are the same type of business simply because they are both sports teams.

When most people who know about European football say ManU is going to be in trouble because of this debt, I tend to believe them over people who have no clue about the economics of European football (especially what it means to keep up with Chelsea).

[reds4ever]

Originally posted by Imran Siddiqui


I don't know why you keep acting like they are the same type of business simply because they are both sports teams.

This is what people fail to understand, in the NFL, even if you have a poorly performing team, a certain 'equilibrium' is maintained due to the draft, the salary cap etc. In European football if you have a poorly performing team you are just allowed to sink into the lower leagues.

As it stands, on the pitch ManU need heavy (if not major) investment on nwe players if they are to compete with Chelsea and Arsenal in the new few years. If they are unable to do that due to the debt and revenue from merchandise falls as a result then you have a domino effect where one keeps feeding off the other.

I'm not entirely sure the guy knows whats he's let himself in for......

[DerSchwarzfalke]

The NFL is not too keen on Glazer owning Manchester United either, it seems. There are apparently league rules that prevent dual ownership, so Glazer might be forced to relinquish Tampa Bay if he wants to hang on to his share of ManU. That is an interesting extra twist to throw into the mix, but I am a bit surprised Tagliabue and his bunch are only speaking up now about it. This has been in the works for longer than a year now, if I remember correctly.

[DanS]

I don't know why you keep acting like they are the same type of business simply because they are both sports teams.

They are the same type of business simply because they are both sports teams. The business pieces of each sport (sponsorship, gate receipts and upkeep, TV revenue, merchandising, payroll and team management, community outreach, etc.) are similar and I think that the similarities are greater than the few differences.

[Imran Siddiqui]

Originally posted by DanS
They are the same type of business simply because they are both sports teams. The business pieces of each sport (sponsorship, gate receipts and upkeep, TV revenue, merchandising, payroll, community outreach, etc.) are similar and I think it's not worthwhile to stress the few differences.

They are VASTLY different businesses. The differences are far more great than anything in US sports... and there have been plenty of examples of owners who can suceed in one US sport but not another.

The NFL is a sport you can make money at. Its controlled and the owners work for each other's profits. European soccer is usually a money losing venture and very rarely do you actually make some money out of it. Your goal there is to spend, spend, spend. And when a $12 billion owner is out there willing to use his personal forture without regard for losses to win, you can't assume a massive debt and hope to keep pace.

[JohnT]

Dan, you're forgetting that the devil is in the details.

[Spiffor]

Originally posted by DanS
They are the same type of business simply because they are both sports teams. The business pieces of each sport (sponsorship, gate receipts and upkeep, TV revenue, merchandising, payroll, community outreach, etc.) are similar and I think it's not worthwhile to stress the few differences.

Err, doesn't the salary cap and the draft make it so that the expenses are extremely different in European football than in the American one?

[DanS]

The salary cap and draft are among the few differences. I think it's a stretch to call the effect of those differences on the business extreme, on the other hand.

[JohnT]

So, the variable cost of labor has no impact on businesses? You don't think there's an advantage to making labor a fixed cost?

[JohnT]

dp...

[DanS]

So, the variable cost of labor has no impact on businesses? You don't think there's an advantage to making labor a fixed cost?

Who ever said it has no impact?

[reds4ever]

Originally posted by DanS
The salary cap and draft are among the few differences. I think it's a stretch to call those differences extreme, on the other hand.

........relegation, promotion, all the player rights differences......

[DanS]

As long as you go in knowing what those differences are, what's the problem?

[JohnT]

I'm glad you saw the silliness of that "strawman" comment, Dan.

[DanS]

So who ever said it has no impact, JohnT? Or have you decided to be an asshat just for today?