@lokeshchandaindia If A league and MLS is considered as failures according to you just because they are not profitable , then what is your take on the Russian Premier League?
@red_devil kolkata... The article speaks about the link between the A-League and MLS and how the ISL is perceived to be copying that format. Not about the Russian League. Thats why the comparisons between the two Leagues have been made. I believe football is not about profitable businesses, it is about building a brand and concentrating on valuations of stake. Major clubs over the world are in losses however they score in terms of valuations. If the ISL is looking at that then it cuts a sorry picture as Delhi Dynamos are believed to have sold majority stake for a pittance of 50 odd crores which is the operating budget of just one year. Ditto for FC Goa although that was a different scenario wherein the owners were forced out.
And now FC Goa too appear in trouble as Videocon are looking to exit and there are talks that Rakesh Jhunjhunwala might come on board. Investors divesting stakes or getting out is a bad sign for Reliance and ISL in general. This is what my whole point is. It isn't a viable league in terms of valuations, let alone profits. In just two years so many investors have either left or divested stakes. PVP in Kerala, Dempo, Salgaocar and Videocon in FC Goa, DEN, Larsing Ming in North East have all got out or divested in two years.
wow..how you change stances. All those posts few weeks back you were saying how all teams in A league are making losses and how it's a failure. and now you sayfootball is not about profitable businesses. Get hold of what you are trying to say . You dont see the stability in ATK ,Chennaiyin FC, MCFC , FCPC, NEUFC but the instability of the others. You seem to be like those pessimists, who love to see the glass half empty.
DDFC got Rs43 cr for 55% of their stakes. Considering their valuation at roughly RS 80-90 crores, at the end of second year , I dont think the valuation is bad for some team like Delhi where football isnt that popular. Obviously ATK KBFC NEUFC Chennaiyin and even FC Goa is valued much higher,
FC Goa 65% stakes sold at Rs65 cr..FC Goa valued at approx Rs 100 cr then in second year. Not bad at all. With the cut money signings FC Goa make, I doubt their expenditure per season exceeds Rs 40 cr
PVP left KBFC cause they had to pay off SEBI after a fine was imposed on them . FC Goa owners were removed for good. Delhi market was always a bet for anyone, not "shocked" to see Den sell majority of stakes. Larsing already has a team. so buying stakes in NEUFC , never made any sense to me.
Anyone with knowledge about this I league. Seems Sporting and dempo are both playing...having submitted the club licensing docs...are they just leading aiff to ditch like RWFC?
Sorry friends.....coming back after a long time. At least some discussions about the I.League are coming up! Now a days this thread is full of news and debates (at least 90%) on ISL only, though there is a separate thread for ISL. Any way, I would request my senior & learned members to focus on some news on I. League, specially about the probable signings to be done by different clubs.
@red_devil kolkata.. Let me give you a sound lesson in economics.
First of all, a valuation of a big or growing company will always be more than the operating expenditure of the company. Which means Delhi Dynamos was a devalued company since it got sold for the same amount as its operating expenditure. Ditto for FC Goa. Looks like that KBFC article was written by the reporter when he was drunk because there is no way that KBFC can be valued at 200 CR when Ola cabs is valued at just above 1000 CR. Also, KBFC has a retired Sachin Tendulkar and some Mallu actors who aren't known by people who don't wear lungis. On what basis was the 200 CR valuation made? Probably this article was paid news that reliance is so good at.
When I said football isn't a profit making business the point I was trying to clarify is this. Where would the pinch feel more? Losing 50 CR at Delhi Dynamos/Chennaiyin FC or losing 200 CR at Manchester United? And that's where the whole issue comes in. Losing money at a world renowned brand is acceptable but not in a nonsensical ISL team which is hardly known. Because the bottom line is that the 200 Cr loss at Manchester United can be overcome by selling 0.5% stake. Look at Japan and how they minimize losses and work within budgets and sound economic models. I would be inclined to agree with the author in this regard. Following the J-League model would make better sense because our League is not so popular like the European Leagues and it needs to be sustainable initially to attract investors. Here the investors are slowly beginning to shy away. Anyways this article wasn't written by me. I would agree to most of the authors points but not all.
Retired Sachin Tendulkar is more popular than any one else in India. WTF with the lungi theory man ? Those are famous telugu actors not mallu actors. J-League was started the same way with no Rel-Pro till the first 7-8 seasons . Then they added it just like what IMGR intends to do with ISL. Why are comparing ISL clubs with Manchester utd and european leagues ? are u insane ? dude,remember how it was before the ISL .
Comments
http://futbolgrad.com/russian-premier-league-financial-numbers-reveal-a-bottomless-pit/
And now FC Goa too appear in trouble as Videocon are looking to exit and there are talks that Rakesh Jhunjhunwala might come on board. Investors divesting stakes or getting out is a bad sign for Reliance and ISL in general. This is what my whole point is. It isn't a viable league in terms of valuations, let alone profits. In just two years so many investors have either left or divested stakes. PVP in Kerala, Dempo, Salgaocar and Videocon in FC Goa, DEN, Larsing Ming in North East have all got out or divested in two years.
You dont see the stability in ATK ,Chennaiyin FC, MCFC , FCPC, NEUFC but the instability of the others. You seem to be like those pessimists, who love to see the glass half empty.
KBFC is valued at Rs200 crores
http://www.business-standard.com/article/companies/sachin-tendulkar-buys-20-stake-in-kerala-blasters-115100800609_1.html
DDFC got Rs43 cr for 55% of their stakes. Considering their valuation at roughly RS 80-90 crores, at the end of second year , I dont think the valuation is bad for some team like Delhi where football isnt that popular. Obviously ATK KBFC NEUFC Chennaiyin and even FC Goa is valued much higher,
FC Goa 65% stakes sold at Rs65 cr..FC Goa valued at approx Rs 100 cr then in second year. Not bad at all. With the cut money signings FC Goa make, I doubt their expenditure per season exceeds Rs 40 cr
PVP left KBFC cause they had to pay off SEBI after a fine was imposed on them .
FC Goa owners were removed for good.
Delhi market was always a bet for anyone, not "shocked" to see Den sell majority of stakes.
Larsing already has a team. so buying stakes in NEUFC , never made any sense to me.
First of all, a valuation of a big or growing company will always be more than the operating expenditure of the company. Which means Delhi Dynamos was a devalued company since it got sold for the same amount as its operating expenditure. Ditto for FC Goa. Looks like that KBFC article was written by the reporter when he was drunk because there is no way that KBFC can be valued at 200 CR when Ola cabs is valued at just above 1000 CR. Also, KBFC has a retired Sachin Tendulkar and some Mallu actors who aren't known by people who don't wear lungis. On what basis was the 200 CR valuation made? Probably this article was paid news that reliance is so good at.
When I said football isn't a profit making business the point I was trying to clarify is this. Where would the pinch feel more? Losing 50 CR at Delhi Dynamos/Chennaiyin FC or losing 200 CR at Manchester United? And that's where the whole issue comes in. Losing money at a world renowned brand is acceptable but not in a nonsensical ISL team which is hardly known. Because the bottom line is that the 200 Cr loss at Manchester United can be overcome by selling 0.5% stake. Look at Japan and how they minimize losses and work within budgets and sound economic models. I would be inclined to agree with the author in this regard. Following the J-League model would make better sense because our League is not so popular like the European Leagues and it needs to be sustainable initially to attract investors. Here the investors are slowly beginning to shy away. Anyways this article wasn't written by me. I would agree to most of the authors points but not all.