LFC is as near the perfect investment there is and for anyone who has a professed knowledge of the markets to dispute this obviously has an agenda!
The investment is just that and will provide a sustainable return in the long term, even foregoing the business maxim of feeding an asset, in this case the performance and status of the asset will be greatly limited by way of reduced financial backing.
I made no direct implication with the 'vested interest' comment although there have been individual's banned in the past after being identified as agents of the owners.
I think LFC were a great investment at the time they came in because of the untapped potential of the club, that is for sure - there were not that many suitors to the post, however, with most of the dodgy rich owners preferring to go to clubs where they would be under a lot less scrutiny and even bigger untapped potential (that means avg teams in big cities with big stadiums). They came in at a time when the club was underperforming commercially and when TV contracts were on the up, which improved the value of all clubs in the Premier League. This was far from guaranteed though, as 20 years of incompetence before them should show. The fact the revenue growth that has since been accrued (with LFC's commercial revenue growth the largest in the league) has been matched by wage bill spending has allowed the team to achieve success on the pitch with a fantastic manager.
That is not to say that growth is limitless, though, nor guaranteed - there are no guarantees of positive financial returns when you need to spend so much to maintain a competitive squad, nor even a guarantee of an improved valuation. You have to wonder whether TV contracts are going to continue to grow indefinitely, there are definitely signs this is not the case. And LFC are now near the top of the revenue table, with hardly that much room for growth - which is why they are keen to continue expanding the stadium, for instance.
If anything, the ESL was precisely the result of owners' desire for more stable and guaranteed financial returns, something they don't have at the moment. If that was the case with the UCL setup, none of this ESL bullshit would've even come to life. Imagine if LFC missed out on Champions League this season, for example - on top of missing all of the matchday revenue for a whole season - you could be sure this would've had quite an impact on the club's results. The ESL would make sure they wouldn't have to worry about it. For comparison, all 20 teams in the NBA posted profits in 2020, while the Premier League had combined losses of about £1billion in 2019/20.
« Last Edit: Jun 11, 2021 12:55:16 pm by Diego LFC »