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Football clubs like Manchester United are getting more expensive

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Manchester United: the business tactics that could lead to a record multi-billion-pound sale

It seems that another item can now be added to the long list of things that are getting more expensive: football clubs. The bids coming in to buy Manchester United, reportedly in the region of £4.5bn (the owners are said to want £6bn) would make it the largest amount ever paid for a club.

Given that the current US owners, the Glazer family, bought Manchester United in 2005 for around £800 million, the current valuation makes it unsurprising that a sale may be on the cards.

But can a football club, even one as famous as Manchester United, really be worth £6bn?

For comparison, in 2021 one of its rivals, Newcastle United, sold for a fraction of that sum, at around £300 million. Yet given that Newcastle had been bought for £133 million in 2007 (about £200 million in today’s money), that controversial sale was still seen as providing a decent return.

But it was Chelsea, sold in May 2022, which started the sale bonanza among the biggest British clubs. Manchester United, Liverpool and Tottenham Hotspur have all been linked to potential sales since then.

Chelsea had been bought for £140 million by Roman Abramovich in 2003, when it was struggling financially. Two decades later, its £2.5 billion price was achieved despite the club being what is known as a “distressed asset” (something that needed to be sold because Abramovich had been sanctioned by the UK government), meaning that bids were probably lower than if the sale had been on the open market.

Crucially though, Chelsea had also become a more impressive club, winning a number of trophies (two Champions League, two Europa League, five Premier League titles and five FA Cups). (The profit from the Chelsea sale is now earmarked for humanitarian causes in Ukraine.)

Another important element behind a club’s value is, of course, how much any potential owner is willing to pay. Research suggests that owning a football club is generally something that loses money, so owners normally fit one of three categories.

First, there are those who view clubs as a trophy asset; second, fans or local benefactors who want to support their side; and third, those that think they can make money from the club by making changes.

The Glazers fall squarely into the last category, and took the opportunity to buy a club through a leveraged buyout – in essence, using comparatively little of their own money – and taking money out annually through dividends.

That leveraged buyout meant that some of the money used to buy the club was secured against the club itself, like a mortgage, so the debt was borne by the club rather than the owners.

And that debt was considerable. Over the ownership of the Glazers, £837 million has been spent on interest payments alone.

Another reason for the increase in value of clubs has been the increase in revenue they can generate. The Premier League, for example, has been significantly increasing its income from selling overseas broadcasting rights (the latest US deal is more than double its previous one), and this leads to more money for the clubs. Increasing global interest in the Premier League has also added value to the small number of clubs which feature in it.

Other things that affect the value of clubs have nothing to do with football. For example, the pandemic led to the very rich getting richer and so there is more disposable income at the billionaire potential owner level.

But ownership comes with plenty of risk too and, like winning matches, financial success is never guaranteed. Around 40% of football clubs in the top four leagues of English football have gone into administration since the Premier League began, including eight of the original 22 Premier League members.

The culture of spending above your means in English football may, in the long term, be tempered by the proposed implementation of an independent regulator. In the meantime football club ownership remains, for most, a loss-making business.

For the Glazers though, selling their club for around £5 billion would surely be seen as a big win. They put in relatively little of their own money to buy it, have taken money out in dividends, and are now expected to make a massive profit on the sale price. Divisive tactics they may have been, but very lucrative too.

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Australia’s workforce revolution sets the stage for a four-day work week

Australia’s AI Workforce Revolution: Automation Paves the Way for a Four-Day Work Week and New Job Redesigns.

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Australia’s AI workforce revolution: automation paves the way for a four-day work week.

In Short

UiPath’s report highlights the rapid shift towards “agentic automation,” where AI makes autonomous decisions, encouraging businesses to reassess roles and harness automation for productivity. This evolution may enable a four-day work week and necessitates the retraining of staff while ensuring regulations are in place for trust and compliance with AI integration.

The trend towards work reallocation is rapidly advancing, with UiPath’s new report identifying significant shifts in AI and automation.

Key insights from the report suggest a move towards “agentic automation,” where AI begins to make autonomous decisions. Yelena GalstianHead of Solutions and Customer Advisory at UiPath shares her key insights.

Organisations are encouraged to reassess existing roles and identify areas where automation can enhance productivity.

A critical aspect will be the orchestration of collaboration between human employees, AI agents, and software robots to ensure effective teamwork.

Looking ahead, the motto for businesses is to “redesign and reassign” processes while considering how AI can handle repetitive tasks, allowing human employees to focus on more complex responsibilities.

As organisations embrace these changes, we could see a potential transition to a four-day work week, made feasible through increased efficiency and productivity from AI.

For further insights into the research and methodologies for implementing AI in business, interested parties can connect with the UiPath team through their website.

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Future of hospitality: AI, smart automation, and record-breaking 2025 travel growth

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As global tourism revenue surges, cutting-edge technology and automation are revolutionising the hospitality industry.

Global travel demand remains strong heading into 2025, with industry experts predicting record-breaking tourism revenue.

According to the World Travel & Tourism Council, global tourism revenue is set to hit $1.9 trillion this year.

With record-breaking growth projected for the travel industry, hospitality leaders are embracing AI, automation, and luxury innovations to enhance guest experiences.

As demand for international travel remains strong, hospitality businesses are adapting to evolving traveler expectations through technology and innovation.

One of the key trends shaping the industry is the rise of artificial intelligence and smart automation.

From AI-powered customer service to energy-efficient hotel management systems, technology is redefining guest experiences.

Luxury boutique hotels like London’s Eccleston Square Hotel are at the forefront of this transformation.

Known as one of the world’s most technologically advanced hotels, Eccleston Square has recently unveiled a major tech upgrade.

The hotel is now using Apple TVs from ROOMNET, an advanced automation system developed with Leading Edge Automation, and a cutting-edge building management system by HSYCO. These innovations enhance operational efficiency while maintaining a commitment to sustainability.

These enhancements work in sync with the hotel’s property management system, MEWS, to create a smarter, more sustainable hospitality experience.

As AI continues to reshape the hospitality landscape, Eccleston Square Hotel’s approach reflects the industry’s broader shift toward innovation, efficiency, and sustainability—paving the way for the future of luxury travel.

Olivia Byrne, Owner and Company Director Eccleston Square Hotel joins Veronica Dudo to discuss.

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Nightmare for Labour as Reform UK leads in poll

Reform UK surpasses Labour in polling for first time, with Brexit leader Nigel Farage gaining support amid Conservative decline.

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Reform UK surpasses Labour in polling for first time, with Brexit leader Nigel Farage gaining support amid Conservative decline.

In Short

Reform UK, led by Nigel Farage, has overtaken Labour in a YouGov poll with 25% support, while Labour sits at 24% and the Conservatives at 21%. This shift indicates growing discontent with the government, particularly as Conservative leader Kemi Badenoch struggles to regain support.

The poll, conducted among 2,223 adults at the beginning of February, shows Reform UK at 25 percent support, a rise of two points from the previous poll.

Labour has declined by three points to 24 percent, while the Conservative Party has dropped to 21 percent.

While these results are notable, the next general election is not required until August 2029, and Reform’s lead falls within the poll’s margin of error. POLITICO’s Poll of Polls shows Labour and Reform both at 25 percent, with Conservatives at 22 percent.

This polling data is troubling for the government, particularly after Labour’s dominance in the last election, where they achieved a majority with 33.7 percent of the vote. Reform UK was in third place with 14.3 percent.

The findings also reflect poorly on Conservative leader Kemi Badenoch, who seeks to restore support following recent losses.

YouGov indicates that 24 percent of those who voted Conservative in July would now choose Reform, with 43 percent of Conservative voters in 2024 favouring a merger between the two parties.

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