Interesting article on the other board.

[Stan A. Einstein]

Reading the article by Chris Davis on the other board, in his usual meticulous and courteous way lays out the difficulties of owning a football club. In the unlikely event that there are people who read this board who do not read the other I would strongly suggest reading Chris's piece. For while I disagree with his analysis my view in no more valid than his.

In terms the argument is laid out as to there being so many difficulties that owning a football club that to do so becomes an ego trip and added to which there is a customer base that easily becomes disgruntled.

Whilst I see the logic of his argument I can't agree with his conclusion. For me the idea that hard nosed business people suddenly take all leave of their senses and plough money into a never filled hole of loss is too fanciful for belief.

If we take Huw Jenkins. Firstly he made millions out of his sale of Swansea City. He was gifted Newport County on no more than a promise to invest some £500,000. Assuming that the £500K is invested he is in a position to pull that money. In terms if he succeeds at Newport County he makes money. If he fails he walks away unscathed.

This is not a criticism of Huw Jenkins. He is doing exactly what the owners of the bulk of UK football clubs do. But this idea that the owners of League clubs are all losing their own money, year in year out is in my view nonsense. For those of you with long memories. Think of the High Street. Mother care, British Home Stores, Woolworths. They all went bust. How many restaurants in the Newport of 25 years ago still trade? Odd that the only business model which is meant to lose money is the only business model that seldom sees a business go bust.

And not a criticism of Chris Davis. He holds a view I don't share. As always I'm interested in the views of others.

[lowandhard]

There is a view held by some that club chairmen are more or less philanthropists and that we fans are an ungrateful fickle group of customers who it’s relatively impossible to please. In short, owners are bound to lose money. I don’t believe this to be so , and I posted this:

-I have to say that isn’t my analysis at all.
It might be the case if MrJenkins was ploughing limitless cash in the enterprise but I see absolutely no evidence for that. He has made a small loan ( in football terms ) and ridded us of high earners as far as I can see and is gambling on his experiment with inexperienced and young incomers coming good and yielding some decent transfer money to provide investment cash. In my view it’s a bit of a long shot.
I further disagree about the customer base. If I buy an inferior product, say a pork pie that’s past its sell by date or has a finger nail in it, I’d never go near the place again! Contrast that with us fans, we may grumble but if I’d adopted the aforementioned “ normal “ reaction to the County that I would to that pork pie, I’d be astonished if anybody had lasted the seventy odd years I have and still be wearing a black and amber scarf!!
Au contraire, our fans will continue to put their money in whatever drivel and results come out of the football club.
My belief then is that his “risk” is pretty minimal.

[lowandhard]

And in answer to those who pose the question, “ why would anyone want to be a football chairman with ungrateful sods like us fans about? “ I say this,
Strange then that at least about a hundred “ idiots and fools “ in the football league alone are willing to take on the onerous burden of having their pockets picked isn’t it? They must be getting something out of it even if it were only to be the kudos of being chairman of a football club with the power in their little fiefdom.
Do we know how many of them are losing money and how many provide loans that attract interest I wonder? The Glazers among others seem to make it work for them. The rich owners who plough countless millions in, must have their reasons for doing so.
Now Mr Jenkins is obviously not among the last mentioned but up to now he obtained the club for the promise of a small loan, good luck to him! So he hasn’t been robbed of a fortune yet ( if ever ) and I fervently hope he does make a profit. What’s good for him is good for us but I don’t think he took us on as a charitable act. He is a businessman after all!

[wattsville_boy]

And in answer to those who pose the question, “ why would anyone want to be a football chairman with ungrateful sods like us fans about? “ I say this,
Strange then that at least about a hundred “ idiots and fools “ in the football league alone are willing to take on the onerous burden of having their pockets picked isn’t it? They must be getting something out of it even if it were only to be the kudos of being chairman of a football club with the power in their little fiefdom.
Do we know how many of them are losing money and how many provide loans that attract interest I wonder? The Glazers among others seem to make it work for them. The rich owners who plough countless millions in, must have their reasons for doing so.
Now Mr Jenkins is obviously not among the last mentioned but up to now he obtained the club for the promise of a small loan, good luck to him! So he hasn’t been robbed of a fortune yet ( if ever ) and I fervently hope he does make a profit. What’s good for him is good for us but I don’t think he took us on as a charitable act. He is a businessman after all!

I think many Chairmen or Chairpeople take on a football side for tax purposes. Don't you pay less tax if a part of your business empire is losing money?

[Stan A. Einstein]

I think many Chairmen or Chairpeople take on a football side for tax purposes.  Don't you pay less tax if a part of your business empire is losing money?

Quite. And think of all that free advertising.

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