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Kanuddie t1_j6q7jkk wrote

Reply to comment by Square_Tea4916 in [OC] Manchester United Income and Expenses Breakdown of their 2022 Annual Report by Square_Tea4916

There's a reason EBITA is a thing. Depreciation and amortization alone account for more than the net loss here.

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Square_Tea4916 OP t1_j6q8ry8 wrote

I’ve always heard when it comes to owning big sports clubs, it’s expected to take a loss every year in order to grow the club’s overall value cause they make their money on the sale of the franchise.

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currentscurrents t1_j6qgw2g wrote

> they make their money on the sale of the franchise.

What does this mean? Are they planning to sell the business someday, and they will make their money back when they do so?

If the business is a net loss except when you sell it to someone else, why is anyone willing to buy it? EDIT: I guess people were willing to buy NFTs.

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Square_Tea4916 OP t1_j6qiw0t wrote

Think they can flip a switch to make it easily profitable. Not buying 1-2 players and not offering as high of wages relative to other clubs.

It’s pretty much like an over-valued tech company - high potential and big brand name.

But also hear owners get extremely favorable tax benefits from being owners in a large depreciating asset.

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elpajaroquemamais t1_j6rfhld wrote

Because billionaires like to offset their income with a loss while getting all the benefits of owning a sports team.

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siddus15 t1_j6r0x56 wrote

Because owning a football club shouldn't be about profit above all else. It should be about sustainable sporting success

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