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Old 03-03-2010, 15:03   #83
Gatorbasu
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Join Date: Jul 2003
Location: Chicago, USA
Default MILAN is doing good !!

Well, these numbers are just REVENUE but not the PROFIT. Look @ Manure, they are struggling to cover their debt service in spite of a super healthy REVENUE.

That mean they are heavily leveraged. They are issuing BONDs with an YIELD of around 9%, which borderly falls in the range of HIGH RISK to JUNK category for that high yield rate.

So, there are 3 kinda lies:

LIES
DAMN LIES
STATISTICS

Spin anything with STATISTIC and you can portray the picture with any color. I don't know in details but Real Medra are also heavily leveraged inspite of their high REVENUE stream.

They borrowed huge amount of DEBT from BANK to buy the stars but created a good deal with the TV sponsorship even without winning anything on the pitch.

You all these will not stay forever unless they start winning.

Only one thing against MILAN, they had unprecedented success in CL but didn't market that aggressively to claim the fame which comes with it.

In terms maintaining the books, that is one of the things that you have to give kudos to MILAN and GALLIANI.

A couple of years ago, a group of 30 students from STANFORD MBA program (majoring in sports & entertainment industry) went to MILAN for a week for a special course on how to run an international soccer club.

In terms of foreign owners buying the club, if they are really not into the club, the results can be detremental. Look at Man U., the owner's family (GLAZER family) made out a heavty check out of the transaction while structuring deal by heavily leveraging the DEBT to EQUITY ratio. And hence, Manure's financial problem.

Thus, I am happy that BERLU loves the club and had been the owner of the club for past 23 years.


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!!Milan wins it all !!

Forza MILANO
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