Someone explain this tax shield thing to me?
Someone explain this tax shield thing to me?
It's not a tax shield. The interest you pay on it reduces income which reduces taxes. But if your tax rate is 30% for example, paying 1000 interest only reduces your taxes 300. Simplistically if you have a loss (which may be caused by interest payments on excessive debt), you can carry the loss forward to a year when you have a profit and apply the loss against the profit..
The big problem is the stadium. Our revenues from it are fucking ridiculous. We're doing pretty well on broadcasting and sponsors, but we need to build and to own our own stadium to be at 300 millions.
So after our $120 mil (assumed) salaries where is the other $100 mil going?
How in the world are we paying for a new stadium? Unless these past two seasons of frugality have lined our pockets more than we can imagine... Look at Arsenal and what hey had to go through to get their stadium paid off, what are we going to be looking at? 20 years of mediocrity?
How in the world are we paying for a new stadium? Unless these past two seasons of frugality have lined our pockets more than we can imagine... Look at Arsenal and what hey had to go through to get their stadium paid off, what are we going to be looking at? 20 years of mediocrity?
La Gazzetta dello Sport found only six Serie A clubs ran at a profit last year, while Inter lost €82.7m.
The newspaper published the results of its investigation today into the finances of clubs in the 2012-13 campaign.
They found only six sides avoided a deficit, while there are still huge debts all around the League.
Udinese are the best run club in Italy, making a profit of €32.3m in 2012-13, followed by Napoli with €8.1m.
The only other clubs to run at a profit were Chievo (€1.5m), Pescara (€1.3m before their relegation), Fiorentina (€1.2m) and Catania (€0.1m).
Inter hold the record for the worst accounts, as they ran at a loss of €82.7m in 2012-13. It’s still an improvement on the €89.8m losses from the previous season.
Juventus have the highest revenue, mainly thanks to owning their own stadium, with €274.8m, but also the second highest expenditure at €286.8m.
It means the Bianconeri still ran at a loss of €15.9m last season.
Of the other top clubs, Milan ran at a loss of €6.9m and had the most expenses at €324m, Lazio lost €5.9m and Roma €40.1m.
In terms of outstanding debts, Inter lead the way with €293m, followed by Juventus on €227.1m and Milan €221.6m.
The club with the lowest debt is Fiorentina on just €5.1m.
http://www.football-italia.net/46160/only-six-serie-clubs-profit
lol berlus company has rebounded nicely after couple of years and his asset valuation is around 9billion, its just he has bigger things to worry about
Proof please
He's actually correct.
Source: My Bloomberg
Larger Pic:
http://postimg.org/image/vii9owaqd/full/
Its probably closer to $9.5B since the valuation used for Milan is from a 2011 Finivest report. Sports valuations have been skyrocketing over the last 5 years. If the Forbes valuation of ~$900-$1B is used, it pushes his portfolio of assets up by about 1/2 a billion.
Than why the fuck hasn't he invested buying players? WTF if the logic