QPR's Takeover - A Slightly Different Perspective

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04 September 2007 - The Business of Soccer

In the UK the soccer season is now well under way and the first few weeks of the new season has seen the usual hype associated with individual players, managers and teams. One week a team are looking like champions elect, the next they are suffering crisis; a manager is 'on his way out' one minute and then being fully backed by the board of directors the next. Whatever the contradictory stories that surround the sport, it seems that the attraction of the game to outside entrepreneurs is showing no signs of diminishing.
Over the summer, Manchester City were bought by the former Thai Prime Minister, Thaksin Shinawatra; David Dein of Arsenal sold his share in the club to a Russian billionaire, Chelsea, as we know, was acquired by Roman Abramovich in 2003, Liverpool and Manchester United have both been bought out in recent years. It is not only the Premier League, however, that is attracting the interest of entrepreneurs. The old adage that 'there is no money in football' is either illusory or is being ignored by some very well respected business people.
There is a possibility, for example, that Manchester United could once again change hands. The fear that existed when the Glazers took over in 2005 that they would drag the club down in a mire of debt seems not to have materialised. If the Glazers decide to sell they are expected to make a tidy profit on their investment. Clubs in the Championship (the division below the Premiership) are also now targets. In 2006, Sunderland was acquired by Niall Quinn, one of the clubs former players and a successful business person in his own right. Sunderland gained promotion to the Premiership and whilst they are finding life tough in the top league they have been able to benefit from the huge influx of funds and have already seen gates increase - nearly 46,000 turned up to watch the lunch time fixture against Liverpool.
To get to the Premier League, however, requires money. There is a seemingly endless supply of clubs with 'tradition' who 'deserve to be in the top flight'. One of these is apparently Queens Park Rangers (QPR) who is the latest club to face a takeover. The men behind the takeover of the club are Flavio Briatore and Bernie Ecclestone. Both are heavily involved with Formula 1 (F1) racing and have no shortage of money and access to funds.
The F1 duo has tabled an offer that involves paying £1 million for the shares of the club plus the taking on of £13 million worth of debt. They will, in addition, provide a further £5 million of loaned funds to finance player purchase. Ecclestone has manoeuvred F1 into a major business generating huge sums of money into the process. QPR's fans will not doubt be hoping that the pair will be able bring success to their club.
What has to be remembered is that there have been criticisms of Ecclestone's handling of F1 and also that there are only so many clubs that 'deserve to be in the Premiership'. Ultimately, many of the business people who are getting involved in football are exactly that - business people. They, to coin a phrase, 'did not get where they were today' by squandering money. Fans will be concerned once again that such a takeover might represent a short term money making opportunity rather than the long term financial stability that many crave. Bized

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