The Finance Foundation
Reinventing capitalism for all
AUTHOR
Michel
Gabrysiak
President of the Finance Foundation

What is the value of fame? Billions! The latest example is Arsenal the football star club.
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                         A Russian entrepreneur M Usmanov has made a proposition to buy the majority of a company which is worth 2 billion pounds. The Russian already owns 30% of it. One billion pounds is a lot of money, so one may suppose that the company is in industry, in services and is quite big. 

                It is not so. The company is a football club. It is Arsenal. A football club worth 2 billion pounds. I find that amazing. 

                Now, his proposition has been refused. The majority shareholder,  Stan Kroenke wants to keep the company, Arsenal, and run it for a long a time and transfer it to his children.

                Alisher Usmanov, a billionaire, insists. He wants the club. He wants it because it is Arsenal, and full of glory, and reputation for him, and he wants it because it makes money.

                What does he buy? 11 players, plus some others, and the coach. The coach has been there for many years. 

                Whatever happens, and I suppose that Mr Usmanov will increase his offer, it is quite amazing to see a transaction of that magnitude for a football club.

                               The value is based on results of the football club, It’s hundreds of thousands of fans. It means huge advertising contracts and enormous television contracts. And fame and PR and and and.

 

 20 years ago,it would have not been considered for such an enormous valuation. 

                Good luck Arsenal. 

 

 

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