Post by QPR Report on Nov 13, 2008 8:03:16 GMT
[Also: Forbes: India's Wealthiest 40 (Lakshmi Mittal #2]
www.forbes.com/2008/11/12/richest-Indian-billionaires-biz-indiarichest08-cx_nk_1112india_land.html
Forbes /Andrew Farrell - The World's Richest People
The Billionaire Soccer Club
When reclusive billionaire Mike Ashley bought struggling British soccer club Newcastle United in the summer of 2007, the team's fans hailed their new owner and his deep pockets as potential saviors.
Not anymore. Through Nov. 11, Newcastle is in 18th place in the standings, a spot which puts them in danger of relegation to a lower league. Club fans, called the Toon Army, are also furious with ownership because of the resignation of beloved manager Kevin Keegan.
In Pictures: The Soccer Billionaires
Ashley, who had become a fixture in Newcastle's stands, is ready to return to the lifestyle that earned him the nickname of Britain's Howard Hughes. He says he can't take his kids to a game any longer out of fear they will be assaulted. After purchasing the club just over a year ago, he's looking to sell. "You want me out," says Ashley. "That is what I am now trying to do."
British papers have been thick with chatter of who could bid on the 116-year-old club. In those tabloids at least, Philip Anschutz emerged as a frontrunner this weekend. He's a Denver entertainment entrepreneur who ranked 36th on our Forbes 400 list of the richest Americans, and he already owns three other soccer teams.
Anschutz's sports holding company AEG denies any interest in the club, but don't be surprised if another billionaire might become the next Newcastle owner. The owner's box at soccer stadiums has transformed into a billionaire's club over the past decade.
Many of the men at the top of our rich lists have a pro soccer team on their long list of assets. Indian magnate Lakshmi Mittal and racing tycoon Bernie Ecclestone have a stake in the London's Queen's Park Rangers.
Microsoft co-founder Paul Allen is part owner of the new American Major League Soccer franchise Seattle Sounders. Luxury goods maven Francois Pinault doesn't just root for his favorite French side Stade Rennais; he also owns them.
The reason that so many clubs are in billionaire hands is their considerable expense. "I paid 134 million pounds [$206.8 million] out of my own pocket for the club," says Ashley on his Newcastle purchase. "I then poured another 110 million pounds [$169.8 million] into the club not to pay off the debt but just to reduce it. The club is still in debt." Plus, he says he'll be paying out many more millions in the coming years to settle fees from old transfers.
If you need more evidence of the expenses of running a football club, take Russian businessman Roman Abramovich and his club Chelsea. Since Abramovich's purchase in 2003, Chelsea has been stellar on the field and captured two Premier League championships and the UEFA Champions League. Despite that, a Chelsea executive said this week that the club isn't hoping to be profitable until the 2010-2011 season.
Anschutz might know the difficulties of the soccer business better than anybody. Anschutz is widely credited with the success of America's pro soccer league--no small deed in a country with relatively few soccer fans. Major League Soccer recently named its championship trophy after him in recognition of the service.
"In our darkest hour, we went through contraction," said MLS Commissioner Don Garber at the trophy unveiling. "We were really questioning what the future of MLS would be. Phil Anschutz stood up and said, 'Even if I have to carry this league on my shoulders, I won't allow Major League Soccer not to continue or grow.'"
At one point, Anschutz owned six teams in the fledgling league. It was a huge gamble that only a billionaire could afford. Now, with the MLS healthier than ever, it's starting to pay off. We value Anschutz's Los Angeles Galaxy as the most valuable team in American soccer, worth some $100 million.
www.forbes.com/2008/11/12/soccer-newcastle-billionaires-biz-billies-cx_af_1112soccerbillies_print.html
The Soccer Billionaires in Pictures
www.forbes.com/2008/11/12/soccer-newcastle-billionaires-biz-billies-cx_af_1112soccerbillies_slide_2.html?thisspeed=25000
Lakshmi Mittal
Net Worth in November: $20.5 billion
Team: Queen's Park Rangers
The chief executive of steel giant Arcelor-Mittal bought a stake in the London-based club in 2007. He joins Formula One tycoons Flavio Briatore and Bernie Ecclestone as owners. The club currently plays in the Championship League, England's second highest division, but the wealthy ownership group is aiming higher. "Our program is to reach the Premier League within three years. I want to be in Europe [the Champion's League] within four years," Briatore told a British paper
www.forbes.com/2008/11/12/soccer-newcastle-billionaires-biz-billies-cx_af_1112soccerbillies_slide_4.html?thisSpeed=15000
www.forbes.com/2008/11/12/richest-Indian-billionaires-biz-indiarichest08-cx_nk_1112india_land.html
Forbes /Andrew Farrell - The World's Richest People
The Billionaire Soccer Club
When reclusive billionaire Mike Ashley bought struggling British soccer club Newcastle United in the summer of 2007, the team's fans hailed their new owner and his deep pockets as potential saviors.
Not anymore. Through Nov. 11, Newcastle is in 18th place in the standings, a spot which puts them in danger of relegation to a lower league. Club fans, called the Toon Army, are also furious with ownership because of the resignation of beloved manager Kevin Keegan.
In Pictures: The Soccer Billionaires
Ashley, who had become a fixture in Newcastle's stands, is ready to return to the lifestyle that earned him the nickname of Britain's Howard Hughes. He says he can't take his kids to a game any longer out of fear they will be assaulted. After purchasing the club just over a year ago, he's looking to sell. "You want me out," says Ashley. "That is what I am now trying to do."
British papers have been thick with chatter of who could bid on the 116-year-old club. In those tabloids at least, Philip Anschutz emerged as a frontrunner this weekend. He's a Denver entertainment entrepreneur who ranked 36th on our Forbes 400 list of the richest Americans, and he already owns three other soccer teams.
Anschutz's sports holding company AEG denies any interest in the club, but don't be surprised if another billionaire might become the next Newcastle owner. The owner's box at soccer stadiums has transformed into a billionaire's club over the past decade.
Many of the men at the top of our rich lists have a pro soccer team on their long list of assets. Indian magnate Lakshmi Mittal and racing tycoon Bernie Ecclestone have a stake in the London's Queen's Park Rangers.
Microsoft co-founder Paul Allen is part owner of the new American Major League Soccer franchise Seattle Sounders. Luxury goods maven Francois Pinault doesn't just root for his favorite French side Stade Rennais; he also owns them.
The reason that so many clubs are in billionaire hands is their considerable expense. "I paid 134 million pounds [$206.8 million] out of my own pocket for the club," says Ashley on his Newcastle purchase. "I then poured another 110 million pounds [$169.8 million] into the club not to pay off the debt but just to reduce it. The club is still in debt." Plus, he says he'll be paying out many more millions in the coming years to settle fees from old transfers.
If you need more evidence of the expenses of running a football club, take Russian businessman Roman Abramovich and his club Chelsea. Since Abramovich's purchase in 2003, Chelsea has been stellar on the field and captured two Premier League championships and the UEFA Champions League. Despite that, a Chelsea executive said this week that the club isn't hoping to be profitable until the 2010-2011 season.
Anschutz might know the difficulties of the soccer business better than anybody. Anschutz is widely credited with the success of America's pro soccer league--no small deed in a country with relatively few soccer fans. Major League Soccer recently named its championship trophy after him in recognition of the service.
"In our darkest hour, we went through contraction," said MLS Commissioner Don Garber at the trophy unveiling. "We were really questioning what the future of MLS would be. Phil Anschutz stood up and said, 'Even if I have to carry this league on my shoulders, I won't allow Major League Soccer not to continue or grow.'"
At one point, Anschutz owned six teams in the fledgling league. It was a huge gamble that only a billionaire could afford. Now, with the MLS healthier than ever, it's starting to pay off. We value Anschutz's Los Angeles Galaxy as the most valuable team in American soccer, worth some $100 million.
www.forbes.com/2008/11/12/soccer-newcastle-billionaires-biz-billies-cx_af_1112soccerbillies_print.html
The Soccer Billionaires in Pictures
www.forbes.com/2008/11/12/soccer-newcastle-billionaires-biz-billies-cx_af_1112soccerbillies_slide_2.html?thisspeed=25000
Lakshmi Mittal
Net Worth in November: $20.5 billion
Team: Queen's Park Rangers
The chief executive of steel giant Arcelor-Mittal bought a stake in the London-based club in 2007. He joins Formula One tycoons Flavio Briatore and Bernie Ecclestone as owners. The club currently plays in the Championship League, England's second highest division, but the wealthy ownership group is aiming higher. "Our program is to reach the Premier League within three years. I want to be in Europe [the Champion's League] within four years," Briatore told a British paper
www.forbes.com/2008/11/12/soccer-newcastle-billionaires-biz-billies-cx_af_1112soccerbillies_slide_4.html?thisSpeed=15000