#619086
Postby SalvorHardin » October 5th, 2023, 5:22 pm
I bought back in earlier today, though on a much smaller scale (roughly 7% of the number of shares that I originally bought just before starting this thread). It's a punt sized stake rather than the kitchen sink sized investment I made last November (I don't have anything like the level of confidence I had back then).
My reason for buying back in is somewhat paradoxical at first glance. It's because the team's performance this season has been poor, well below the expected level particularly given last season's third place finish. This is causing all sorts of grievances to come to the surface and when combined with the club's well publicised off the field troubles with several players (Greenwood, Antony and Sancho), this is giving me a bit of a "buy when there's blood on the streets" vibe.
If you look on American investment websites, you may have seen that some posters try to justify the share price by treating at it as a conventional operating company. It isn't (it's seriously overvalued on that basis). It's a trophy asset which can't make much of a profit because of the nature of its business and the competition (in particular the financially doped clubs like PSG, Newcastle and Citeh). The only way to justify those valuations is if we see a no relegation Premier League (with some form of salary cap), a European super league and clubs selling some of their broadcast/streaming rights individually.
There will be fierce resistance to all of these changes, not just from fans of most clubs but also politicians and media companies who have substantial broadcast contracts with the league (it was no surprise that Sky Sports was incredibly hostile towards the European Super League). I reckon that a no relegation Premier League is on the cards given that there continues to be a steady increase in the number of clubs that are owned by Americans. 14 out of 20 is what's needed to vote through such a change.
EDITED - only to correct spelling mistakes
Last edited by
SalvorHardin on October 5th, 2023, 5:35 pm, edited 2 times in total.