You guys need to understand what supernormal profits mean; http://economicsonline.co.uk/Business_economics/Profits.html
I would expect that with football club subsidiaries they would expect to be making supernormal profits in order to feed back to the club. Let me be clear - if you take all profit, aka "normal" profit, then there is no incentive for the subsidiary businesses to continue to operate, or for them to have the resources available for continual development. Taking the conference centre as an example, if the club stripped all the profits, the carpets/tables/décor would get increasingly shabby and the business would collapse. -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Ian Murray Sent: 19 January 2012 21:23 To: Paul Cundell Cc: list leedslist Subject: Re: [LU] Leedslist Digest, Vol 19, Issue 50 Wow. I agree. Sent from my iPhone On 19 Jan 2012, at 20:48, "Paul Cundell" <[email protected]> wrote: > Mark H wrote: > >> Dave, there is a distinction between primarily match day activities >> (like the bars etc), and the conference centre for example. The >> former need to make a profit but would, I expect, go into the "match day takings" pot. > The >> conference centre is non-match day and should remain separate and > distinct. >> Same for any hotel. >> >> And I would also want their profits go towards improving their >> product and generating more revenue - not to open up >> franchises/branches elsewhere. I believe the business model is >> simply to ensure the club has revenue > streams >> throughout the year, not just on match days during the season. The > business >> model is not to expand beyond Elland Rd I don't think? > > If non-match day businesses are self-sufficient how do they ensure the > club has revenue streams throughout the year? > If all their 'profits' go towards improving their own product what was > the point in the parent entity investing in them at all? > If the ROI for the parent isn't as good as can be got from the Liquid > Gold account at the Leeds Perm then the investment is misplaced, surely? > If the aim is to give the club 365 days a year income then the profits > must come back to the club on a regular basis otherwise the club only > has the same 22 pay days as it gets without them but without the initial lump sum. > > Cheers > Paul > > _______________________________________________ > Leedslist mailing list > Info and options: > http://mailman.greennet.org.uk/mailman/listinfo/leedslist > To unsubscribe, email [email protected] > > PETE CASS (1962 - 2011) Rest In Peace Mate > _______________________________________________ Leedslist mailing list Info and options: http://mailman.greennet.org.uk/mailman/listinfo/leedslist To unsubscribe, email [email protected] PETE CASS (1962 - 2011) Rest In Peace Mate _______________________________________________ Leedslist mailing list Info and options: http://mailman.greennet.org.uk/mailman/listinfo/leedslist To unsubscribe, email [email protected] PETE CASS (1962 - 2011) Rest In Peace Mate
