NYCFC in the Media Thread - 2019

413Blue

Registered
Seasoned Supporter
Apr 23, 2014
3,191
5,302
303
MA
I would guess there is some amount of those expenses going towards inflating income for Man City to help with FFP?
I believe all of the numbers are based upon projections by Forbes, not any financial statements provided by the league/clubs. So I'm not sure how Forbes accounts for the various synergies with CFG, none of which are actually known to Forbes.
 

Kjbert

Registered
Seasoned Supporter
Apr 24, 2014
10,424
15,637
303
35
We paid roughly $11 million in transfer fees. Our salary hits we’re about $5 million this season. Throw in coaches and front office salaries and were running at about $20 million.

That would mean we’re spending $45 million on scouting costs, admin costs and the costs to rent Yankee Stadium.
 

adam

Registered
Elite Donor
Donor
Seasoned Supporter
May 30, 2014
8,246
19,269
353
41
LBNY
We paid roughly $11 million in transfer fees. Our salary hits we’re about $5 million this season. Throw in coaches and front office salaries and were running at about $20 million.

That would mean we’re spending $45 million on scouting costs, admin costs and the costs to rent Yankee Stadium.
they said it doesn’t include stadium rent. It could include promotions like all the free tickets they give away. Also could include office rent and plane tickets. I hope it also includes a pastrami sandwich from Mendys to replace Medina.
 

mgarbowski

Registered
Elite Donor
Donor
Seasoned Supporter
Jul 16, 2014
12,639
36,050
353
Queens, NY
mgarbowski.com
they said it doesn’t include stadium rent.
That's not how I read it. I didn't look closely until Gotham Gator Gotham Gator pointed it out, but the notes indicate that "team values do not include stadiums or real estate." That applies to the team value, not to revenue or net operating income (or the operating costs used to calculate net income).

For that they used EBITDA ("operating income represents earnings before interest, taxes, depreciation and amortization"), which leads to some anomalous things, like counting rent as an expense if you don't own your stadium but ignoring depreciation if you do own. This means you are not even getting the benefit of any sort of like to like comparison with their operating income figures. Also differences in taxes paid in various taxing jurisdictions is ignored and we pretend the taxes in California, NY and New Jersey are not higher than most other locations, and also ignore any special tax deals individual clubs might have.
 

LionNYC

Registered
Staff member
Elite Donor
Seasoned Supporter
Jan 2, 2015
15,967
27,803
303
New York, NY
That's not how I read it. I didn't look closely until Gotham Gator Gotham Gator pointed it out, but the notes indicate that "team values do not include stadiums or real estate." That applies to the team value, not to revenue or net operating income (or the operating costs used to calculate net income).

For that they used EBITDA ("operating income represents earnings before interest, taxes, depreciation and amortization"), which leads to some anomalous things, like counting rent as an expense if you don't own your stadium but ignoring depreciation if you do own. This means you are not even getting the benefit of any sort of like to like comparison with their operating income figures. Also differences in taxes paid in various taxing jurisdictions is ignored and we pretend the taxes in California, NY and New Jersey are not higher than most other locations, and also ignore any special tax deals individual clubs might have.
EBITDAR.

Football club valuation is traditionally based on LTM Revenue multiples. But I've seen EBITDAT (EBITDA + Transfer Fees) as another figure to compare clubs on a more like for like basis.
 

mgarbowski

Registered
Elite Donor
Donor
Seasoned Supporter
Jul 16, 2014
12,639
36,050
353
Queens, NY
mgarbowski.com
EBITDAR.

Football club valuation is traditionally based on LTM Revenue multiples. But I've seen EBITDAT (EBITDA + Transfer Fees) as another figure to compare clubs on a more like for like basis.
EBITDAR is if you exclude either restructuring costs or rent. The list of excluded items in the article ends with amortization, as I quoted.
 

SoupInNYC

Registered
Elite Donor
Mar 9, 2015
5,157
11,876
303
32
UES
On the flip side, we also don't know what absurd price Etihad is paying to advertise an airline that loses money annually and has precisely 1 flight every day out of New York. Whatever that number is inflates the club's income.
This could also be being treated similarly to expenses in order to assist MCFC with FFP (not saying it's happening, but it's possible). The advertising income could potentially not be traceable down to the individual club level, and the manner in which that revenue is allocated among each club may not be particularly "right"*

(* depending on your definition of how it should be allocated down)
 

FredMertz

Registered
Elite Donor
Donor
Seasoned Supporter
Jun 2, 2014
2,669
5,582
323
38
EBITDAR is if you exclude either restructuring costs or rent. The list of excluded items in the article ends with amortization, as I quoted.
There’s two ways to think about this: internally, they are likely to capitalize the rent payments. That’s fair for an apples to apples comparison to teams that don’t have rent expense.
Externally, I’ll bet it is included as it is in the league’s best interest when negotiating with players to show the worst p&l possible.
 
  • Like
Reactions: mgarbowski

Christopher Jee

Registered
Elite Donor
Donor
Seasoned Supporter
Jul 24, 2014
3,486
9,099
353
36
Externally, I’ll bet it is included as it is in the league’s best interest when negotiating with players to show the worst p&l possible.
There's probably a limit to how bad the p&l can look before it becomes a negotiation disadvantage surely...
 

FredMertz

Registered
Elite Donor
Donor
Seasoned Supporter
Jun 2, 2014
2,669
5,582
323
38
There's probably a limit to how bad the p&l can look before it becomes a negotiation disadvantage surely...
Every entertainment company cooks the books to underpay the talent, sports teams included.

I actually took a full semester class in Entertainment Accounting in B-School.
 

FredMertz

Registered
Elite Donor
Donor
Seasoned Supporter
Jun 2, 2014
2,669
5,582
323
38
Every entertainment company cooks the books to underpay the talent, sports teams included.

I actually took a full semester class in Entertainment Accounting in B-School.

I mean that not to say I’m an expert (I remember very little) but o show how it’s an actual course of study.
 

Christopher Jee

Registered
Elite Donor
Donor
Seasoned Supporter
Jul 24, 2014
3,486
9,099
353
36
Every entertainment company cooks the books to underpay the talent, sports teams included.

I actually took a full semester class in Entertainment Accounting in B-School.
I agree that the overall idea makes sense, but with limitations. It's hard to imagine that a club being deeply in the red wouldn't be at least a slight turn off to talent.