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The Randy Lerner thread


CI

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Still, 'gift' is an emotionally loaded term which maybe reflects people wishing to see Randy as a caring, paternalistic figure rather than the owner of a business. People pump money into their own businesses all the time without thinking of it as a 'gift' - rather, it is done because they want to put the business into a position where it can increase shareholder value. Even when it's just done to keep the business afloat, rather than maximise profits, it's still done with the aim of preserving the value of the business, for self-interest.

The flipside of these 'gifts' is that they would not seem so much like hopeless charitable acts if they were better directed, ie. if they transformed into meaningful outcomes like better coaching, better management, better players. If Randy was showing solid business acumen, his investment wouldn't have the appearance of a 'gift' that produces nothing in return.

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It is a theory, but it's one supported by evidence. Not conclusive, but nevertheless reasonable.

We are covering old group but that theory isn't the only one that is available and is reasonable.

The only evidence we have is that he has invested in the club by way of a share issue.

There is no evidence to support a conclusion this is a gift or that he views it as such.

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It is a theory, but it's one supported by evidence. Not conclusive, but nevertheless reasonable.

We are covering old group but that theory isn't the only one that is available and is reasonable.

The only evidence we have is that he has invested in the club by way of a share issue.

There is no evidence to support a conclusion this is a gift or that he views it as such.

Maybe not, but it's definitely true that he's taken the money from somewhere else and put it into Aston Villa, and regardless of his motivation, it's hard not to see that as the kind of thing we like to see an owner do.

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so how much has he loaned the club and how much have we paid back?

obviously he is putting the odd £5m in here and there so presume it's going up and down.

question is what has he put in and what has he got back?

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Do the Browns run at a loss ? Or are they financially stable ?

The NFL runs a lot differently than the Premier League. Pretty much every club runs at a profit. The main reason is that a lot of the money is collected centrally by the NFL (TV deals, NFL merchandise etc) and distributed evenly.

So to run an example, obviously Man United sell shit loads more licensed merchandise than say Wigan. But if we used the NFL model then Wigan would get the same % of that money as every other club in the league including United.

Also with salary caps and the draft system, teams are much more 'competitive' and it creates the notion that any team can win on 'any given sunday'.

Slightly off track there but to answer your question, the Browns is probably profitable (in fact it different will be in terms of re-sale value) but that is largely due to the centralisation of the NFL and not the management per say of Lerner.

(Obviously some clubs are worth more than others based on support e.g Cowboys, location e.g Jets/Giants, stadium, famous players, etc etc)

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To bypass the FFP rules? I thought these were to be adhered to full stop and this adherence was one thing that people were saying Randy was trying to do as a positive?
No Richard. The (Any) club, under the FFP 3 year monitoring period, is (only) permitted losses of more than £5m each year if there is an injection of equity to cover that loss. In other words, loss making Villa can only comply with the rules if for losses of more than 5 mill, Randy puts in as equity, the amount in excess of the 5 mill.

Randy putting in equity is not bypassing any rules, quite the opposite.

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Any chance Randy will be at The Emitates ?

I'm intrigued by the free coaches initiative and it's timing

Perhaps he's on a bit of a charm offensive and wants back in with the Villa faithful ?

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Do the Browns run at a loss ? Or are they financially stable ?

Cleveland Browns pre tax profits are as follows

2006 $47m

2007 $21m

2008 $19m

2009 $20m

2010 $36m

The value of the club is currnetly $1bn. The franchise was bought by Lerner for $530m so it seems he is doing pretty well with the Browns on the financial side

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The value of the club is currnetly $1bn. The franchise was bought by Lerner for $530m so it seems he is doing pretty well with the Browns on the financial side

Er no... Randy Lerner didn't buy the Browns, he inherited from his late father who had owner and ran it for 4 years. Randy has owned it since 2002.

As for the profits, they seem impressive but in isolation they mean absolutely nothing. We don't for instance know how they compare to other teams in the same period, we don't know how responsible he is for them, we don't know the financial climate of the NFL compared to the PL.

So you can't really conclude he is doing pretty well from those figures, you can't really conclude anything other than they are making a profit and they are worth more now than they were previously.

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To bypass the FFP rules? I thought these were to be adhered to full stop and this adherence was one thing that people were saying Randy was trying to do as a positive?
No Richard. The (Any) club, under the FFP 3 year monitoring period, is (only) permitted losses of more than £5m each year if there is an injection of equity to cover that loss. In other words, loss making Villa can only comply with the rules if for losses of more than 5 mill, Randy puts in as equity, the amount in excess of the 5 mill.

Randy putting in equity is not bypassing any rules, quite the opposite.

So there is in fact nothing to stop Sheik Mansour putting his own money in to Manchester City? I'm so confused by the FFP rules, it seems extremely convoluted and rather pointless in it's aims.

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The value of the club is currnetly $1bn. The franchise was bought by Lerner for $530m so it seems he is doing pretty well with the Browns on the financial side

Er no... Randy Lerner didn't buy the Browns, he inherited from his late father who had owner and ran it for 4 years. Randy has owned it since 2002.

As for the profits, they seem impressive but in isolation they mean absolutely nothing. We don't for instance know how they compare to other teams in the same period, we don't know how responsible he is for them, we don't know the financial climate of the NFL compared to the PL.

So you can't really conclude he is doing pretty well from those figures, you can't really conclude anything other than they are making a profit and they are worth more now than they were previously.

Yeah I know Randy didnt buy it, I meant put Lerner snr, he paid $530 for the franchise. Randy has never made his own money!!!!!!

Cleveland rate at 15th out of the 32 franchises it terms of value.

30 of the 32 franchises made profit in 2010 and 28 of them made profits of over $10m. Only Detroit -$2.3 and Miami -$8m made a loss

NFL 2010 are as follows

Dallas value $1.85bn pre tax profit $143m

Washington $1.6bn $106m

New England $1.4 bn £66m

NY Giants $1.2bn $2.1m

Houston $1.2bn $36m

NY Jets $1.1bn $7.6m

Philadelphia $1.1bn $35m

Baltimore $1.1bn $45m

Chicago $1.1bn $37m

Denver $1bn $22m

Indianapolois $1bn $43m

Carolina $1bn $15m

Tampa $1bn $56m

Green Bay $1bn £10m

Miami $1bn -$8m

Pittsburgh $996m $18m

Tennesse $994m $23m

Seattle $989m 34m

Kansas $965m $48m

New Orleans $955m $36m

San Francisco $925m £21m

Arizona $919m $28m

San Diego $907m $25m

Cincinatti $905m $50m

Atlanta $831m $35m

Detroit $817m -$2.3m

Buffalo $799m $28m

St Louis $779m 29m

Minnesota $774m $18m

Oakland $758 $2.2m

Jacksonville $725m $26m

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Well fingers crossed the takeover is happening as so far everything is pointing towards either this or we're just cutting back massively.

I do hope that come Feb/March something gets announced and then we bring in Mourinho in the summer.

Ok that last bit was wishful thinking but I really hope we can get some more funding soon.

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