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As promised last week when I showed Mister Lee wasn't spending a Euro of his own brass on transfers at Nice I move onto revenue and capital costs during the past 12 months. I said to myself at the outset I wasn't going to spend more than an hour of my precious retirement researching this so here are the findings of that search. For those sad enough to want to check/verify my numbers I Googled combinations of OGC Nice, Chien Lee, France Lg1, Finance, UEFA, Europe and looked at the websites and links to other websites. All figures are in Euros.
Mister Lee's Group bought an 80% share of OGC Nice from the then owner JP Rivere (who retained 20%) for 21 million Euros in June 2016 . In general Rivere runs the football side while Mister Lees Group focus on other matters. Speaking about the takeover Rivere said
"The new investors have been attracted to...the opportunities of OG Nice and the French Riviera/ Cote D Azur, especially in tourism, real estate and hospitality that are at the heart of their business"
I found the following on revenue costs, basically yearly running costs excluding buildings/land.
INCOME
36.3 million pa--- Broadcasting income from French FA/Lg1 from a 726 mill TV deal 2016 to 2020
12.7 million-------UEFA
12.3 million-------Commercial/Hospitality/Sponsorship, including 1.8 mill pa from Allianz Insurance for naming rights
6 million-----------Gate Receipts 0.25 mill x 24 Lg1 and cup games
TOTAL---67.3 mill
EXPENDITURE
12 million---------Wages of top three earners Sneijder 4.5, Dante 4.5, Ballotelli 3 (one year)
24.8 million------Wages of remaing squad, contract plus loan, 31 players x 0.8 million average
12 million--------Football (Non playing) plus non football staff, general running and matchday costs
6 million----------New Training Ground costs including 3 mill mortgage pa on 15.5 building cost
8 million----------generous estimate of Academy running costs for trainees (bfc is approx 1 mill by comparison)
TOTAL---62.8 million
On the capital side Mister Lee took over a 245 mill Stadium completed in 2013 paid for by a combination of public and private finance when the site was identified as a Euro 2016 ground.
The City of Nice are developing one of the few flattish areas of the region ,The Plain of Var, a river valley named Eco Valley, as a sports/leisure/hotel/commercial/residential zone. As part of this they allocated a significant area to OG Nice free of charge to build their new training complex for the first team and Academy. This was completed a few months ago and mainly consists of a 43 bedroom complex with associated catering and meeting rooms and linked gym, changing rooms and medical area. Outdoor pitches complete the area. This cost 15.5 million Euros thought to be on a 3 mill pa mortgage. Parts of the Plain remain to be developed as leisure and hotel areas.
Conclusion-Mister Lee is content to let the football side go along as long as it finances itself while his group focus on property development in the Cote D Azur. Again he dunt seem to ev spent a penny of his own brass.
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So you've nothing to worry about then SB , no debts run up that can't be serviced and a model of self sufficiency with a minimal profit .
Not exactly Blackburn Rovers is it ?
Whose brass did he use to purchase Nice ?
Look its a bit like going on Dragon's Den to me , tha's got to be prepared to give up a percentage of the company tha's started in exchange for expertise and growth and all things bin equal tha'll come out bigger and stronger than tha would going on thi own .
Last edited by animallittle3; 30-10-2017 at 11:54 AM.
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Am pointing art that those like your good self who were saying that Mister Lee would strengthen us in the transfer market plus help us to retain players with renewed contracts may, in fact, be "disappointed". Also the model suggested by yourself and others that Mr Lee will make us a "global name" possibly via promotion to the Premiership and that is where he will make his profit may well be "disappointed".
You trashed my suggestion that property development would occur.
For information OG Nice are now languishing 17th out of 20 in Lg1, only out of the relegation places on goal difference. So much for Mister Lee building a global name at Nice.
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Am going off idea on this takeovva ! Sarnds not reyt, excellent research SB !!
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"Whose brass did he use to purchase Nice ?"Originally Posted by animallittle3
Mister Lee has spent 21 mill Euros to gain 80% of an asset worth possibly hundreds of millions and with a foothold into many property development opportunities. As the Dragons would say, "You know what, I'm going to make you an offer. I'll give you all the 21 million but I'll want 80% of the business". None of the 21 million seems to have gone into the club's spending.
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Yorr Leesearch commendable SB Led
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Not really reassuring this information but it's out of our hands whatever happens just hope it's in the clubs interest to go forward
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Mesta Lee give Hecky 30 seconds time to talk to him last week , what could have been said in them 30 seconds that Hecky has mentioned ?
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PC has agreed to sell to this consortium or at least is entertaining the notion to do so. So given that he says he will only sell to the right person why don't you trust his word ?
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Interesting that SB thanks
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