This is inhuman!

Chapter 517 This is inhuman!

Is the fans the most important factor?

Ralph's thoughts suddenly stopped, a fleeting look across his eyes, and he realized that he had almost failed to distinguish between primary and secondary matters.

What is the purpose of his private equity department's investment in teams across various top leagues? It's not to make money by running those teams.

Profitability is certainly one reason, but it is only a secondary, secondary value.

The real core strategy is to leverage the team's breakthrough in competitive performance to drive exponential growth in brand value, thereby enabling the acquired sporting goods businesses to achieve market penetration and scale expansion, ultimately realizing a capital loop of listing and exit.

Manchester United now has a very good foundation. With its strong performance in recent years, this Premier League giant has successfully dethroned Liverpool as the traditional champion and ascended to the throne.

Even without a public commitment to the fans, Ernst Asset Management will never kill the goose that lays the golden eggs. They will continue to invest, maintaining their dominance within the Premier League while seeking a European champion position.

Placing a world-class superstar in every position—what a huge gimmick that would be, and how many fans it would attract!

With these fans, how much will the club's commercial value increase, and how much will the star players' commercial value increase?

If what Ernst said is true, wouldn't Manchester United's commercial value skyrocket?

Therefore, fans are the core value anchor.

He then glanced discreetly at the others in the private room and finally understood why Ernst had come to this drinking party.

Isn't this just a little lamb crying for milk in his sheepfold?

What are lambs used for?

Those are the animals we'll kill and eat later.

If these people are brought into the Premier League market, and the acquired sports brands monopolize the entire Premier League, this newly emerging sports brand can quickly gain a foothold and grow stronger.

But how do I draw this pie?

Just as Ralph was pondering, Ernst gave him the answer directly.

"In twenty years, or even fifteen years, the value of Premier League teams will increase at least tenfold."

Ralph's eyes widened instantly, his pupils filled with disbelief and shock, as if he had misheard.

This isn't speculation, it's about the team! How dare you say that?

Like real estate, this type of asset possesses stable characteristics and has always been incompatible with exorbitant profits.

The rate of return that Ernst mentioned is something that even Wall Street investment institutions wouldn't dare to guarantee.

"What?" Massim and the others thought they had misheard and wondered if they were hallucinating.

Ernst slowly raised the glass of red wine in front of him. The scarlet wine swirled gently in the crystal glass, reflecting the certainty and composure in his eyes.

He took a small sip, put down his glass, and repeated, "I said that within twenty years, acquiring a Premier League team will yield at least a tenfold return."

"How can you guarantee that?" Massim was the first to recover from his shock and asked urgently.

The others also focused their attention on Ernst, not daring to blink for fear of missing any information.

Ernst, however, offered them no logical support, stating domineeringly, "I am the one who guarantees, and I don't need to guarantee anything to anyone."

He wasn't just making things up; Premier League teams are really cheap right now, they're in a golden age of undervalued assets.

Manchester United's offer of over £6 million was made by Murdoch; the actual market value is now just over £4 million.

Liverpool, the second most valuable team, is only valued at £2.2 million.

Even when Abramovich acquired Chelsea five years later, although he assumed the debt, it was only £6000 million.

Keep in mind that Chelsea's annual revenue at that time ranked among the top ten in the world.

The value of lower-ranked Premier League teams nowadays is even less.

Ernst still remembers a set of data that Ralf showed him when they were discussing the acquisition of a European football club.

Serie A teams have the highest overall valuation, while Ligue 1 and the Premier League are at the bottom of the top five leagues.

Some of the lower-ranked teams in the Premier League cost less than 20 million US dollars.

But what about twenty years from now?

Ten years later, UAE tycoon Mansour took over Manchester City for nearly £200 million. At that time, Manchester City was definitely a lower-tier team in the Premier League.

In 16, Chinese investors acquired Wolverhampton Wanderers, a team that played in the second division, for £4500 million.

It can be said that, apart from newly promoted teams that lack financial resources and are not favored, no Premier League club has been valued at less than £3 million in the past twenty years.

With the continuous surge in broadcasting rights revenue, the improvement of the sponsorship system, and the upgrading of fan consumption, the asset attributes of football clubs will transform from simple sports operation entities into high-quality assets that combine traffic value and financial attributes.

In fact, the entire European football scene should thank Abramovich. Without the money-driven football he brought, the value of football clubs could not have increased so dramatically every year.

Regardless of whether those star players are worth such high transfer fees, the hype has certainly been generated.

You might not watch a group of players worth hundreds of thousands play, but if a group of players worth tens or hundreds of millions play, you'll definitely wonder why they're so expensive.

"You need to understand that sports investment is relatively stable. Even if you don't achieve a tenfold return, you are unlikely to lose money."

Ernst gradually guided them, and everyone fell into deep thought.

As he said, investing in sports is a sure thing, regardless of the circumstances.

They have all worked in this industry for many years and are experienced in managing a team.

If, as Ernst predicted, the valuation can indeed increase tenfold in twenty years, the investment will be far more cost-effective than most financial products.

More importantly, over a 20-year period, the annual operating revenue is sufficient to cover the initial investment cost, ultimately equivalent to owning a team whose value has skyrocketed at zero cost. This revenue model has virtually no risk exposure.

Thinking of this, everyone's eyes lit up with excitement; their keen sense of capital allowed them to seize this opportunity.

"And don't forget, we don't operate in isolation, but as a community of shared interests," Ernst continued enticingly, stirring up ripples in everyone's hearts.

Gambling.

This word, like a lurking demon, instantly swirled in everyone's mind.

They exchanged a knowing glance, both sensing a strong urge to join in.

If everyone works together to devise a plan, they could control at least five or six Premier League teams.

This number is enough to influence many things.

Ernst plays high-level games, aims for championships, and pursues the pinnacle of competitive achievement and the maximization of brand value.

They play low-level games and seek stable returns on their investments.

However, this does not mean there is no room for cooperation between the two.

On the contrary, because there is no conflict of interest, cooperation will be smoother.

For example, when facing Ernst's team, a tactical arrangement could be used to give them a slight advantage.

When facing Ernst's rivals, the team can be promised bonuses to motivate the players to work harder.

Even a small amount, enough to give Ernst's team a three- to five-point advantage, can create room for hype.

Having secured the advantage, and with the results no longer affecting the subsequent matches, could we perhaps arrange a tacit draw?

Just one game can recoup hundreds of thousands or even millions of dollars for them.

If you only need to come once a year, the cost of acquiring the team will be recouped in twenty years.

"What exactly is your purpose?" Massim was the first to snap out of his reverie, asking with a wary look in his eyes.

It is clear that these people gained more than Ernst.

Based on his understanding of Ernst, he knew that Ernst was the kind of guy who, even if he dragged the team down, would still take the biggest slice of the cake during celebrations.

Ernst gave the other party a look that said, "You know me well." He said, "I want a guarantee that all the teams you invest in will use the sports equipment brands I've acquired."

"I'm talking about all the teams that have invested, not just the Premier League," he emphasized.

Now everyone present understood what trick this guy was playing.

Some people were even secretly stamping their feet, wondering why no one had thought of this way to make money.

"We want to invest!" Massim shouted.

"Impossible," Ernst rejected them outright.

Seeing that everyone's expressions were not good, he added, "However, you can entrust your money to Ernst Asset Management Company for management and enjoy the returns."

Massim and the others muttered under their breath, "What a heartless capitalist."

At this point, not only do you want to use our money to complete your money-making scheme, but you also want to earn our management fees?

Isn't that just too damn inhuman?