America's No. 1 financial conglomerate

Chapter 522 Sports Ecosystem Closed Loop

"Because Ernst Asset Management sent someone to contact us yesterday; they want to buy our shares in Manchester United."

"Absolutely not!" Old George said excitedly before Ashley could finish speaking.

"The shares you hold are the biggest bargaining chip for the fan community to participate in the team's operation, and an important guarantee to restrain the disorderly expansion of capital."

0

"Once the fan shareholders' association ceases to exist, Manchester United will be completely reduced to a tool for profit-seeking. At that time, no matter how much the club's operational decisions harm the team's interests, and no matter how strong the fans' demands are, we will have no bargaining chips to fight back except for futile protests."

The Manchester United Fans and Shareholders Association – this is Manchester United fans' trump card.

With this trump card, Manchester United may not be able to develop in accordance with the fans' expectations, but at least it will be a hindrance to those capitalists.

Ashley glanced at him and gave him a reassuring look.

"But they also said that if the fan shareholders association agrees to sell all of their shares to them, they are willing to include those promises made in the media in the contract."

"It's not just about the £1500 million transfer fee over three years, but also the commitment of at least £5 million in transfer spending every year thereafter. They also promised us that Manchester United's ticket prices would not increase for five years."

"Really? They really agreed not to raise ticket prices for five years?"

Ashley's words had barely left his lips when the entire bar erupted into chaos, engulfed in a cacophony of voices—surprise, skepticism, and elation.

Complex emotions mingled on everyone's faces.

"My God, is this for real? Ticket prices won't go up for five years? I can't believe my ears!" A young fan sitting next to Ashley stood up excitedly, his voice filled with unbelievable joy.

"If this is true, it would be fantastic news for us ordinary fans. I support this acquisition; at least they are willing to consider the actual interests of the fans."

"That's right, ticket prices are too high now, they keep going up every year. If this continues, we loyal fans will soon be unable to afford them," one fan chimed in.

Ashley knew this would happen; once the news was released, it would definitely garner support from many Manchester United fans, as it concerned their vital interests.

Regardless of the time period or the sporting event, the issue of ticket prices is always one of the sources of conflict between fans and clubs. Clubs need fresh blood, but young fans all over the world are the same – they don't have enough money.

Many of them have only been working for a few years, and the ever-increasing ticket prices every year are a burden for them.

In particular, since the English Premier League began to become more standardized, professional, and commercialized in the 1970s, the commercial value of English football has experienced explosive growth, and ticket prices have also entered a period of rapid increase.

Initially, there was a significant price increase every three to five years. However, in the 1990s, the adjustment cycle for ticket prices shortened to two to three years.

Now, ticket prices increase almost every one or two years.

London clubs have entered a pattern of raising ticket prices every year, with some clubs even experiencing a jump in ticket prices for important matches.

Manchester United, as a Premier League powerhouse, is no exception; ticket prices have been rising almost every year.

Although most of the time the price increase for a single game ticket is only a few pence, over time the cost of watching a game for fans has increased significantly.

Tickets for important matches, especially Champions League knockout stages and Premier League derbies, have seen price increases of several pounds annually in recent years.

For die-hard fans, the most important thing is the season ticket, and the price has increased by more than 3% annually, exceeding the growth rate of per capita disposable income of British residents during the same period.

The promise of no price increase for five years is fantastic news for fans.

The money they saved is more than enough for them to enjoy a beer and a hot dog at the stadium and watch the game comfortably.

"And you probably don't know this, but the owner behind Ernst Asset Management is the founder of Google, and he's also the owner of MGM."

"MGM has a very large television network in the United States, and it recently secured a broadcasting contract with the NFC in the United States."

"I've read the reports," someone said, raising their hand. "MGM won the NFC broadcasting contract for a record $24 billion. Its owner is very rich."

"Is this Ernst the internet tycoon?" Many people were just finding out about this, and some veteran fans were even more curious about it.

They had no idea what was going on and looked completely bewildered.

"If Ernst were to acquire Manchester United, I would believe his promises, because he simply doesn't care about Manchester United's meager annual profits." He then transformed into an Ernst fanboy, giving everyone a thorough explanation.

After he finished speaking, Ashley continued, "They said that if they acquired Manchester United, MGM's television network would vigorously promote Manchester United's influence in the United States and increase the team's revenue."

Increasing the team's revenue is another major step in boosting Manchester United's squad strength.

No matter how generous a boss is, they can't keep spending money to support their team forever.

No matter how stingy a vampire is, it's impossible for him to pocket all of the team's revenue.

When a club's revenue increases, its spending on transfers will inevitably increase as well.

"That football wasteland? What's the point of promoting it?" Old George questioned dismissively.

Asia?

Does Asia have football?

"At least they promised to broadcast every high-profile Manchester United match." Ashley was also somewhat dissatisfied with George's constant targeting.

"You all know the current state of Premier League broadcasting in the US. Isn't this an opportunity for Manchester United to develop the American market?"

How is the English Premier League broadcast in the United States?

Everyone scoffed inwardly, "Is that what you call a broadcast?"

Currently, the mainstream sports market in the United States consists of sports such as American football and baseball, with the NBA and Major League Hockey emerging as new contenders.

football?

There are no related reports in sports news, and many Americans may not even know that there is a soccer league in the United States.

The broadcasting rights for the Premier League in the United States were signed to ESPN and Fox for an outrageously cheap price of only £20 million for three years.

Both platforms don't take the Premier League seriously at all; they only consider it as a supplement to their sports broadcasting content. They only consider broadcasting the Premier League when there are no other sports events to broadcast, and they haven't invested any resources in promoting it.

If MGM can truly promote Manchester United in the United States, and if football can truly open up the American market, then Manchester United will benefit immensely.

With North America's large population, strong consumer spending power, and mature business system, Manchester United's commercial revenue is bound to achieve a qualitative leap.

Whether it's sales of jerseys and merchandise, or revenue from sponsorships, partnerships, and endorsements, all are expected to see explosive growth.

In fact, none of them knew that this was something Ernst had planned from the very beginning.

With more industries and the formation of synergies, what may seem like a single event actually brings countless hidden benefits.

Google's technological resources and MGM's media resources are being leveraged to acquire top sports league teams, not just to make money, but also as an important step in building a closed-loop ecosystem of sports, media, and technology.

By leveraging technology to empower sports events and media dissemination, the media can then attract massive user traffic through this technologically advanced content, which in turn can be converted into increased consumption and value in the sports industry.

Ultimately, this will form a sustainable development ecosystem in which the three elements support each other and promote each other in a cyclical manner.

That's the main purpose, and the development of sports brands is just one of the benefits brought about by this closed ecosystem.

As long as this closed loop exists, there will be many more similar opportunities for development.

For example, developing sports tourism allows tourists to visit the team's training grounds up close.

Another example is developing media memberships, allowing users to watch events from different perspectives by upgrading their memberships.

In just a few years, American football will begin to truly shine, and the number of football fans will continue to grow.

By taking advantage of this lull, MGM can promote Manchester United and secure a long-term Premier League broadcasting contract at a low price. With this initial investment, they can attract a large number of football fans.

In the future, it will not only surpass the English Premier League, but will also gradually replace hockey and become one of the four major leagues in the United States.

By making live football broadcasts a proprietary domain of MGM Television, the position of the sports website can be solidified.

Ashley glanced at old George, intending to say something sarcastic, but softened his tone. "I won't lie to you," he said, "the Fan Shareholders Association is very satisfied with the conditions proposed by Ernst Asset Management. Most of the fan shareholders agree to sell their shares."

Manchester United stock.

"This acquisition was unstoppable."

"And we don't want to stop it."

>