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przhelp t1_iuoe8ju wrote

Reply to comment by iamamuttonhead in [OC] How does Man United ⚽️ make money? by giteam

The money they're losing is just debt service on the privilege of owning an appreciating asset.

It's like if I buy a house to rent out. I take a mortgage for 300k, I pay whatever that is, like 2k/month on the mortgage. Let's say I rent it for 1.8k, I can say I'm "losing" 200 dollars a month.

But I know people are going to want homes so I'm willing to take that loss because in the future I can sell it for more.

There are only so many Premier League clubs, so it's always going to have value and that value is always going to go up so long as there are billionaires that need places to put their money and egos to stoke.

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mnelso1989 t1_iuoyifv wrote

Concept is similar, except most people are renting for more than their mortgage is, at least in US.

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przhelp t1_iup7mbd wrote

Yeah but not always, throw in maintenance and management fees and all that and it gets a lot closer to break even.

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