I just don't get it ... why the FUKC

would a takeover of BFC by "overseas investors" benefit the ordinary supporter?
What the hell is "in it" for the "overseas investors" ... and why would anyone expect "in it" to be to the benefit of the fans?
Wake Up smell the coffee (or tea)

 

its all about shifting money about to make it look legitimate earnings

 

If it's Italians I can't understand it but if it's Qataris it might be just for the sake of having a new plaything, like race horses, jets or yachts(though if that's all it was I would expect them to buy someone "bigger" than us); after all, £10 or £15 million is nowt to some of them with the gas revenues they bring in.

 

Why would anyone want to buy the club?
Leeds are a one (very wealthy) city club, with a massive catchment area ... they have a footballing heritage that 90% of the PL would die for.... they have huge (milking lots of £££ from fans) potential ... and SHOULD easily survive in the PL with the right push/management team in place ....

 

hill says the quataries is just speculation,,italians looking most likley

 

But ....... what is in for them? Huge interest repayments on loan? We are not a sleeping giant (read potential cash cow) or a trophy wife (W London club) Come on we have seen where the majority of foreign investment leads ..... Brum .... Pompey

 

Living outside the country at the moment, I have had an interesting point made to me. The Championship's profile outside of GB is actually a lot higher than some of you might think. Buying a Championship club would give overseas owners a cachet almost as good as a Premiership team, for a fraction of the cost. If you look at BFC, being debt free currently, than the cost gets even less.

The owners than get to "play" with a club for a knockdown price. The club is already on a (smaller) world wide stage by being in the Championship, playing name clubs and getting media coverage etc

So I can see why overseas investors would be interested. A "profile" club for little money, and with some investment the oppprtunity to
reach the trough that is the Premiership.

Cheers

 

Very interesting

No huge debts to pay off and, were it to take place, the potential to reap a considerable return on their investment should the club reach the Premier League.

 

Maybe they think for a small outlay by their standards (10 million being branded about) they can get us into the premiership so they make tens of millions from a small amount being put in. If someone wants to buy us and has the money to try and push us into the premiership great.

 

was just going to say the same thing -its a way to get round global anti-money laundering laws, in my opinion. For example Abramavich stole the public owned utilities from the Russian people and a good way to get that money legally to be able to spend it is to buy something, like, say, a football club. With a few exceptions, anyone who thinks its not the vehicle for cleptocrats to move their ill-gotton gains about needs their head-read.

 

One season in the premier league is worth about £90 million. About £40 million for the season you're in the premier league and £48 million worth of parachute payments spread over the next 4 seasons if you're relegated. If you invest £5 or £10 million in an attempt to get promoted then you pocket an awful lot of profit if you achieve that aim.

What happens to the club while the investors reap the benefits of that initial outlay can be pretty horrific, but it won't matter to them as they have achieved their aim, they've made an awful lot of money.

However, the most likely thing to happen is you don't get promoted. Getting out of the Championship is very difficult. Many clubs have had much more spent on them and failed. Then you're really in trouble. The investment wasn't a gift, it's on the books of our club as a debt. Players are sold to start repaying the debt, but there's still a massive short fall. So they try to sell the club, but no one will touch it because of the debt. A club that was well run, in the black with no debt is now toxic, the owners are desperate to get out but no one wants to buy, so the club is liquidated and that's that.

 

Re: Very interesting

I think Ippon's point is that if they are not buying us as a plaything then they have to be doing it as a business investment, but that makes no sense.

The only way you could buy us and sell us for more money later on (a business investment) would be if we got into and survived in the Prem. We all know there is no magic formula to achieving this, the more money you spend the more likely it is, but there is no guarantee, Leicester spent a fortune last season and didn't even make the play offs.

So in order for them to get us in the Prem they would have to invest money year on year until eventually we get there, then in order to sell us while we are still a Prem team we would have to stay there for a few years or yoyo for a few years. Newcastle was up for sale for ages without a buyer, we have been up for sale since 2004 without a buyer, so in order to sell us and make the most profit they would have to complete the sale while we are still in the top flight or an established yoyo team.

Long story short it is going to cost them a fortune and after all that there is still no guarantee it would ever work. If they did sell us what is the chances of them making back the fortune it cost them to get us there in the first place. It is far more likely they would run out of money trying to achieve this goal in which case they would do one and we would be left paying the debt off.

So its not a business investment, that would be silly, maybe they do see us as a toy to play with. Blackburn seem to have been purchased as neither, they are used as a marketing tool for the owners chicken company, but despite Barnsley having a very small global profile (see Langer Dan's comment above) Barnsley is not a big enough name to help sell chickens in a foreign land! Maybe someone wants us as their feeder club, in which case they would only be "in it" for the parent teams interests, not ours.

 

I agree with you

I can understand that the initial purchase cost would be a great deal lower than for most Championship clubs. The cost of then getting us into the Premier League could well be quite substantial.

 

QUOTE -----so they make tens of millions from a small amount being put in ----------- How do they do this? .... if they take it out of the club then in theory we "go down", income is reduced, they are back to square one .... and DOES "they make tens of millions" benefit the fans? Whilst thay are directors ... they live the high life on money that SHOULD be reinvested ....
Nope ... makes NO business sense .....

 

Re: I agree with you

JLWBigLil: But how much would it cost to get us into the Prem and what happens if their kitty runs out before that is achieved?

The best thing we can hope for is that someone comes in with modest expectations, enough investment to retain our best players and a little extra to spend on transfers and then we just carry on as normal. If Barnsley get lucky then their small investment was a bargain, if we don't then either the investor accepts the loss and parts ways or they'll be a nasty git and expect the club to pay back the money they gambled on us.

Mr Cryne would have no trouble going into a bank and asking for a loan of 10m, using the club as an asset to acquire the loan, HSBC would hand over the money in no time, after all if he fails to pay back the 10m they'll sell the land the club uses and all its assets, no risk for them. What you need to ask yourself is why hasn't he done this already? Home come a business man like Mr Cryne hasn't realised that there is a fantastic opportunity to make a fortune? Maybe this investor is cleverer than Mr Cryne or maybe Mr Cryne knows how risky it would be and because he loves the club he would never dream of risking its future for a personal gain.

In reality I doubt very much that a takeover will happen. All they have done so far is ask to see our books which may have cost them a small solicitor fee of a few thousand. It's not really a sign of serious intention. If I was buying a club I'd spend 50k and review all the finances of all the clubs up for sale before making a decision. £2,000 to a multi-millionaire is nothing.

 

Hmmm interesting

 

Re: I agree with you

Mr Cryne would have no trouble going into a bank and asking for a loan of 10m, using the club as an asset to acquire the loan, HSBC would hand over the money in no time, after all if he fails to pay back the 10m they'll sell the land the club uses and all its assets, no risk for them. What you need to ask yourself is why hasn't he done this already? Home come a business man like Mr Cryne hasn't realised that there is a fantastic opportunity to make a fortune? Maybe this investor is cleverer than Mr Cryne or maybe Mr Cryne knows how risky it would be and because he loves the club he would never dream of risking its future for a personal gain.

I don't believe that Mr Cryne owns the land ..... the club / land assetts were split, to deter "land grabbing" type owners comming in and stripping the cupboard bare ....
So I still don't understand ... what is "in it" for them? High rate of interest on the loan perhaps? Large Director salary ? etc etc etc

 

Who's to say the money wouldn't be reinvested? I'm sure if they use some of their money to get us to the premiership and it works, they will see our club is worth more money so then they might feel like gambling a bit more money to consoldate us in the prem. New owners wouldn't have to spend much on players anyway. I think we are two players maybe three away from challenging for the play offs. A nasty ******* centre half like Gordon Greer who will hand out bruises and a proven scorer to lessen the burden on Davies. Get them into our current squad and i'd be more than content.

 

gambling a bit more money - Pompey .... Brum .....