ClaretPete001 wrote: ↑Fri Mar 10, 2023 6:18 pm
We seem to be descending into fantasy world again.
There is very little risk in this deal to the investors they only invested £10 - £15 million of their own money and got an asset valued at £200 million.
Syndicates and other investors simply dilute the shareholding and potential returns - they have no need of them at this point. You can't on the one hand suggest that the debt is paid off and on the other that the investors need syndicate partners to reduce risk.
It was never going to be a short term deal because no one wanted the club. It required an LBO to sell it and the buyers immediately took £50 million of cash out of the bank and took on £65 million worth of debt.
The Venky's invest £20 million in Rovers, which is equivalent to Kevin De Bruyne's salary or our matchday and commercial revenue. Small scale investors are just that.... small scale.
Americans own 4 of the 6 global brands in the PL. One of them just bought Chelsea for 4.25 billion. And that is who we are playing next season.
Talk of syndicates, branding and exposure in America is like p*ssing in the ocean and thinking that you've raised the sea level.
May I help to rescue you from fantasy land, Pete?
No one "only invested... and got an asset valued at £200m." The leverage you suggest can only exist in a mythical fantasy land. In the real world that isn't what has happened.
The investing structure ALK Capital and Velocity Sports US has existed from Day One of the plans to buy an English football club. This structure is where the equity required to own the club comes in. You may be thinking only a billionaire can buy a football club, but the same can be achieved by several millionaires joining together. This is, essentially, what stock markets do for listed companies and the same can be done for private companies. All publicly list companies are syndicates.
Today another investor (most probably) is being introduced to us. We're also learning of a documentary on BFC, which includes JJWatt. Should we hazard a little speculation that this documentary will include discussions on how Alan Pace has put this deal together, including the involvement of some of the investors?
We know that MSD loaned BFC £65m - it was reported in the accounts. We know that "significant repayment" had to be made if BFC was relegated. We've seen the impact of these repayments on MSD TISE Jersey loan notes. In November we saw the balance of these loan notes withdrawn. We were puzzled why the charge on BFC entities apparently remained. Then Feb 8th Mike Smith filed "fully satisfied" notice. Thus, confirming MSD loan had been repaid in full. We've then wondered about a new loan, but more than 21 days after Feb 8th no new security charge has been filed. We can conclude that no new loan exists, because no one would lend significant money to a football club without a security charge. It would be fantasy land to think money would be leant without the security charge. It would be fantasy land to think that MSD could be repaid without new funds in the club. Those new funds are the new investors.
Of course, there are gaps in what we know. Some of these gaps may be clarified when the next set of BFC accounts are published. Maybe some of these gaps may be answered by a documentary, or maybe not. It may be that there are surprised for all of us.
We are seeing exciting times in the pitch with Vincent Kompany leading the team.
I'm sure "when the penny drops" we will understand why we are seeing exciting times in the ownership of the club.
Together, team and ownership we will know
Exciting times.
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