New Bidders

http://www.thenational.ae/sport/foo...bid-from-former-middle-east-consortium-member

Thoughts on this guys?

Not sure I like the thought of Bates staying on as a consultant.

Surely he can't last long anyway!!

Y-W-B-K

 

I can see a scenario where Bates wants to maintain some of the pomp and media profile of being a Chairman, so giving him a free role as a ‘consultant’ would allow him to do this without having to run the club. This would suit him but not the club. The sooner we get rid of this cancer the better. BUT, I can’t see Bates accepting a deal where he only gets 50% of his money upfront. The guy just doesn’t work like that. I can only see a deal happening whereby Bate maintains a share of the club (say 25%) which he will hope to cash in on if Leeds get back into the Premier League.

 

I guess the new owner would control 1% less than Bates with first refusal at an agreed fee when Bates wishes to sell the other half. Either way they buy half Bates pockets the cash and we are still no better off. Why would the new guy pump lets say £5 million in for new players to make Bates richer still, it just wouldn't work.

 

Worryingly I can see how attractive this would be to Bates, and for that reason (if it's true) I can see why he would take this option rather than the complete sell.

Sure, he only gets some of his money upfront which is a little out of character, but it reads as though he would still have some control, and that's the part that scares me. It won't be 50/50 we all know that, it'll be 49/51 and if that 51 is on Bates' side, it provides him with instant cashflow now, and the ability to cash in whenever he sees fit. A scary thought indeed.

 

But doesn't Bates only own 72%?

In effect this new bidder would only be getting a 36% share

 

OK my concern was necessarily a literal 51/49 split for the whole company, but of Bates' share. If the new bidder got 36, I'd assume Bates still had 37

 

Maybe that is what Bates has been doing these last few months, buying up the remaining 28%

 

No doubtthe rest of the shares are held by people of the same mind as himself so no wondert there will be careful

 

From what I've read, the buyer gets ALL of Bate's shares, but pays him in 2 chunks for them. Therefore the new buyer will have a majority shareholding.

 

If that's true, then surely the new buyer could just despatch Bates whenever they saw fit. Can't see him going for that?

 

It would still be a step in the right direction

 

Absolutely, if they have that much control then it would be a good plan B

 

Realistically how much are we with?

 

with what Wasper?

 

Plausible, but then so are all these rumours and speculation.

Thye deal could be structured to be attractive financially to bates, the strage paymenhjt approach is not necessarily a bad deal for him, I doubt he actually needs the cash, more the eventual profit. I also have a suspicion he would love it - just love it, to coin a phrase - to stay as figurehead.

Initial reaction is as YWBK's, &&& help us with him still here - but, actually if this meant the club had more cash to invest in the team (and it ought to, if done right, and the bidder ought to want it to mean this, its in their long term interests to get into the Prem) then maybe we could grit our teeth and puit up with him - he won't last forever, anyway.

 

Hopefully they have not even heard of you know, what and can conduct their business in a private and quick way.

 

Duncan Castles again, huh?