New owners - the moral dilemma

Bonjour

 

With Elloitt Management apparently now backing the Glazers, this is isn’t a foregone conclusion.

Elloitt Management is all about chasing value and I imagine that they are backing the Glazers to hold on for more years for better bids in the future.

 

Owners of LFC just announced they weren't up for sale, just looking for investment.

I wouldn't be surprised if Glaziers do the same. The bids just turn out to be shareholder stakes.

 

Qatar plan to up their bid.

I would guess the yanks are just pushing Qatar for more money. Remember this is just the start.

then this.....
https://www.dailymail.co.uk/sport/f...are-price-SLUMPS-New-York-Stock-Exchange.html

 

Interesting clarification from Jim Ratcliffe in that his bid would also ensure that the club becomes debt free. Any costs of financing, interest payments, fees etc would be borne by him, personally, and Ineos, and not the club which would be run on a not for profit basis with all income re-invested in the club.

Not that the Glazers will give a ****, but for fans I think it is an important statement of intent and puts JR's bid on an equal footing with the Qataris in terms of how the club finances will work going forward. For me, given JR's historic interest in the club, this makes him the preferred bidder.. .

 

That does change things.

 

I’m somewhat sceptical of this plan that all profits will be the reinvested back into the club with Ineos essentially going into a not for profit project. This is is very unlike most investment firms I find the promise hard to believe. I’d rather have a plan that discloses terms for any dividends up front, such as based on milestones that places the club first over the dividends that may be deemed reasonable for the owners. It is coming business practice anyway.

The nasty piece of Glazer takeover is how much it costs them to serve that awful loan with club’s income. They could have used that money to redevelop the stadium and more.

 

You are talking about two different attitudes here, Ineos are saying they won't take anything out but not promissing to put more in so in effect a self funding club.
The Glazers never put anything in and right from the start took money out even with the financing of the club with a loan.

 

But if Ineos group is planning on not taking anything out, why get into a venture that will cost billions? It is that “Why” question that should be disclosed upfront. And it can’t be “because we love the club”. The Qataris may not take money out, but they know precisely what they are getting from infiltrating English institutions.

Nonetheless, zero-leverage bid is far better than Glazers debacle they should have never happened.