Latest Takeover Rumour. The Moores / Noell one

[JimmyJeffers]

The Chinese never extradite their nationals and accessing the legal system in China is problematic at best. So if there was any legal issues in regards to the running of the club it would become very complicated.

At least with the Americans there would be more transparency and they would be subject to our (UK) legal system.

Like I said earlier. We need any prospective new owners to indicate how they will be 'Responsible Owners' and outline their business plan.

My focus is for the Stadium developments as a priority.

Other posters have other priorities.

A responsible owner will address all areas of the business and ensure the financial health of the club.

Loading the club with liabilities through holding companies (to extract interest and management fees: see Man United and Aston Villa) and distracting the fanbase with lots of signings making it look like everything is healthy (this happened at Aston Villa) is NOT what I want to see.

Big picture. We need to increase revenues.

I say stadium. Others say signings.

We need both (with a balancing act). Ideally through increased revenues (e.g. commercial not just TV revenues).

As was mentioned earlier, any issues arising from accountability or calls for transparency are notoriously problematic in this industry already as we all know. Think a lot of the preferences for one set of people over another is influenced by lazy national stereotyping. We really can't properly judge potential new owners just yet.

 

[bizzaro]

As was mentioned earlier, any issues arising from accountability or calls for transparency are notoriously problematic in this industry already as we all know. Think a lot of the preferences for one set of people over another is influenced by lazy national stereotyping. We really can't properly judge potential new owners just yet.

Its not lazy national stereotyping. If you actually did business in China you would know what I am saying.

Doing business with the USA is far far easier.

At least with any US investment fund. We will know what we are getting.


'Better the devil you know than the devil you don't'

 

[JimmyJeffers]

Who are the chinese involved --any names?

Nah.none mentioned. Tried to upload a pic but it wouldn't work

 

[BiggyRat]

Not keen on a Chinese consortium.

 

[JimmyJeffers]

Its not lazy national stereotyping. If you actually did business in China you would know what I am saying.

Doing business with the USA is far far easier.

At least with any US investment fund. We will know what we are getting.


'Better the devil you know than the devil you don't'

Don't really think we'll have any full idea as to what we're getting until a much later date. Promises are easily broken. Agree with you on the stadium priority though

 

[Coffee and TV]

Right, here's the article in the times

 

[bizzaro]

No named sources. No names about 'the Chinese group'

Typical.

Any relationship to these?

http://www.90min.com/posts/2083929-...h-takeover-to-be-completed-after-fa-cup-final
21 APR 2015
Aston Villa Targeted by Wealthy Chinese Consortium With Takeover to be Completed After FA Cup Final
It is thought that the consortium are already well underway in their process of due diligence and are planning to have the deal formally completed in early June.

 

[BiggyRat]

Dust off the old kits boys!

http://data:image/jpeg;base64,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

 

[Jozzy]

If they're "very serious bidders" why are they waiting to see if Moores & Noell's bid falls through? I understand that it's being reported they've received exclusive rights to check the books but if I was a serious bidder I wouldn't be sitting back waiting for someone else to look at the club.

 

[bizzaro]

The ones linked with Aston Villa (non-corroborated)

• Wahaha
• Wanda
• Huawei
• Alibaba

But there are no real names (here with Everton) and note no deal for either Villa or West Brom was forthcoming.


People also need to remember there is current financial turmoil in China.



I also need to add that in July 2015 the deal with West Brom collapsed

http://www.bbc.co.uk/sport/football/33651272

The Baggies have ended a period of exclusive negotiations with the bidder, reported to be a Chinese consortium.

"It is now clear to me that this potential purchaser is unable to fulfil the terms of that agreement at this time," said chairman Jeremy Peace.

 

[Zatara]

No idea if anyone else does business in China but my opinion is that if they are mainland Chinese then generally stay well clear...."generally".

If they are Chinese but Singaporean or pretty much any other Asian location wth Chinese heritage then it could be interesting...

Looks like mainland chinese from that shot of the paper....

 

[Chang Elephant]

At least with any US investment fund. We will know what we are getting.

SHAFTED

 

[Moomin]

I'm in team China.

I'm having spring rolls for tea.

 

[bizzaro]

Good read. Basically saying there is:

1. Lots of uncertainty in club valuations

2. That the effects of premier league rules and FFP are not YET clearly apparent to prospective owners (in terms of wage inflation controls)

3. Uncertainties in the financial system



http://www.theguardian.com/football/2015/oct/06/premier-league-takeovers-clubs-not-selling

Premier League’s great takeover drought – why aren’t clubs selling?
Tuesday 6 October 2015 12.18 BST

Fulham were the last club to change hands, more than two years ago. When the barren spell ends, the deals are likely to look very different from those of the past
...

Why the slowdown? Have Premier League clubs become “unbuyable” or “unsellable”? Activity behind the scenes suggests otherwise. Strong rumours of buying interest in such clubs as Aston Villa, West Bromwich Albion, Tottenham,Crystal Palace and Everton, combined with some fairly serious tyre kicking elsewhere that we are aware of, suggests that clubs are not strictly unsellable. And, if Jeremy Peace or Randy Lerner are to be believed, there clearly is interest among sellers as well, so clubs are not necessarily unbuyable either. Although each rumoured deal has seemingly fallen apart for an idiosyncratic reason from the Chinese stock market jumping off a cliff to Putin’s adventurism and the resulting sanctions on Russia, or just because the deal “wasn’t right”, there does seem to be a more general trend that has dried up the market for clubs. Why?

Successful deals require a so-called zone of possible agreement (zopa) – a positive overlap between the buyer’s willingness to pay and the seller’s walkaway price. We suspect that market conditions in recent years have made it harder for buyers and sellers to identify agreement, and that two factors –exploding media revenues coupled with uncertain profitability – have caused a widespread negative zopa as seller’s expectations have zoomed skyward and potential buyers have hesitated to follow.
...

Investors are worried that the increasing media payments – cue the usual prune juice metaphor – will simply flow out of the clubs in increased fees, salaries and commissions, to other clubs, players and agents respectively. They are worried that absolute valuations of clubs will rise along with the pot of TV monies, but that there will not be a concomitant increase in profitability or cash flow – the kind of things that make businesses more valuable – as both Uefa and Premier League cost control rules still allow sizeable annual losses and have yet to seriously slow the trend in transfer and wage spending in the Premier League.

 

[neil999]

I'm in team China.

I'm having spring rolls for tea.

ive got a pet dragon