Irish Ian wrote: ↑Thu Nov 24, 2022 12:01 am
Cjay they all borrow to invest.
Leveraging.
You borrow from one of your other businesses (and in doing so increase their value and share price or their investment potential) Then invest the money and grow both.
SF are pretty good at it.
They have made significant exits eg Dropbox, but in the main they are bloody good at growing their investment.
You equate venture Capitalism as asset strippers, that doesn't appear to be the 49ers model.
The head of the FA said few months back they are keen to make sure leveraged buyouts are much heavier scrutinised after Burnley.
Fundamentally borrowing money to buy a football club which you then use the club to pay back is not good.
https://12ft.io/proxy?q=https%3A%2F%2Fw ... ackdown%2F
Premier league football clubs aren't normal businesses, the risk to the club is far greater.
You say 49ers Enterprises are good at growing businesses.
So were Tom Hicks and George Gillet.
Many very successful people have bought a club and despite making absolute fortunes in business found they haven't a clue how to run one successfully.
Not saying they are asset strippers but every venture capital fund only wants profit any way it can.
If that means taking from the club (as the Glazers did) they will.
LUFC isn't Manchester United or Liverpool, we would never be able to service debts of hundreds of millions of pounds.
So if they leveraged the buyout using loans set against the club then we would be knackered.
A relegation away from disaster.
But my question was does a quick flip make more sense than them trying to run the club and grow it?
Sell now for £100mil profit or risk £100s of millions more to wait years for potentially none?
They can potentially make a profit now, I don't see why they'd risk more money when the biggest players of a similar background are now looking to get out.
With Liverpool and Manure for sale potential buyers for football clubs will be on high alert.
This may be the best time ever to convince someone maybe with the means to buy them but not sure about spending £3,4,5,6,7billion on a football club that they can have one with plenty if potential for a fraction of the cost?