Liverpool Banter Archive December 21 2016

21 Dec 2016 13:18:48
Hi Eds

With all this talk of 2017 being a big year for some clubs maybe changing hands with owners etc how do clubs get their value put on them, and are the likes of players etc taken into consideration when putting a value on the since they are transient employees etc?

{Ed002's Note - Putting aside the “smaller” sides and thinking of a stable Premier League or major European league club, once it has been decided by the owners and their advisors that they wish to sell or seek significant investment, it normally works that a club will appoint a broker to find and filter potential buyers or investors using a guideline price set by the owners with the help of their advisors. As an example there is an organisation, BDO, which had Dutch heritage but is a global organisation now - but they do still maintain strong ties to the highest end of the football business with that division headed up by Trevor Birch. In some cases those undertaking such activities will be financial institutions you will of heard of (banks, accountancy firms etc.), in some cases they will be small Swiss-based companies with two or three employees but excellent contacts. In some cases it will be individuals - and some of the so-termed "super agents" get involved in such dealings. Once potential buyers have been found the club and, typically, some third party representatives will sit down and talk with the interested parties. The talks would typically cover all financial aspects including existing an future income streams, investment required in terms of fixed assets and details about the relationships being maintained with local authorities, the local community etc.. The “big picture” if you like. They will at that point provide a broad indication of what they are looking to get out of the sale from a financial perspective and the terms which they would be looking to. After further meetings and once all parties are clear that the interest is serious, the books will be made available – in my experience that is something that involves two sets of accountants having a parallel meeting to the main protagonists for a couple of days, reporting back in a hotel or restaurant each evening. I have known lawyers to sit in on such meetings.

Assuming everything at this point is still OK and everyone is serious, the clubs will enter a period of Due Diligence lasting perhaps four to six weeks. This would include a detailed audit of the financial state of the business and the condition of the fixed assets, outstanding and future commitments etc.. In parallel discussions will continue regarding price and terms and once everything is concluded and terms have been agreed, a proportion of the funds wbe put in to escrow and the appropriate football association will be informed, as they need to ratify the sale. This ratification includes what is termed the “fit and proper person test” (but more correctly is the “Owner and Director Test”) that looks at the potential owners and their planned directors in terms of their character, sufficiency of funding, their capability to do the right thing and, critically, their background – no financial (bankruptcy for example) or other misconduct (e.g. influencing other clubs, banned from being a director etc.. These checks vary country-by-country and it would be fair to sat that England and Scotland are very stringent in their application.

At that point contracts will be signed, funds moved from escrow and other monies paid.

As an alternate to this, potential buyers and investors could themselves contract the broker to find clubs that are for sale on their behalf. It is even possible that unsolicited approaches could be made to clubs.

Regardless, the players are intangible assets and are not considered in the valuation.

I hope this helps.}

21 Dec 2016 14:10:38
brilliant thanks ed2! awesome as always, do you see a lot of premier league clubs changing hands in 2017 still? i guess the sky money is going to make a lot of the clubs look very good value! thanks again for the reply clears it up nicely for me!

{Ed002's Note - I don't see "a lot" changing hands this year.}

21 Dec 2016 17:00:23
oh my i'm working in BDO in my country, maybe i should try to get a transfer to the netherlands haha.

appreciate you sharing this ed002, thanks man.

22 Dec 2016 02:13:34
In fact I do see a lot of potential big buyers from China. But for strange reasons British clubs are reluctant to sell to China owners, absolutely strange. I see a lot primitive insecurity there.

{Ed001's Note - what nonsense. Just an outright lie.}

22 Dec 2016 06:39:16
"Primitive insecurity".

I see someone's been using their 'word-of-the-day' toilet paper!

21 Dec 2016 12:45:02
The Christmas schedule makes for an interesting conundrum for Klopp, Tue-Sat-Mon matches mean he'll have to rotate players for the first time (the only changes he's made this season so far have been enforced by injury) and the hardest game (City) being the middle one makes it even more complicated.

I was trying to think how to best approach these games, Klopp could easily play the first 11 against Stoke and City but he'd have to then put out a squad team against Sunderland. If he doesn't want to do that then he'll have to rest some first teamers against City so they can play on Monday. What do you guys think? Focus on City and hope the reserves can get something at Sunderland or put out a mix of first team and reserve players in both games?

21 Dec 2016 13:17:18
Sunderland sits at the bottom of the barrel. You could rest a few against them. City is a must win and I expect us to field a strong team against them to finish the year in style.

21 Dec 2016 13:26:02
He should not rest any first teamers vs City as that is a big game for us especially at home. IMO, we would have had 8 days by the time we play Stoke so he would have had time to prepare on how to rotate/ mix the squad together to make sure we are more than competitive in the Sun game.

This is why it is important to try and put Stoke away (I know, easier said than done) early so the three subs can be used to rest players for the City game and have a chance at playing the Sun game.

We put out reserves vs Swansea last season and we got hammered so I disagree with that option. We have to mix the team vs Sun and to me, that should do it. It is a difficult one, I agree but I`m not too bothered about it as it seems the manager has a plan for everything.

21 Dec 2016 13:51:30
We put our best team available out for the 3games simple. If Burnley and Bournemouth can turn us over when we are at full strength who's to say Sunderland or anyone else can't? People need to stop looking too far ahead. We should assume the next game is going to be harder than the previous one. None of this counting points before a ball is kicked because it will come back and bite us in the ass.

21 Dec 2016 15:04:36
Agreed, Twinkle. one game at a time and we`ll see what happens.

21 Dec 2016 20:31:51
I think you'll see a very similar team in all 3 games except for some swaps in the midfield (Can, Gini, Lucas) and maybe in CB (Klavan, Lovren, Matip, Lucas) . You may also see studge start one of the 3 over Origi, Sunderland being my guess.

21 Dec 2016 20:34:24
Strongest fittest team should be played in each game.

21 Dec 2016 06:37:17
Ed2 what's your thoughts on the players on loan? Do any have a future at the club come the summer? I personally don't see any staying unless Allan gets a work permit. Looking at the squad its still hugely bloated, if you include the players on loan.

{Ed002's Note - Ward is the pick of them but Liverpool will need to have a plan for him next season. Assuming Mignolet and Manniger leave and Ward returns then they will still need a third pick - perhaps Fulton would work. If the club look to another add a second pick ahead of Ward then he will know his time with Liverpool is over. Allan is expected to build a decent career - but I rather doubt it will be at Liverpool in the long term given that the club remains. Flanagan is another deserving of a decision in the summer - back in to the fold of the first team or move him on.}

21 Dec 2016 17:52:13
Looks like something went missing Ed002.

I am trying to follow Allan in germany and i am really exited about his potential.

Why do you rather doubt that his long term future will be with Liverpool?

Thanks :)

Enjoy your hollidays everyone.

{Ed002's Note - He can't get a work permit, there is no place in the team for him, Klipperty if he is interested in all of these players that the fans keep telling me about is not planning to use him. He is stuck out on loan with no plan going forward.

It doesn't look too rosy for him right now.}

21 Dec 2016 18:31:58
Oh that's right, i somehow forgot that he didn't got a work permit. Fingers crossed that he somehow end up qualifying for a work permit and he'll get his chance. I think he could have a great career with us.

Appreciate it ed002. Thanks a lot yet again.

Merry cristmas and a happy new year to you eds and all users.

{Ed002's Note - Enjoy the holidays.}

21 Dec 2016 11:02:12
A mate of mine is pals with Luke Shaw's mum and apparently he is hoping for a reunion with Pochettino at Spurs after falling out of favour with Mourinho. Word is that he hasn't recovered mentally from his leg break and Mourinho is losing patience with him rapidly. He went on to say that a few clubs have been in touch, one of them being Liverpool. Do the Ed's know of any interest?

{Ed002's Note - I am not aware of Liverpool tapping up Luke Shaw but it is an astonishingly serious allegation his mother is making to your friend about Liverpool.}

21 Dec 2016 13:16:33
Not that I would ever advocate tapping up, but it's especially stupid a thing to do when its being done to someone whose club wouldn't sell them to you anyway!

21 Dec 2016 19:17:17
Hang on!
You have "a mate" who's "friends" with Luke Shaw's mum?

Are there any "benefits" to being "friends" with Luke Shaw's mum? 😍

Official opening of Silly Season 😎.

21 Dec 2016 20:43:25
Would she like to live in Liverpool?

Nice house, new car, lovely holidays,
Free health care, etc. etc.