13 Oct 2020 19:10:38
Ed002, did you came across recent article of Maddock? . FSG is in talks with Billy to buy the club. Billy beane wants to buy group of clubs similar to Redbull in Europe. Do you got any news on it? If so, can you explain us and also all its pros and cons of such deal.
{Ed002's Note - I have no idea what you are referring to. I think you have perhaps misunderstood what yopu have read. Billy Beane is a self-confessed Liverpool supporter and owns much of the Oakland As and is the "moneyball" guru. But whilst FSG would like an investor to sell part of Liverpool to (particularly given their major financial issues at the moment), it is questionable where any of the high-profile expensive EPL sides has the growth potential of other sides across Europe. Clubs like Liverpool, Manchester United and Chelsea will see growth potential flatten out whilst the chance of growth remains elsewhere - and remember these folks are investing other people's money - not their own. As such they have a plan to merge with FSG rather than invest in it. Noteworthy is that the former Premier League chair Richard Scudamore has joined the board of Billy Beane’s RedBall Acquisition Corporation who have guarantees from investors circa $500M. That mean they have the investment funds to beyond a merger and look to buy a decent club in mainland Europe or the lower end of the Premier League as well.
Obviously clutching at straws to make the club get a boost in terms of financial growth before potentially selling out id Project Bigfoot (or whatever it is called).}
14 Oct 2020 08:08:36
Lower end PL club? Perhaps we could buy Man U as a feeder team.
14 Oct 2020 15:11:01
Thanks for correcting me. Merger should be the word I should have used.
Thanks for the info.
14 Oct 2020 18:01:07
Ed002, I thought "the growth potential flattening out" would be due to the c. v. environment prevalent everywhere now. But since you say growth prospects elsewhere in Europe are better, despite the c. v., it means that growth potential of the EPL is actually flattening out. Have I read it correctly?
{Ed002's Note - No, it is due the the sucfcess the club has had and the significant increased gross that has already happened. So the value of the club has largely peaked and will grow slowly. For investors that might well be the time to get out and invest where there is more growth potential so there is a better return on your investment. It is not the EPL, it is Liverpool. There is growth potential in the likes of Newcastle who would cost less than 20% of Liverpool, for example.}
14 Oct 2020 20:57:36
Ah, I get it, Ed002. The rate of growth is lowering. The S curves in all businesses and cycles. Thanks.
{Ed002's Note - So you look for better returns. If you have £100 in the bank earning 1% interest and someone else is offering 5%, what do you do? The 5% growth has slowed to 1% but there is a new opportunity that if managed well might give 5% back.}
14 Oct 2020 22:42:54
Ed02, I know this is a near impossible question to ans, but is there many out there now with the capital to buy a club like Liverpool. The club currently valued at around £1.7bn pounds. And as you say the growth potential is flattening out, it doesn't seem like the wisest investment when you can buy other clubs at 20% of the cost.
{Ed002's Note - Institutionally, yes. Individually there are folks who could afford to buy but the attraction of the investment is not great - as FSG has already had the big time changes. The option would be a flotation, perhaps in New York. But you are right, the growth potential of the likes of Newcastle is clearly as an investment better than the likes of Liverpool, Chelsea etc..}
15 Oct 2020 07:33:22
Cheers ed👍.