Mandaric on way???

[Jeff]

He will invest in a club in the Championship with the potential to be an established saleable asset in the Premier League within 5 years. He will be looking for a financial return of about 50% on his investment so if he pumps £30m into a club, he'd be looking to pass it on in a few years for about £45m.

But why would someone come in and buy the club for £45 million?
Even if the next five years is a success and the team gets promoted and stays in the Premiership there's no guarantee that anyone would buy the club.
There's hardly been a queue of people wanting to buy the club in the past, when it was valued at much less than that.

So what happens if in 5 years time Mandaric wants to get out, and he can't find a buyer?
Will he sell all the players and the stadium to get as much of his money back as he can?
Will he stop paying the bills and allow the club to go into administration?

If someone is a good businessman buying into a football club with the intention of making a profit is not the most sensible financial decision they can make, unless it's a club the size of Man Utd.

 

[Chrysalis]

the stadium would be worth money still but the value would decline sharpy if the club went bust, tigers would likely be buyers getting it on the cheap in that situation.

 

[Chrysalis]

But why would someone come in and buy the club for £45 million?
Even if the next five years is a success and the team gets promoted and stays in the Premiership there's no guarantee that anyone would buy the club.
There's hardly been a queue of people wanting to buy the club in the past, when it was valued at much less than that.

So what happens if in 5 years time Mandaric wants to get out, and he can't find a buyer?
Will he sell all the players and the stadium to get as much of his money back as he can?
Will he stop paying the bills and allow the club to go into administration?

If someone is a good businessman buying into a football club with the intention of making a profit is not the most sensible financial decision they can make, unless it's a club the size of Man Utd.

alot of ifs but if you take no risks then you get nowhere more often then not now days.

Instead of thinking about the worst case scenario just look at his track record which is very good, if he was failing he wouldnt still be doing this.

 

[Jeff]

alot of ifs but if you take no risks then you get nowhere more often then not now days.

Instead of thinking about the worst case scenario just look at his track record which is very good, if he was failing he wouldnt still be doing this.

But if the club is being taken over I'd rather it was a fan (or consortium of fans), than someone who is doing it to make a profit.
If someone does come in with a plan to build the club up and sell it after 5 years we'd need assurances of his plans if the 'investment' makes a loss.
Most people who buy football clubs lose money, it's only rare cases where they make a profit. Mandaric was lucky that some foreign people with more money than sense came in and wanted to buy Portsmouth.

 

[Redditch Fox]

But why would someone come in and buy the club for £45 million?
Even if the next five years is a success and the team gets promoted and stays in the Premiership there's no guarantee that anyone would buy the club.
There's hardly been a queue of people wanting to buy the club in the past, when it was valued at much less than that.

So what happens if in 5 years time Mandaric wants to get out, and he can't find a buyer?
Will he sell all the players and the stadium to get as much of his money back as he can?
Will he stop paying the bills and allow the club to go into administration?

If someone is a good businessman buying into a football club with the intention of making a profit is not the most sensible financial decision they can make, unless it's a club the size of Man Utd.

Clearly Mandaric is in football because he is rich and gets a kick out of owning a football club.

Leicester City is currently run by a bunch who are incapable of financing the club to give it any prospect of being viable even as a yo-yo club between the two top tiers. They offer no prospect but years of mediocrity and probably long term decline from where we are now.

I would think that most supporters would want to see the dice thrown and a chance taken if a serious investor came along. The present set up from board through to management through to FT etc cannot be taken seriously. Its ok for a bunch of anaraks who think its great to visit every crappy little ground in the lower reaches of professional football - for for those of us who have a sense of the history and potential of LCFC, I'm sorry but its not nearly good enough.

 

[Real Sharapova]

Clearly Mandaric is in football because he is rich and gets a kick out of owning a football club.

Leicester City is currently run by a bunch who are incapable of financing the club to give it any prospect of being viable even as a yo-yo club between the two top tiers. They offer no prospect but years of mediocrity and probably long term decline from where we are now.

I would think that most supporters would want to see the dice thrown and a chance taken if a serious investor came along. The present set up from board through to management through to FT etc cannot be taken seriously. Its ok for a bunch of anaraks who think its great to visit every crappy little ground in the lower reaches of professional football - for for those of us who have a sense of the history and potential of LCFC, I'm sorry but its not nearly good enough.

Any fan with a sense of history would know we are a yo-yo club.

 

[Chrysalis]

But if the club is being taken over I'd rather it was a fan (or consortium of fans), than someone who is doing it to make a profit.
If someone does come in with a plan to build the club up and sell it after 5 years we'd need assurances of his plans if the 'investment' makes a loss.
Most people who buy football clubs lose money, it's only rare cases where they make a profit. Mandaric was lucky that some foreign people with more money than sense came in and wanted to buy Portsmouth.

I have looked at other clubs and found that consortiums dont work especially fan owned ones, too many politics involved. Much more cash and success from individually owned clubs.

 

[Jeff]

I would think that most supporters would want to see the dice thrown and a chance taken if a serious investor came along.

Of course they would. But I would want assurances about the motives and exit strategy of anyone who came in.
You can't just assume that because someone's got lots of money they will have the best inerests of the club at heart. You've got to examine the proposal and have safeguards in place so that any potential new owner can't use it as his plaything and then leave it in a mess if things don't go as planned.

The present set up from board through to management through to FT etc cannot be taken seriously. Its ok for a bunch of anaraks who think its great to visit every crappy little ground in the lower reaches of professional football - for for those of us who have a sense of the history and potential of LCFC, I'm sorry but its not nearly good enough.

No one is talking about being unambitious, it's about making sure that if the club is taken over it's for the right reasons, and a bit of care is taken in the process. This is not like selling a normal business., it would be foolish to sell up to the first person who comes along waving a wad of notes without knowing the possible implications.

 

[Jeff]

I have looked at other clubs and found that consortiums dont work especially fan owned ones, too many politics involved. Much more cash and success from individually owned clubs.

Also much more failure from individually owned clubs.

If you have one person owning and running the club he can do what he wants without having anyone to answer to, it can be a good thing, but it can also be a bad thing because he has no one to answer to.

 

[Chrysalis]

I would understand you somewhat if it was a guy who got no previous experience, but mandaric has and he is not just anyone, he has also done this with a lot more clubs then just portsmouth.

What experience did tim and co have of football clubs before they came here? that itself was a gamble but we were forced to accept it as the alternative was no club. The current board are very poor no ability to attract investment and as proved with newell no ability to attract managers from smaller clubs. They are not willing to invest as many of the board could invest more if they wanted to but wont so does that show you they have the club at heart? no I am afraid not.

Mandaric isnt here because he will die for leicester we know that but for him to make money Leicester needs to be successful so its in his best interest for us to have success and that interest happens to match with the fans interest. Our current board thinks they deserve a pat on the back for the fact we didnt sell anyone they probably think thats ambition in itself.

 

[Chrysalis]

Also much more failure from individually owned clubs.

If you have one person owning and running the club he can do what he wants without having anyone to answer to, it can be a good thing, but it can also be a bad thing because he has no one to answer to.

Where are these failures and please say something else other then leeds.

 

[Lboro fox]

Derby always springs to mind when people talk about take-overs and investment, thier directors were terrible for the club for a long time. They nearly stripped it clean of everything they had.

 

[Chrysalis]

anything else?

 

[Chrysalis]

clubs who benefited from sole leadership.

forest
chelsea
leeds (current)
fulham
portsmouth
cardiff

and probably lots more.

A better way to discuss this is list clubs where mandaric has failed at? a club that he has tookover and left in worse shape, if you can find one I will understand the concerns more.

 

[Jeff]

Where are these failures and please say something else other then leeds.

I mentioned Brighton and Wimbledon earlier. Not strictly one man ownership, but one man effectively controlled Brighton, and two people destroyed Wimbledon. Off the top of my head other similar cases include Wrexham and Carlisle.

Carlisle is a good example of someone coming into a club and making a real mess of it.
Michael Knighton took the club over with talk of getting into the Premiership. In the end after an unsuccessful period he sacked the manager and did the job himself. The club ended up in administration.

 

[Brown Nose]

MM has just sold his stake in Portsmouth for £30m and that is without a decent stadium. I believe he has spent about £20m on the club so he's made a tidy profit as well as enjoying the footy. I think my figures are pretty accurate in that context.

The only way to make proper cash in footy in this country is to buy a cheap underperforming club desperate for investment and make good business decisions to ensure that they get established in the Premier League. With the money available from Sky, it is difficult not to make money on your investment as long as you employ a manager who can deliver promotion and keep a club up (not easy but with an initial investment plus tv money is perfectly achieveable). If City were established in the Premiership with their own ground, we would easily be worth £45m. Annual tv money alone from next year will be nearly £20m.

The gap between the money available in the top two leagues makes investing in our sort of football club highly profitable if you know what you're doing. I think MM knows what he's doing so would welcome his involvement with City. If I had £30m to invest, I would sack RK and offer Curbishley a lucrative contract to prove he's not a one club wonder and then give him £10m in the transfer market to make it happen. Harsh on RK but I don't know whether he'd deliver. If we got promoted within a couple of years and then invested again when promoted, how could you lose money as long as you found someone to buy the club at it's new valuation?

That is MM's major trick - he's knows people with money to invest that he can pass on his clubs too. If you look int his past, he's done it lots of times.

 

[drew]

I thought the new deal for next year means that the money is closer to 30 million. Obscene really.

 

[Chrysalis]

Brown Nose you speak with knowledge, if MM did come I think RK would be gone for the reasons you said he will want a manager thats done it before.

 

[Dour]

I have looked at other clubs and found that consortiums dont work especially fan owned ones, too many politics involved. Much more cash and success from individually owned clubs.

Odd. I looked at Real Madrid and found the opposite.

 

[Melton Fox]

Brown Nose you speak with knowledge, if MM did come I think RK would be gone for the reasons you said he will want a manager thats done it before.

Hence my earlier comment about not having an over emotional City fan in charge!, a good investor can't have room for emotion, get the best people in and quick