[Archived] Rovers Sold ??

[Fife Rover]

For some strange reason, the online link to Andy Neild's article has been removed.

Is the story running in the hard copy?

Or as Fife suggests, have they taken their bat and ball home in a huff because of comments on here?

See! I knew you'd upset the ***gers talking like that!

[RevidgeBlue]

Perhaps the online link was taken down to be updated.

The hard copy of the LT states that one of the backers is a company called Plainfield Asset Management based in Greenwich Connetticut with assets under management worth an estimated 5 billion dollars.

The other Company has not been named but is believed to be based outside the United States with assets of over 2 billion dollars.

Perhaps someone could link to the aforementioned website.

[tcj_jones]

Plainfield Asset Management LLC

Taken from the above site:

About Plainfield

Firm Overview

Plainfield Asset Management LLC was founded in February 2005 by Max Holmes. The Plainfield Special Situation fund was launched in May 2005. The firm manages investment capital for institutions and high net worth individuals based in the United States and abroad. Plainfield currently employs over 60 people in its offices in Greenwich, Connecticut.

Plainfield is a registered investment advisor with the United States Securities and Exchange Commission. Plainfield is a QPAM for ERISA fiduciaries. The firm's accountants are PricewaterhouseCoopers LLP. The firm's prime brokers are Goldman Sachs & Co., Deutsche Bank Securities Inc. and Bear Stearns. The firm's principal lawyers are Seward & Kissel LLP.

Also taken from the above site:

Max Holmes - Founder and Chief Investment Officer

Prior to founding Plainfield Asset Management LLC in February 2005, Max Holmes was the Head of the Distressed Securities Group and a Managing Director of D. E. Shaw & Co., L.P. As Head of the Distressed Securities Group, Mr. Holmes was a Co-Portfolio Manager for D. E. Shaw Laminar Portfolios, L.L.C. from 2002 through 2004. He was formerly a member of the Board of Directors of FAO Schwarz Inc., eToys Direct, Inc. and Sure Fit, Inc. From 1999 through January 2002, Mr. Holmes was the founder and Co-Head of the High Yield Group at RBC Capital Markets, a subsidiary of The Royal Bank of Canada, where he was Head of High Yield Origination and Capital Markets. From 1996 to 1999, Mr. Holmes was Head of High Yield Capital Markets and Head of High Yield Research at Gleacher NatWest Inc., a subsidiary of National Westminster Bank Plc. From 1991 to 1996, Mr. Holmes worked at Salomon Brothers Inc, where at various times he was Head of Bankruptcy Research, acted as Salomon's High Yield Strategist, served as its lead representative on various creditors committees, and managed a proprietary distressed bond portfolio. From 1986 to 1989, Mr. Holmes worked at Drexel Burnham Lambert in Beverly Hills, California, first in the Corporate Finance Department and then in the High Yield and Convertible Securities Department. Mr. Holmes became one of the youngest Senior Vice Presidents in Drexel's history. From 1984 to 1986, Mr. Holmes was a practicing attorney at Vinson & Elkins in Houston, Texas, where he represented commercial banks in a variety of bankruptcies, restructurings, high yield bond and M&A transactions. Mr. Holmes remains a member of the bar in New York and Texas. Mr. Holmes received a J.D. from Columbia Law School in 1984, an M.B.A. from Columbia Business School in 1984 and received an B.A. from Harvard College in philosophy in 1981. Since 1993, he has taught "Bankruptcy and Reorganization" at New York University Stern Graduate School of Business, where he remains an Adjunct Professor of Finance.

Other partners: Terri Lecamp, Georges Holzberger, Rob Sherman, Joe Bencivenga, Niv Harizman, Les Levi, Karen Dykstra,

[Alan75]

some good research there tc, bet nicho will appreciate that

[yellowsubmarine]

Thanks for the research.

Hopefully the deal will done soon. This is getting exciting!

[brfc fan]

Wish they would hurry up.

I know it's complicated but if they really care they'll want it completed ASAP.

I hope they do really care.

[modes98]

I know it's complicated but if they really care they'll want it completed ASAP.

I don't think that any company can rush through a deal. It takes how long it takes and i hope all the proper checks are in place, not only to protect the buyer but us as well.

Be it next week or be it September 1st 2050, it's all good!

[philipl]

A horse called Hendry

Nico's article in the People

Key words for me in that article- "they are a hedge fund" (Hedge funds don't look for ordinary profits)

"Quick sale of Asprey" (Hedge funds don't overlook opportunities to turn a quick buck)

"Rovers have been rocked by the revelations"

Dan Williams "over offered by £10 millions"

Also seems like John Williams broke his holiday.

Any of our American friends know how financing in race courses works over there and what the returns are and how they are made? This is the current sporting venture the hedge fund is currently involved in.

There is a logic in the partners Dan Williams has put together and for them there is a definite tactical logic in Blackburn Rovers.

A valid question is would this deal have happened had a relatively young man not let his heart rule and driven it forwards? I am not surprised sums are still being done and no actual bid has come in yet if earlier revelations remain true.

If this does hang together it could be very good but I think this consortium would unravel if Rovers hit hard times on the pitch. If it all goes wrong, Accy Stanley have the right idea!

[Alan75]

A horse called Hendry

Nico's article in the People

Hope we arent naming him Grabbi in a few months.

[dave birch]

A horse called Hendry

If this does hang together it could be very good but I think this consortium would unravel if Rovers hit hard times on the pitch.

Philip, that could apply to any sort of "investment". It could apply to the Glazers, if their backers (their banks or whatever) get nervous. It doesn't need failure on the pitch, it could be in some other area that anyone of the consortium is involved in.

If you borrow, you've always got someone looking over your shoulder, particularly if you are over the 80% borrowings.

Unfortunately a team is going to go down bigtime at some stage or other.

[trueblue]

Anyone know anything about this 'Iconix' leisurewear brand? a quick Google has thrown this up.. Iconix and the Investor Presentations -> Iconix Presentation makes interesting reading.

Don't know whether I'm more worried now by the latest revelaions from the 'People', this story today certainly hasn't made me feel any better about this consortium.

In John Williams we trust !

[brfc fan]

If it all goes wrong, Accy Stanley have the right idea!

[RevidgeBlue]

The link between Rovers and and an American asset management (or venture capital) company leaves me completely nonplussed to be quite honest, I just don't see any logical connection.

I can see the logic in an extremely wealthy individual or individuals, who don't mind spending or losing a few bob, buying into a football club for the challenge, excitement and kudos that comes with owning a professional sports "franchise" for want of a better word.

I don't see the attraction in investing in a (generally) non profit making venture such as Rovers for an institution like this whose clients are expecting higher than average returns in exchange for choosing slightly riskier investments than the norm. At least if you're being backed by a Bank you know you only have to repay a loan at a certain rate of interest.

The only possible motives I can see for them would be if they were looking for an avenue to gain exposure in and break into the UK and European markets. Or try to turn a quickish buck when the next Sky deal has been renegotiated. Or try to produce a constant income stream by continually selling players.

Personally I'd be a lot happier if we were taken over by a group of extremely wealthy individuals whose money is their own to do with as they please. I don't suppose however the Walker Trustees will want to turn down the Williams consortium interest if it is indeed true they're talking in terms of 10m more than any potential rivals. Or maybe they're not even allowed to.

P.S. We still need to know the extent of DW's personal investment in the venture.

[John]

Interesting article from the People - picked out a few phrases:

The identities of the Dan Williams team prove they have football knowledge, financial clout and a lot of top business brains. They are also a hedge fund, which means they will be looking for a profit.

The Plainfield team have assessed the possible profits and losses of English football and think a well-run, well-balanced club would be a major asset in their portfolio.

Rovers have been rocked with the disclosures but are keen to sell. The Jack Walker Trustees want to cash in and think this is their best chance of a proper handover.

the takeover which has stunned football.

[jim mk2]

In a nutshell, Rovers could be taken over by a hedge fund fronted by Daniel Williams, who does not have the necessary financial clout to fund the club on his own.

Thank you, Walker Trustees. You'll have to face Jack and explain that one day.

[den]

Personally I'd be a lot happier if we were taken over by a group of extremely wealthy individuals whose money is their own to do with as they please.

I know what you're saying Rev, but there's absolutely no guarantee that any individual would put large amounts of personal wealth into paying exorbitant wages to a football player. They could withdraw financing at any time.

[SIMON GARNERS 194]

I don't see the attraction in investing in a (generally) non profit making venture such as Rovers for an institution like this whose clients are expecting higher than average returns in exchange for choosing slightly riskier investments than the norm. At least if you're being backed by a Bank you know you only have to repay a loan at a certain rate of interest.

''They are also a hedge fund, which means they will be looking for a profit.''

Oh dear!

We are really non the wiser but I will hazard a guess and say its goodbye to the cheap tickets after next season folks!

[RevidgeBlue]

I know what you're saying Rev, but there's absolutely no guarantee that any individual would put large amounts of personal wealth into paying exorbitant wages to a football player. They could withdraw financing at any time.

You would imagine anyone taking over be it an individual or company would want to see the wages covered by the TV money and gate and commercial revenue.

A consortium could also pull out at any time. However as opposed to an individual, this asset managent company also has in addition to keep its clients (who quite reasonably expect a high rate of return) happy.

By siphoning off a percentage of TV money each year? Selling players? Selling the Club on for a profit when the next Sky deal comes round?

[John]

It is quite clear now that the Walkers are desperate to sell.

I am extremely concerned about this, but we are powerless - would just like some reassurance.

[philipl]

Why are you so sure the Walkers are so desperate to sell.

I will keep repeating myself but the Trust probably would not be fulfilling its obligations under the Jack Walker Will if it did not look for a buyer when there is such a propitious market for finding invcestors in football clubs.

But there is bound to be a line at which the Trustees would say "thanks but no thanks" to any offer.

[John]

John Williams could hardly publicly say the Walkers are desperate to sell - imagine the kick back from that.

Fact is that none of us know these 'obligations of the Jack Walker will'.

Looks like we are selling to cowboys but fair play to them, we are an easy target and one of the easiest Prem league clubs to takeover - I can see why they see this as a good opportunity to boost their portfolio, whether it will work or not is very dubious. They must have a ground breaking marketing plan in mind....

As I said before - what happens when our prospective new owners realise that BRFC cannot and will probably never give them the profits they think they can get from a Premiership club?

It looks like we will continue to struggle with our fanbase. In addition, our merchandise turnover is hardly to going to make much cash!

I am making my views based on the information we all have at the moment.

[bob fleming]

But there is bound to be a line at which the Trustees would say "thanks but no thanks" to any offer.

You'd hope so.

More propaganda in the People today then. This coupled with the stuff in the LT. Not much to go on really, no hard facts. No "we're in it for the long term" - in fact quite the opposite.

Whatever happens there's little we as supporters can do it would appear. Oh dear.

[thenodrog]

It is quite clear now that the Walkers are desperate to sell.

I am extremely concerned about this, but we are powerless - would just like some reassurance.

I understand it's been a 'done' deal for some time.

[Wiggy]

I wonder if the Williams consortium has taken into account the rather dour and miserable Blackburnian persona? It would only take a real or perceived slight for fans to desert like rats off the proverbial ship ( 1960 cup final tickets?).

But I'm with Rev on this, I can't for the life of me see any good coming out of it for the institution of Blackburn Rovers Football Club. I also agree with Jim Mk2, surely the Trust are getting as much dough as possible whilst paying scant regard to Jack's legacy. Just look at the CV of the main player...

Max Holmes - Founder and Chief Investment Officer

Prior to founding Plainfield Asset Management LLC in February 2005, Max Holmes was the Head of the Distressed Securities Group and a Managing Director of D. E. Shaw & Co., L.P. As Head of the Distressed Securities Group, Mr. Holmes was a Co-Portfolio Manager for D. E. Shaw Laminar Portfolios, L.L.C. from 2002 through 2004. He was formerly a member of the Board of Directors of FAO Schwarz Inc., eToys Direct, Inc. and Sure Fit, Inc. From 1999 through January 2002, Mr. Holmes was the founder and Co-Head of the High Yield Group at RBC Capital Markets, a subsidiary of The Royal Bank of Canada, where he was Head of High Yield Origination and Capital and Head of High Yield Research at Gleacher NatWest Inc., .........was Head of Bankruptcy Research, acted as Salomon's High Yield Strategist, served as its lead representative....... and managed a proprietary distressed bond portfolio.............. then in the High Yield and Convertible Securities Department. ....... where he represented commercial banks in a variety of bankruptcies, restructurings, high yield bond and M&A transactions. ......, he has taught "Bankruptcy and Reorganization" at New York University Stern Graduate

[tcj_jones]

After several years of strict financial policy at the club, restricting the level of wages and transfer budgets available to the management, I would hate to see us suddenly inherit a huge amount of debt. That is my main worry.

However, I'm not going to get too worried about the future of the club if this deal is successful, because the two men fronting the deal appear genuine in their allegiance to Rovers and would want the very best for the club, while their backers are huge in the business world, worth billions and, apparently, are very much looking for success on the field.

To be honest, it might be dangerous thinking, but any takeover that promises more money in the transfer market excites me.