[Archived] Rovers Might Have Been Sold?

[nicko]

Nicko..you seem so much more skeptical about this takeover bid than any of the others previously?..

Not at all. Just wanting to find out answers in a hurry. There are a lot of issues to be resolved here...and the timing is cocking up the start of the season and the window.

A football person would have made their move earlier to give everyone a chance.

Better to ask questions now than later...if you know what I mean.

By those comments are you eluding that JW may be out the door if these people purchase our club??? Or are you referring to managers???

Don't suppose you can name your suspicions over who this chaps football advisor is?? PM??

Nobody knows what Syed has in mind in terms of his 'team.' It would be a colossal change if he did pull this off...and as there are no clues of his football interests it is hard to say if he recognises quality when he sees it.

Forgive me for being cautious rather than sceptical.

[47er]

no mate, just being a realist....no need for that it there...

In my opinion this needs to be a slow burner...organic growth still, but with an element of splashing out on the right player....I dont subscribe to the Citeh way.

Ok fair enough but there's no suggestion that hundreds of millions will be shellrd out for new players immediately. That would be the Citeh way.

[Hughesy]

two wrongs don't make a right, Hughesy. YOU DO TALK RUBBISH, possibly the most out of anyone on here...

Ok, enough with the cheap shots at Hughesy (chasing rep points).

Cheers Jisty - see above (Iv never even noticed him before, so god knows what he contributes, other than a point scoring post)

And on the subject of getting it all from Jack anyway, they've invested in and continued to grow his other assets such as Flybe which actually makes a profit for them. They could have cut us adrift a long time ago for next to nothing, but they've chosen to back us as best they could for little or no return and if they can claw back some of this "investment" to help the rest of Jacks legacy, then why the hell shouldn't they?

How much was Jacks empire worth when he died? And how much of what has happened since is due to what Jack left behind? Had they cut Jacks passion earlier what do you think the reaction would have been?? FFS he basically made them what they are todau!

The point I was making is that the money they have used to help us along is all inherited too, they look after the likes of flybe FAR more than they do us. Jack WOULD have made a hell of alot more money than they have with his assets & WE WOULD be in a FAR greater position if he was still around...Anyone that had ever met Jack & come accross him in business would tell you the same!

[SIMON GARNERS 194]

Its,ITS,......wait for it!

BUSINESS AS USUAL SAYS MR WILLIAMS!

[brian_gallagher85]

I'm sure that Jack was a shrewd business man and his track record would back that up. However, one of the main assets he had was sold to generate his wealth (which in turn was pumped into Ewood) was his steel empire. Where do you suggest his heirs get similar funds to invest into us, whilst still being able to hold on to a business to generate an income.

Jack sold Walker Steel in what turned out to be his twilight years and pumped it into what some would say was his past time. The present owners are all younger than Jack was when he bought us and their sole interest is to do what is best for the Walker Trust as a whole...pumping millions into a football club would not bare such fruit!

[OscarRaven]

Cheers Jisty - see above (Iv never even noticed him before, so god knows what he contributes, other than a point scoring post)

How much was Jacks empire worth when he died? And how much of what has happened since is due to what Jack left behind? Had they cut Jacks passion earlier what do you think the reaction would have been?? FFS he basically made them what they are todau!

The point I was making is that the money they have used to help us along is all inherited too, they look after the likes of flybe FAR more than they do us. Jack WOULD have made a hell of alot more money than they have with his assets & WE WOULD be in a FAR greater position if he was still around...Anyone that had ever met Jack & come accross him in business would tell you the same!

Two eyes, Two ears, one mouth for a reason.

Some people contribute quality over quantity perhaps you should try and talk a leaf out of this regular posters book from time to time?

You sound about 12, I suspect your not. Your also speculating and stating your opinion as fact (very PhilipL and thenodrog like...), perosnally I find your speculation complete and utter twaddle... Jacks mantra and on public record was that he wanted the club to stand on its own two feet. This is excatly how the trustee's have tried to run the club (but failing and contributing cash as a result). Personally and in my opinion (note this is purley speculation) Jack would not have done any differently.

[Hughesy]

More rep scoring?!

I honestly do not believe Jack would not have pumped more money into us....not necesarily every year, but times such as when we got promoted, when we were hanging around 6th with Hughes, and again this summer being examples.

[92er]

I have a relative who lives in Bahrain and who doesn't know about the guy.

However I was referred to the Gulf Daily News which said that he had been in Bahrain since 2008, he is currently in Manama and WGA is based in Seef.

[philipl]

Oh boy, after that post from Oscar I am hesitant about posting this.

But here is my guess for what it is worth:

1) Mr Syed and his people will have absolutely no problems with visas

2) Although it is in Syed's style to play long games with investment targets, I suspect he will not hang around so far as Rovers are concerned

3) A decision on exclusivity and start of due diligence with one of the bidders cannot be far away and by that I am saying first half of this month

4) Due diligence will take a while particularly if done by Syed because his style is to buy into existing management teams from what I can see, not to replace them. His own team at GWA is skeletal so he must work through third parties a lot.

5) If the attraction of buying Rovers is partly because the club is extremely well run, why change it?

As for timings:

- I think the reference to Liverpool in the Telegraph article tells you why Mr Syed contacted Rovers when he did.

- I do not think the pieces appearing in the Telegraph or Guardian were in any way a leak. They were premeditated contacts initiated by Syed's PR person and almost certainly done with the advanced knowledge of the Trust. It might have been caused by nothing more sinister than someone seeing 1864roverite's post on here on Sunday and deciding better their intention be spelt out by themselves than it leaking out in a way and form over which they had no control. Alternatively, there is more than one bidder- that we know- and the pieces could have been placed to gain advantage for the Syed bid in ways we can only guess at.

[Blue n White Rover]

Sam has come out and said today that the Takeover will NOT be completed before the end of the transfer window.

Earliest we could hope for, is a cash injection from our "potential" new owner/s in January.

http://news.bbc.co.uk/sport1/hi/football/teams/b/blackburn_rovers/8884101.stm

[philipl]

Sam has come out and said today that the Takeover will NOT be completed before the end of the transfer window.

Earliest we could hope for, is a cash injection from our "potential" new owner/s in January.

http://news.bbc.co.uk/sport1/hi/football/teams/b/blackburn_rovers/8884101.stm

That is absolutely no surprise.

[Majiball]

5) If the attraction of buying Rovers is partly because the club is extremely well run, why change it?

I thought from posts on here and the newspapers that he specialised in taking over businesses that he felt weren't doing as well as they could? Could you derive from that, that he doesn't think Rovers is run as well as it could be?

Whether that be the board/trustees.

[Balwer]

People seem to forget, or not realise, that WGA's main mode of operation up until now has been senior debt investment, rather than equity. These are two very different styles of business investment. Debt investors give a company loans an in return expect a yield to compensate for their risk (WGA website says typically 5%-7%). Occasionally the company may inherit the business when there is no equity value left in the company, or when the company can no longer pay the interest. Other than that they will place covenants on the loans they provide, keeping them below certain leverage, above certain interest cover, etc. Overall though they are not consulted as to the direction of the business.

Equity investors on the other hand take a different view, they 'own' the business, they work with management closely to generate new revenue streams, find cost-saving measures, maximise profit and potential resale value down the line. They are the ones who make the business plan and set about achieving it in medium term.

Mr Ali's experience, at least through WGA, seems to be in the former, rather than the latter. The distinction is very important I believe, particularly given his lack of football background.

[philipl]

Answering the two posts above, this is the Daily Telegraph article in full from yesterday (it is no longer accessible from their web site) which is in effect Syed's PR firm saying what the current intent is. The bold bits are selected by me:

Ahasan Ali Syed, head of Bahrain-Swiss based investment firm Western Gulf Advisory, has made a formal approach to the club's advisers, Rothschild, with a view to buying the club, paying off their outstanding debt and investing heavily in the playing staff, academy and other infrastructure.

WGA is thought to have £8 billion in assets under its control and recently took a 50 per cent stake in Irish builders McCabe in a strategic investment deal understood to be worth £300 million.

Syed, 36, is originally from Hyderabad and is the sole heir to the family business which traces its wealth to the East India Company. Educated at the London School of Economics, he is a qualified lawyer and maintains a string of racehorses in Bahrain. He divides his time between Bahrain and Switzerland.

He proposes to use personal family funds channelled through the firm to complete the takeover at Ewood Park, having singled Blackburn out because of their potential for growth.

Tellingly, Syed considered seeking a deal for more celebrated clubs and has looked at Liverpool, but considers Blackburn a closer fit with WGA's investment model, which focuses on turning around well-run businesses by acting as an investment partner.

It is understood that Rothschilds, the investment bank, has alerted the club and the trustees of the late Jack Walker's estate to Syed's interest and they are understood to be interested in his approach.

Syed would like to conclude a deal in principle this month and complete the sale in September.

The club have effectively been for sale for two years after the Walker estate made clear that it was no longer in a position to underwrite the club indefinitely. Steel magnate Walker bankrolled the club to the 1995 Premier League title and – under the terms of a 1987 settlement – his family trust undertook to continue investing in the club.That money has now dried up and chairman John Williams has been leading the search for new investment.

Earlier this summer another Indian, Saurin Shah, signalled his intention to table a £25 million bid, promising to tap into Blackburn's large Asian community to help fill Ewood Park.

Shah was hoping to tie up a deal by mid-July but sources have indicated that the deal has "gone quiet", opening the door for the Syed bid.

It is understood that Syed is proposing to use WGA funds to complete a swift takeover, clearing the club's debts of around £20 million and offering an unspecified payment to the Walker Trust for their equity in the club. The balance of the £300 million would then be committed to the club over the long term.

The offer of £300 million of fresh investment could transform Blackburn's prospects but it is understood Syed is not proposing a Manchester City-style splurge that would bring Galacticos to Lancashire. Money will be made available for new players, as Syed accepts the current first-team squad is short of the quality required to prosper in the Premier League, but he is thought to favour a measured approach.

The club declined to comment on any potential takeover, saying the matter was in the hands of Rothschilds.

The promise of such a wealthy new owner would transform Blackburn's prospects and lift them from the annual struggle to remain in the upper half of the Premier League and to balance the books.

Last season the club made a loss of £6.5 million on turnover of £50.9 million, largely because of a wage bill that accounted for 90 per cent of revenue. Despite this, Williams predicted Blackburn would return to being a "trading" club rather than a "net seller". If Syed succeeds in his bid that will be assured.

[SIMON GARNERS 194]

I cringed when I read Colin Hendry commenting on our Financial position in Today's LET.....OH DEAR! only in the LET

If Mr Ali does assume control of the club my personal wish would be that he finshes off Ewood park with a new Riverside stand..its more than overdue.Responsible and realistic investment into the playing side of say 10-15 million per season would see us in a very healthy position and his investment would last for many,many years into the future.With his connections I wonder what possible sponsorship he could help bring to the club,like sponsorship of a new Riverside stand etc?.....cautious yes,but you cant help but feel enthusiastic about the possibilities.

[Majiball]

Thanks philipl, that clears things up. I wouldn't like to see JW leave.

But can I ask, is that you stating your opinion as fact, or fact?? :lol:

[Balwer]

WGA is thought to have £8 billion in assets under its control and recently took a 50 per cent stake in Irish builders McCabe in a strategic investment deal understood to be worth £300 million.

To clarify, the 50% stake involved taking on €300m of debt and investing €40m of new equity. This debt-for-equity swap often occurs when the company is in financial distress, the equity value is wiped out and the 'value' of the business resides in the debt. The lender(s) then negotiate a new deal with the existing owner, sometimes resulting in a new cash injection to keep the business operational in exchange for a large slice of equity. Vulture funds like Triton will often assume control of a company this way, buying into the debt (at a discounted price) of a struggling business then negotiating an equity stake in exchange for new cash.

Regarding the £8bn, this number is passing strange. The only thing I can think of is that the total market value of all the companies they have invested in is approximately £8bn, as their own balance sheet is only about £1bn as at 31 December 2009.

Also the spin from the PR team is tremendous. Turning around a well-run business? What does that even mean?

[K-Hod]

Answering the two posts above, this is the Daily Telegraph article in full from yesterday (it is no longer accessible from their web site) which is in effect Syed's PR firm saying what the current intent is. The bold bits are selected by me:

Ahasan Ali Syed, head of Bahrain-Swiss based investment firm Western Gulf Advisory, has made a formal approach to the club's advisers, Rothschild, with a view to buying the club, paying off their outstanding debt and investing heavily in the playing staff, academy and other infrastructure.

WGA is thought to have £8 billion in assets under its control and recently took a 50 per cent stake in Irish builders McCabe in a strategic investment deal understood to be worth £300 million.

Syed, 36, is originally from Hyderabad and is the sole heir to the family business which traces its wealth to the East India Company. Educated at the London School of Economics, he is a qualified lawyer and maintains a string of racehorses in Bahrain. He divides his time between Bahrain and Switzerland.

He proposes to use personal family funds channelled through the firm to complete the takeover at Ewood Park, having singled Blackburn out because of their potential for growth.

Tellingly, Syed considered seeking a deal for more celebrated clubs and has looked at Liverpool, but considers Blackburn a closer fit with WGA's investment model, which focuses on turning around well-run businesses by acting as an investment partner.

It is understood that Rothschilds, the investment bank, has alerted the club and the trustees of the late Jack Walker's estate to Syed's interest and they are understood to be interested in his approach.

Syed would like to conclude a deal in principle this month and complete the sale in September.

The club have effectively been for sale for two years after the Walker estate made clear that it was no longer in a position to underwrite the club indefinitely. Steel magnate Walker bankrolled the club to the 1995 Premier League title and – under the terms of a 1987 settlement – his family trust undertook to continue investing in the club.That money has now dried up and chairman John Williams has been leading the search for new investment.

Earlier this summer another Indian, Saurin Shah, signalled his intention to table a £25 million bid, promising to tap into Blackburn's large Asian community to help fill Ewood Park.

Shah was hoping to tie up a deal by mid-July but sources have indicated that the deal has "gone quiet", opening the door for the Syed bid.

It is understood that Syed is proposing to use WGA funds to complete a swift takeover, clearing the club's debts of around £20 million and offering an unspecified payment to the Walker Trust for their equity in the club. The balance of the £300 million would then be committed to the club over the long term.

The offer of £300 million of fresh investment could transform Blackburn's prospects but it is understood Syed is not proposing a Manchester City-style splurge that would bring Galacticos to Lancashire. Money will be made available for new players, as Syed accepts the current first-team squad is short of the quality required to prosper in the Premier League, but he is thought to favour a measured approach.

The club declined to comment on any potential takeover, saying the matter was in the hands of Rothschilds.

The promise of such a wealthy new owner would transform Blackburn's prospects and lift them from the annual struggle to remain in the upper half of the Premier League and to balance the books.

Last season the club made a loss of £6.5 million on turnover of £50.9 million, largely because of a wage bill that accounted for 90 per cent of revenue. Despite this, Williams predicted Blackburn would return to being a "trading" club rather than a "net seller". If Syed succeeds in his bid that will be assured.

Personally, I'd be very happy with a takeover from this Syed chap. As long as it's not like a Man City style take-over I'll be fine. If it helps the club move forward then that would be what we need.

John Williams has been a god-send the last few seasons running the club with next to no funding, and love him or hate him you've got to praise Sam Allardyce for the job he has done on an extremely tight budget!

[philipl]

At the time Jack died, the Trust had invested £25m in new equity and £80m in debt in Rovers.

[Duff's Minder]

I still don't understand what could be in it for someone from a pure investment stand-point. is it really just a massive bet on future TV revenue?

I'm not being cynical I just genuinely don't understand. I spent an evening a couple of months ago with Keith Harris (the Red Knights banker not the Orville fiddler) and he couldn't come up with a convincing argument for owning Rovers.

My brother sells football TV rights for a living and there is no magic pot of money coming soon except yet more for the big four.

This latest guy looks like he's got the cash but what is his motivation?

[blue/white]

Liverpool or Rovers ?

Interesting read from the Daily Telegraph again this morning.

Certainly got the scousers 'knickers in a knot', didn't it?

[thenodrog]

Ok, enough with the cheap shots at Hughesy (chasing rep points).

The fact is, for all the good they've done (and it is a lot), we are still high in debt!

And yet some still wonder why they want out?

No doubt the same ones who wouldn't go anymore if ST's were put back to cost something close to the Prem league average. Freeloaders basically.

[K-Hod]

Certainly got the scousers 'knickers in a knot', didn't it?

To be fair- he makes several good points. The scale of the failings of the American owners is only now coming to light. They've saddled the club with so much debt and are seeking to make a profit during an economic downturn??

I don't like Liverpool very much, but have the greatest of sympathy with their loyal supporters and terrific fanbase. They didn't ask for any of this, I think Liverpool, and indeed Manchester United could do to adopt the Barcelona business model (the club being owned by the supporters).

[thenodrog]

By those comments are you eluding that JW may be out the door if these people purchase our club??? Or are you referring to managers???

Don't suppose you can name your suspicions over who this chaps football advisor is?? PM??

I'd imagine at his stage of life that JW would jump at the offer of a lucrative payoff.

Sam has come out and said today that the Takeover will NOT be completed before the end of the transfer window.

Earliest we could hope for, is a cash injection from our "potential" new owner/s in January.

http://news.bbc.co.uk/sport1/hi/football/teams/b/blackburn_rovers/8884101.stm

It's so wrong that with an income of 50-60 million we should need a cash injection at all. Football really is one sick mf of a business.

I cringed when I read Colin Hendry commenting on our Financial position in Today's LET.....OH DEAR! only in the LET

If Mr Ali does assume control of the club my personal wish would be that he finshes off Ewood park with a new Riverside stand..its more than overdue.Responsible and realistic investment into the playing side of say 10-15 million per season would see us in a very healthy position and his investment would last for many,many years into the future.With his connections I wonder what possible sponsorship he could help bring to the club,like sponsorship of a new Riverside stand etc?.....cautious yes,but you cant help but feel enthusiastic about the possibilities.

It's on the east side of the ground so 'The Hyderabad End' would have a nice ring to it.

[blue/white]

To be fair- he makes several good points. The scale of the failings of the American owners is only now coming to light. They've saddled the club with so much debt and are seeking to make a profit during an economic downturn??

I don't like Liverpool very much, but have the greatest of sympathy with their loyal supporters and terrific fanbase. They didn't ask for any of this, I think Liverpool, and indeed Manchester United could do to adopt the Barcelona business model (the club being owned by the supporters).

'the club being owned by the supporters'-

well, both ManU & Pool have certainly followed Barcelona's other business model--- that of the half billion debt.