[Archived] Rovers Might Have Been Sold?

[doctorryan]

People are forgetting the most important aspect of what the Beckham signing would bring;

It would p*ss everyone else off a LOT.

Something you know all-too-well how to do. You're the founder and captain of the Rovers supporters who revel in the disgust of others club.

[Majiball]

Can somebody confirm the pinkyness is now fixed (it probably have only affected some browsers anyway). I now get what was happening when somebody was complaining about pink posts months ago (the confusion came about 'cos when a mod hides a post, the other mods and admina see it on a pinky background, and I thought that's what some of you were seeing).

All is fine Glenn, the only remaining pinkie is 67's post and I believe that was deliberate.

PS 67, you do look pretty in pink!!!

[philipl]

Interesting comments Phillip, especially in terms of the deal being done before exclusivity was granted.

It is what I have consistently said- the sale negotiation happened in the nine working days between Syed lodging his offer and the announcement of exclusive due diligence.

Syed has been very clear- the Memorandum of Understanding signed on Monday includes a Heads of Agreement.

Putting that into layman's terms- the document which contracts the exclusive period of due diligence includes all the major clauses of the sale document which will be signed if there are no problems revealed by the due diligence.

Step back and think about this. Nobody would let a possible buyer go through all the business with no limits on what they look at and also be bound to answer all the buyer's questions 100% honestly unless the deal is already negotiated.

Otherwise you are wide open to being negotiated down by the other side using the material you have just given them access to which is nonsense for the seller to do. And the buyer will always have doubts about the due diligence answers because the deal had not been done.

More to the point, Syed's lawyers accountants and negotiators will by the conclusion of due diligence have a far more detailed and current knowledge of Rovers than the Trust's lawyers accountants and negotiators have at that time. During due diligence, the buyers' people crawl all over the company while the sellers' people check the answers the Directors are signing off on. You don't have two lots of lawyers and accountants following each other around- the seller lets the buyer get on with it because the seller has got his sale in the bag provided he has been honest about what he is selling!

Due diligence is simply the buyer confirming that everything the seller has told him is accurate and that nothing material was hidden.

The reason due diligence is done is that short of outright criminal fraud by the seller, the terms of sale for a business usually mean there is virtually no come back on the seller nor is there any chance to reverse the sale once the transaction is completed. So the buyer does his own checks and relies on the ability of his own people and their processes and can call on the professional liability insurance policies of the external lawyers and accountants he has used.

[Majiball]

Cont:

So to summarise:

[Ozz]

On the Due Diligence thing-an earlier poster compared it to getting a survey done on a house before exchanging contracts.

Agree deal, subject to survey.

If it then transpires the property you are buying is buried on top of an old Red Indian burial ground, then short of draughting in Scooby Doo and his team you would go back to the vendor and and point out the findings of this survey.

[S15]

Something you know all-too-well how to do. You're the founder and captain of the Rovers supporters who revel in the disgust of others club.

Nice one.

[Iceman]

It is what I have consistently said- the sale negotiation happened in the nine working days between Syed lodging his offer and the announcement of exclusive due diligence.

Syed has been very clear- the Memorandum of Understanding signed on Monday includes a Heads of Agreement.

Putting that into layman's terms- the document which contracts the exclusive period of due diligence includes all the major clauses of the sale document which will be signed if there are no problems revealed by the due diligence.

Step back and think about this. Nobody would let a possible buyer go through all the business with no limits on what they look at and also be bound to answer all the buyer's questions 100% honestly unless the deal is already negotiated.

Otherwise you are wide open to being negotiated down by the other side using the material you have just given them access to which is nonsense for the seller to do. And the buyer will always have doubts about the due diligence answers because the deal had not been done.

More to the point, Syed's lawyers accountants and negotiators will by the conclusion of due diligence have a far more detailed and current knowledge of Rovers than the Trust's lawyers accountants and negotiators have at that time. During due diligence, the buyers' people crawl all over the company while the sellers' people check the answers the Directors are signing off on. You don't have two lots of lawyers and accountants following each other around- the seller lets the buyer get on with it because the seller has got his sale in the bag provided he has been honest about what he is selling!

Due diligence is simply the buyer confirming that everything the seller has told him is accurate and that nothing material was hidden.

The reason due diligence is done is that short of outright criminal fraud by the seller, the terms of sale for a business usually mean there is virtually no come back on the seller nor is there any chance to reverse the sale once the transaction is completed. So the buyer does his own checks and relies on the ability of his own people and their processes and can call on the professional liability insurance policies of the external lawyers and accountants he has used.

Philip, are you saying that the club are happy with the financial strength of Syed, and happy with the offer he has put on the table?

If that is the case, then i would assume that the due dilligence process, barring any problems, should really be a formaility?

[Paul]

That is what he is saying and it is also what due diligence is all about - makiing sure nothing has been hidden from the buyer and the seller (i.e. the directors) are not exposed by having accidentaly provided incorrect information.

[doctorryan]

Nice one.

I figured you'd appreciate that one shilly.

[Brfcrule1]

Just to clear up the procedure I have checked this out with the link below Due diligence is merely a formality to to confirm everything both parties have said is true I know not the best of sources

http://en.wikipedia.org/wiki/Due_diligence

I also read somewherre I could not find the link if there are any irregularities in the due diligence it will just be a case of negotiation but won't totally ruin the deal. But as we all know Rovers accounts are in perfect working order so there will be no problem there. Unless there is something totally out of the blue like the buyers get cold feet it will go through. Which given what Syed has stated in the press the chances of that are highly unlikely and none of the top people would have let it get this far unless an agreement could be reached. Also it would look bad on his company if it went wrong & he would never have thought about getting Beckham unless he was serious.

[Hughesy]

Syed also made it clear that Rovers books were very much in order & that they had a very good idea about whats in their etc....Seems like legalities are the only delay now...I still believe it will be closed off by next weekend (just a hunch)

[thenodrog]

Bill Shankley's methods and practices have absolutely no relevance to the modern day Premier League.

If you say so.

Den.... The correct reply would have been 'More's the pity'.

Supporting a club in the top league in this country is like having a sick relative who we don't really like but who we have to visit regularly through duty rather than desire.

[Gav]

I still believe it will be closed off by next weekend (just a hunch)

Can't see that happening, its to big of a deal to be rushed, we'll be keeping our powder dry until January.

[deryck guyler's spoon]

Den.... The correct reply would have been 'More's the pity'.

Supporting a club in the top league in this country is like having a sick relative who we don't really like but who we have to visit regularly through duty rather than desire.

I think most of the regulars on here have got it now. You dont like modern football.

Change the record.

[Iceman]

was it just my imagination, or did i read somewhere either some website or on here, that Syed's team had already gone through the books or that they have gone through something, prior to being given the 4 weeks exclusivity period. Im probably thinking of something completely different, so apologies if im wrong.

Can't see that happening, its to big of a deal to be rushed, we'll be keeping our powder dry until January.

do we still have powder left?

[G Somerset Rover]

Can't see that happening, its to big of a deal to be rushed, we'll be keeping our powder dry until January.

We must have one almighty stash of powder!

[Majiball]

Shankly's ways have no meaning in the modern game???

Shank's was a huge advocate of small sided games in his training a technique now endorsed at all levels of football, these can even be combined to incorporate fitness as well nowadays. Small sided games are also the Spanish's choosen method of developing kids as well as most of the top youth producing nations. He used all these methods from top to toe at Liverpool. He was using methods that are really only coming to the fore, in this country now. He may not have completely understood why it worked but he knew it did. He endorsed psychology with his players and in the press as well as with his own fans. Shank's methods where before his time, he would thrive even if in today's age.

[Paul Mellelieu]

Den.... The correct reply would have been 'More's the pity'.

Supporting a club in the top league in this country is like having a sick relative who we don't really like but who we have to visit regularly through duty rather than desire.

Very good.

[HemelRover]

Just to clear up the procedure I have checked this out with the link below Due diligence is merely a formality to to confirm everything both parties have said is true I know not the best of sources

http://en.wikipedia.org/wiki/Due_diligence

I also read somewherre I could not find the link if there are any irregularities in the due diligence it will just be a case of negotiation but won't totally ruin the deal. But as we all know Rovers accounts are in perfect working order so there will be no problem there. Unless there is something totally out of the blue like the buyers get cold feet it will go through. Which given what Syed has stated in the press the chances of that are highly unlikely and none of the top people would have let it get this far unless an agreement could be reached. Also it would look bad on his company if it went wrong & he would never have thought about getting Beckham unless he was serious.

How do we know that? I dont know that. Do you know that or are you just making assumptions?

[Guest Kamy100]

A little update, have been informed that Mr Ali nor his team will not be making any further public comment on the take over. This is due to the huge media interest and the speculation (I assume the Beckham quote taken out of context) which have cause the due diligence process to be disturbed.

They are now going to concentrate on completing the due diligence process and comment once the process has ended.

[den]

That's a good move by them, Kamy.

[Guest Kamy100]

A very good move. I think that they have learnt very quickly that buying a football club is unlike any other deal that they have done in the past, in terms of the media interest that it will generate.

They were doing fine until Mr Ali started to talk and reveal far to much detail. I suspect that Rovers would not have been happy about stuff like transfer budgets etc being discussed before the deal is concluded, it's not the way that Rovers like to do business.

[beerwins]

I think his Pr team are very good but I dont think they were ready for the hype that come when he mentioned 300 mill or Beckham.

Best thing for them is to do exactly what they are doing and get on with the job in hand.

[DavidMailsTightPerm]

A very good move. I think that they have learnt very quickly that buying a football club is unlike any other deal that they have done in the past, in terms of the media interest that it will generate.

They were doing fine until Mr Ali started to talk and reveal far to much detail. I suspect that Rovers would not have been happy about stuff like transfer budgets etc being discussed before the deal is concluded, it's not the way that Rovers like to do business.

Do you think there is any chance that the deal will be done prior to the transfer deadline - and that all Sam's rhetoric is just to ensure we aren't fleeced when we make our last minute "big money" signing ?

[den]

Den.... The correct reply would have been 'More's the pity'.

Yep, You're right.

Of course, as usual, everything has been taken out of context. I was simply saying that Shankley wouldn't have considered taking on any kind of media attraction. His signings were made because of what they offered as footballers, nothing else. I certainly don't remember him signing anyone who's best days were behind him. That was the right approach then and it's the right approach now.

Anyway, I deviate again.