[Archived] Rovers Might Have Been Sold?

[Guest Kamy100]

A twist in the story.

The Lancashire Telegraph report on their front page, that WGA is Bahrain have been shut down. They have an interview with a government official who says that WGA have been asked to stop trading while some of their business transactions and sources of funding are investigated. They can still operate in Bahrain while this investigation is ongoing but not trade.

They also say that Rovers bid is through the Zurich arm of the business. There is also an interview with Jack Straw who says that we need to have faith in the club because they will throughly research any buyer.

Syed us going to find it tough going with the new Premier League test. As 1864 for said, the deal has been agreed with the club, the due diligence book will be completed by tomorrow and he was due to move onto the Premier League test stage next week.

Don't know if this changes things. He has already proved to rovers etc that finance is in place.

[philipl]

There is a big splash on the front page of the LT confirming from the Bahrain Government that WGA in Bahrain cannot take new business at present and that they are looking at money flows. Jack Straw is quoted saying to trust the Trust and Rothschilds to do the best in Rovers' interests.

Separately, it seems due diligence is being completed and all is OK.

My take is the following-

1) This will impact the PL test on Ali Syed as a person to take on a PL club because at the end of the day, those guys are all about image and perceptions. As previously posted, this is far more likely to mean a delay than a no.

2) If you are in Mr Ali's shoes, the Rovers bid is the first time he has achieved global prominence. If he doesn't buy Rovers, his reputation would inevitably become the man who didn't buy a PL club because of a regulatory problem in Bahrain. This paradoxically creates pressure for him to complete the purchase of the Rovers.

3) If you are the Bahrain authorities, apart from someone who is excited that their use of power has brought global coverage, you have to think that if the investigation scuppers a PL purchase, the world will know about it as will other investors who could quite easily go to one of the other 6 Emirates or Oman or Kuwait. Therefore, the Bahrain Government is under enormous pressure to make sure there are no mis-steps as well because they could seriously damage their reputation as a finance centre or enhance it depending on how they handle this one.

4) In journalistic terms, I guess the LT has scooped BBC 5live. That could be dangerous because the 5live guy will now be desperate to jazz up his Sunday programme.

It is in everyone's interest that this is resolved one way or another quickly.

I go back to my original post on the subject, and say my gut feel is that someone in WGA could have been careless, not malicious.

There is one positive about all this. assuming the WGA purchase happens (which I still think is massively odds on), Rovers fans will know they will have the most heavily vetted owner in world football!

[tonyoz]

A twist in the story.

The Lancashire Telegraph report on their front page, that WGA is Bahrain have been shut down. They have an interview with a government official who says that WGA have been asked to stop trading while some of their business transactions and sources of funding are investigated. They can still operate in Bahrain while this investigation is ongoing but not trade.

Blimey Kamy, that contradicts Thiem's comments in the LT.

[tonyoz]

...........the Bahrain Government is under enormous pressure to make sure there are no mis-steps as well because they could seriously damage their reputation as a finance centre or enhance it depending on how they handle this one.

I can't follow your logic in all this. Surely it was the Rovers deal that alerted the Bahraini authorities to WGA's "suspicious" business practices? They created the stink in the first place!

[RovertheHill]

Syed us going to find it tough going with the new Premier League test. As 1864 for said, the deal has been agreed with the club, the due diligence book will be completed by tomorrow and he was due to move onto the Premier League test stage next week.

Don't know if this changes things. He has already proved to rovers etc that finance is in place.

Forgive my cynicism but if the only potential blocker is the Premier League "test" then if Mr Syed has the money he will pass. That is all the Premier League is interested in.

[philipl]

This is what Julia Thiem said in the LT:

Spokesperson Julia Thiem said: “We know all the time the process is going on there will be rumours.

"So the best way to stop that and prove to people we are capable of taking control is by completing the purchase. Hopefully that will silence people.

“We can’t do anything about these rumours. These rumours will only stop once we prove we are a good owner and that we have the sufficient funds.

"People are always suspicious and we accept that but will prove them wrong.

“With Blackburn Rovers, there has been great interest from media all over the world and the Bahrain authorities have approached us and asked for clarification about our investments and what is coming from European entities and what has been purchased from Bahrain.

“It is fair enough the authorities are seeking clarification because there have been so many stories about us. We have no problems with that.

“Mr Ali Syed is not unduly worried about the stories. There is always a negative story about you when you become popular.

"He finds it funny in one way because first of all people were doubting whether he had enough funds and now they have admitted we have the funds but they doubt they belong to us.

“Of course we are confident we will pass the Premier League’s fit and proper test.

"It will be harder because we will be the first owners who have to pass the new regulations but we can prove our amount of funding.

"I am sure all of this will lengthen the process as well but it is not a problem.”....

She said: “It is true the offices are closed because we locked them ourselves. We were not shut down.

"We locked them because we are due to move new offices, this has already been reported in the Gulf Daily News.

“But the offices are not ready yet and, as it is Ramadhan at the moment, it is hard to rush anything.

"So Mr Syed has decided to give people a few days off until the end of Eid and hopefully on September 14 we will start running operations from the office.

"However, the core team are still working from a different location.

“The Bahrain authorities came here a week ago and I am here speaking to you, and there are other people working here.

"We are still open. We are still operating so it is not true.”

Mr Ali Syed was quick to emphasise the WGA firm under investigation was a ‘separate entity’ from the Swiss-based WGA AG that has been recently set up for the investment in Rovers and other firms.

Allegations that WGA was acting on behalf of a hidden investor were also denied by Ali Syed, who said: “There is no hidden investor or any outside wealth involved in any way in the investment activities of Western Gulf Advisory (‘WGA’).

"All our investments are based on our own financial resources and strength, and I am the sole shareholder of the company.”

Ms Thiem explained all of Mr Syed’s companies were ‘separate entities’, and the only link they had was being owned by the businessman.

She pointed out that Mr Ali’s Bahrain-based stables was called Western Gulf Stables.

She said she believed Bahrain authorities had wanted to clarify the differences between Western Gulf Advisory and Western Gulf Advisory AG.

She said: “His wealth comes from his inheritance. His family has 150 years of history in private companies.

"Mr Ali has liquidity and fixed assets.

“He would consider himself as being privileged. There is no doubt you can call him a billionaire, but he doesn’t call himself that.

"He is not your typical billionaire. He actually comes and talks to his staff.”

[Guest Kamy100]

It does somewhat, although Julia will say that they can still operate in Bahrain while this investigation continues, she also did mention in the interview something about clarifying things for the Bahrain government.

But agree it does not look good, she neglected to fully disclose what was going on.

[philipl]

I can't follow your logic in all this. Surely it was the Rovers deal that alerted the Bahraini authorities to WGA's "suspicious" business practices? They created the stink in the first place!

Bahrain is riding a tiger.

A private company has become the centre of global media because one of its overseas operations (Switzerland) is making a high profile purchase. The Bahrain company has a very restrictive license and all the press coverage is talking about the Bahrain end and not Switzerland.

Whether they like it or not, the world's eyes are watching how the Bahrain Government are handling this situation.

Everyone on their list of prospects for investing in Bahrain will be asking themselves; "These guys stop your operations whilst they ask questions- is that somewhere I can afford to run my business from because regulators ask everyone questions all the time???"

That is why the Bahraini regulator is under enormous pressure on this one in a way they probably had not thought of when they visited WGA's offices.

[CrazyIvan]

This all sounds like a storm in a teacup and one that's been created by the media (again). If Mr Syed and co have the deal in place and the funds in the bank to prove it then there should be no problem. I'll just sit back, watch and wait.

[47er]

I think I should be in your job 1864..... I am far less paranoid and far more suspicious.

"less paranoid and far more suspicious". Sounds like an oxymoron to me!

[philipl]

Gordon is an oxymoron?

[sparkspakespoke]

Gordon is an oxymoron?

No, just a plain old moron.

[Wild Irish Rover]

Gordon is an oxymoron?

Cue 21st Century rework of a Jilted John ditty from the 1980's

[47er]

Gordon is an oxymoron?

You might say that, I couldn't possibly comment!

[S15]

The harsh reality is that this takeover is looking less likely by the day.

[mogster]

Todays Lancashire Telegraph nail in the coffin

[Hughesy]

So they have been suspended in Bahrain for 'operating outside its remit'.....They are still operating, just not allowed to trade while under investigation.

The branch in Switzerland CAN still trade however.

Like Philip said - its only really ensuring we do have genuine owners, it shouldnt cause too much harm - afterall Syed told everyone to do their own due diligence on him....So now its up to him to shut the doubters up & purchase. Due Diligence will be complete tomorrow & then its up to Syed & his team to make the next move.

I do wonder how all this has come to light though - perhaps its a rival bidder who is jealous and trying to cause a storm to let him stand a better chance, perhaps another bidder who doesnt quite have the same financial clout????

[CrazyIvan]

Todays Lancashire Telegraph nail in the coffin

I don't know how that's a nail in a coffin. It's a clarification that has been on this board for a little while.

[Iceman]

im not sure which way this is heading, but Syed needs to come out and make some sort of statement. I know Julia Thiem has come out, but it would be best if he(Syed) would make a solid comment, if he has any hopes of saving himself from any sort of embarrasment

[Mc Love]

Todays Lancashire Telegraph nail in the coffin

Hardly as WGA Europe is different arm of the company and Ali Syed is buying the club personally

[Iceman]

why would there be a problem, if Syed is using his own money to buy the club?

[Hughesy]

why would there be a problem, if Syed is using his own money to buy the club?

It isnt a problem Icers.....

It could however make him think 'Why bother', if he is already getting mega media interest and abuse over it.....Hopefully he see's the positive sides of it & still buys us - but certain papers need to be careful how they report things - rather than causing a fan backlash or anything daft!

[BuckyRover]

The dream was good while it lasted.

In the trust we trust

[Hughesy]

In the trust we trust

We do, and they have trusted him to look in detail at every aspect of our books - says something about him surely

Im sure it wont be long before they come out fighting....Come on Syed!!

[Iceman]

we have been here before, so if it falls through, then i guess we just continue being the Robin Hood of football clubs