[Archived] Asset Stripping

[Wendal]

Mods - I asked Glenn if I could start a topic on asset stripping a few days ago and he said it was ok as long as I avoid making allegations.

Contributors – Please try to avoid making allegations, lets bring the topic into sharper focus and have a broad discussion on the issue.

Asset Stripping

‘The practice of taking over a company and selling each of its assets separately at a profit without regard for the company's future’

I guess there are two main questions that interest me:

1) As football fans, what kind of indicators should we be looking for to suggest that this practice is occurring?

2) What can fans do to prevent such practices from occurring?

My view:

1) As football fans, what kind of indicators should we be looking for to suggest that this practice is occurring?

If I was asset stripping these are the steps I would take:

Remove competent boardroom structure, control all decision making myself (from a distance) and have no mechanism for accountability.

Leverage clubs assets and gain access to vast amounts of credit with a relatively cheap cost of borrowing

Systematically sell off most valued players, making enough of a net profit each transfer window without arousing suspicion

Employ management who asks no questions, happy to work within the restrictions I apply.

Employ management who are willing to take the blame for those decisions against the best interest of the club (which I would inevitably make).

Essentially, I would hedge my bets, if the club stayed in the premier league I would benefit from tv money/publicity whilst running the club on a shoestring budget. If the club goes down I would pocket the parachute payments, sell off any remaining valuable players, offer up the club assets for credit I’ve already pocketed, place the club in administration and cut the club loose.

2) What can fans do to prevent such practices from occurring?

From a fans point of view, I’m not sure what can be done here. Protests would be pointless as the fans opinion isn’t relevant for owners intent on asset stripping. The fans/media cant bring any of the allegations out into the open due to the fear of legal action so their only hope would be that there is a monumental slip up at some point?

Interested to hear what you guys think, definitely food for thought…..

(To avoid this topic from being removed please try to avoid referring to any specific clubs)

[AndyC]

Mods - I asked Glenn if I could start a topic on asset stripping a few days ago and he said it was ok as long as I avoid making allegations.

Contributors – Please try to avoid making allegations, lets bring the topic into sharper focus and have a broad discussion on the issue.

Asset Stripping

‘The practice of taking over a company and selling each of its assets separately at a profit without regard for the company's future’

I guess there are two main questions that interest me:

1) As football fans, what kind of indicators should we be looking for to suggest that this practice is occurring?

2) What can fans do to prevent such practices from occurring?

My view:

1) As football fans, what kind of indicators should we be looking for to suggest that this practice is occurring?

If I was asset stripping these are the steps I would take:

Remove competent boardroom structure, control all decision making myself (from a distance) and have no mechanism for accountability.

Leverage clubs assets and gain access to vast amounts of credit with a relatively cheap cost of borrowing

Systematically sell off most valued players, making enough of a net profit each transfer window without arousing suspicion

Employ management who asks no questions, happy to work within the restrictions I apply.

Employ management who are willing to take the blame for those decisions against the best interest of the club (which I would inevitably make).

Essentially, I would hedge my bets, if the club stayed in the premier league I would benefit from tv money/publicity whilst running the club on a shoestring budget. If the club goes down I would pocket the parachute payments, sell off any remaining valuable players, offer up the club assets for credit I’ve already pocketed, place the club in administration and cut the club loose.

2) What can fans do to prevent such practices from occurring?

From a fans point of view, I’m not sure what can be done here. Protests would be pointless as the fans opinion isn’t relevant for owners intent on asset stripping. The fans/media cant bring any of the allegations out into the open due to the fear of legal action so their only hope would be that there is a monumental slip up at some point?

Interested to hear what you guys think, definitely food for thought…..

(To avoid this topic from being removed please try to avoid referring to any specific clubs)

[AndyC]

The only reason why the whole crowd is not united at ewood, is because they don't know what's happening. A large proportion never read the Internet message boards.

What needs to happen now, is leaflets given out at every single turnstile to every single suPporter. They can then make their own minds up with all the information.

That's the only way you will ever get the whole crowd onside.

It could be done with about 40 volunteers and aout 300 quids worth of printing.

[thenodrog]

Asset stripping is illegal in this country. Should the club be relegated this would become a real grey area as players and other assets could be sold with relative impunity as the need to restructure to cope with vastly reduced income is obvious. I've long held the belief that ridding the club of competent management was a pre-cursor to asset stripping. It's the only way to make any sense of the suicidal events of the past 12 months.

This week however I've had a conversation with an senior 'insider' who doesn't believe that this is the intention of the owners.

Make your own minds up but I'm sure that time will reveal all.

[brian_gallagher85]

I guess there are two main questions that interest me:

1) As football fans, what kind of indicators should we be looking for to suggest that this practice is occurring?

EVERYTHING HAS HAPPENED AT A CERTAIN LANCASHIRE BASED FOOTBALL CLUB OVER THE LAST 12 MONTHS

2) What can fans do to prevent such practices from occurring?

JUDGING BY THE LAST FEW MONTHS, VERY LITTLE

I've long suspected that it may be occurring and having gone through what is happening over and over in my head over the last few months it is the only answer that I keep coming back to.

[Neil Weaver]

I'll try to stay within 'rules' but if not, mods feel free to delete this.

Asset stripping is the only way I've been able to make anything add up for a couple of months now. But having said that, Ewood the Truth's comments here posted elsewhere on here, might be bizarre but do make events sort of add up.

Whatever is true though, I'm struggling to think what we fans can do to fix the club and like many on here I won't give up whilst there's a possibility of victory.

[tomphil]

I'll try to stay within 'rules' but if not, mods feel free to delete this.

Asset stripping is the only way I've been able to make anything add up for a couple of months now. But having said that, Ewood the Truth's comments here posted elsewhere on here, might be bizarre but do make events sort of add up.

Whatever is true though, I'm struggling to think what we fans can do to fix the club and like many on here I won't give up whilst there's a possibility of victory.

Im sure it's not as clinical as that story in the LT but something along those lines is what ive been suspecting all along really.

[philipl]

Sadly it looks all too real to me.

My only hope has been the £39,070,000 real Indian cash they eventually managed to put into Venky's London Limited.

That looks very lost to me since they turned down the Qatar offer.

[tomphil]

Sadly it looks all too real to me.

My only hope has been the £39,070,000 real Indian cash they eventually managed to put into Venky's London Limited.

That looks very lost to me since they turned down the Qatar offer.

So do you think that has been or is being drawn back out since the mortgage was sorted ?

[sentient]

Anyone with half a brain knows what's happening - one for me, one for you!

The question we have to ask ourselves is why are letting it happen? The industrial history of east lancs give us the answer. The area has never had any proper organised unionisation so the working classes have been easy fodder for factory management. They have played the divide and conquer game and got so good at it that the population can't see who is the real enemy - more interested in petty neighbourhood animosity than the common interest. East lancashire is poor because the population allow it.

Before anyone goes on one, I live here, born and bred and i'm working class through and through. But thionk about why anyone would buy a football club. A divided meek compliant supporter base would be a tiock in the box for any predator. Wake up people! T-shirts and ballons ain't making any difference.

[BuckyRover]

I don't believe you can get away with "pocketing the parachute payments".

But then again

[bob fleming]

Anyone with half a brain knows what's happening - one for me, one for you!

Exactly. Seems obvious to me. Thing is they're blatant about it an all, why else do we employ Smalling plucked from Aberdeen reserves?!

If it's not what we think it is, not what it appears to be, then it would be nice of Venkys to finally make a decision that doesn't add weight to the argument.

I mean everything they've done to date flys in the face of logic, culminating in an improved contract for the hopelessly inept bull$hit artist / manager.

Why aren't the PL investigating the rumours around agents fees? In fact why aren't they investigating the club full stop? Perhaps they've tried but no one is returning their calls.

[SIMON GARNERS 194]

Remove competent boardroom structure, control all decision making myself (from a distance) and have no mechanism for accountability.

Leverage clubs assets and gain access to vast amounts of credit with a relatively cheap cost of borrowing

Systematically sell off most valued players, making enough of a net profit each transfer window without arousing suspicion

Employ management who asks no questions, happy to work within the restrictions I apply.

Employ management who are willing to take the blame for those decisions against the best interest of the club (which I would inevitably make).

All boxes ticked at Ewood park...rotten to the core.

[Sparky Marky]

Cos they want rid of us. The premier league that is. They would prefer a full st marys than half empty ewood/dw etc.....its a cinspiracy.

[Mr Maureen]

Anyone with half a brain knows what's happening - one for me, one for you!

The question we have to ask ourselves is why are letting it happen? The industrial history of east lancs give us the answer. The area has never had any proper organised unionisation so the working classes have been easy fodder for factory management. They have played the divide and conquer game and got so good at it that the population can't see who is the real enemy - more interested in petty neighbourhood animosity than the common interest. East lancashire is poor because the population allow it.

Before anyone goes on one, I live here, born and bred and i'm working class through and through. But thionk about why anyone would buy a football club. A divided meek compliant supporter base would be a tiock in the box for any predator. Wake up people! T-shirts and ballons ain't making any difference.

Excellent points.

I've said all along the club was specifically chosen as they would be an easy target with the least resistance,its happening right under our noses.

As far as I know the asset stripping will only be exposed when Venkys London ltd is liquidated and the official reciever looks through the case.By then its RIP BRFC.

Does anyone know otherwise ?...........If the FA for instance are monitoring our situation and suspected stripping,is there anything they could do.

Without doubt the people involved in the stripping will have the very very best legal advisors the deal with any accusations in 2 years or so.We need to get some legal boys advising us.At the very

least there has to be a dozen or so solicitors/insolcency practicioners who are Rovers fans,some one give them a call.

[sentient]

Cos they want rid of us. The premier league that is. They would prefer a full st marys than half empty ewood/dw etc.....its a cinspiracy.

I don't think it's a conspiracy (apparently that's my area of expertise) but I don't think they would object!

[sentient]

Excellent points.

I've said all along the club was specifically chosen as they would be an easy target with the least resistance,its happening right under our noses.

As far as I know the asset stripping will only be exposed when Venkys London ltd is liquidated and the official reciever looks through the case.By then its RIP BRFC.

Does anyone know otherwise ?...........If the FA for instance are monitoring our situation and suspected stripping,is there anything they could do.

Without doubt the people involved in the stripping will have the very very best legal advisors the deal with any accusations in 2 years or so.We need to get some legal boys advising us.At the very

least there has to be a dozen or so solicitors/insolcency practicioners who are Rovers fans,some one give them a call.

Thing is, would this situation be allowed to ahppen at Everton or Newcastle? No way. Supporters need to get militant and realise that they are being targetted because they are an easy touch. We are like the geriatric being swindled of our life savings by the wide-boy cockney roofer. Stand up people and defend your family and neighbours. Don't allow this systematic rape to continue.

Fans Forum - do something ffs!

[USABlue]

To me it is the ONLY reasonable explanation for events at this club over the last 12 months. Kean continues to take us down and continues to be employed, relegation would help mask the stripping of assets now wouldn't it.

[Stuart]

Wouldn't there be a massive loss of credibility and reputational damage.

Also wouldn't a company with a high profile and recognisable image find it difficult recover this reputation and therefore struggle to trade in future?

[FourLaneBlue]

Wouldn't there be a massive loss of credibility and reputational damage.

Also wouldn't a company with a high profile and recognisable image find it difficult recover this reputation and therefore struggle to trade in future?

No, of course there wouldn't be. They are an Indian chicken company. Who in India even knows much about it? Besides, they've linked to Rovers for PR purposes...they don't need the club any longer. Next to nobody will give a damn.

Steve Kean was rewarded with a pay rise. That means they are happy with the results he is providing. Happy with the place we are.

With him having to put up with all the protests, perhaps it is extra money for the very difficult job he is currently doing?

The only logical explanation for the fiasco at Rovers is something along these lines. It's a shame more Rovers fans don't have the gumption to be asking these questions, if anything a hell of a lot more of them should be looking on messageboards instead of using their energy to complain and whine about the protests.

If you are looking at the venky's reign from a footballing perspective...it makes NO SENSE at all.

[beerwins]

No, of course there wouldn't be. They are an Indian chicken company. Who in India even knows much about it? Besides, they've linked to Rovers for PR purposes...they don't need the club any longer. Next to nobody will give a damn.

Steve Kean was rewarded with a pay rise. That means they are happy with the results he is providing. Happy with the place we are.

With him having to put up with all the protests, perhaps it is extra money for the very difficult job he is currently doing?

The only logical explanation for the fiasco at Rovers is something along these lines. It's a shame more Rovers fans don't have the gumption to be asking these questions, if anything a hell of a lot more of them should be looking on messageboards instead of using their energy to complain and whine about the protests.

If you are looking at the venky's reign from a footballing perspective...it makes NO SENSE at all.

The biggest sign of something being totally corrupt at Rovers.

Never in my years have I known anything in football make less sense and equally less reported as being strange by the press.

[Mr Maureen]

Wouldn't there be a massive loss of credibility and reputational damage.

Also wouldn't a company with a high profile and recognisable image find it difficult recover this reputation and therefore struggle to trade in future?

The asset stripper will have been taking advise from day one on every transaction at the club.These advisors will also be earning thousands to ensure that the cockney roofer comes out

smelling of roses.

[he6rt6gr6m]

The only reason why the whole crowd is not united at ewood, is because they don't know what's happening. A large proportion never read the Internet message boards.

What needs to happen now, is leaflets given out at every single turnstile to every single suPporter. They can then make their own minds up with all the information.

That's the only way you will ever get the whole crowd onside.

It could be done with about 40 volunteers and aout 300 quids worth of printing.

Factual reading. Not speculation, hear-say, opinion and rumour, which a lot of stuff is.

[Waggy76]

Factual reading. Not speculation, hear-say, opinion and rumour, which a lot of stuff is.

Possibly but not all ...

[sentient]

Factual reading. Not speculation, hear-say, opinion and rumour, which a lot of stuff is.

ffs when you see the evidence and the body on the floor, the murder has already been committed. we are trying to stop these people killing brfc. do you want to wait and then catch them after we have been buried?