Private Equity Saving Football

Private Equity investment in European Football. Panelists included:

⚬ Luke Bornn (Toulouse FC/RedBird Capital)
⚬ Paul Conway (Pacific Media Group/Barnsley)
⚬ Ilja Kaenzig (VfL Bochum)

https://youtu.be/xZnvEoBsbRc

Amazed Conway is interested in obtaining a German club with the 50 plus 1 rule .

Cheers for that ESR .

Just listened to mi owd mate Paul. Main points from the arseoyle were--

1. No mention of football enjoyment or fans but he did say that "as a dispassionate investor he is able to make decisions without the interference of local emotion"

2. He only buys clubs whose purchase price is "less than 1 times annual revenue" eg Barnsley FC annual revenue is £14 million and the purchase price was £8 million. That is why he is buying second tier clubs in Europe where less than 1 X Annual Revenue often applies whereas in USA clubs cost 12 times annual revenue.

3. The first action when buying a new club is to lower the average playing age as, in his words, "youth is the quickest way to improve our investment returns".

4. He is interested in Poland at the moment as an area to buy a club as they are often less than 1 X annual revenue and they often have undervalued players to sell on. Not keen on Southern Europe (Spain, Portugal, Italy ) as there are often foreign restrictions on sales to multi club owners. His ambition in the next few years is to increase the porfolio by buying further clubs, adopt the same playing style at each and move players around between his clubs.

Quote:

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Originally Posted by SBRed48

Just listened to mi owd mate Paul. Main points from the arseoyle were--

1. No mention of football enjoyment or fans but he did say that "as a dispassionate investor he is able to make decisions without the interference of local emotion"

2. He only buys clubs whose purchase price is "less than 1 times annual revenue" eg Barnsley FC annual revenue is £14 million and the purchase price was £8 million. That is why he is buying second tier clubs in Europe where less than 1 X Annual Revenue often applies whereas in USA clubs cost 12 times annual revenue.

3. The first action when buying a new club is to lower the average playing age as, in his words, "youth is the quickest way to improve our investment returns".

4. He is interested in Poland at the moment as an area to buy a club as they are often less than 1 X annual revenue and they often have undervalued players to sell on. Not keen on Southern Europe (Spain, Portugal, Italy ) as there are often foreign restrictions on sales to multi club owners. His ambition in the next few years is to increase the porfolio by buying further clubs, adopt the same playing style at each and move players around between his clubs.

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The only problem I can see with the model or portfolio is for example Barnsley are 10th six points off the Play-Offs in January and one of the foreign teams are near the top of their division chasing possible European qualification. It's a no brainer where the priority would lie. We're o.k as long as things remain tickety boo on the pitch, we'ii remain the Flagship. If we fall behind the 8 ball again we could be back in League 1 before we know it.

Quote:

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Originally Posted by Ponte_Steve24

The only problem I can see with the model or portfolio is for example Barnsley are 10th six points off the Play-Offs in January and one of the foreign teams are near the top of their division chasing possible European qualification. It's a no brainer where the priority would lie. We're o.k as long as things remain tickety boo on the pitch, we'ii remain the Flagship. If we fall behind the 8 ball again we could be back in League 1 before we know it.

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We have to be the flagship club steve given we are only a league below the richest one in the world you'd imagine .

Not only that the championship is considered a standout league in Europe given the attendances and size of some of the clubs .

Their strategy has clearly changed since they owned OGC Nice with perhaps the poor publicity they received there having some impact on their reputation .

Leaving a club considerably worse off on the field from the one they purchased whilst profiting hugely themselves isn't a great look when looking to expand in the football industry .

I've always maintained I've no objection to them making money on their investment just as long as the club and supporters are part of that journey which wasn't the case at OGC Nice .

That was the read we got on them from their tenure at OGC Nice and why they were criticised by a number of posters on this board and continue to be .

They will always have that time in the south of France surrounding them and it's difficult to trust them for me personally because of that .

Whilst on the face of it their time here looks successful there is still the stadium and surrounding land issue unsolved and the fact that the people who they hire as CEO or even the HC's don't tend to stick around too long .

It seems working relationships become tested after a period of time and suggests they aren't particularly great to work for with possibly an autocratic business style at the heart of it .

I'd be extremely concerned if they get their hands on 100% of the stadium and surrounding land personally .

I'm not too bothered with them owning 50% just as long as the Cryne family or Barnsley MBC have the protective other 50% .

I couldn't say in all honesty whether we will be a better club for having them owning us or they leave us worse off .

That's a concern in itself given they've been here almost four years .