AutoWindscreens Posted November 7, 2020 Share Posted November 7, 2020 As if things weren't worrying enough: https://www.dailymail.co.uk/sport/football/article-8922783/Six-Championship-clubs-push-EFL-finalise-400million-deal-sell-private-equity.html Link to comment Share on other sites More sharing options...
Millenniumram Posted November 7, 2020 Share Posted November 7, 2020 Shows the desperation of clubs to get some funds in really. It’s a sad situation that this pandemic has put football clubs in. Then again, I don’t suppose the EFL can get much worse... Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted November 7, 2020 Share Posted November 7, 2020 25 minutes ago, Millenniumram said: Shows the desperation of clubs to get some funds in really. It’s a sad situation that this pandemic has put football clubs in. Then again, I don’t suppose the EFL can get much worse... You ever had direct experience of private equity? I've worked for PE firms and they are not generally philanthropic people........ Link to comment Share on other sites More sharing options...
Millenniumram Posted November 7, 2020 Share Posted November 7, 2020 Just now, Van der MoodHoover said: You ever had direct experience of private equity? I've worked for PE firms and they are not generally philanthropic people........ Nope, but it doesn’t exactly sound good Link to comment Share on other sites More sharing options...
Tyler Durden Posted November 7, 2020 Share Posted November 7, 2020 Don't you think Rick Parry looks like a circus clown in that picture or is it just me Link to comment Share on other sites More sharing options...
Sith Happens Posted November 7, 2020 Share Posted November 7, 2020 1 minute ago, Tyler Durden said: Don't you think Rick Parry looks like a circus clown in that picture or is it just me you may have a point Link to comment Share on other sites More sharing options...
AutoWindscreens Posted November 7, 2020 Author Share Posted November 7, 2020 2 hours ago, Millenniumram said: Shows the desperation of clubs to get some funds in really. It’s a sad situation that this pandemic has put football clubs in. Then again, I don’t suppose the EFL can get much worse... Desperation indeed. Private equity is not interested in the long term health of the subject. The private equity model is to fund the purchase with debt, and then cut costs and increase the cash flow in the short term, even if unsustainable, to make it look like the debt can easily be serviced, and then sell it to somebody who can raise a bigger debt on the same business. Repeat until the business collapses. Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted November 7, 2020 Share Posted November 7, 2020 2 hours ago, Millenniumram said: Nope, but it doesn’t exactly sound good They're perfectly pleasant.....as long as you're hitting their 20%+ per annum performance targets.....? Link to comment Share on other sites More sharing options...
Millenniumram Posted November 7, 2020 Share Posted November 7, 2020 11 minutes ago, AutoWindscreens said: Desperation indeed. Private equity is not interested in the long term health of the subject. The private equity model is to fund the purchase with debt, and then cut costs and increase the cash flow in the short term, even if unsustainable, to make it look like the debt can easily be serviced, and then sell it to somebody who can raise a bigger debt on the same business. Repeat until the business collapses. To be fair, the collapse of the EFL may not prove to be that bad a thing... ?? Link to comment Share on other sites More sharing options...
GenBr Posted November 7, 2020 Share Posted November 7, 2020 Why the duck would they get 51% of voting rights for a 20% stake. I know the EFL is desperate, but this is just short term thinking and all the clubs will be getting less money on a regular basis if they do this. Link to comment Share on other sites More sharing options...
kevinhectoring Posted November 8, 2020 Share Posted November 8, 2020 it's cynically opportunistic - just like the recent Liverpool/Man city proposal. The EFL has half the div 1/2 clubs on the verge of bankruptcy so there will be loads of pressure on them to find a deal. The private equity firm probably reckons the value of the media rights will increase massively over the coming years. The EFL will be giving that up for cash in the short term. If the 'top 6' get their way and reduce the size of the PL it would be a particularly bad deal for the EFL Link to comment Share on other sites More sharing options...
EtoileSportiveDeDerby Posted November 10, 2020 Share Posted November 10, 2020 On 07/11/2020 at 13:04, AutoWindscreens said: Desperation indeed. Private equity is not interested in the long term health of the subject. The private equity model is to fund the purchase with debt, and then cut costs and increase the cash flow in the short term, even if unsustainable, to make it look like the debt can easily be serviced, and then sell it to somebody who can raise a bigger debt on the same business. Repeat until the business collapses. This. 3 words to sum them up corporate loan sharks. Link to comment Share on other sites More sharing options...
ossieram Posted November 10, 2020 Share Posted November 10, 2020 Which paper is this in? Link to comment Share on other sites More sharing options...
AutoWindscreens Posted November 10, 2020 Author Share Posted November 10, 2020 45 minutes ago, ossieram said: Which paper is this in? Mail ? Link to comment Share on other sites More sharing options...
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