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SL set for cash injection ?

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2 minutes ago, Stevoh said:

 

Pointing out that investors want guarantees that they will get their money back is hardly year 3 stuff is it?!

Investors can't have guarantees that they will get their money back. That's not how investment generally works.

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Just now, Smudger06 said:

Investors can't have guarantees that they will get their money back. That's not how investment generally works.

 

Oh yes they can and they do. You can put all sorts of penalty clauses in a deal based on timelines, revenue targets, geographical spread etc etc. For example, an investor might pay £xxxm for 40% of SL with a proviso that revenues have to hit £yyym 3 years after the investment. If that target is missed then the investor has an option to buy the remaining 60% of shares for £x - 30%. Don't forget, these shares are not for public sale so their value is only what the shareholders agree on.

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25 minutes ago, Stevoh said:

Why would an investor invest their money in an enterprise with no guarantee, plan or mechanism to earn and/or get that investment working in their favour?

That sounds like literally the most inept lender I could imagine. 

1. PE Fund has money to invest
2. SL needs investment

Which party do you think holds the whip hand here?
 

All of the applies to Rugby Union and CVC invested there.

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4 minutes ago, Stevoh said:

 

Oh yes they can and they do. You can put all sorts of penalty clauses in a deal based on timelines, revenue targets, geographical spread etc etc. For example, an investor might pay £xxxm for 40% of SL with a proviso that revenues have to hit £yyym 3 years after the investment. If that target is missed then the investor has an option to buy the remaining 60% of shares for £x - 30%. Don't forget, these shares are not for public sale so their value is only what the shareholders agree on.

Hmmmm......They could do all that and still not be guaranteed their money back. 

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2 minutes ago, Smudger06 said:

Hmmmm......They could do all that and still not be guaranteed their money back. 

True, but they do get 100% of the shares. 

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2 minutes ago, Stevoh said:

True, but they do get 100% of the shares. 

Not to mention......SLE Ltd or RFL Ltd would have to be collectively insane to agree to a deal like that. 

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50 minutes ago, Damien said:

All one in the same.

Somene has to explain to me what the legendary spreadsheets were. Before my time on here sadly but they seem to host almost mythological status connected to Gutters/YK/Barnacle.

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1 hour ago, scotchy1 said:

Possibly, Conversely if your big problem is a lack of money for a new facility this might be ideal. 

But it depends really on where they see the added value. 

True. I don't see them being massively in favour of 2 clubs in the postcode though. Same as Hull, Wigan and Bradford's Postcode areas. 

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The RU/CVC model seems to me like it would be a sensible model to follow. Sell a minority stake in SL with each club getting a chunk of cash upfront to invest in facilities, player development, women's SL etc and pool another chunk of cash for a central commercial arm of SL to aid marketing and TV deal negotiation. I guess it could potentially fund additional teams for a SL expansion to 14 if they see value in that.

As revenue increases so does the percentage which goes to the PE firm. Then in X years when clubs are in modern stadia, have healthy balance sheets and SL has a larger commercial footprint the PE firm makes their big bucks when selling on.

If SL attracted half the investment of RU that would still be a decent wad of cash, and you'd think with the right management input from a PE firm we'd be capable of producing a decent return whilst giving the game a chance of a better future.

Interesting times ahead if it comes off. I imagine they'd want considerable input into the TV deal as they did with RU, so would have thought it would have to be sorted by the end of this year.

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1 hour ago, Man of Kent said:

The story by John Davidson is pretty weak with no names mentioned and unattributed quotes. 

Might be a bit early to start worrying. The Hearns stories were more convincing than this one IMO.

So the only difference than posting in here is that he uses his real name there?

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1 hour ago, Copa said:

Getting every game broadcast would be a great first step.... if that’s even possible.

I couldn't agree more. If this is a major league, every game needs to be professionally recorded and produced.

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11 hours ago, Tommygilf said:

I'm no Wolf of Wall Street but isn't one of the good rule of thumbs with investing buy low and sell high?

Point being League has much more potential to go higher?

yes, but add in.... load up with massive loans (relative to the entity), take big dividends or extract monies each year over the years then when sell leave the loans repayable with the entity.  Plus of course strip out all costs but I guess their are not much to strip out in RL. Plus sell off any property owned and lease back, whilst pocketing the monies from the property sale in dividends 

Then often the entity seems to flourish after its sold for a few years until the loan and lease arrangements come to bite. Although some continue successfully.

Whether applicable to sport I don;t know but its how PE would typically work.

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Sorry wrong thread

parkside_ground_1968_fourth_01.jpg

parkside_ground_1968_fourth_01.jpg

Edited by Trojan

“Few thought him even a starter.There were many who thought themselves smarter. But he ended PM, CH and OM. An Earl and a Knight of the Garter.”

Clement Attlee.

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2 hours ago, Trojan said:

Hunslet's original ground at Parkside also had a dog track which opened in 1963. I guess it was to the right of this 1968 photo

parkside_ground_1968_fourth_01.jpg

parkside_ground_1968_fourth_01.jpg

(Pssst…….. I think you are on the wrong thread!)

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2 hours ago, Trojan said:

Hunslet's original ground at Parkside also had a dog track which opened in 1963. I guess it was to the right of this 1968 photo

parkside_ground_1968_fourth_01.jpg

parkside_ground_1968_fourth_01.jpg

I love these photo realistic artist impression of Wakeys new ground.

Plenty of terracing but what will the seated capacity be?

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- Adepto Successu Per Tributum Fuga -

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3 hours ago, Trojan said:

Hunslet's original ground at Parkside also had a dog track which opened in 1963. I guess it was to the right of this 1968 photo

parkside_ground_1968_fourth_01.jpg

parkside_ground_1968_fourth_01.jpg

I get it, the RFL claimed all the corrugated sheeting and they have finally got the cash from the rag n' bone man who has taken it away (he had a very slow horse)?

 

 

Edited by Clogiron
Missing word
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1 hour ago, Manx RL said:

I love these photo realistic artist impression of Wakeys new ground.

Plenty of terracing but what will the seated capacity be?

Are you sure it isn't the artist's impression of Castleford's new ground?

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36 minutes ago, Private Baldrick said:

Are you sure it isn't the artist's impression of Castleford's new ground?

One and the same

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- Adepto Successu Per Tributum Fuga -

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The cash injection would be great in the short term, but this PE company are going to want to make a profit on the investment by taking more of this out of the game in the long term. The current model of SL will need drastic changes to make this kind of profit. Are SL clubs willing to lose substantial control over their competition for this immediate funding?

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27 minutes ago, ojx said:

The cash injection would be great in the short term, but this PE company are going to want to make a profit on the investment by taking more of this out of the game in the long term. The current model of SL will need drastic changes to make this kind of profit. Are SL clubs willing to lose substantial control over their competition for this immediate funding?

No 

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2 hours ago, GUBRATS said:

No 

I hope you are right, but one way or another, these investors intend to get their money back. Right now, SL clubs aren't making much profit, so surely they intend some changes.

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Reminder, they are only 'in talks'. So does that mean they are in talks....or does it mean they have sent out a load of speculative letters to PE firms.  I haven't seen any names mentioned of who they are in talks with.


Here we go again .....

 

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