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Fudgey1989

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34 minutes ago, Bonbon19 said:

Re number 1) at boardroom level the sitting directors of a successful company ( or a football club having a good season) are loathe to let others have a share of their success . The flip side of that is probably when they’d welcome extra investment and dilution of their shares . 

Re number 2) I think that is the case see above 

Controversial stuff. What’s being discussed in standard company board room considerations in a privately owned company. Number 1 is true in such a circumstance but there are buts, 2 for me. You only dilute ( in value terms) if the impact of the investment is not matched by at least a proportional growth in the value of the business. The idea of investment would be to push the club on and generate significant enterprise value which would actually increase the value of the aggregate shareholding buy current owners. Investment and dilution in that’s sense will act against the current investors if the value of the club does not increase as consequence of new investment. Dilution in the sense of having lower percentage ownership in the club is a factor but a good steward of the club needs to understand this trade. Secondly, maybe Im a naive devoted fan, but when it comes to football clubs I hope that personal financial gain is not the main consideration in this situation. Sustainable financial performance for the club....and a great team on the park......drive the board I would hope. Not to the point that individuals are propping up the club but in a prudent ( not for personal profit) basis. I hope B.B. sees his legacy as transforming the fortunes of a failing football club rather than gett8ng rich. I believe that. He would therefore welcome any investment that would step us forward. But maybe I’m a mug.

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4 hours ago, Thebigguy68 said:

Controversial stuff. What’s being discussed in standard company board room considerations in a privately owned company. Number 1 is true in such a circumstance but there are buts, 2 for me. You only dilute ( in value terms) if the impact of the investment is not matched by at least a proportional growth in the value of the business. The idea of investment would be to push the club on and generate significant enterprise value which would actually increase the value of the aggregate shareholding buy current owners. Investment and dilution in that’s sense will act against the current investors if the value of the club does not increase as consequence of new investment. Dilution in the sense of having lower percentage ownership in the club is a factor but a good steward of the club needs to understand this trade. Secondly, maybe Im a naive devoted fan, but when it comes to football clubs I hope that personal financial gain is not the main consideration in this situation. Sustainable financial performance for the club....and a great team on the park......drive the board I would hope. Not to the point that individuals are propping up the club but in a prudent ( not for personal profit) basis. I hope B.B. sees his legacy as transforming the fortunes of a failing football club rather than gett8ng rich. I believe that. He would therefore welcome any investment that would step us forward. But maybe I’m a mug.

Is altruism ever a factor at boardroom level ? 

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