Take Over

[Sluffy]

So in short today we've learned -

- The deal won't go through on Sunday - so presumably 'skint' Anderson needs to pay the players wages on Monday

- Basran seems only to have enough money to buy the club but nothing to invest further into it.

- There doesn't seem to be any chance of short term profits to appease those investing in the venture.

- There seems to be a potential (and unacceptable?) conflict of interest with Basran's other venture, namely that of a football agency.

- David Moyes may/may not be our next manager but it certainly won't be Warburton.

- The club seems to be in hock up to its eyeballs - with all revenue streams already having been factored out.

- Anderson needs to find £8 million to pay to Eddie Davies Moonshift in order to sell the club - which he seems not to have.

- Peter Kenyon is a red herring!

Now I'll list the bad news...

 

I guess it is, what it is, and it is not over until that big boned lady sings.

Onwards and upwards and tomorrow is another day.

 

Thanks for all the input Howard - it's been fun (in a sort of way) and it will be interesting to see how everything actually does play out.

Stick around I'm sure there quite a few more twists and turns to go yet!

 

[stevieb]

14 minutes ago, Howardroark said:

Not seeking to discredit, simply pointing out that at present there is a breach of the Fit and Proper Person’s test due to conflicting interests. 

Again, all publicly available and no agenda, just speculating on reasons for the delay, other than lack of funds.

Fit and proper persons test has shown time and time again to be useless. 

If it was worth it's weight am I right in thinking ken's tank top would have been nowhere near running the club. 

[Take Hunt Off]

Jesus ....when you come home from the pub often there is clarity ( usually misinterpreted) but my brain is aching with the barrage of info although Howard , whoever he is, does seem credible & not afraid to give us his take seemingly without any agenda 

Sluffy & custardbob are obviously impressed ( both of whom I think are respected contributors but have ,dare I say ,  their own slant on things) so nothing is gonna happen soon without someone blinking although sweaty 'agreeing'  to pay the wages on Monday 

Is a further notch on the turnakey of his ability to survive .He still has skin in the game lets hope he doesnt fuck it up & we end up in administration.

 

 

 

 

 

Edited March 9, 2019 by Take Hunt Off

[leebwfc]

Seems strange that there would be an issue around conflict of interest with them investing in bwfc and a footballer agency. In my opinion would be no worse than Jorge Mendes being swung in as chief agent at Wolves then signing more Portuguese players than Porto for them. 

And surely all of them have known this all along, can't have come up as a last minute "wtf" moment today surely?

 

[Flannel Truscott]

8 hours ago, Howardroark said:

Look at the value of the fund and it’s fundraising to date. 

There’s no way they will get approval from their investors to make a speculative investment of nearly 80% of the funds value, especially one that has no return for years and has an exit that is so hard to control. 

I expect the final total to be about £11M with deals done with Brett and PBP to extend terms. Maybe another £5-£7M of funding over the next 12 months to mitigate creditors and prevent winding up.

Dont expect transfer or wage budgets.

I agree completely that this can't be coming from that fund. 

Not only because it doesn't have enough money but also because its almost certainly not been set up to invest in a football club. 

The LPs have invested with a specified term and under a defined scope;

We invest in businesses in the consumer and media sectors that have a digital mindset and have demonstrated an ability to leverage technology to drive revenue and profitability growth.

This money is coming from elsewhere. Whether that's another fund or dedicated money time will tell. If its another fund it too will have a defined term at which point they will expect a return. 

[Ratwhite]

14 hours ago, Spider said:

Someone asked for a 5pm update, here goes.

* Players haven't been paid - this will be done Monday if takeover not sorted

* No takeover yet, that's Ken's fault even though no-one outside the boardroom has a fucking clue what's happened.

* We're playing Miwwawww tomorrow as has always been the case

* Marc Iles gets paid to tweet

* This is duller than Brexit now.

Thank you, it was me.

I read some of the later pages and as you said, like Brexit.

All I took from what I read is what you said and some new poster called Howard as took the wind out of everybody's sails with a reality check about #TeamBasran 

[Boothy]

I think in reality even the more switched on, well informed don’t have a scooby either. Best switching off from it until either it happens or we go to shit.

[Howardroark]

7 hours ago, leebwfc said:

Seems strange that there would be an issue around conflict of interest with them investing in bwfc and a footballer agency. In my opinion would be no worse than Jorge Mendes being swung in as chief agent at Wolves then signing more Portuguese players than Porto for them. 

And surely all of them have known this all along, can't have come up as a last minute "wtf" moment today surely?

 

Mendes is an ‘advisor’ to Wolves, not an employee. Admittedly Fosun hold an investment in his agency, but the directors of Wolves aren’t a shared director with the agency and they aren’t considered a ‘controlling influence’. 

Not suggesting Basran hasn’t been open, but simply VGC Partners would have to dispose of their shareholding in the agency before acquiring BWFC.

 

[Chris Custodiet]

I expect there will be a few folk asking me today where I think its up to and how I think its all going to end up. Thanks to Howard, the conversations should be more informed than they otherwise would have been. I'm sure there are plenty who'd rather talk about who is the worst player we've signed in the last twenty years. Why not? Each to their own.

[Mounts Kipper]

Are we sure it’s VGC who Basran is negotiating this deal for? On their website it says they invest significant minor stakes in private companies and work alongside theses companies to deliver growth.

That seems a long way from this BWFC takeover deal and as others have stated the 100 million VGC have in the fund ain’t going to get very far, is it possible that that Basran is negotiating this specific deal for a different and separate investor or consortium and nothing to do with the VGC fund. 

Edited March 9, 2019 by Mounts Kipper

[ErnestTurnip]

Almost feels like if the tennis ball chuckers read this thread we might end up with a Ken In protest at today's game.

[Howardroark]

24 minutes ago, Mounts Kipper said:

Are we sure it’s VGC who Basran is negotiating this deal for? On their website it says they invest significant minor stakes in private companies and work alongside theses companies to deliver growth.

That seems a long way from this BWFC takeover deal and as others have stated the 100 million VGC have in the fund ain’t going to get very far, is it possible that that Basran is negotiating this specific deal for a different and separate investor or consortium and nothing to do with the VGC fund. 

Unlikely, if you look at the VGC fund on pitchbook.com you’ll see the amount of investors in to the fund, and their locations. 

It suggests an ability to attract small funds (£1M-£3M) from digital focused, American Venture Capital firms. This is almost certainly due to the Eduardo Saverin links (people invest because he has and he has the Facebook links etc ). 

What this means is that Basran would be very unlikely to be able to attract anywhere near the funds necessary outside of VGC, he simply doesn’t carry the weight of reputation or the experience. 

In summation, he can’t be using VGC to fund it and he doesn’t carry the reputation or contacts to fund outside of VGC. 

Hence the delay...... no money.

 

[Escobarp]

6 minutes ago, Howardroark said:

 

In summation, he can’t be using VGC to fund it and he doesn’t carry the reputation or contacts to fund outside of VGC. 

Hence the delay...... no money.

 

Bold statement saying he doesn't have the contacts to fund this. So what you are saying de facto is that he cannot complete this deal correct? 

[Casino]

One things for sure, iles couldn't dream of writing on the subject like this

[Howardroark]

5 minutes ago, Escobarp said:

Bold statement saying he doesn't have the contacts to fund this. So what you are saying de facto is that he cannot complete this deal correct? 

It depends, I believe he has access to the funds to do the following: 

Pay KA £8-£11M, enough to gain ownership of the Burnden Leisure shares and control of the club.

Probably enough to pay HMRC to avoid winding up. 

Outside of that, very little. 

The problem then arises that you are reliant on agreeing terms with all creditors to prevent winding up orders, I assume that’s what he has been doing the past few months. A normal business can seek protection from creditors issuing winding up orders using a CVA, however a football club is different. The EFL won’t allow administrations (they hold the golden share) unless certain terms are met and that involves paying ALL football debts.

Bottom line is that you may get the takeover, but the situation will be no different.

 

[Watsmore]

Howard you aint half putting a dampner on this takeover.Clearly you are a very clever individual but I cant realy see with any certainty that your view is correct.I don't doubt your factual analysis,but facts may be misconstrued,and confused.Unless you are in the proceedings,how could you truly interpret what all the facts mean overall.

[Mounts Kipper]

6 minutes ago, Howardroark said:

It depends, I believe he has access to the funds to do the following: 

Pay KA £8-£11M, enough to gain ownership of the Burnden Leisure shares and control of the club.

Probably enough to pay HMRC to avoid winding up. 

Outside of that, very little. 

The problem then arises that you are reliant on agreeing terms with all creditors to prevent winding up orders, I assume that’s what he has been doing the past few months. A normal business can seek protection from creditors issuing winding up orders using a CVA, however a football club is different. The EFL won’t allow administrations (they hold the golden share) unless certain terms are met and that involves paying ALL football debts.

Bottom line is that you may get the takeover, but the situation will be no different.

 

Surely any potential new owner isn’t going to fall into the same trap as Anderson (no operating cash flow) 

Edited March 9, 2019 by Mounts Kipper

[Howardroark]

1 minute ago, Watsmore said:

Howard you aint half putting a dampner on this takeover.Clearly you are a very clever individual but I cant realy see with any certainty that your view is correct.I don't doubt your factual analysis,but facts may be misconstrued,and confused.Unless you are in the proceedings,how could you truly interpret what all the facts mean overall.

20+ years in mergers and acquisitions, you know what to look for. 

Put it this way, the longer it takes, the less likely it is to happen. Real buyers do not court publicity either.

[Howardroark]

4 minutes ago, Mounts Kipper said:

Surely any potential new owner isn’t going to fall into the same trap as Anderson (no operating cash) 

They would be able to generate some by re-leveraging the shares as collateral (basically what KA did with Moonshift).

[Mounts Kipper]

Just now, Howardroark said:

They would be able to generate some by re-leveraging the shares as collateral (basically what KA did with Moonshift).

What’s that going to raise in cash terms? About £3.50. 

[Howardroark]

Just now, Mounts Kipper said:

What’s that going to raise in cash terms? About £3.50. 

£2-4M

[Flannel Truscott]

3 minutes ago, Howardroark said:

It depends, I believe he has access to the funds to do the following: 

Pay KA £8-£11M, enough to gain ownership of the Burnden Leisure shares and control of the club.

Probably enough to pay HMRC to avoid winding up. 

Outside of that, very little. 

The problem then arises that you are reliant on agreeing terms with all creditors to prevent winding up orders, I assume that’s what he has been doing the past few months. A normal business can seek protection from creditors issuing winding up orders using a CVA, however a football club is different. The EFL won’t allow administrations (they hold the golden share) unless certain terms are met and that involves paying ALL football debts.

Bottom line is that you may get the takeover, but the situation will be no different.

 

Unless you have inside information you can't state this with any certainty. 

How do you know he hasn't got £100m from saverin? 

[Mounts Kipper]

2 minutes ago, Howardroark said:

£2-4M

Like you say, not enough to take us forward.  Think I’d prefer Peter Kenyon takeover, fear he might be looking at Derby County. 

Edited March 9, 2019 by Mounts Kipper

[Watsmore]

4 minutes ago, Howardroark said:

20+ years in mergers and acquisitions, you know what to look for. 

Put it this way, the longer it takes, the less likely it is to happen. Real buyers do not court publicity either.

Well these potential buyers don't court publicity that's for sure.We seem to be focusing on basran a lot,but were do sharron brttan and Geoff Thomas come into all this?

[MickyD]

10 hours ago, Burndens Bogs said:

I'm loving all these new posters who know everything.

Wake me up when it's all over

1 hour ago, Chris Custodiet said:

I expect there will be a few folk asking me today where I think its up to and how I think its all going to end up. Thanks to Howard, the conversations should be more informed than they otherwise would have been. I'm sure there are plenty who'd rather talk about who is the worst player we've signed in the last twenty years. Why not? Each to their own.

Eggzakerley