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Thorpe Stephen

Further reply from Towergate

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How is a minority stake in a football club worthless?

I am sure the orginal minority investors in Google feel their shares are worthless.

The facts I beleive are that at 49% the current shareholders stake in the club is worth far more than owning 100% of a club that cannot compete for a place in the Prem.  I think we all think we have a fair chance for a Premiership place with a £20 million investment.  What is a 49% share worth in a Premership club?

Lets be very clear Delia has let bug of football get the better of her and wants control for controls sake.  This is clearly not aligned to the values of the fans in the stands and therefore when a few results go against us it will become very messy.

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...because football clubs do not so generate cash for their shareholders

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[quote user="milan marcus"]

How is a minority stake in a football club worthless?

I am sure the orginal minority investors in Google feel their shares are worthless.

The facts I beleive are that at 49% the current shareholders stake in the club is worth far more than owning 100% of a club that cannot compete for a place in the Prem.  I think we all think we have a fair chance for a Premiership place with a £20 million investment.  What is a 49% share worth in a Premership club?

Lets be very clear Delia has let bug of football get the better of her and wants control for controls sake.  This is clearly not aligned to the values of the fans in the stands and therefore when a few results go against us it will become very messy.

[/quote]

That is where it is very very difficult for Delia - it will become very messy when (not if IMO) results go against us.

9M of a club worth 16M in the Champ versus 9m (but reduced due to not being a majority) (25%) of a club worth £36m in the Champ - Delia current delima.

Against a potential 25% stake in premier league club worth ?????????? - hard to say. If the prem league club is worth more than £36m (which it will be) then she is on to a winner.........IMO - but as other have said what is a minority stake in a football club really worth - Delia and the current regime have milked minority shareholders knowing that the voting(power) rights of the shares are not worth anything but happy to take the cash and playing on supporters loyality (probably not delibrately but this is what has happened)......not wanting someone else to be the majority shareholder just underlines the fact that she(and MWJ) think minority shareholders are only there to provide funds - not have a say in the football club.

How can she expect investment when she is basically saying anyone who invests (who naturally will want to become a shareholder) has no say whatsoever on how that money is spent as she will not give up her majority and invest in the football club on the same terms she wants others to invest.

Delia time is limited IMO - tick tock tick tock.

However, in an ideal world I would love her to stay as an investor - but at the end of the day is what she doing anything different to what Chase did at the end of his time as Chairman(Owner/Shareholder) - Chase had the decency to go eventually...... (but only after fan pressure - lets hope Delia going is more amicable and she has a say as an investor - but not the majority shareholder in taking the club forward)

 

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for me there are only two questions I want the answers to to understand this whole issue

1) Was Delia prepared to retain some shareholding in the club if Cullum came in, he made it clear he did not want to get rid of her and obviously understands the value of brand Delia to the football club.

2) Was Cullum prepared to negotiate at all on the concept of allowing Delia to sell a percentage of her shares.

I can understand in either of these cases the other party would have a valid reason to walk away.

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[quote user="KeelansGlove"]

for me there are only two questions I want the answers to to understand this whole issue

1) Was Delia prepared to retain some shareholding in the club if Cullum came in, he made it clear he did not want to get rid of her and obviously understands the value of brand Delia to the football club.

2) Was Cullum prepared to negotiate at all on the concept of allowing Delia to sell a percentage of her shares.

I can understand in either of these cases the other party would have a valid reason to walk away.

[/quote]

Good Questions!

But a bit black and white - i am not sure we are talking percentages (and if so then it could be what % rather than 0% or 100%) e.g. I am sure Cullum would be happy to buy 1% of Delia shares - or 2% - but 30%, 50%, 60% etc???? when he does not want to buy Delia out by the looks of it and I am sure Delia would be happy to have a 1% holding but 30% etc etc again.

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