takeover

[smallsy]

http://news.bbc.co.uk/sport1/hi/football/default.stm

[GJ-again]

They've just taken on new argentinian players. Very strange. <img src="/forum/images/graemlins/confused.gif" alt="" />

[Johnny the Horse]

Not been following all the details very closely, but have seen the statement that there is no contractural link between the sale of two players to West Ham and the entry into negotiations for the potential take over of the club. I have also not seen the level of fees paid for the two Argentinians.

 

It would though be interesting to follow the money trail if any money paid for the players is in turn used to buy the club. Nothing wrong with this as you are in effect making part payment through direct investment in the club, rather than placing it in the pocket of maybe soon to be former shareholders. This is again not unusual e.g. someone buys a club, not by paying a huge sum to the owner, but by paying a smaller figure and also taking on responsibility for existing debt commitments. This is very common when maybe the level of debt exceeds the value of existing assets e.g. Ken Bates buying Chelsea FC for a token one pound.

 

It can though become very interesting if you continue to follow the money trail. As an example, there have been rumours, that may be unfounded, concerning possible release clauses in the contracts of the new arrivals at Upton Park. Interestingly, each of the new arrivals have already been linked to ultimately playing elsewhere in the Premiership. One at Old Traffod and one at Stamford Bridge. Ok only rumours, but maybe true. Keep following the money...

 

Maybe something to look out for in the future would be if the players did both move on for significantly greater sums than they cost yesterday. Keep watching the money... The owners of the club may then choose to remove some of the assets of the company they own and place it back in their own bank account. All very legal if undertaken in the right way e.g. taxes paid etc

 

At the end of the day, a punter uses an asset, in this case players that they own, and invests it for a short period ( a few years or less) and then cashes that asset in to realise a far better rate of growth then can be achieved in the West Bromwich Building Society High Interest Account. Along the way, they aquire part of an additional asset, part of a new football club at zero cost. Zero cost is not strictly true, because they will have invested at the right time to acquire the players that they used to facilitate this deal. They will also need to put some hard cash into buying the rest of the club, but if they act as prudently in those dealings as they have used the players as assets, they will make a profit on that part of the deal.

 

Bottom line is the potential to make a big fat profit. All totally legal if undertaken in an above board manner. Great business sense and far better than buying/selling programmes on eBay don't you think?