06 Jul 2016 10:37:51
I go to my business partner and tell him we need to invest £10 mill to compete properly with our competitors. I say I want £2mill from him as his share. He says no so I say ok I will buy you out, give you your initial £10 mill investment back and give you market value for your shares £10. He says hold on if you invest the company could be worth three times what it is now so I want £30mill for my shares and £2mill interest on my investment. So from £20 mill that's gone to £42mill. I allready have £50 invested so that makes a total outlay of £92mill if I buy him out. The business as it stands is only worth £40mill what should I do.
What I would do is invest my £8mill in one of my other businesses that is guaranteed a return, let my competitors know I am willing to sell my shares if they are wiling to work with an incumbant partner in this company and carry on as normal and hope we unearth a new product that improves our worth. or some of our competitors struggle. Our customers may not be happy as we are not as competative as our rivals and we may lose some.
That is Leeds at the moment and if we were a viable investment with success just around the corner money men would snap us up. We are not. These paid up Cellino hating posters need to face reality. With GFH in the background we will not be spending big money on players or their wages.
That does not mean we cannot compete, we have a good management team, young talent in Viera Phillips, Taylor etc. We need to buy shrewedly and maybe we get lucky with one. Fact is if we finish in top 10 we will do well, with some luck maybe top 8 competing for a play off spot. I will still put my ton on at Corals for us to get promoted because there is always the chance. Football is always about the dream, big money buys do not guarantee it. Look at Shef Weds paid fortunes for players and we are still playing them next season.
We are Leeds we fight mot.

1.) 06 Jul 2016
06 Jul 2016 13:19:12
BIGE

You make some valid points, and yes we're in a mess regarding finances. However, Cellino entered into an agreement with GFH effectively making them a silent partner. Cellino is now wanting another agreement. GFH have an agreement where they put nothing in to the football club and because of the way they ran the club, we still owe them £17 million. Once again Cellino has agreed a plan to do so over a period of time. Why would they bother to put money into the club when they don't care how we perform as long as we pay them the money there owed? This plan is going to take money out of the club for the next 15 years. This is why Sports Capital pulled out of buying the club. You would have to be an idiot to enter into an agreement like this, enter Cellino. For all those who want Cellino to buy there shares have to see, we will not rid ourselves of them by doing so. The only way to rid ourselves of them quickly would be to win promotion, the amount of wealth we would gain through this would IMO be worth it to be rid of such a parasite. A promotion push has to financed, Cellino is showing that he is unable or worse, unwilling to fund such a push.

2.) 06 Jul 2016
06 Jul 2016 13:29:52
Agree with you BIGE but GFH's investment ain't worth any more than what they paid for it unless they can add value i. e. promotion . They ain't getting promoted without investment hence a Catch 22 . They will have to invest to add value or take a realistic price to move on. Their current position is not good for them as there is no increased return on their investment.

3.) 06 Jul 2016
06 Jul 2016 13:35:03
yeah but surely you can't put a price on something based on what may or may not happen in the future? if the 10 mill is not invested we stay where we are and the share price stay the same or lose value.

4.) 06 Jul 2016
06 Jul 2016 13:36:46
Totally agree, business is business, you put your money in and take your profits out. We might not like it but that's life.

5.) 06 Jul 2016
06 Jul 2016 14:18:39
It is clear that the financial position at the club is not good but would have been improved if not for the following:

Macron £3.5m
Cameron Stewart £800k
Nigel Gibbs £330k
Lucy Ward £132.5k.

6.) 06 Jul 2016
06 Jul 2016 15:11:38
You miss the point PA. Their share price is not the main issue. By the time they sold to Cellino, we owed them £20 million, mostly for consultancy fees, which they fixed the price. Cellino has agreed to pay them the £17 million we owe them, they have already received £3 million from the RMCC transfer, either when we are promoted or between 2019-2032. As regards the share price, shares are like any other commodity, worth what someone will pay. They are in a strong position, if we win they win big, if we lose they still win.

7.) 06 Jul 2016
06 Jul 2016 17:41:48
And problem is GFH investors do this regularly. Invest money long term. Its pocket money for them. They buy properties usually in capital cities, rome, london etc. They know property prices rise in major cities every year so they will sit on an empty property for upto 5 years before selling on. They will not improve rent or let it. They are not interested in investing in the community just investing. First time I have seen it happen to a football club. Their short term investors went when cellino bought in. Long term investors left, GFH need to make them big money or lose face. Answers on a postcard please.

8.) 06 Jul 2016
06 Jul 2016 18:19:29
Spot on BIGE. This is exactly what GFH do. They have bought numerous properties in London and this was always theit plan for us. Said before this is what the football league should look at. It's not illegal, but totally imoral and we've been Morgaged to the hilt. As long as we owe them money they won't sell their shares and even if we go up the value of them rise, so it looks like we're stuck with them lon term.

9.) 06 Jul 2016
06 Jul 2016 20:51:16
And who put us in this position by selling to GFH?
mmmm let me think.