Leveraged buy-out?

[Ellerslie]

IF we believe the press reports that Fernandes is buying anything up to 66% of the club (I will believe it when I see it) valued by Ecclestone at £100 million. Then he is spending anything up to £66 million or $107 million US.

Fernandes's personal wealth is estimated at $470 million US. I doubt he's spending up to one fith of his personal wealth on us which means he may be financing the deal somehow, which could mean borrowing against the club which is worrying.

Lots of ifs, buts and maybes I know, I'm assuming he's buying the ground from Sarita for a start, but worrying none-the-less.

[Morris]

IF we believe the press reports that Fernandes is buying anything up to 66% of the club (I will believe it when I see it) valued by Ecclestone at £100 million. Then he is spending anything up to £66 million or $107 million US.

Fernandes's personal wealth is estimated at $470 million US. I doubt he's spending up to one fith of his personal wealth on us which means he may be financing the deal somehow, which could mean borrowing against the club which is worrying.

Lots of ifs, buts and maybes I know, I'm assuming he's buying the ground from Sarita for a start, but worrying none-the-less.

Far too many to get either excited or worried at the moment.


Let's wait and see before we jump to conclusions one way or the other.

[Morris]

Just to add... Bernie could of lowered his estimation of the club, I have seen figures of £80m in the papers today instead of the £100m he wanted a month ago. Add in the fact that the Mittals are part of this takeover and we really don't know who is doing what.

[Ellerslie]

Just to add... Bernie could of lowered his estimation of the club, I have seen figures of £80m in the papers today instead of the £100m he wanted a month ago. Add in the fact that the Mittals are part of this takeover and we really don't know who is doing what.

The same would apply if the valuation has dropped by half to £50 million. He would still be foolish to sink a sizeable fraction of his personal wealth on a football club that does not make a profit and probably never has.

I would be almost certain that the money will not be his and the risk will be the club's.

Still don't think it will happen in the first place though tbh.

[QPR1976]

It may have been £80m all along.
Bernie may have said £100m, but that might have been his value on the whole club, not just his 66/67% of it.

Most football clubs make a loss and I'll never be convinced Owners invest much of their own money.
Get investors in and Sponsors, use their money.
Which is what Tango did very well at the start, but very badly recently.

[Nodge70]

Just can't see any bank lending against the club. It runs at a substantial operating loss, nothing like the operating profit before loans that Man Utd and Liverpool do. No collateral as the book value if the stadium and land wouldn't meet the loan value. Non starter IMO

[NW9_RANGER]

Yh it would seem very strange if he spent so much of his fortune buying the club and like nodge said, it's hard to believe any bank would lend against our club. God knows how this is going play out

[UB6-RANGER]

The other shareholders wealth might have a bearing, Mittal's name probably carries alot of weight. Obviously the relationship they had with Briatore and Bernie became unworkable. Who knows how this thing will hopefully be financed but regardless clearly the Mittals just wanted those two clowns out, Tango more than the other.