Private equity firms are always bad news, the ultimate leeches.Tweet
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Financial Times: Apollo under scrutiny over lingering ties to Leon BlackFormer boss remains top shareholder in investment group as he feuds with co-founder. Black stepped down from Apollo following an internal investigation that revealed he had paid the late paedophile Jeffrey Epstein $158mn for personal financial advice. Yet he remains Apollo’s largest individual shareholder with a 12 per cent stake in the company.
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Sounds like someone the parasites would be in business with.Not good. They’ll have a 4-5 year view on the club (basically optimise for value and sell to someone else later on). Def not a strategic long-term owner. Also, they have a long history of screwing their business partners in all sorts of creative ways… I work at a competitor firm and have seen it first hand. We decline working on any Apollo-related deals.
there are provisions like drag-along clauses and wotnot for these situationsThese clowns are going to dilute the entire stake before a potential take over happens and saddle a new owner with a bunch of minority voices.
It's not exactly great, but how is it worse? At a first glance, nothing would changeWe would be in a worse position. This only puts money in the Glazers pockets and the debt would still be there. I hope this is bollocks.
Aren’t private equity firms even less involved and all about dividends?It's not exactly great, but how is it worse? At a first glance, nothing would change
I would assume so, but since we're talking about a minority stake, I'm not sure their philosophy matters all that muchAren’t private equity firms even less involved and all about dividends?
Still - even if only a minority stake - should someone eventually want to buy the club, they’d have to buy out the Glazers plus the private equity firm, no? So this could potentially raise the cost of the club for prospector buyers substantially thus ruling many out.I would assume so, but since we're talking about a minority stake, I'm not sure their philosophy matters all that much
If MBS did, everyone willI'd be surprised if Apollo would pass the FA fit and proper test.
I thought with MBS, PIF needed to prove and legally document that he wouldn't be on any boards or have zero involvement with the club?If MBS did, everyone will
I could see it starting off as a minority and eventually becoming a majority. We'd go from being owned by a bunch of bastards to a faceless corporation run by a bunch of bastards. They would have no problem ripping us apart to sell off.I would assume so, but since we're talking about a minority stake, I'm not sure their philosophy matters all that much
Has anyone ever failed this test?I'd be surprised if Apollo would pass the FA fit and proper test.
Well, after Burnley were bought via a LBO last season, the FA have said that they're putting a stop to it, and for owners and the transaction to be 'fit and proper'. Whether they go through with it is another question...Has anyone ever failed this test?
I'd be surprised if Apollo would pass the FA fit and proper test.
I think you're only assessed if you are acquiring 30%+ of the shares, so the test would not be applied if the Glazers sold, say, 25% of the club.Well, after Burnley were bought via a LBO last season, the FA have said that they're putting a stop to it, and for owners and the transaction to be 'fit and proper'. Whether they go through with it is another question...
This. It’ll become even worse at the club.There’s only one thing that matters to PE funds, and that’s return on investment. Meaning they will have to either take out dividends or increase the value of the club and sell again in 3-5 years (or both).
The Bloomberg article, quoting people "familiar with the matter" said the Glazers value the club at £5 billion ($6 billion).It will be interesting to see what price the minority interest is sold for - should give a rough idea of what the Glazer's value the club at.
Because then we have two parties who only wish to take dividends and not put additional funds to the club. Twice as much effort and negotiations when buyers come in.It's not exactly great, but how is it worse? At a first glance, nothing would change
On the plus side, they should wrestle some of the control away from the incompetent Glazer siblings, in favour of people who actually know how to run a business. This sale is also the only way we ever realistically see a redeveloped OT.There’s only one thing that matters to PE funds, and that’s return on investment. Meaning they will have to either take out dividends or increase the value of the club and sell again in 3-5 years (or both).
Not convinced this is the case, getting the majority of the club will be the same struggle as now. After the majority is acquired, the rest should be pretty straight forwardBecause then we have two parties who only wish to take dividends and not put additional funds to the club. Twice as much effort and negotiations when buyers come in.
It’s much worse than what we currently have to deal with.