Not an expert on company law by any stretch, but I think that 25% would enable Desmond to block certain special resolutions (changes to articles of association, large capital investment proposals etc) but wouldn't give any control over ordinary resolutions which dictate the day to day running and direction of the club. I don't think it's unreasonable to receive minority shareholder protections in exchange for the level of investment they are talking about. Again, I just don't see the risk there.Originally Posted by EatYerGreens
The board of Rovers have explicitly told members that there is no provision in this deal for Celtic to have preferential options on academy players or transfers of senior players. So again, the only way that is possible would be for the board of Rovers, and Ray Wilson, to be openly lying to members about the terms of a deal they are asking them to vote on. That scenario is ridiculous.
Will there be another tour advising other clubs on “fan owned model” ? 🤣😂🤣😂
Whereas one of the coldest businessmen in Ireland suddenly developing an interest in SRFC and showering them with money for no gain is not ridiculous ?
I don’t know DD “angle” on this but not for one second do I believe there isn’t one.
Honestly, looking in from the outside, one can only help but feel a bit jealous.
A multi-million euro investment into a club is huge here. If they're smart with their money, it's exactly the push they need to attract more high quality names, and hold on to their bigger names going into next season.
The biggest question for Rovers going forward is whether or not Bradley is the right manager to make the next step with them, and push them towards a league title and European group stages. This is obviously the aim for the likes of Desmond in getting involved with the club.
If there's some major spend by the club in the off-season, it might push Dundalk to do the same. The two could cut even further adrift at the top of the table.
As for Desmonds interests, of course he's looking for financial gain, saying anything else is ridiculous.
https://kesslereffect.bandcamp.com/album/kepler - New music. It's not that bad.
Again, all that actually matters is the level of risk from Rovers perspective.
There are two real possibilities:
1) He statements regarding his reasons for investing and his claims that he will re-invest any returns back into the club are true, in which case it is a dream scenario with no downside.
2) His statement is only partially true and he is getting involved anticipating some financial return down the line.
Regardless of which one is the case, it still seems a complete no-brainer for Rovers. The only way he would generate any sort of return would be through massive growth of the business and success of the football club. That's a win-win. As I said, I think people are completely right to be skeptical of his intentions, but with the members and Ray Wilson retaining majority control the decision still makes itself.
So all that “fan owned” nonsense gets dumped the first time someone offers a few bob ? Didn’t take long.
Of course there's a risk here.
People like Desmond have lots of money because they don't give without getting back on their investments. That's why they have money. I would suggest that DD is thinking of only one person here & it isn't anyone at Rovers.
I can see the attraction here for Rovers fans.
Untimitly it will be a decision for the Rovers member but I would urge caution.
The key here though is that Rovers don’t have any real assets to sell, so there’s no possibility of a big asset strip like in the 80s.
I think the downside to Rovers is very limited, the upside is bigger.
Like it or not, almost every successful football club relies on benefactors. The real shame in Ireland is that our own super-rich have always favoured UK clubs or the racing industry for any philanthropy.
It's at times like this that I yearn for Rathfarnham Hoop's unique perspective
Possibly waiting on the AGM ?
Good luck to shams and great news for players they are thinking of signing (the Hobinator will need protection from all the kitchen sinks that will be thrown at him ).
Will be interesting to see how it plays out. 2 million (figure bandied about ) could certainly improve the playing staff but it’s a one off so increased revenue would have to be generated to future fund it (recurring wages). Maybe see a Shels/Bohs circa 2000 wage war between shams and Dundalk. Sure what could go wrong 😁
Bohs fans keep wheeling out this line as if it's some big gotcha!
How do you know it's the first time someone has approached the club to buy in? Regardless, any model of ownership is a means to an end not an end in itself. I would be seriously unhappy if Rovers would dismiss an opportunity to progress the club purely out of some dogmatic commitment to being 100% member owned (which has never been the case anyway as Ray Wilson has privately owned shares since the club exited examinership). I would be equally as unhappy to see outsiders take up a controlling interest in the club based upon past experience. German style hybrid ownership seems a perfectly reasonable way forward to me.
How could Desmond realistically make any money from the club?
The only way I can think of would be to siphon off future European prize money, which can add up pretty quickly if a team manages to pick up points in the group stages. And that would only happen if he got enough control over the club to have the power to do so.
But even then, Dundalk got what, 7 million in prize money, for the best European campaign in LOI hsitory? I'm not trying to play down that amount, but Desmond is a billionaire, and I'd imagine he has much bigger fish to fry.
I'm fairly skeptical of the idea that there is much philanthropy involved from a guy with no history of interest in LOI, but I can't see how he stands to make significant money (significant for him anyway) out of it.
A very simple way he could make money would be if the club's value increases. His 25% share would therefore increase too.
Presumably he is working on the assumption that Rovers could make progress in Europe, so the value of his shareholding would increase. He may also expect some form of dividend too ?
The downside in this for Rovers is that Desmond could sell his shares at any time to whoever he wanted. And it's the size of shareholding that can block major decisions. The fans will get to decide if DD buys this 25% share, but they will have no say at all in who ends up owning those shares in future (and what their motivations are). If I was them I'd sell them with the caveat that they have first option to buy them back when he eventually does sell them.
That is the deal EYG. Shares have to be offered to existing shareholders before anyone else.
I'm always sceptical about philanthropy but there are examples in Ireland, Denis o brien gave millions to the fai which allowed them **** there own money away (pity he didn't insist on a seat on the board and oversee how they spent their money ), jp McManus has given away millions in limerick so DD investing pocket change for him in rovers and getting involved at board level and as a minority shareholder doesn't have to be a part of a big conspriciy.
Eyes wide open obviously but hard to see how he make a a killing in rovers.
For years we have been looking at the likes of Desmond and McManus and wondering why they wouldnt take a punt on investing in LoI. Peak6 broke something of a mould and now that there are serious people showing interest in investment we are looking very insular and skeptical about the prospect. Yes things havent worked with Arkaga at Cork, other clubs' investors have left things high and dry but none of them had the deep pokects that these people have.
For me Desmond's involvement in Rovers (coupled with Wilson) is a pretty frightening prospect in terms of potential financial clout is a worry to other clubs. I'm sure Peak6 are quietly concerned too especially with next season's change to European competition and how it is likely to be the most important title race in league history considering what could be on offer.
Maybe DD sees how things are going with the relative lack of 1st team opportunities for Irish players in England and realises, like we have for an age, that the future fortunes of our international teams will rely more and more on a stronger domestic league!
A lot of the negative comments Ive read on this potential investment imo is born out of fear and maybe even jealousy. We can expect a bit of a bandwagon of very wealthy people looking to LoI as their play thing without having to worry about any more than a weeks interest on part of their worth - maybe we should throw off the shackles that Arkaga caused. It is a hybrid ownership this is pretty ideal and something that Cork should be looking at too never mind all clubs.
Last edited by Nesta99; 07/10/2019 at 4:28 PM.
Bourne out of experience I would have thought.
Look - there is no money in LOI football. That is just a cold hard fact. If DD wants to invest then great. But proceed with Caution is probably what most would advocate.
I believe that there is little doubt that a lot, maybe even most, of the negative comments are rooted in fear or jealousy.
The primary poor experience has been around Arkaga and the compounded experience that followed with Tom Coughlan. It's perfectly understandable that Cork folk would be especially cautious as a result. That resistance to any type of outside investment will change too if the current disparity between Cork and the top two is maintained or grows even wider.
The potential returns - if they actually exist - are obviously not in the €110k current prize money, but lie elsewhere. Proceeding with caution is a sound approach, but dismissing it out of hand would be foolish
Last edited by Ezeikial; 07/10/2019 at 5:45 PM.
I'd never suggest blindly taking on board new investment! But at the same time we cannot always hold back on the basis of bad experience - there isnt a club in the land that hasnt had bad experences of owners/investors. Any 'investment' is what it is, people with money trying to make a return. It doesnt mean that clubs and supporters wont reap benefits in the process also. Basically we have all hoped for proper investment in clubs, its is potentially happening. We could be looking at significant change in the domestic football landscape and with DD showing interest its likely to pique the interest of others, something that we have been shouting from the roof tops about for decades. Now, as we could well be on the brink of domestic football changing, there are people going nope, not good! Maybe it will come crashing down but at least we will know and not be living in hope forever of some serious reform and investment.
Great news for Pats though,.more cut price ex Rovers players to choose from if Kaisers Rovers use their new wealth to buy new galacticos.
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