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Who is going to vouch for the honesty and integrity of this group or the individuals wanting to invest...?
Is anyone barred from investing, or should they be...?
Just asking.
Question for you about Together Leeds..
posted on 31/1/15
Clocky - I haven't said its a scam but I do have serious reservations. I work in Financial Services. It's an over regulated industry which often flies in the face of doing business when you consider the red tape and hoops you have to jump through.
However, it's done for a reason, to protect the public. Avoiding the regulatory route avoids cost but lays the scheme open to abuse, intended or otherwise. The framework is there to ensure that you have a plan and that it stands up to scrutiny.
I've no doubt that there's a plan but who's executing it and who's testing it? Together Leeds was initially looking to take control of a Leeds United but couldn't raise the cash. Leeds United fans are about the most loyal set of supporters in the country and the idea of them funding a shareholding isn't a new concept by any stretch of the imagination. A few of us on here mooted the idea just a few years ago.
Put the two together and there's a semblance of of a solution. Someone earlier said you could vet each individual. You can but there's a cost for doing that. We run a variety of checks on our customers to ensure that they have the means to pay, that cost can run from £3 to £20 a time. Then when starting a new business there's a cost for the necessary registrations and compliance/regulation.
Imagine collecting a million pounds in notes. Would you stick it on a table outside and expect it to be there 24 hours' later? The elements would send it in different directions. The only way to protect it would be to stick it in a box. That's what regulation does. It protects your money.
£10 million invested won't realise £10 million for Leeds United. GFH has a notional value on its investment. I guarantee their 25% won't be any less than £10 million but probably higher, they are quite mercenary and will expect to make up for lost fees and interest as a result of Cellino's recent restructure.
Who said Cellino wants a new partner or another partner? I suspect he wants full control.
However, for the purpose of this exercise we'll assume he's not bothered and the status quo remains. Creating a vehicle for investment with the right structure in place, regulation and compliance-related costs too, to meet GFH's expectations you'd need a minimum £20 million. How are the officers going to be remunerated? They'll need rewarding for their time and ensuring that they remain compliant. On-costs. Or are we expecting Leeds United to fund it?
Let's assume we've done all of this and we're sitting pretty with 25%. Cellino wants to buy the ground and TA. He decides to raise £20m to do this. TL has 25% liability now! that would mean raising £5m or servicing the borrowing. Where's that coming from? It's fine saying your £100/£1000 is as much as you need to put in but if you don't contribute more when more is required your "investment" starts to erode.
What if you personally don't feel TA and ER is a worthwhile pursuit but the rest do? Will you really be able to withdraw your money in full after the initial and then running costs? I doubt it.
This would only work if you bought 100% of the club with significant additional investment to take the club forward.
posted on 31/1/15
Mike additional finance does not have to come from the stakeholders
For the purchase of the ground say an outside loan could be agreed with financial institutes or wealthier supporters. This would be paid off with the savings on the lease
Its always great to know the worst possible scenario. But does it stop the dream happening
posted on 31/1/15
LeedsLuvr
He's not got an original thought in his head mate. He's coming from the 'Wet Lettuce' standpoint of anyone who questions their view is a Cellino lover, anyone who poses a question is in some way actually asking something totally different.
Both questions I posed are 'open questions' they are there to elicit a response about the subject in the question.
Sadly this buffoon and his cohorts in their deluded little minds feel anyone that does that questions their beliefs and is against their misery spreading agenda.
I'll not lose sleep over his views.
posted on 31/1/15
Stevie Dee
You are in a position within financial services, some of these chaps think that by being on a cash register in a corner shop indicates that they are too.
You are faced with a bunch of Granville's...!
posted on 31/1/15
Sorry Clocky it just doesn't stack up.
posted on 31/1/15
Clocky
Are you a shelf stacker...?
posted on 31/1/15
Stevie Dee
The extra finance will probably come out of the mist, a bit like the Knights in shining armour that are the faceless, nameless entities swirling about in the heads of the great sage and his munchkins who are destined to ride to our club's aid...!
I find it strange that all these folk think everything will just fall into our laps and that all will be sorted in an hour or two.
Massimo Cellino, love him or hate him, has a hard job and knows it, which is why he's given a timescale of a couple of years. He realises it won't happen over night.
At least we've been consistent
posted on 31/1/15
Eric luvr your views are consistently bad
Things aren't falling into our lap that's why we want a share
Maybe you are right and we should not get a share. if other fans have the grasp of finance demonstrated here it could be a bad idea
Meanwhile the revolution continues
posted on 31/1/15
Maybe you are right and we should not get a share.
Clocky dear, what you do with your money is up to you. I don't recall saying anywhere that you shouldn't put your money in. I am more than happy for you to put your money in
I don't care what you think of my views, I find yours fascinating enough for us all to be entertained as it is.
Your idea of a revolution is an interesting slant Perhaps you could enlighten us as to when it starts, we can all buy a seat and watch with interest.
posted on 31/1/15
I'm glad you realise I'm right
Good lad