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Posts Tagged ‘Liverpool’

Footie: Did you know?

In Uncategorized on 02/05/2010 at 5:36 am

Political divisions in Lebanon are  so deep and tensions are so high that football fans are not allowed to attend matches.The authorities fear that clashes between supporters of opposing teams could spill onto the streets and soon escalate into armed warfare.

Goldman Sachs, an investment bank, was considering buying ‘Pol.

That they developed a business model – however sketchy and premature Goldman Sachs would like us to think it was – based on the development of Liverpool’s new stadium should give hope to the club’s long-suffering supporters

..  it is revealing that a deal put together by a bank of that stature – and after so many failed attempts to resolve the financial problems at the club – still fell down because the price Hicks and Gillett were asking was too high.

‘Pol: Lingering death?

In Uncategorized on 17/04/2010 at 4:12 am

One was the worse kept footie secrets is out.  The present owners want out of  ‘Pol after saddling it with massive debts, not winning the EPL, and now playing for the foreseeable future in the Europa League, Europe’s second tier competition. Article. Pls read the bit in bold below on the chances of a sale.

Goldman Sachs, an investment bank, was considering buying ‘Pol.

That they developed a business model – however sketchy and premature Goldman Sachs would like us to think it was – based on the development of Liverpool’s new stadium should give hope to the club’s long-suffering supporters

..  it is revealing that a deal put together by a bank of that stature – and after so many failed attempts to resolve the financial problems at the club – still fell down because the price Hicks and Gillett were asking was too high.

Small- hearted Evertonians will be pleased that No Europe for Everton is coupled with ‘Pol playing in Europa League next season and ownership instability.

Red’s the colour, the future’s bright — bright red ink

In Uncategorized on 17/01/2010 at 6:14 am

The financial consequences of losing to Reading

Winning FA Cup run could have been worth £8m, ask Everton. Investors will also be put off by damage to club’s image.

And if Reds don’t qualify for Champs League: “Given the current distribution in English football, the £30m, £40m, £50m you get from the Champions League is the key differentiator. Getting to the semi-final is worth £46m to £47m. Add in a few other factors like the increase in brand value, and it’s more profitable than winning the League.”

Liverpool: another Everton. A club with only a proud tradition; no money and no trophies. Could be worse.

Could be another Leeds.

Drawing with Stoke doesn’t help.

To whom do directors owe their duties to?

In Corporate governance on 22/12/2009 at 10:48 am

As lawyers who are fans of MU should know,when MU (when it was a listed company) became the target of a highly leveraged buy-out offer by the Glazers, the directors sought legal advice on their duties towards shareholders and MU.

They were advised that directors owe a duty to the company and not its individual shareholders. In many instances, the distinction is not significant, since what is good for the corporation will also benefit its shareholders. Maximising the return to shareholders (or creating “shareholder value”), in many cases, does not conflict with the interests of the company.

But there may be situations where the interests of the company and shareholders may conflict.

The interests of shareholders may lie in realizing a short-term gain on their investment, something which the directors may decide is not the in the interest of the company in the long term. For example, the debts that MU incurred in going private, might have prevented the club from buying the players MU needed to win trophies. It didn’t happen at MU; despite its debts MU has the wagga (dosh) to buy players. But the example of Liverpool FC shows that this fear was reasonable and legitimate.

The interests of majority shareholders may not also be the same as the interests of the company. Controlling shareholders may want the corporation to take certain action that may be in its interest, but not necessarily in the best interests of the corporation. Hedge funds, with a controlling stake, may want the company to pay a high dividend because they (the controlling shareholders) want to maximise the returns to their investors. But the company may need the cash to expand its production lines.

The correct answers to these kinds of issues depend very much on the facts of each situation: something the independent directors of Sin0-Environment are finding out the hard way.

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