Thames Sports Investment

[Ian Royal]

Say the club is given being given 10 million to spend now, would you expect the club to go out and spend all that money on player fee's. Not worrying about the additional wages, confident that there is some protection coming in the summer for that.

Or would you hope that they spend 4 million on player fee's and use the rest to budget for their wages.

Discuss.

(2 pages minimum 10 words per post.)

Max £3m on transfers, probably less. Won't significantly break the wage ceiling so maybe a total loan / gift of £5m - £6m. Effective if used wisely, but limited. Seems to fit the bill.

[Jobbo no.11]

"In the mad man we trust"

[ZacNaloen]

We need some banners to hang from the upper west now we are a big club

[mr_number]

I think that's reading a lot between the lines. SJM's too careful with words to say something that sounds like a promise we will get promoted; he's just trying to temper expectations but make it clear that the ambition is to get into the Premier League. I'm fairly shocked that people would already talk about getting rid of Brian - he has been absolutely superb so far, and aside from losing one rather large game, can't be faulted.

Also, re SJM not having any power as chairman: people do realise that the chairmen of most companies don't actually own the whole company?

But equally are extremely likely to be fired if the majority of the shareholders turn against them! If TSI get 51% of the total shareholding they will be that majority.

Not sure where the 75% of shares to control a club come from as 51% is a majority in any democracy. It might be that 75% is the point when the holder can compulsorarily buy all other shares?

Yep, not sure where people have got it from that you need more than 50% + 1 vote to control a company. Majority vote wins, obviously. The only thing similar I can think of is, as you say, the point where you own enough shares to be able to force the sale of all others.

[soggy biscuit]

We need some banners to hang from the upper west now we are a big club

I really do hope there are Russian flags at the next game, just for the Lolz

[No Hoops]

We need some banners to hang from the upper west now we are a big club

Signorama making

WE ARE CONSIDERABLY RICHER THAN YOU

up for me at this moment

[NR_Royal]

I have one question.

Why are they willing to spend money this month despite the fact that they haven't officially taken over the club yet? What if the deal collapses and they've paid out £2-3m already?

oxf*rd, that's two questions.

[PlasticRoyale]

50 pages without breaking a sweat, TBM. But you might have to work harder for the next 50, what with the threat of breakaway threads.

Good work TBM but there should be some kind or Rule 4/Duck Lewis adjustment for it being on the Team Board mind

[ZacNaloen]

We need some banners to hang from the upper west now we are a big club

Signorama making

WE ARE CONSIDERABLY RICHER THAN YOU

up for me at this moment

Nah not that, cos we probably aren't. Unless the other investors are immensely wealthy.

[Bandini]

I have one question.

Why are they willing to spend money this month despite the fact that they haven't officially taken over the club yet? What if the deal collapses and they've paid out £2-3m already?

oxf*rd, that's two questions.

I *imagine* that the situation is as follows:

1. They have agreed to buy JM's shares and to invest £x based on what JM has told them about the company/business.
2. The agreement is subject to them verifying that, and that's what they're doing.
3. If there is a significant difference between what JM's told them and the value of the company, they may well be able to get back their money from JM.

[Royal Lady]

I have one question.

Why are they willing to spend money this month despite the fact that they haven't officially taken over the club yet? What if the deal collapses and they've paid out £2-3m already?

oxf*rd, that's two questions.

I presume because they're pretty sure that due diligence etc will prove ok.

What I just don't understand is, why would you buy the majority shareholding in a company and pump money into it - with no cast iron guarantee you're going to make your money back very quickly - AND not put your own man in charge? What really is in it for them? I'm not trying to be downcast about this - just truly don't understand why. Even if we went up to the Prem, yes we'd get more bums on seats, parachute payments etc, but equally we have to spend more on wages, players to keep us there etc etc - so what really is in it for them?

[mr_number]

I have one question.

Why are they willing to spend money this month despite the fact that they haven't officially taken over the club yet? What if the deal collapses and they've paid out £2-3m already?

oxf*rd, that's two questions.

I presume because they're pretty sure that due diligence etc will prove ok.

What I just don't understand is, why would you buy the majority shareholding in a company and pump money into it - with no cast iron guarantee you're going to make your money back very quickly - AND not put your own man in charge? What really is in it for them? I'm not trying to be downcast about this - just truly don't understand why. Even if we went up to the Prem, yes we'd get more bums on seats, parachute payments etc, but equally we have to spend more on wages, players to keep us there etc etc - so what really is in it for them?

I'm guessing they have some idea that trying to completely replace all the existing staff of the club might cause some issues - either in terms of results (on and off pitch) and relationship with the fans. Also, one of the reasons they have invested is presumably because they thought it was a fairly well run club, so it makes sense to keep them on.

[Wycombe Royal]

so what really is in it for them?

You could say about nearly every takeover of a football club in this country.

[roadrunner]

I have one question.

Why are they willing to spend money this month despite the fact that they haven't officially taken over the club yet? What if the deal collapses and they've paid out £2-3m already?

oxf*rd, that's two questions.

I *imagine* that the situation is as follows:

1. They have agreed to buy JM's shares and to invest £x based on what JM has told them about the company/business.
2. The agreement is subject to them verifying that, and that's what they're doing.
3. If there is a significant difference between what JM's told them and the value of the company, they may well be able to get back their money from JM.

When you look at the people the FA repeatedly let buy Portsmouth I think it's safe to say TSI will fly through the process.

[Bandini]

You're talking about something completely different, Jay.

[ZacNaloen]

A) they want the fans to like them
B) if the reason you are investing is because you think the club is well run... why would you change the management of that well run club?

What's in it for them is that Anton gets to say he owns a significant share in a premier league club (hopefully) and perhaps even a club playing in Europe?

The guy is 29, and like most entrepreneurs probably has a massive ego to stroke. And he recognises the profile that comes with it, Would Madejski be a Knight if it wasn't for reading fc putting him on the map?

As Mr Mad said once owning a football club is more like a hobby than running a business. But you'd still try and be responsible with it, I doubt they'd want to lose that hobby to bad practise.

[Gordons Cumming]

Haven't read all that but will we be called Readski now?

[Platypuss]

Haven't read all that but will we be called Readski now?

The unfunny name change thread is down there \/

[Royal Rother]

What I just don't understand is, why would you buy the majority shareholding in a company and pump money into it - with no cast iron guarantee you're going to make your money back very quickly - AND not put your own man in charge? What really is in it for them?

they will respect how the club is run, they will respect the views of the people at the football club and really they're only here to improve their relationship with this country and the prestige. They recognise Reading as being an incredibly well-run club and they see it as an opportunity for them in a way to go forward and something that they can get something from and we can get something from.

[Bandini]

Do you take that at face value, Rother?