A financial idea

[Mirallas]

Hello lads,

 

I was thinking about the transfer of new players and how we're not able to finance them sometimes. So suddenly a financial construction popped in my mind. I'll explain it through an example:

 

What if Everton F.C. were to publically release shares with a total value of, say, 3 million pounds. With that money raised, we buy Junior Malanda. The shares don't represent any ownership of Everton, but purely in an incorporation constructed around the purchase of Malanda. After three years, EFC then sells Malanda to Tottenham for 7 million pounds. Then 6 million are to be divided over the shares, meaning a double return on investment after merely 3 years. 1 million stays with Everton as a sort of middle-man fee. Off course, if he turns out to suck and we can only transfer him for a fee of 2 million, leaving, say, 1.5 for the investors, you'll see your return on investment (ROI) halved.

 

It's a risky investment, but in case of some players it looks pretty logical that the ROI will be higher than the initial investment (like eg Malanda). The reason why you won't just let Everton finance it and let them have the full revenues from selling the players on, is because this construction counts for a team who literally don't have the money to finance the purchase of players and who can't get cheap loans like Everton.

 

Another advantage is that the player attracted with this structure will be young, promising players, because you'll want a high ROI. So you'll cause a rejuvenation of the squad.

 

Would you like the thought of personally buying a player for your team?

 

What are your thoughts on this?

Edited January 4, 2013 by Mirallas

[Mirallas]

Hello, thinking Evertonians, wake up!

[Avinalaff]

Be like a postage stamp. Stick to one thing until you get there.

[Mirallas]

Be like a postage stamp. Stick to one thing until you get there.

 

Thank you, Avin I'll remember that.

[Avinalaff]

You're welcome.

[Hafnia]

Maybe thats what the people on the board sitting on their millions could do (given that none have invested a single penny other than their shares)... the administration and running of such a venture would be ridiculous.

 

Nice idea.... next

[Mirallas]

Maybe thats what the people on the board sitting on their millions could do (given that none have invested a single penny other than their shares)... the administration and running of such a venture would be ridiculous.

 

Nice idea.... next

 

In that case, Everton should force a capital raise.

[Sideliner]

Mirallas - although you are not always poular - i must say i enjoy your total honesty and determination despite some harsh criticism -

there is something about your plan which might work -

my twitch would be that a fanclub must be established to raise funds to assist the club in purhasing YOUNG talent and to share in the spoils of an eventual sale thereby creating value for both club and fanclub -

some formal agreement needs to be drawn up to structure the venture -

the fanclub appoints trustees to do the admin - no burden on the club -

100 000 fans contributing 30 pounds per share per annum gives you 3mil pounds to work with - the rich fans can buy more shares if they want to -

you are certainly thinking out of the box - but somehow i like it -

i would love to feel like a shareholder in a super striker - same as being a shareholder in a super racehorse (where this already happens )

[Mirallas]

Mirallas - although you are not always poular - i must say i enjoy your total honesty and determination despite some harsh criticism -

there is something about your plan which might work -

my twitch would be that a fanclub must be established to raise funds to assist the club in purhasing YOUNG talent and to share in the spoils of an eventual sale thereby creating value for both club and fanclub -

some formal agreement needs to be drawn up to structure the venture -

the fanclub appoints trustees to do the admin - no burden on the club -

100 000 fans contributing 30 pounds per share per annum gives you 3mil pounds to work with - the rich fans can buy more shares if they want to -

you are certainly thinking out of the box - but somehow i like it -

i would love to feel like a shareholder in a super striker - same as being a shareholder in a super racehorse (where this already happens )

 

Yeah, though you could reason that it'd be hard to sell 100.000 shares, you could also sell it to financial institutions who incorporate it into an equity portfolio. It can seriously raise the sales of shares, but then I think you might cross the boundaries of the law.

[Avinalaff]

Where the heck are you going to get 100,000 fans to cough up 30 quid every year?

[Mirallas]

Where the heck are you going to get 100,000 fans to cough up 30 quid every year?

 

not every year, it's just for one project (at a time) and a fan is free to buy as many shares as he/she wants. I could see people buy 100 shares.

Edited January 4, 2013 by Mirallas

[Avinalaff]

Mirallas, how old are you mate? I ask in a very genuine and sincere way.

[rubecula]

Not sure Bill Kenwright himself would buy 100 shares that way. Interesting idea though, to sell shares.

[Sideliner]

the supporters of Mansfield (who narrowly lost to Liverpool after after another Suarez cheating handball goal )have already implemented your plan Mirallas - they collected money and bought a player or two for the club - so your plan is certainly not far fetched or impractical

[Avinalaff]

They have 100,000 paying supporters?

[Mirallas]

They have 100,000 paying supporters?

 

Let's suppose Mansfeld players are significantly cheaper than Everton players.

[Mogsy]

What happens if the player has a career ending injury, you won't get anything back

[Ian C]

What happens if the player has a career ending injury, you won't get anything back

 

Players are already insured for both their own and the club's sake in that regard.

[Avinalaff]

So tough shits for the syndicate ha ha.

[Mirallas]

so... Shall I make an appointment with the board then?