Overseas Investor

[Muppet]

Saw this in the Sydney Morning Herald. Is the state of finances at the club really that bad. I for one would welcome this sort of investment. Thoughts anyone?

http://www.smh.com.au/sport/a-league/ffa-accused-of-lacking-respect-for-investors-20110316-1bxdi.html

FFA accused of lacking respect for investors
Sebastian Hassett
March 17, 2011

FOOTBALL Federation Australia's caution in considering two potential bids for A-League clubs from wealthy foreign owners is symptomatic of its inability to engage with the Asian region, says the man who found the investors.

Consultant Tony Rallis says Australian football is attracting genuine interest from the Middle East and south-eastern Asia but the FFA is dithering over whether it is legitimate.

That is disrespectful, according to Rallis, who says he had Saudi royal Prince Faisal bin Turki bin Nasser, a football fanatic, interested in a controlling stake in Brisbane Roar, while Indonesian billionaire Aburizal Bakrie is keen to buy the Central Coast Mariners.
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However, the negotiations have been delayed by the FFA, and Rallis says he is flabbergasted at how the governing body has not accommodated what he believes would mark a flurry of foreign dollars into the game.

''The FFA needs to start showing some respect when people of this magnitude are interested in getting involved in the game,'' he said. ''And I'm not going to embarrass myself, either. These are very serious football people who I've spoken to about Australia and they have no doubt that this is a market they want to break into. They see the potential here that doesn't exist in other places.

''But if the FFA continues to act in this manner, they risk losing not only these two, but the rest of the Asian investors who would then come rushing in. Think about how many players went overseas in the last transfer window. By my count, 12 of 14 went to Asia. They're our new trading partners in football and it's where our focus has to be …

''We shouldn't be scared of Asia. It's where our football future lies, and once we demonstrate a willingness to work with them, and that we are patient enough to learn how they do business, we'll reap the rewards.''

While the FFA believes the Roar are a premium A-League club capable of attracting a big-name and big-spending investor, it is concerned about the situation unfolding on the Central Coast. The Mariners' financial situation is perilous and they require an immediate injection of $500,000 to stay afloat.

That situation could be alleviated straight away if Bakrie was to assume ownership of the club, a prospect he will consider when he inspects the properties owned by the club, including the soon-to-be completed Centre of Excellence.

''The Bakrie family owns 20 per cent of Leicester City, a Belgian club, Indonesian club Pelita Jaya … and they have some very good reasons for wanting to get involved with the Mariners,'' Rallis said. ''They'll be out here soon to have a look around before the end of the month. I'm still hopeful that deal can proceed.''

However, his enthusiasm for getting a deal done with Brisbane is waning. Club consultant Michael Bowers has requested direct dialogue with the Saudi prince, who is chairman of regional powerhouse Al-Nassr, a club he effectively underwrites for $35 million each year.

''[Direct contact] is almost impossible for a range of reasons, but the fact is that I have a letter from Prince Faisal expressing a genuine interest,'' Rallis said. ''Brisbane is a club he likes because they a genuine football club with big potential. Melbourne Heart and a future western Sydney club also appeal to him. The Arabs are in tune with what makes a football club.''

FFA chief executive Ben Buckley said he would look into the potential investors further if he could speak to them in person.

''Any party who has the right motivation and the financial resources to invest in the A-League is welcome to let us know of their interest and we'd be crazy not to explore those interests,'' Buckley said. ''And if the motivations are right, we'd pursue them in a more formal manner. In recent days I have made contact with one of the overseas parties referenced and I'm in the process of making contact with the other.

''I know plenty of people associated with both parties through the work I do on various AFC committees, so our first port of call is to make direct contact ourselves to gauge their interest. Then we'd have to make sure they'd want to maintain the local identities of the clubs and keep local people involved.''

 

[scottmac]

Investment would be great (The Bakries have pumped an estimated US$110 Mill into sport since the mid 80's) but would we stay the club we are now.

This family is sports mad. They love it. Everything from badminton to horse riding, volleyball and soccer. You name it they've pumped money into it. I also wonder what effect any investment would have on our relationship (can you even call it that, I saw on youtube one SUFC fan saying that they owned us! Ha!) with Sheffield.

My concern is loosing the club that is currently the Mariners.

 

[Muppet]

Investment would be great (The Bakries have pumped an estimated US$110 Mill into sport since the mid 80's) but would we stay the club we are now.

This family is sports mad. They love it. Everything from badminton to horse riding, volleyball and soccer. You name it they've pumped money into it. I also wonder what effect any investment would have on our relationship (can you even call it that, I saw on youtube one SUFC fan saying that they owned us! Ha!) with Sheffield.

My concern is loosing the club that is currently the Mariners.

TBH I would not care where the money came from. If it meant we were viable so be it. I dont necessarily think that it would change the culture of the place. I wonder if once the CoE is up and running whether that will alleviate the issues considering it is meant to bring in an alternative source of revenue.

 

[Atomic]

I agree with your last statement there Scottmac. The thing about being 500K in debt is that in order to survive, the club needs to be involved with the community. This is one of the reasons we love them so much. Personally, I think of the Mariners as my club and that they have an interest in my well being (yeah, I know, I'm too sentimental). Nonetheless, the Mariners ignore the community at their own peril.

If cash wasn't so much of a problem then perhaps the attitude of the club might change. They might become aloof, arrogant, or whatever. That would be a shame, although it would be nice to start throwing some serious coin at a couple of new recruits, as well as our tried and true players.

My current feelings are... lets get this investor involved. Hopefully the fans can keep the attitude of the players and staff in tact.

 

[MagpieMariner]

If it is true that the Mariners are in financial trouble, then we have 2 options as I see it:
1. The club is bought by cashed-up overseas interests, and we run the risk of losing the club as we know it but at least the club survives in some form and could be even better on the field than it is now;
2. The club is not sold and there's no financial injection, and we run the risk of losing the club as we know it, the club folds and all we have is the CC Bears.

I know my preference.

 

[Bladesman]

I am sure that McCabe would jump at the chance to offload his stake in the Mariners as he is trying to offload Sheffield United. He might even throw in United as a sweetner given their current position .

 

[scottmac]

I am sure that McCabe would jump at the chance to offload his stake in the Mariners as he is trying to offload Sheffield United. He might even throw in United as a sweetner given their current position .

Does anyone even know what his stake in the mariners is? No-one has been able to define it more than a position on the board and an idea that is the COE. Has his dollars hit the account at any time? Is his equity being used to access the loan? It's just not clear as far as I know.

Please someone enlighten me ???

 

[adz]

Does anyone even know what his stake in the mariners is? No-one has been able to define it more than a position on the board and an idea that is the COE. Has his dollars hit the account at any time? Is his equity being used to access the loan? It's just not clear as far as I know.

Please someone enlighten me ???

Haven't heard a lot but last thing I think he was hit pretty badly by GFC as he has a lot of money tied up in property. However many $bazillion dollars they were saying he is worth was a bit misleading because it's not cash, it's mostly in physical assets.

Interesting reading about the Asian investor interest. I was just thinking the other day when they were saying how expensive it is to get into Asia (the ACL), what the go is there. One of the big selling points is for Aussie companies to get their name into Asia through club sponsorship, and that was expected to bring in big $$$ but to my knowledge hasn't really achieved that. It will be interesting if Asia wants to invest in our clubs.

 

[Marquee]

It's sad that we are struggling so much, even after a very successful season. It's intersting to note that Bakrie owns Pelita Jaya, the club that Doig and Hearfield are at. I'm not sure how much you can read into that but I think we need this investment. There are murmurs that the club struggled to pay the wages a few weeks ago.

Just out of interest for those who are in the know about player wages, was the club better off losing the GF and not having to pay full bonuses to the players/staff or winning, collecting whatever prize money(?) and paying full GF bonuses?

 

[Muppet]

It is a sad predicament. I think that reading into the article the FFA is to blame for this. Poor business decisions ala Gold Coast and Nth Qld over a Western Sydney, ACT or Wollongong team.

One is the requirement to spend at least 80% of the salary cap. This needs to be lowered to avoid all the clubs bleeding.

The second is not allowing or moving too slowly to allow foreign investment. I don't know what the issue is other than there is a due diligence issue with the foreign bids (corruption, money laundering issues). If I am correct the FFA would have to abide by the "know your customer" rules which apply typically apply to these sorts of deals. If there is a whiff of bad money the deal is stopped dead.

If this is not the issue the FFA should be opening the doors and welcoming them with open arms.

 

[scoober]

I think this is great news on the potential investor. the club has been struggling a long time and with Arnie getting what he wanted with player recruitment this season put a much bigger strain on the budget.

The person that signs off on the cheques doesnt change the culture that a club has developed. we will always be a working class club because thats what its members and supporters are.

Scum are still scum, just because one man has $100 bills falling out his pocket doesnt mean the fans start to roll in the money, but only have higher expectation of success due to the tinks dollars being put in.

They are not flying an American flag outside Anfield due to the new owners and the slow turnaround of the clubs fortunes nor outside old trafford where winning has been the mentality of players and fans for two decade or so.

The fans are the club, without them there is no club

 

[elevated position]

Amini goes and trials/trains with CCM blessing(and hoping he impresses) so how much would he be worth?

 

[universalmind]

I'm not sure whats a worse feeling, losing the GF or the thought of the club folding. If it were to eventuate i'd have a massive chip on my shoulder. I'd never go to another a-league game again (well at least for some time anyway).

 

[universalmind]

The fans are the club, without them there is no club

There lies our problem. The fans that do turn up are great, however they are too few.

 

[Roy Law]

I welcome investmemt but not giving controlling interest; I would not sell the soul of this beautiful club for a problem of only $500,000.

 

[Jerem]

how hard would it be to make community ownership?
we have a consistent base of 5-6 maybe 7000 each home match
give the members then crowd an opportunity to make it so?
like fury but actually achieve it!

 

[kevrenor]

how hard would it be to make community ownership?
we have a consistent base of 5-6 maybe 7000 each home match
give the members then crowd an opportunity to make it so?
like fury but actually achieve it!

Somewhere between 1,500 and 2,000 fans went to Brisbane, spending perhaps $250-$700 per head.

Surely there is scope for some community equity ... at least the $500K bit?

 

[adz]

On the community ownership thing, I assume it would cost a bit to get in - what would you want for your money? What was NQLD offering?

 

[pjennings]

Somewhere between 1,500 and 2,000 fans went to Brisbane, spending perhaps $250-$700 per head.

Surely there is scope for some community equity ... at least the $500K bit?

I suspect this story is a bit of a beat up. It seems to be a cashflow problem after a poor season in terms of crowds and with stage payments coming up for the COE. This is quite different from a lack of equity.

I'd be happy if community equity was offered - but it won't cover a short term cashflow problem.

Now we are qualified for Asia a football friendly Asian Sponsor is really what is needed like Sony, Samsung or LG. Or conversely an Australian company like Harvey Norman looking to increase their profile in Asia.

 

[MagpieMariner]

I'm not sure whats a worse feeling, losing the GF or the thought of the club folding. If it were to eventuate i'd have a massive chip on my shoulder. I'd never go to another a-league game again (well at least for some time anyway).

Without the Mariners, I wouldn't go to an A-League match ever. The Mariners are the reason I follow football. The Mariners go, I don't have a sport to follow in the summer. I'll just be a Magpie in the winter.