What is the point of 49ers Enterprises?

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SG90
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Re: What is the point of 49ers Enterprises?

Post by SG90 »

Cjay wrote: ↑Tue Oct 25, 2022 9:49 pm They took a relatively small risk for the potential of a much larger return if the club was promoted.

That is what venture capital funds do.

Now we are promoted they will likely double there investment if they sell there share, job done.

You didn't answer how they can possibly hope to make a significant profit if they complete the rest of there £400mil takeover?

Where is the return?
Make the club a strong commercial success in the PL and the price shoots up.
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Irish Ian
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Re: What is the point of 49ers Enterprises?

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Two ways it will work.

1.
Exercise the option in 2024 and develop us to our potential. Then flip us like ACMilan was. (They hope to take possession of a stable Prem club with no debts)

2. Along with Radz flip us to another investor sooner. Though that is possible the profits would be under £150M and may not be worth the bother.



Only way they can make money.
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Re: What is the point of 49ers Enterprises?

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SG90 wrote: ↑Tue Oct 25, 2022 10:29 pm Make the club a strong commercial success in the PL and the price shoots up.
Not without the corresponding on field success it won't.
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Re: What is the point of 49ers Enterprises?

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Irish Ian wrote: ↑Tue Oct 25, 2022 10:39 pm Two ways it will work.

1.
Exercise the option in 2024 and develop us to our potential. Then flip us like ACMilan was. (They hope to take possession of a stable Prem club with no debts)

2. Along with Radz flip us to another investor sooner. Though that is possible the profits would be under £150M and may not be worth the bother.



Only way they can make money.
1) Massive risk though trying to develop us in a League full of billionaires when most Venture Capital funds want an exit strategy by year 5 (2024 is already year 6)

2) Seems the most likely but as you say, would the profit satisfy both parties?

Say they found someone willing to offer £500mil (even that is probably ambitious given we don't have a state of the art training ground or Stadium as an asset)

But that would give what, Radz bought us for £45mil, think the total investment from both parties is in the £100-150m range at best including purchasing the initial stake fkr Radz.

Pretty decent profit you'd think? £somewhere in the £300-350mil range split between them is what somewhere in the £130mil 49ers to £170mil Radz lower end estimates.

Not bad
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Re: What is the point of 49ers Enterprises?

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The Times carrying a story tonight suggesting they are ready to complete the takeover
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Re: What is the point of 49ers Enterprises?

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Absolutely nothing positive about this.

Banking sources makes me nervous.

Loans to buy the club? Very possible given most of these have done even Liverpool.

Has disaster written all over it

Worrying that the journalist has close links to Radz :(
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Re: What is the point of 49ers Enterprises?

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Cjay wrote: ↑Wed Nov 09, 2022 7:43 pm
Absolutely nothing positive about this.

Banking sources makes me nervous.

Loans to buy the club? Very possible given most of these have done even Liverpool.

Has disaster written all over it

Worrying that the journalist has close links to Radz :(
You have already accepted that Radz has had taken Leeds as far as he can, so a change is timely.

As for the 49ers, I see this as a chance to extend their brand into England.
Some see the early moves to tie up some sort of linking of the NFL and EFL brands.

I also read there that the actual valuation of Leeds will not be agreed until the end of this season. The difference could be as much as £100M

I am pretty zen about the whole thing
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Re: What is the point of 49ers Enterprises?

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Irish Ian wrote: ↑Wed Nov 09, 2022 9:57 pm You have already accepted that Radz has had taken Leeds as far as he can, so a change is timely.

As for the 49ers, I see this as a chance to extend their brand into England.
Some see the early moves to tie up some sort of linking of the NFL and EFL brands.

I also read there that the actual valuation of Leeds will not be agreed until the end of this season. The difference could be as much as £100M

I am pretty zen about the whole thing
Refuse to believe a venture capital fund clearly using loans is the best we can manage.

We simply don't have the revenue streams to make the model they will almost certainly follow sustain in the Premier League.

It condemns us to being where we are now for the foreseeable imo.
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Re: What is the point of 49ers Enterprises?

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Irish Ian wrote: ↑Wed Nov 09, 2022 9:57 pm You have already accepted that Radz has had taken Leeds as far as he can, so a change is timely.

As for the 49ers, I see this as a chance to extend their brand into England.
Some see the early moves to tie up some sort of linking of the NFL and EFL brands.

I also read there that the actual valuation of Leeds will not be agreed until the end of this season. The difference could be as much as £100M

I am pretty zen about the whole thing
Incase we are relegated Ian.
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Re: What is the point of 49ers Enterprises?

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mentalcase wrote: ↑Wed Nov 09, 2022 10:16 pm Incase we are relegated Ian.
Makes sense.

So it's in Radz interest to strengthen in Jan?
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Re: What is the point of 49ers Enterprises?

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Bring it on I say. 8-)

This just proves Radz was unwilling to put his hand in his pocket in January and the 49ers have had enough.
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Re: What is the point of 49ers Enterprises?

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Irish Ian wrote: ↑Wed Nov 09, 2022 10:18 pm Makes sense.

So it's in Radz interest to strengthen in Jan?
You would assume so, if only by 2 more players, CF & LB would be great.
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Re: What is the point of 49ers Enterprises?

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Cjay wrote: ↑Wed Nov 09, 2022 10:07 pm Refuse to believe a venture capital fund clearly using loans is the best we can manage.

We simply don't have the revenue streams to make the model they will almost certainly follow sustain in the Premier League.

It condemns us to being where we are now for the foreseeable imo.
Business always borrow money to invest.
Nowt new or to worry about in that.

Also they will be imo far better placed to capitalise on potential revenue streams than at present.

Tbf unless we attracted some sportwashing enterprise spending power will always be behind top level.
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Re: What is the point of 49ers Enterprises?

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Irish Ian wrote: ↑Wed Nov 09, 2022 10:22 pm Business always borrow money to invest.
Nowt new or to worry about in that.

Also they will be imo far better placed to capitalise on potential revenue streams than at present.

Tbf unless we attracted some sportwashing enterprise spending power will always be behind top level.
Cjay wants sportswashing though :lol:
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Re: What is the point of 49ers Enterprises?

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Irish Ian wrote: ↑Wed Nov 09, 2022 10:22 pm Business always borrow money to invest.
Nowt new or to worry about in that.

Also they will be imo far better placed to capitalise on potential revenue streams than at present.

Tbf unless we attracted some sportwashing enterprise spending power will always be behind top level.
Ask Burnley fans or Liverpool fans (Hicks and Gillett) or Manure fans how they feel about the American takeovers using loaned money.

Unless they attract significant revenue increases and I do mean significant then this won't work or atleast it won't see much on field improvement if any.

Arsenal, Liverpool and now Chelsea, they have the revenue streams built up over decades to sustain the sort of takeover we look like getting.

Let's be honest the 49ers Venture Capital fund isn't going to invest significant capital into the club, they don't work like that, they will look to improve revenue streams whilst using our sales to fund us (exactly as John H Henry did at Liverpool)

The only difference between them and Radz is they may be able to attract bigger sponsorship.

In terms of owner funding we won't be any better off and we could (emphasise could) have debts of significant amounts that the club be expected to service.

I know I come across as negative :)

But I have done my research and this type of takeover rarely ever goes well in the Premier League.

It certainly isn't going to catapult us up the table in the near future.
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Re: What is the point of 49ers Enterprises?

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SG90 wrote: ↑Wed Nov 09, 2022 10:31 pm Cjay wants sportswashing though :lol:
Cjay doesn't want debt funded takeovers by a bunch of faceless investors to generate money for a NFL franchise.

I can name a lot more takeovers like this that have gone wrong than you can that haven't.
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Re: What is the point of 49ers Enterprises?

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Cjay wrote: ↑Wed Nov 09, 2022 10:37 pm Ask Burnley fans or Liverpool fans (Hicks and Gillett) or Manure fans how they feel about the American takeovers using loaned money.

Unless they attract significant revenue increases and I do mean significant then this won't work or atleast it won't see much on field improvement if any.

Arsenal, Liverpool and now Chelsea, they have the revenue streams built up over decades to sustain the sort of takeover we look like getting.

Let's be honest the 49ers Venture Capital fund isn't going to invest significant capital into the club, they don't work like that, they will look to improve revenue streams whilst using our sales to fund us (exactly as John H Henry did at Liverpool)

The only difference between them and Radz is they may be able to attract bigger sponsorship.

In terms of owner funding we won't be any better off and we could (emphasise could) have debts of significant amounts that the club be expected to service.

I know I come across as negative :)

But I have done my research and this type of takeover rarely ever goes well in the Premier League.

It certainly isn't going to catapult us up the table in the near future.
Liverpool fans are ungrateful though. They've won every trophy, well run financially, stadium increase and a new training ground. But they want oil money like Man City.

Scum fans moan cause they aren't winning. If they were top they wouldn't be singing about the Glazers.
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Re: What is the point of 49ers Enterprises?

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SG90 wrote: ↑Wed Nov 09, 2022 10:41 pm Liverpool fans are ungrateful though. They've won every trophy, well run financially, stadium increase and a new training ground. But they want oil money like Man City.

Scum fans moan cause they aren't winning. If they were top they wouldn't be singing about the Glazers.
Maybe Liverpool fans are ungrateful but doesn't alter the fact that both those teams have managed to make that type of takeover work to a degree because of revenue streams the like of which we can only dream of.

Same as Arsenal.

Teams that don't?

You won't find a single successful takeover of that nature that has seen progress.
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Re: What is the point of 49ers Enterprises?

Post by BGwhite »

Irish Ian wrote: Makes sense.

So it's in Radz interest to strengthen in Jan?
We all said the same 12 months ago and he did sweet fa. I don't think he'll do anything this time around either except get his prayer mat out every day and hope for the best . If our kids keep bailing us out he'll be the happiest man on earth come the summer and it will have paid off for him.

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Re: What is the point of 49ers Enterprises?

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If it turns out we have some sort of super consortium of billionaires like Chelsea then I will eat humble pie.

But I bet we don't.
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