Mirallas Posted January 4, 2013 Report Share Posted January 4, 2013 (edited) 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 Quote Link to comment Share on other sites More sharing options...
Mirallas Posted January 4, 2013 Author Report Share Posted January 4, 2013 Hello, thinking Evertonians, wake up! Quote Link to comment Share on other sites More sharing options...
Avinalaff Posted January 4, 2013 Report Share Posted January 4, 2013 Be like a postage stamp. Stick to one thing until you get there. Quote Link to comment Share on other sites More sharing options...
Mirallas Posted January 4, 2013 Author Report Share Posted January 4, 2013 Be like a postage stamp. Stick to one thing until you get there. Thank you, Avin I'll remember that. Quote Link to comment Share on other sites More sharing options...
Avinalaff Posted January 4, 2013 Report Share Posted January 4, 2013 You're welcome. Quote Link to comment Share on other sites More sharing options...
Hafnia Posted January 4, 2013 Report Share Posted January 4, 2013 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 Quote Link to comment Share on other sites More sharing options...
Mirallas Posted January 4, 2013 Author Report Share Posted January 4, 2013 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. Quote Link to comment Share on other sites More sharing options...
Sideliner Posted January 4, 2013 Report Share Posted January 4, 2013 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 ) Quote Link to comment Share on other sites More sharing options...
Mirallas Posted January 4, 2013 Author Report Share Posted January 4, 2013 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. Quote Link to comment Share on other sites More sharing options...
Avinalaff Posted January 4, 2013 Report Share Posted January 4, 2013 Where the heck are you going to get 100,000 fans to cough up 30 quid every year? Quote Link to comment Share on other sites More sharing options...
Mirallas Posted January 4, 2013 Author Report Share Posted January 4, 2013 (edited) 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 Quote Link to comment Share on other sites More sharing options...
Avinalaff Posted January 4, 2013 Report Share Posted January 4, 2013 Mirallas, how old are you mate? I ask in a very genuine and sincere way. Quote Link to comment Share on other sites More sharing options...
rubecula Posted January 4, 2013 Report Share Posted January 4, 2013 Not sure Bill Kenwright himself would buy 100 shares that way. Interesting idea though, to sell shares. Quote Link to comment Share on other sites More sharing options...
Sideliner Posted January 6, 2013 Report Share Posted January 6, 2013 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 Quote Link to comment Share on other sites More sharing options...
Avinalaff Posted January 6, 2013 Report Share Posted January 6, 2013 They have 100,000 paying supporters? Quote Link to comment Share on other sites More sharing options...
Mirallas Posted January 7, 2013 Author Report Share Posted January 7, 2013 They have 100,000 paying supporters? Let's suppose Mansfeld players are significantly cheaper than Everton players. Sibdane 1 Quote Link to comment Share on other sites More sharing options...
Mogsy Posted January 7, 2013 Report Share Posted January 7, 2013 What happens if the player has a career ending injury, you won't get anything back Quote Link to comment Share on other sites More sharing options...
Ian C Posted January 7, 2013 Report Share Posted January 7, 2013 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. Quote Link to comment Share on other sites More sharing options...
Avinalaff Posted January 8, 2013 Report Share Posted January 8, 2013 So tough shits for the syndicate ha ha. Mogsy 1 Quote Link to comment Share on other sites More sharing options...
Mirallas Posted January 8, 2013 Author Report Share Posted January 8, 2013 so... Shall I make an appointment with the board then? Quote Link to comment Share on other sites More sharing options...
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