Milan Mandaric has targeted leicester!

[sackmycook]

so if the shareholders didnt expect to see any of their money, getting 50% back is pretty good, but now it seems that when the 50% is on the table they are now reconsidering. so the 'we didnt expect to ever see a return' is just cobblers.

[sackmycook]

did baaba just read my post????

[Swedging]

so if the shareholders didnt expect to see any of their money, getting 50% back is pretty good, but now it seems that when the 50% is on the table they are now reconsidering. so the 'we didnt expect to ever see a return' is just cobblers.

Surely just don't want their leg lifted? With no guarantees for the future.

[fox123]

Did I hear correctly on East Midlands today that the Foxes Trust has advised Milan Mandaric to up his offer?

Sorry if already posted I just caught it passing the TV

[Milky]

did baaba just read my post????

i think he did you know, sounded exactly the same

[davieG]

so if the shareholders didnt expect to see any of their money, getting 50% back is pretty good, but now it seems that when the 50% is on the table they are now reconsidering. so the 'we didnt expect to ever see a return' is just cobblers.

Or maybe they're a bit pissed of at MM implying through his lapdogs the Leicester Mercury that they are not losing out, whilst at the same time apparently trying to rip the current shareholders off, probalby profiting before he's even put a penny into the club and hoodwinking a large section of the fans into thinking he's the second coming.

Frankly I'm pretty pissed off with MM and the Mercury myself with their constant reference to a £25m bid that MM has failed to agree or deny whilst bumming up the fans with all this you're the only club that i want but I've got a string of others calling me every 5 minutes.

[sackmycook]

Surely just don't want their leg lifted? With no guarantees for the future.

there can never be a contract which will contain clauses which contain future guarantees.

no one for anything can get such a contract.

[Leicfox]

Agree with this Len whos on now.

[Jon the Hat]

so if the shareholders didnt expect to see any of their money, getting 50% back is pretty good, but now it seems that when the 50% is on the table they are now reconsidering. so the 'we didnt expect to ever see a return' is just cobblers.

The board have worked hard to put the club back on it's feet, so no one has any right to suggest they should hand it over to someone else to make money from. They have every right to ask for at least their money back.

Lets not confuse the issue - MM is valuing our club at 3Million quid, which is probably what the training ground is worth, let alone anything else. It's an insult frankly and MM can take a running jump if he thinks he can come in and walk all over the guys who saved the club from admin. We'd be better off with a groundshare.

[sackmycook]

no one else is interested in buying this club, it doesnt fool me and it wont fool MM.

[Swedging]

there can never be a contract which will contain clauses which contain future guarantees.

no one for anything can get such a contract.

I'm finding it difficult to understand that. But a contract can, and often does, include covenants and guarantees.

[davieG]

no one else is interested in buying this club, it doesnt fool me and it wont fool MM.

Just like no other clubs are ringing him every 5 minutes begging him to buy their club for £3mill, theres more bullshit being spouted around this takeover than you see coming from the arse of a soon to be executed bull.

[sackmycook]

I'm finding it difficult to understand that. But a contract can, and often does, include covenants and guarantees.

and what would these guarantees be:

spend x on transfer? get us to the premiership? dont sell us in the future? etc etc he isnt going to sign anything like that.

[Leicfox]

Lets not confuse the issue - MM is valuing our club at 3Million quid

I dont know if im right in thinking this but, this 3m is it not just compensate the existing shareholders? If so we dont know what he will do with the club after, he cud pile money in left right and centre, buying the stadium back and clearing the debts.

Im confused.

[Fez of Mahrez]

What evidence is there of any definite interest other than from Mandaric?

[sackmycook]

I dont know if im right in thinking this but, this 3m is it not just compensate the existing shareholders? If so we dont know what he will do with the club after, he cud pile money in left right and centre, buying the stadium back and clearing the debts.

Im confused.

yeah and if he pays an additonal £3million the board want, where will that come from? it will come from the money he has earmarked for us.

[davieG]

What evidence is there of any definite interest other than from Mandaric?

None, but niether is there any evidence of other clubs begging him to buy them, it's all brinkmanship, jockey for position, getting the best deal for buying/selling. I don't think MM or the Board have done anything wrong, the people I'm getting pissed off by are the Merc for their lapdog servitude to the MM cause and Radio Leicester who just seem to want to piss everyone off with their misleading headlines.

Their action, the Merc & RL is starting to turn fan against fan and that to me is unforgivable.

[Swedging]

and what would these guarantees be:

spend x on transfer? get us to the premiership? dont sell us in the future? etc etc he isnt going to sign anything like that.

Additional funds put into the club through equity rather than loans, might be one simple one. Placing the few remaining assets beyond his reach might be another. Neither would be an absolute no-no for someone who wants to take the club forward.

[davieG]

yeah and if he pays an additonal £3million the board want, where will that come from? it will come from the money he has earmarked for us.

i doubt he's going to 'give' us anything at best he will loan it at a reasonably interest and when he decides to up sticks will take that with him, I guarantee he wont be prepared to sell his shares for a loss, for the benefit of LCFC when he tires of us.

I'm still sitting on the fence.

[Jon the Hat]

I dont know if im right in thinking this but, this 3m is it not just compensate the existing shareholders? If so we dont know what he will do with the club after, he cud pile money in left right and centre, buying the stadium back and clearing the debts.

Im confused.

Quick lesson on how companies raise money. There are essentially two types of financing:

1) Share capital - where people own part of the company, and receive dividends where appropriate. Dividends are not compulsory, and I suspect the current shareholders have taken none since they bought the club out of administration.

2) Loans. This is simpler, you borrow money and pay interest, which is compulsory. You usually still owe the capital throughout the loan, although it is possible to havee a repayment loan. In this case it is likely that the loan would be interest only on the assumption that it be repaid in chunks with Premiership TV money.

What this means is that Mandaric will bascially be taking profit out of the club all the time the club owes him money, although this might be less than we are currently paying to Teachers, should he buy out that loan.

Mandaric it appears doesn't like the equity approach to financing football clubs due the other fundamental difference - when the club has loan finance, that takes precedence over any other type of debt expect tax. That means MM would wlak away with all remaining funds should things go tits up. Shareholders usually have the last call on any funds after all other debts.

This means that while the current board have invested 6.6M in the club, MM is proposing to invest no additional funds at all, and to lend the club money.

Take your pick on which you think is the best for our club.

[Ultra]

None, but niether is there any evidence of other clubs begging him to buy them, it's all brinkmanship, jockey for position, getting the best deal for buying/selling. I don't think MM or the Board have done anything wrong, the people I'm getting pissed off by are the Merc for their lapdog servitude to the MM cause and Radio Leicester who just seem to want to piss everyone off with their misleading headlines.

Their action, the Merc & RL is starting to turn fan against fan and that to me is unforgivable.

The Merc has done nothing else for the past 30 years.

Billy Liar STILL hasn't forgiven us for forcing Bloomfield out.

[Leicfox]

Cheers for that Jon \o/

[Steven]

Barber is saying sharholders are getting half the amount they put in (3 million)

No real reference or promises regarding further finance

No material differnce between what there is now and what Mandaric is offering.

Set to be turned down.

Seems very reasonable to me. One can only speculate on the liabilities of the Club but they would include the full value of the players' contracts, the cost of potentially laying off staff or taking additional staff on as well as discharging the the liens or charges on income as a result of Administratiion.

Once that has been taken into account what is there left? Probably about 3 millions worth of Goodwill and not much else.

Shareholders not only enjoy the profits but also the losses and liabilities of a Company.

Finally all the alternatives can come out of the woodwork now. Surely none of these other 'bids' can be as measly as this.

If the best alternative is a ground sharing scheme that means the richer Club will swallow up City then I don't think MM has much to worry about.

[davieG]

Seems very reasonable to me. One can only speculate on the liabilities of the Club but they would include the full value of the players' contracts, the cost of potentially laying off staff or taking additional staff on as well as discharging the the liens or charges on income as a result of Administratiion.

Once that has been taken into account what is there left? Probably about 3 millions worth of Goodwill and not much else.

Shareholders not only enjoy the profits but also the losses and liabilities of a Company.

Finally all the alternatives can come out of the woodwork now. Surely none of these other 'bids' can be as measly as this.

If the best alternative is a ground sharing scheme that means the richer Club will swallow up City then I don't think MM has much to worry about.

I would say the Academy grounds with appropriate plannig permission are worth a mill or three, I'd still risk MM rather than a groundshare.

[Chairman of the Bored]

I'm not sure if this info has appeared before, but this is Mandaric's background (from Wikipedia)

Milan Mandarić (Serbian: Милан Мандарић) is a Serbian-American business tycoon who has owned a string of successful businesses and football (soccer) clubs including Portsmouth F.C.. He was born in Croatia, in 1941 and grew up in the Serbian city of Novi Sad, Vojvodina.

He took control of his father's machine shop aged 21, and by age 26 had turned it into the largest business in the country. At the time, Yugoslavia was a communist country, but a relatively free one. Private enterprise was encouraged - up to a point. Mandaric, now mass-producing car spares for the whole country and for overseas, became too successful and in the government's eyes went overnight from 'Hero' to 'Capitalist Traitor'.

In 1969, worried by the government's view of his business, he left Serbia and settled in the United States. He had to leave most of his fortune behind, and got a job for an American computer component manufacturer in California. When two of the senior managers left to start their own firm Mandaric was invited to be their third partner. The firm was successful, but disagreements over manufacturing processes led to Mandaric leaving to form his own company, Lika Corporation, in 1971. In 1976, he became a naturalized citizen of the United States. By 1976 Lika Corp. was the largest manufacturer of computer components in the USA, and Mandaric was pioneering the boom that led to the creation of California's Silicon Valley. He sold the company to the Tandy Corporation in 1980 and set up a new company, Sanmina, which developed high-tech telecoms products.

In 1989 he acquired a struggling competitor and merged it with Sanmina. He also began branching out into investment companies such as Behrman Capital. Mandaric also became owner of the St. Louis Storm, a Major Soccer League franchise that ceased operations in 1992 when the MSL also folded.

Following the collapse of communism in Yugoslavia, and then the break-up of the state, Mandaric has taken advantage of the new states' free markets to set-up and buy businesses in his homeland, such as Razvojna Banka, which was formerly state owned.

Around the same time he had begun using his money to invest in football, his passion since childhood (as a young man he had played for Novi Sad). He set up firstly F.C. Lika, then San Jose Earthquakes which played in the USA's first professional league. George Best had played for the latter team, and the two men became friends.

Sceptical about the future of the sport in the USA, Mandaric looked to European football, owning first Belgian club Standard Liège, then French team OGC Nice. In 1998 he sold Nice and took over English club Portsmouth F.C., to whom he had been introduced by ex-player Preki. George Best was often seen watching Portsmouth F.C. with Mandaric.

Despite Mandaric's patronage the club still survives in its crumbling stadium. Numerous bizarre delays for a planned new stadium, and three successive battles against relegation from the Premiership, have recently seen the fans begin to question the clubs ambition [citation needed]. In January 2006 it was announced that Mandaric has sold a 50% stake in the club to French businessman Alexandre Gaydamak. [1] After the club's unlikely survival Mandarić sold his remaining half of Portsmouth to Gaydamak but remained at the club as a figurehead in his role as non-executive chairman.

He resigned as chairman of Portsmouth on 21st September and he took over the Slovenian First Division side NK Koper. On 1 November 2006 he made a bid for East Midlands club Leicester City; believed to be in the region of £25m. He had wanted to remain outside of football for a longer period, however he "had to accelerate takeover plans" because of bids for the club by at least two other parties.[2]