[Football] Crystal Palace sell £87.5m stake to US businessman

[Uh_huh_him]

From The Guardian:

It is hoped that Textor’s investment of £87.5m for what is believed to be a substantial percentage of the club close to Parish’s 18% controlling stake will significantly reduce debts at Selhurst Park and help to redevelop the stadium, with plans for a new main stand yet to progress despite years of planning.​

It almost doesn't matter what he has paid for his stake - that's not money going into the club - it will be buying shares from existing shareholders. He gives them cash and they give him some shares in return.

Maybe some of that £87.5m was used to buy his holding, with the remainder going into the club itself to be used for investment in players and stands and stuff.

Edit: ...unless they've created new shares - in which case the club would receive the money.

Would that effectively reduce the percentage holding of all the other shareholders?

 

[Bozza]

Would that effectively reduce the percentage holding of all the other shareholders?

If new shares are created, yes it would dilute existing holdings.

Without having sight of the details of the transaction, there's no real way of knowing quite where the cash has gone / been attributed to.

For example £50m could have bought newly-issued shares, with the remainder going into the club as a director's loan, or similar.

 

[Jim in the West]

Would that effectively reduce the percentage holding of all the other shareholders?

It would do, if they were voting shares, and the shares were issued and subscribed for by Textor alone. I read somewhere that Parrish's shareholding is unchanged, so what seems to have happened is that Textor has bought shares from one or more existing investors (presumably the ones who invest through the Delaware company). It's a little opaque....but it looks like this guy wanted a seat on the board, so he's not only bought shares from an existing investor (which is obviously of no cash benefit to the club), but has also pumped some additional money into the club. There is reference to him helping to fund purchases earlier in the transfer window. I would imagine this cash injection will be by means of a loan (or possibly some form of non-voting share capital). I'm sure another poster on NSC will do some digging and shed some more light on it for his (excellent) podcast....

EDIT: Just seen Bozza say basically the same thing!

 

[loz]

I suspect one of the highlights from their eleven year history was the part where they looted and burned down their own town.

Palace fans looted and burnt South Norwood ??

I seriously doubt many if any football fans where involved in that, as you well know that round of rioting happened all around the UK as a protest about the killing of a black man in North London.

And it was South Croydon not South Norwood

Not sure where to go with this silly argument, but in these PC times.

 

[Whitley Bayster]

"I have looked at many opportunities across European football in which to invest so I could follow my passion for football and have a meaningful stake in a club,” said Textor.

Who made his fortune through the hologram company Facebank, which has merged with FuboTV. “Over the past six months of discussions, I have also developed a real affinity to Crystal Palace FC, its history, the staff and, of course, most importantly the supporters"

"The Investment will help build the squad, academy and new stand"

Sent from my EML-L09 using Tapatalk

6 months! What a Plastic fan! Probably has a Spuds shirt for alternate weekends

 

[WATFORD zero]

If new shares are created, yes it would dilute existing holdings.

Without having sight of the details of the transaction, there's no real way of knowing quite where the cash has gone / been attributed to.

For example £50m could have bought newly-issued shares, with the remainder going into the club as a director's loan, or similar.

If Parish's shareholding is unchanged then I'd suggest new shares are unlikely, but as a Brighton fan, it will be interesting to see how this plays out as he seems on the face of it (with no further detail) to be paying over the odds.

For Palace fans on here substitute 'a little concerning' for 'interesting' and we can all play

 

[Nondescript Nick]

If new shares are created, yes it would dilute existing holdings.

Without having sight of the details of the transaction, there's no real way of knowing quite where the cash has gone / been attributed to.

For example £50m could have bought newly-issued shares, with the remainder going into the club as a director's loan, or similar.

Much of Tony Bloom's investment into our club seems to have been converted into shares, whereas originally I thought Amex and other incomes was intended to pay back a far higher proportion of his interest free loans.

Does anyone know where we're at as a club in terms of dilution of shares/debt to Tony Bloom etc?

My concern is that (god forbid) if Tony does ever want to sell up, he might need a considerable amount of money just to break even on the sale, let alone make a profit if these loans keep getting converted into shares. Have we as a club actually enabled him to recoup any of his investment yet?

I think if we funnel more funds into paying back TB and waste less money on the likes of Jurgen Locadia, the club would be on a far more healthy financial footing should TB ever have to sell up (not to mention it being the right thing to do)

 

[Bozza]

If Parish's shareholding is unchanged then I'd suggest new shares are unlikely, but as a Brighton fan, it will be interesting to see how this plays out as he seems on the face of it (with no further detail) to be paying over the odds.

For Palace fans on here substitute 'a little concerning' for 'interesting' and we can all play

Yeah, I hadn't read that Parrish's stake had remained unchanged before now.

But it could still be the case that, for example, he's paid existing shareholders £40m for his shares, and pumped the remainder directly into the club.

 

[Taybha]

Excellent news , 10% of that will surely be enough to make the supporters end of season party well worth attending .


8 including the bar staff will be a distant memory .

 

[Easy 10]

From The Guardian:

It is hoped that Textor’s investment of £87.5m for what is believed to be a substantial percentage of the club close to Parish’s 18% controlling stake will significantly reduce debts at Selhurst Park and help to redevelop the stadium, with plans for a new main stand yet to progress despite years of planning.​

It almost doesn't matter what he has paid for his stake - that's not money going into the club - it will be buying shares from existing shareholders. He gives them cash and they give him some shares in return.

Maybe some of that £87.5m was used to buy his holding, with the remainder going into the club itself to be used for investment in players and stands and stuff.

Edit: ...unless they've created new shares - in which case the club would receive the money.

Outside investors nearly always want a return. At the start of the year, this herbert had never even heard of CPFC2010. So in the unfortunate, humiliating, debilitating and demoralising life-choice of actually being a Palace fan, my first question would be "OK great - but whats in it for him ?".

 

[Jeremiah]

£87.5m that's nearly two Ben Whites. Nice for Palace and no need to sell Zaha now ?

 

[Thunder Bolt]

Much of Tony Bloom's investment into our club seems to have been converted into shares, whereas originally I thought Amex and other incomes was intended to pay back a far higher proportion of his interest free loans.

Does anyone know where we're at as a club in terms of dilution of shares/debt to Tony Bloom etc?

My concern is that (god forbid) if Tony does ever want to sell up, he might need a considerable amount of money just to break even on the sale, let alone make a profit if these loans keep getting converted into shares. Have we as a club actually enabled him to recoup any of his investment yet?

I think if we funnel more funds into paying back TB and waste less money on the likes of Jurgen Locadia, the club would be on a far more healthy financial footing should TB ever have to sell up (not to mention it being the right thing to do)

Tony Bloom has said countless times, that he isn't going to sell up, but leave the club to his son, who is also a fan. The Bloom family have already had three generations involved on the board, so it will go to a fourth.

 

[Brok]

Perhaps the thread could be re-titled as -

"Crystal Palace laugh like drains, as they sell a £87.5 m stake to some poor unsuspecting American twit."

 

[Silverhatch]

£87.5m that's nearly two Ben Whites. Nice for Palace and no need to sell Zaha now ?

That level of investment is (laughably) peanuts in PL terms. An enormous Euromillions win doesn’t even make a dent in the investment required to produce an established (top 7) PL side.

 

[rippleman]

It would do, if they were voting shares, and the shares were issued and subscribed for by Textor alone. I read somewhere that Parrish's shareholding is unchanged, so what seems to have happened is that Textor has bought shares from one or more existing investors (presumably the ones who invest through the Delaware company). It's a little opaque....but it looks like this guy wanted a seat on the board, so he's not only bought shares from an existing investor (which is obviously of no cash benefit to the club), but has also pumped some additional money into the club. There is reference to him helping to fund purchases earlier in the transfer window. I would imagine this cash injection will be by means of a loan (or possibly some form of non-voting share capital). I'm sure another poster on NSC will do some digging and shed some more light on it for his (excellent) podcast....

EDIT: Just seen Bozza say basically the same thing!

Smoke and Mirrors my friend. Same as all Parrish's dealings...all Smoke and Mirrors.

 

[Motogull]

"The Investment will help build the squad, academy and new stand"

Eh? Is the rinfgenced £100M not enough then? Maybe it only existed in Beaky's imagination. No can't be that, he's a legend and wouldn't bullshit the fans. No way.

 

[rippleman]

Palace fans looted and burnt South Norwood ??

I seriously doubt many if any football fans where involved in that, as you well know that round of rioting happened all around the UK as a protest about the killing of a black man in North London.

And it was South Croydon not South Norwood

Not sure where to go with this silly argument, but in these PC times.

Not in Brighton it didn't

 

[Stato]

Palace fans looted and burnt South Norwood ??... it was South Croydon not South Norwood.

The two are about 4 miles apart. That's the distance from the Palace Pier to Falmer. If there was a riot in Brighton would you suggest that Brighton fans probably weren't involved because they all come from Falmer? 'Burnt your own town' is a silly taunt aimed at your football club that you would be better advised to just laugh off. Trying to argue with it is like us lot trying to produce evidence that Alan Mullery has never been to Rome.

Trying to logic your way out of something so silly makes you seem overly defensive, especially when your logic is this tenuous.

 

[loz]

The two are about 4 miles apart. That's the distance from the Palace Pier to Falmer. If there was a riot in Brighton would you suggest that Brighton fans probably weren't involved because they all come from Falmer? 'Burnt your own town' is a silly taunt aimed at your football club that you would be better advised to just laugh off. Trying to argue with it is like us lot trying to produce evidence that Alan Mullery has never been to Rome.

Trying to logic your way out of something so silly makes you seem overly defensive, especially when your logic is this tenuous.

What! Alan Mullery never went to Rome and never met the Pope ??

Yes you are right but the whole thing involved a certain demographic and reasons not related to Football.

 

[Stato]

a certain demographic... not related to Football.

That sounds even more like Crystal Palace fans to me....