Peak 6

canadiancherry said:
I imagine they made a lot of money on their investment.
Not sure how accurate this info is https://www.transfermarkt.com/premi...rein/wettbewerb/GB1/plus/?stichtag=2015-11-15
But if you look at the club's value at the time Peak6 bought a 25% stake (Nov 2015), it has increased from around E60M to about E240M today.
In other words, their 3-year investment would have paid them an annualized rate of return of about 100%.
That is nuts and nobody could complain about that.
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Those valuations make no sense to me and I have no idea how the website arrived at them. But in any event the value of an unlisted company is simply what the parties involved agree with each other. We do know that Peak6 made just under £20 million available to the club through an interest free loan. We don’t know what price they agreed with Max for a quarter share, nor the price to buy it back.

I don’t think anyone can or should assume that Peak6 made a big profit on the transaction. By and large venture capital companies assume that one deal in ten is going to make a lot of money, another one or two will more or less break even and they will make a loss on the other seven or eight. We simply don’t know which category this venture fell into.

We do know that Eddie is pleased at the new state of affairs and we can see he has been backed in this transfer window. That is good enough for me for now.
 
Grumpy G said:
They haven’t lost any money on this deal that would be a certainty.
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Seriously, why? Venture capital companies lose money on deals all the time.

For all we know Peak6 may have been touting us around potential investors for two or three years hoping to realise a tenfold increase in their investment. Sometime last year they realised that wasn’t going to happen, hence putting infrastructure projects on hold, and they’ve now cut their losses. Not saying that is what has happened, but it is a feasible scenario.
 
Sorry Roger said:
Seriously, why? Venture capital companies lose money on deals all the time.

For all we know Peak6 may have been touting us around potential investors for two or three years hoping to realise a tenfold increase in their investment. Sometime last year they realised that wasn’t going to happen, hence putting infrastructure projects on hold, and they’ve now cut their losses. Not saying that is what has happened, but it is a feasible scenario.
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Ok, maybe "certainty" isn't the right word, but, really?
Found these numbers, which actually have a methodology to back them up:
http://priceoffootball.com/premier-league-club-values-2017/
Basically, they have the club's value going from £143 million in 2016 to £344 million in 2017.
The Yanks would have to be utterly incompetent businessmen to have got themselves into an ownership situation where they couldn't sell their shares at a profit.
 
The question of the ground is an important one in order to grow the club and attract more fans surely?

If we were filling a 20k ground each home match then that means we could foster a better live fan base...which would make us more attractive to a buyer?
 
Garbo said:
The question of the ground is an important one in order to grow the club and attract more fans surely?

If we were filling a 20k ground each home match then that means we could foster a better live fan base...which would make us more attractive to a buyer?
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If building the stadium puts a huge debt on the club it would make us less attractive than a smaller stadium with free access to the PL tv revenues.

There will be a formula out there somewhere but it isn't as simple as a bigger stadium and more fans means more attractive.
 
kirsikka said:
If building the stadium puts a huge debt on the club it would make us less attractive than a smaller stadium with free access to the PL tv revenues.

There will be a formula out there somewhere but it isn't as simple as a bigger stadium and more fans means more attractive.
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...sensible money management would allow us to build a stadium reasonably...yes it is important to have a team capable of staying in the PL (and making from the gravy train of cash!)....but I can't really see a foundation for the future and giving those fans who can't get tickets in our current ground any incentive not to give up and move to other clubs (god forbid?)
 
You're thinking like a fan rather than an investor. Their eyes will be on 3, 5 or maybe even 10 year return. In which case the next generation doesn't come into it.

Of course as fans we want that but most money men will have a completely different take on it.
 
kirsikka said:
You're thinking like a fan rather than an investor. Their eyes will be on 3, 5 or maybe even 10 year return. In which case the next generation doesn't come into it.

Of course as fans we want that but most money men will have a completely different take on it.
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...agree and that will always be the problem I guess?...The PL is a global leviathan and as long we are eating at the top table...we must be a club that a big investor would show interest in at some point? Max may well be tempted to cash in and I wouldn't blame him (maybe that is why he won't take the 'plunge' for new facilities at the moment?)
 
I strongly suspect that after Wilshere and now Defoe, that Peak6 were about growing the brand in America, and less inclined to look at infrastructure. With them out of the game I'd hope that trend will be reversed a little. I do understand why the ground isn't a good numbers game at the moment with Structadene holding too many cards, but hopefully we can get started on the training ground as that only adds value
 
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