Official Board Agree To CVC Deal

[vinni]

Im suprised there are deals that even last 50 years. Most of us are dead by then anyway and for all we know football is gone too. I guess they assume the tv rights will be worth even more in the near future so they theres a huge profit even within the next ten years. (Btw i dont know much economics : )

 

[Messigician]

Gerard Piqu? wants to fulfill his contract with Barcelona and stay at the club until 2024.

? @mundodeportivo

 

[FinBarcelonafan]

Im suprised there are deals that even last 50 years. Most of us are dead by then anyway and for all we know football is gone too. I guess they assume the tv rights will be worth even more in the near future so they theres a huge profit even within the next ten years. (Btw i dont know much economics : )

Well, the latest thingy for artists is to sell their entire musical rights for their songs to a company. Company can print money forever while artist gets the money now instead of when they are death. Money more useful now than in a coffin.

You are right, TV rights will be much higher in fifty years, probably so much higher that this would be totally awful deal.

 

[Messigician]

Gerard Piqu?, Sergio Busquets and Jordi Alba have arleady told the club that they will refuse a wage cut.

? @sport

 

[Porque]

And why would they? All 3 are starters.

 

[delancey]

One word: IPO.

Two benefits
1. Immediate cash injection without having to sign terrible long-term agreements.
2. Foreign investment would encourage decisions which foster growth, while rejecting identity politics, as it should be done.

 

[Luftstalag14]

One word: IPO.

Two benefits
1. Immediate cash injection without having to sign terrible long-term agreements.
2. Foreign investment would encourage decisions which foster growth, while rejecting identity politics, as it should be done.

You mean setting up a parent company and go public, like Dortmund?

 

[delancey]

You mean setting up a parent company and go public, like Dortmund?

Yup.

 

[Luftstalag14]

Yup.

I don't know much about sports laws and particularly Spanish sports laws, but I think to do so would have to turn the club into a SAD (sports company) as opposition to an association as it is today, a different set of rules will apply, from tax rate to corporate governance etc. It is a red line for the club that we do not want to cross.

More importantly, if we were to go public, I think that means we have no ways of stopping some individuals or groups to purchase most of the shares and exert their wishes, influences and directions etc. on the club, essentially taking control of the club. If that happens then I suppose there is little difference between a club like that and those clubs privately owned by billionaires. Also there could be potentially infights between the different groups of the stockholders etc.

Identity politics is always part of this club, being a face of Catalonia and its culture, language etc. and to a lesser degree, Catalan independence movement. Not something that should be gotten rid of.

I think the club should always remain member-owned, but we should have gone to the professional model like Ferran Reverter wanted, basically staffing the club with professionals and running it like an enterprise and corporate with merit-based hirings, promotions and reward systems etc. in place, with a CEO and executive team answering to the president and the board, not the presidential / "family club" model Laporta is turning the club into.

 

[delancey]

I don't know much about sports laws and particularly Spanish sports laws, but I think to do so would have to turn the club into a SAD (sports company) as opposition to an association as it is today, a different set of rules will apply, from tax rate to corporate governance etc. It is a red line for the club that we do not want to cross.

More importantly, if we were to go public, I think that means we have no ways of stopping some individuals or groups to purchase most of the shares and exert their wishes, influences and directions etc. on the club, essentially taking control of the club. If that happens then I suppose there is little difference between a club like that and those clubs privately owned by billionaires. Also there could be potentially infights between the different groups of the stockholders etc.

Identity politics is always part of this club, being a face of Catalonia and its culture, language etc. and to a lesser degree, Catalan independence movement. Not something that should be gotten rid of.

I think the club should always remain member-owned, but we should have gone to the professional model like Ferran Reverter wanted, basically staffing the club with professionals and running it like an enterprise and corporate with merit-based hirings, promotions and reward systems etc. in place, with a CEO and executive team answering to the president and the board, not the presidential / "family club" model Laporta is turning the club into.

In regards to your first paragraph, there are ways of structuring an IPO in order to protect interests of key stakeholders. Examples include Groupon and Facebook. Why would Spain be any different? I imagine that EU law applies here.

A Catalan investment group could still own a majority of preferred stock (if that makes a difference).

Bear in mind that I am not criticizing the identity of identity politics, per se, but rather the politics and corruption involved as a result. Shareholders would hold the board of directors accountable, due to the more transparent nature of a publically trades company. Nepotism, placing family members or friends in key positions within the club, or hiring your brother without one iota of experience would be much more difficult to implement. The action of giving out ridiculous and irresponsible contracts to old Catalan players would be scrutinized by key shareholders. The market would hold us responsible.

Those at the top would think twice before indulging in unscrupulous behavior which affects the long-term interests of the club, or else face the same fate as Enron execs.

But really, the major advantage of an IPO would be a large capital injection into the clubs coffers. Immediately.

I agree with your last paragraph, although it does not change the economic situation of the club short-term.

 

[Windhook]

In a worse case scenario Barca can restructure the club as part identity like Bayern Munich.

Adidas, Audi and Allianz own 8.33% each in stocks of the club as they are all local Bavarian corporations.

 

[DonAK]

In a worse case scenario Barca can restructure the club as part identity like Bayern Munich.

Adidas, Audi and Allianz own 8.33% each in stocks of the club as they are all local Bavarian corporations.

This should happen in the future anyway, for the reasons [MENTION=22850]delancey[/MENTION] outlined well here. Might be inevitable because the club lacks proper financial controls and the socis love voting in idiots and not getting rid of them in time so some other idiot will probably bring us on the brink of bankruptcy again.

We don't have Catalan corporations with the size of those you mentioned though. Hopefully the Zara heiress is a Barca fan

 

[Windhook]

This should happen in the future anyway, for the reasons @delancey outlined well here. Might be inevitable because the club lacks proper financial controls and the socis love voting in idiots and not getting rid of them in time so some other idiot will probably bring us on the brink of bankruptcy again.

We don't have Catalan corporations with the size of those you mentioned though. Hopefully the Zara heiress is a Barca fan

SEAT car manufacturer is the only big thing I can think of that size, based in Catalonia. Also some banks...

 

[Luftstalag14]

In regards to your first paragraph, there are ways of structuring an IPO in order to protect interests of key stakeholders. Examples include Groupon and Facebook. Why would Spain be any different? I imagine that EU law applies here.

A Catalan investment group could still own a majority of preferred stock (if that makes a difference).

Bear in mind that I am not criticizing the identity of identity politics, per se, but rather the politics and corruption involved as a result. Shareholders would hold the board of directors accountable, due to the more transparent nature of a publically trades company. Nepotism, placing family members or friends in key positions within the club, or hiring your brother without one iota of experience would be much more difficult to implement. The action of giving out ridiculous and irresponsible contracts to old Catalan players would be scrutinized by key shareholders. The market would hold us responsible.

Those at the top would think twice before indulging in unscrupulous behavior which affects the long-term interests of the club, or else face the same fate as Enron execs.

But really, the major advantage of an IPO would be a large capital injection into the clubs coffers. Immediately.

I agree with your last paragraph, although it does not change the economic situation of the club short-term.

I don't know anything about Groupon and Facebook and their IPOs and their stakeholder structures etc., I honestly don't know, however I doubt the members would retain the control of the club if the club goes public. In Dortmund's case, I believe the club itself controls the minority of the shares, not majority. Catalan investment group? Let's say it is Juame Roures, the head of Mediapro. He could be a Barca fan himself but it doesn't mean his interest and wishes will always align with those of the club, future presidents and board of directors essentially will be answering to him.

I also think a different ownership structure might not impact things and details like "giving out ridiculous and irresponsible contracts to old Catalan players". If the president is appointed by the stockholders, he/she has the mandate to do whatever they see fit, without being macro-managed by the stockholders and owners, I'd think. In our case, if Laporta keeps his cronyism and nepotism shit and we suffer consequently, he should be voted out.

Anyways, I understand where you are coming from (injecting capital via IPO to help the club financially), but I just don't know if we are ready for the tradeoffs, some of which might not be positive and might harm the club in the long run. I am one of those who are adamantly insisting that the club itself (excluding those corporate entities such as Barca Corporate) should continue to be owned by its members and reject any outside parties.

 

[khaled_a_d]

SEAT car manufacturer is the only big thing I can think of that size, based in Catalonia. Also some banks...

SEAT is owned by Volkswagen, who also owns Audi who is stakeholder in Bayern.
Can they be stakeholder in 2 clubs in CL?