Mercury 13 Investment Discussion

[joem]

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[joem]

I noticed earlier Stuart, when discussing your own business experience with equity investments, that the way the investment would make profit is to sell at a profit.

I had only half considered this before, I posed a question to the board about Mercury 13 being bought out. However, considering there does not seem to be many other avenues, would selling on the 51% stake at a profit be one of the more likely outcomes for Mercury 13 to recoup their investment? Would this be a repeated chain of events until Lewes FC could hypothetically buy back this stake?

If anyone else can weigh in with this, through experience or otherwise, I’d be very interested on how this would work.

[sedlescombe]

Sept 13, 2023 16:54:07 GMT joem said:

I noticed earlier Stuart, when discussing your own business experience with equity investments, that the way the investment would make profit is to sell at a profit.

I had only half considered this before, I posed a question to the board about Mercury 13 being bought out. However, considering there does not seem to be many other avenues, would selling on the 51% stake at a profit be one of the more likely outcomes for Mercury 13 to recoup their investment? Would this be a repeated chain of events until Lewes FC could hypothetically buy back this stake?

If anyone else can weigh in with this, through experience or otherwise, I’d be very interested on how this would work.

That’s a difficult one.  Regarding Mercury 13 being bought out it depends on what the constitution of the company says.  In general terms if they bought 51% of the women’s team it would be up to them to dispose of as they chose unless there was something in the sale document to stop them.  For example we were offered a chance to match any bid  to buy it back.  Of course we would have to be in a position to come up with the money

Few people other than the Glazers make money out of the actual possession of clubs.  The money is made from the resale of the asset and the (to date) ever increasing money coming in to the game primarily from worldwide tv deals.  The women’s game is a long way from that point and the investment is in some ways a bet that the same forces with impact the women’s league.  It has after all come on leaps and bounds in media terms after the first few years.  Buying 51% of Lewes will be a cheap way of getting a foot in the door of English football at a team in such an elevated level of the pyramid.

Also we don’t know where the money is coming from.  I assume Mercury will be raising it from investors.  What say a big US investment bank might see as an acceptable return (money and lots of it) might differ from a sovereign wealth fund of a Middle Eastern dictatorship (getting a foothold in the international game and hosting tournaments.

All that is a convoluted way of saying “it depends” and just one point of view.  I am sure others will have their own.

[captain]

Sept 13, 2023 16:49:06 GMT joem said:

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Out of interest are you now an Official Moderator of the Forum?

[doc]

Guess that’s the end of the excellent and scurrilous supporters’ club match reports then.