Why are buyers interested but don't put up the money?

[Reading4eva]

Since September this club has been in Limbo where Zingarevich has chosen to disappear. Since we have had an Omani consortium, a bunch of Americans, Vince McMahon and several others interested, but their interest has since disappeared. So my question is... WHAT IS WRONG?

Is it Zingarevich holding onto his stake until end of the season?
Is it Madejski refusing the stadium to be called the Wonga Sony Ding Dong Stadium for example?
Is it the club aren't attractive as it's got in so much debt and sits in the Championship?
Is it that the club aren't marketable enough?
Is it that Zingarevich and Madejski won't sell their stake without a fight?

There has to be something as the club has a fantastic EXPANDABLE ground, with a class 1 academy which currently is only rivalled by an elite few, some great youngsters, huge catchment area (far better than even the likes of QPR, Charlton etc) and has been hovering round the playoffs all season.

What's made what could be one of the safest bets no where near investable and really what other teams are more investable? I can only think of a few without debts supposably such as Everton, Norwich, Derby and Brighton... But even then...

So what really is it?

[stealthpapes]

It's the fans. We don't sing enough. Our rumblesticks are limp and our drum out of time.

[Royal Ginger]

Buyout thread

+ Zing probably wants to recoup all the cash he put in which isn't going to happen.

[BraisingsteakRoyal]

Since September this club has been in Limbo where Zingarevich has chosen to disappear. Since we have had an Omani consortium, a bunch of Americans, Vince McMahon and several others interested, but their interest has since disappeared. So my question is... WHAT IS WRONG?

Is it Zingarevich holding onto his stake until end of the season?
Is it Madejski refusing the stadium to be called the Wonga Sony Ding Dong Stadium for example?
Is it the club aren't attractive as it's got in so much debt and sits in the Championship?
Is it that the club aren't marketable enough?
Is it that Zingarevich and Madejski won't sell their stake without a fight?

There has to be something as the club has a fantastic EXPANDABLE ground, with a class 1 academy which currently is only rivalled by an elite few, some great youngsters, huge catchment area (far better than even the likes of QPR, Charlton etc) and has been hovering round the playoffs all season.

What's made what could be one of the safest bets no where near investable and really what other teams are more investable? I can only think of a few without debts supposably such as Everton, Norwich, Derby and Brighton... But even then...

So what really is it?

It's you.

[AbovetheI]

Because they've seen us play?

Either that or it's the stewards.

[Lower West]

Sir John has been bitten once.

[Forest Gump]

It's because of Madejski and Zingarevic
Both want as much as they can get for themselves and it's like buying a house from a divorced couple - no one can trust either party.

[SCIAG]

Sir John has been bitten once.

Basically.

Sir John: OK, I sold to this chap who vanished when his daddy got annoyed. Can I confirm that you definitely have money of your own?
Buyer: I withdraw from the deal.

[weybridgewanderer]

Perhaps its because Sir John does want to see us do a Cardiff or a Hull or a Portsmouth

Wants to make sure he sells to someone who has the best interests of the club at heart, not some who is going to riddle us with debt and then run

[loyalroyaldaz]

Could have more than something to do with the debt the club has and who it is owed to.
How much of it is owed to JM himself? Remember that there is a buying price and also the debt to take on so if recent posts are corrrect then suddenly £25m becomes £63m !
I also firmly believe that he doesnt want to include the Hotel and also allow the Stadium name to change.

[sandman]

Since September this club has been in Limbo where Zingarevich has chosen to disappear. Since we have had an Omani consortium, a bunch of Americans, Vince McMahon and several others interested, but their interest has since disappeared. So my question is... WHAT IS WRONG?

Is it Zingarevich holding onto his stake until end of the season?
Is it Madejski refusing the stadium to be called the Wonga Sony Ding Dong Stadium for example?
Is it the club aren't attractive as it's got in so much debt and sits in the Championship?
Is it that the club aren't marketable enough?
Is it that Zingarevich and Madejski won't sell their stake without a fight?

There has to be something as the club has a fantastic EXPANDABLE ground, with a class 1 academy which currently is only rivalled by an elite few, some great youngsters, huge catchment area (far better than even the likes of QPR, Charlton etc) and has been hovering round the playoffs all season.

What's made what could be one of the safest bets no where near investable and really what other teams are more investable? I can only think of a few without debts supposably such as Everton, Norwich, Derby and Brighton... But even then...

So what really is it?

The Omanis don't even have the latest Iphone so they're obviously not rich enough, a 'bunch of Americans' is that the word for a group of Americans, why not a Gaggle or a shoal? And the only English things Vince McMahon is interested in is a bloke from Preston and a 21 year old goth girl from Norwich not a football club.

[The Real Sandhurst Royal]

We are not perceived as an attractive club.

We are still seen as a mino even though we are a well established Championship side in a great catchment area..

[Reading4eva]

Could have more than something to do with the debt the club has and who it is owed to.
How much of it is owed to JM himself? Remember that there is a buying price and also the debt to take on so if recent posts are corrrect then suddenly £25m becomes £63m !
I also firmly believe that he doesnt want to include the Hotel and also allow the Stadium name to change.

Interesting - I didn't think of that. If we said take on Everton or Norwich with no debt (not sure if they have any) how much do you think those clubs would go for? If it was £40million then those clubs have to be more attractive to buyers

[multisync1830]

Could have more than something to do with the debt the club has and who it is owed to.
How much of it is owed to JM himself? Remember that there is a buying price and also the debt to take on so if recent posts are corrrect then suddenly £25m becomes £63m !
I also firmly believe that he doesnt want to include the Hotel and also allow the Stadium name to change.

The Gordon Brown version of prudent springs to mind.

The debt certainly puts a different light on the sale. I always struggle to reason why anyone would want to buy a loss making enterprise which has no sure fire way of recouping that debt. Even if promotion is made the outgoings rise to match and hence most if not all clubs remain in debt. The best way would be for someone like crystal palace to stay up, no new ground, tell the fans the manager wants to stick with the existing players -al la Coppell although in his case it was actually true- give them an inflation % rise only (they aren't good enough to go anywhere else for more) and if you stay up even better. Keeping riding the premiership gravy train till it derails.
Sit back with the parachute payments and hope in the next 5 years you go up again. As long as you don't drop down 2 leagues you'll have made a tidy sum from the whole sordid affair. No ambition but this is how Charlton successfully played (and made) it for many years until Curbishley went.

The actual offers which have come in thus far from both the Americans and Omani's have been described as 'derisory' . The debt is also probably the real reason behind AZ disappearance as he could not fund the remaining 49% let alone find the 40m it's going to cost to keep it. That would take his cost to near 70m for a championship club with no way of making a profit let alone recouping the outlay. Doesn't sound quite so cheap anymore. No wonder dad got cold feet and pulled the plug.

Secondly as regards the hotel

My understanding is the hotel has been up for sale for at least 3 years and there are a regular trouping of interested parties passing through every few weeks or so. (as has his one in the Galapagos islands but I am not sure if that has actually sold yet?? ). One of the main reasons the sale has fallen through is that SJM wants to remain in his flat 'for life' from what I have read.

Apart from the demarcation issues, apparently his flat could be converted to a number of hi spec selling bedroom/suites or as 2 x short term lets. Both are lucrative against one sitting tenant. The hotel funds most of the running costs so he is living there pretty much for free with staff at his disposal. Not that he abuses the situation or resented by those there but to management/staff there it's normal day to day no problarmo to buyers wanting to recoup as fast as possible it's an unnecessary cost and burden

I was led to believe AZ was offered the hotel on a first refusal but again bid cheap and was knocked back. The hotel makes good money 1m+ profit and is a well run tight ship. Not sure of the actual price but must be 10m+ I would assume(?)

I have also heard he wants to enshrine the madstad name which seems a case of pride and ego go before a fall if true IMHO

Come the end of May could make things even more interesting, rising costs, increasing debt and no income... rather them than me.

[RoyalBlue]

Could have more than something to do with the debt the club has and who it is owed to.
How much of it is owed to JM himself? Remember that there is a buying price and also the debt to take on so if recent posts are corrrect then suddenly £25m becomes £63m !
I also firmly believe that he doesnt want to include the Hotel and also allow the Stadium name to change.

Now that would be ironic given how he claimed that the name of the stadium wasn't his idea and that it was almost forced upon him. Amazingly some still seem to believe that having his name mentioned all over the place isn't a significant motivator for him!

[melonhead]

y'all dont half talk some utter shite

[SPARTA]

y'all dont half talk some utter shite

Standard for a football forum tbf, but you can exclude multisync1830 from that. He's one of the few on here who's worth listening to!

[multisync1830]

y'all dont half talk some utter shite

Standard for a football forum tbf, but you can exclude multisync1830 from that. He's one of the few on here who's worth listening to!

that's very kind.

[sandman]

Don't take too much notice. It is Sparta saying it so it's most likely an unsubstantiated rumour.

[SPARTA]

Investment 'critical' for Reading: Chairman Sir John Madejski admits he is concerned by the lack of... http://bbc.in/1jvrWT7