DIC latest - the largely wild speculation thread

[Lecter]

I wasn't trying to be smart, was a genuine question...

Then I will respond again

I havent a clue

People can speculate all they want the press have gone quiet, leaks have stopped

I would hope its a mutually imposed media blackout whilst they continue talking / negotiating

If it isnt that then DIC are letting Hicks stew in the chaos of the US markets

Anything else is just too hideous to contemplate

[frank the tank]

Ehhhhhhh....................sack Parry

[Bender]

Dunno - why dont you email Tony Barrett and find out

And Milky dont try and be smart it doesnt suit you

Keep to the village idiot image its more becoming of you

[dom9]

“Only 105 million pounds of debt are on the club. I personally guarantee much of the debt, and assure you it will be serviced.” We know it will be serviced but by who? There is no statement here that it will be serviced BY HIM and we must assume this is deliberately vague and the debt will be serviced BY THE CLUB-i.e. you and me via tickets etc.
“I have backed Rafa to sign Torres, Babel, Benayoun, Skrtel, and Mascherano…..and will continue to make funds available on a sensible basis.” No he hasn't. He has put ZERO of his own money into the club. All transfers were funded out of pre existing funds, player sales and bank loans. Moores and Parry could have taken this route were they not total ****wits. Tom Hicks-get out of our club!!

That is so last century.

You think DIC are not in for it for the profit?

[michelmas]

Slightly off topic but this shows how close we could be to the precipice under Thicko.

Joe Lewis, the man behind Tottenham Hotspur owners Enic, is thought to have lost as much as $900m in recent months, making him one of the biggest individual losers in the crisis surrounding US investment bank Bear Stearns.

British-born billionaire Lewis, the second-largest shareholder in Bear Stearns, bankrolls Enic, who first bought a stake in Spurs in 2001, but in August increased their holding through a series of share deals to 82 per cent.

The highly-secretive septuagenarian, based in the Bahamas, leaves Spurs chairman Daniel Levy to deal with the running of the club, and is said to prefer golf to football.

He is ranked by Forbes as the 369th richest person in the world with a fortune of $2.5bn.

He amassed his riches initially through currency trading, but has gone on to have investments in 170 businesses and built a 9.4 per cent stake in Bear Stearns last year - just shortly after the bank announced that two hedge funds has imploded.

He has continued to buy more shares and put options that have been hammered as the stock fell.

City sources claimed he was forced to sell the stake on Friday, but this was not confirmed.

Spurs last year made a profit of around £30m but the club are thought to operate independently of Lewis' money, unlike Chelsea, where owner Roman Abramovich is forced to finance losses.

They are currently looking to increase the capacity of their ground White Hart Lane and have spent heavily in the transfer market as well as in recruiting manager Juande Ramos earlier in the season as they attempt to qualify for Champions League football.

If the club achieve their goals, a sale could be on the cards with Spurs' value likely to rise up to £400m from around £150m.

However, it is unlikely that Lewis will need to rush into selling any of his assests to fund his losses.

[dom9]

Then I will respond again

I havent a clue

People can speculate all they want the press have gone quiet, leaks have stopped

I would hope its a mutually imposed media blackout whilst they continue talking / negotiating

If it isnt that then DIC are letting Hicks stew in the chaos of the US markets

Anything else is just too hideous to contemplate

I would hope so too. It was very embarassing reading the spin from each camp on a daily basis. Not good at all.

[Skillz]

Dunno - why dont you email Tony Barrett and find out

And Milky dont try and be smart it doesnt suit you

Keep to the village idiot image its more becoming of you

Well said.

IMO this "quietness" is nothing to be worried about. If DIC had walked away the Echo would know. The fact there is a media blank is worth taking note, IMO. Probably the biggist sign something actually productive is happening for some time.

[AFII]

That is so last century.

You think DIC are not in for it for the profit?

Depends on what kind of profit you mean, the club or the overall profit value for DIC if they own us.

There is more or less zero chance that they will make a profit in the next 15+ years after buying out G&H plus the loan and pay for the stadium, even if they would pay for the stadium with a loan.

They will make a profit owning LFC, the brand value of the club included in the DIC portfolio would mean that they would make a profit even if they splashed the cash.

So they could run the club with a loss but make a profit just because they own us.

[El Jefecito]

Depends on what kind of profit you mean, the club or the overall profit value for DIC if they own us.

There is more or less zero chance that they will make a profit in the next 15+ years after buying out G&H plus the loan and pay for the stadium, even if they would pay for the stadium with a loan.

They will make a profit owning LFC, the brand value of the club included in the DIC portfolio would mean that they would make a profit even if they splashed the cash.

So they could run the club with a loss but make a profit just because they own us.

DIC have consistently said their financing would not be on an equity basis. AT the very least that means we don't have to find 30m a year for loans. That will shorten the time to break even.

[MattB]

So they could run the club with a loss but make a profit just because they own us.

How though?

[Lecter]

DIC have consistently said their financing would not be on an equity basis. AT the very least that means we don't have to find 30m a year for loans. That will shorten the time to break even.

They have also stated that the investment isnt an "EQUITY PLAY"

[Lecter]

How though?

Its called a loss leader

You run something at a loss or at very low profits to generate increased benefits / profits / business for your other companies

[MattB]

Its called a loss leader

You run something at a loss or at very low profits to generate increased benefits / profits / business for your other companies

I just don't buy that. Don't get me wrong, I want to find out what they have to offer, but I simply do not think you can apply the loss leader principle (which usually applies to individual products within a range) to entire investments. Owning LFC might have perception and 'brand value' benefits, especially if they are focusing on Asian investemnts, but I don't see how it can make their other investments more profitable.

In reality, i think DIC's model will be very siilar to G&H, though with the financial muscle behind it to make it work. To me that is the main difference - their asset base and access to credit

[Skillz]

I just don't buy that. Don't get me wrong, I want to find out what they have to offer, but I simply do not think you can apply the loss leader principle (which usually applies to individual products within a range) to entire investments. Owning LFC might have perception and 'brand value' benefits, especially if they are focusing on Asian investemnts, but I don't see how it can make their other investments more profitable.

In reality, i think DIC's model will be very siilar to G&H, though with the financial muscle behind it to make it work. To me that is the main difference - their asset base and access to credit

You should buy it. If DIC get control, which I think will happen, we will start to move in every direction, fast.

[MattB]

You should buy it. If DIC get control, which I think will happen, we will start to move in every direction, fast.

Hate to come across as a nay-sayer (which I'm not, just trying to see through the hype), but what do you base that opinion on?