Golden Share

[steve_h]

In one of my finance text books at uni. one of the examples from the financial times was about us and the take over in the 96/97 season and thought it'd be interesting to share:

Golden Share Will Corner Nottingham Forest Buyer

The owners of , the cash-strapped Premiership football club which has put itself up for sale, will retain a golden share after the club has been acquired by one of three potential buyers.

The golden share, which will be unique in football, will place tight restrictions on Forest's ultimate buyer. The most significant dictates that 80 per cent of revenues from transfer fees must be reinvested in new players.

This is aimed at deterring the club from selling players to get out of financial trouble.

The new owners will also be prevented from selling the club for five years, and will not be allowed to change the name or the colour of the team's red shirts.

If the new owners breach any of the rules, control of the club will automatically revert to Forest's current shareholders.

Mr Lance Darlaston, Forest's financial controller, said the golden share was designed to protect the integrity and traditions of the 131- year old club.

"This reflects the fact that our structure is based upon a private club, with 209 shareholders owning one share each. The golden share is being put into the memorandum of the articles of association to protect those rights against abuse," he says.

, the club's financial adviser, has received three firm bids for Forest.

The joint favourites are a group led Mr Lawrie Lewis, founder of the exhibitions group, and a consortium of Nottingham businessmen fronted by , the accountancy firm.

The financial details of both bids are believed to be very similar, with the prospective buyers pledging to invest initially between £10m-£15m.

However, Mr Lewis's bid is reported to have the edge because he has offered Forest stockholders £12,500 a share for their equity, believed to be substantially more than the offer from the group of local businessmen.

The third bid comes from a consortium of Indonesian businessmen.

Forest's board is expected later this week to send a letter to shareholders giving its preferred bidder. It needs 75 per cent approval from the shareholders for the sale to proceed.

 

[Kilburn Red]

In one of my finance text books at uni. one of the examples from the financial times was about us and the take over in the 96/97 season and thought it'd be interesting to share:

I would hazard a guess that this piece of legislation never got built into any deal.

All Forest have done for the past 10 years is sell any half decent player and there is no way 80% of the Jenas, Dawson etc money ever got reinvested into the playing staff.

Nigel Doughty is a Venture Capitalist who's sole reason for existence is making money.

With his heavy involvement in Hedge funds and wind turbines, our Nige could clean up in the next decade. Unfortunately he would rather give money to charity than support Nottingham Forest to the financial level they deserve.

 

[Kilburn Red]

Thinking about it further I think you misread the text book and what it actually said was Golden Shower, giving the owner permission to pi*s all over the fans!

 

[fil]

Thinking about it further I think you misread the text book and what it actually said was Golden Shower, giving the owner permission to pi*s all over the fans!

top post made me laugh

 

[toptrunk]

I would hazard a guess that this piece of legislation never got built into any deal.

All Forest have done for the past 10 years is sell any half decent player and there is no way 80% of the Jenas, Dawson etc money ever got reinvested into the playing staff.

Nigel Doughty is a Venture Capitalist who's sole reason for existence is making money.

With his heavy involvement in Hedge funds and wind turbines, our Nige could clean up in the next decade. Unfortunately he would rather give money to charity than support Nottingham Forest to the financial level they deserve.

Have to say Kilburn that if you think someone being heavily involved in Hedge funds is going to make a fortune as a result you are highly likely to be completely wrong. They will never be allowed to oprate in the way they have been given the problems they have helped to cause