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Exit strategy...


Legod Third Coming

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Ok, let's not get ahead of ourselves here, but have you given any thought to what the strategy for NC and co is when we reach the hallowed land of the Premiership??

 

If you were an investment banker what would you do??

 

The obvious answer is sell your investment for at least double your initial capital expenditure - what's a well-run, solvent Premiership club with potential valued at these days - £100m?

 

Not something we should be losing sleep over but I do wonder...

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Seem to remember him saying he's in it for the long term and he fully intends Southampton to be competing at the top. I know as a club we've had a lot of sh!te thrown our way but some on here are far too paranoid.

 

He's also said Southampton are an investment and he doesn't expect to make any money on it until we're in the prem. This suggests as per the OP that the plan is to sell as at a profit in the premier league.

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I sit in row DD which is a fair way up. I do not queue in the stairwell as it takes too long to get out. I prefer the "climb" down the chairs technique.

 

I'm not as agile as you so have to wait it out whilst the laggards do their "after you old chap" routine until 5.30. I get really wound up about this especially as Health & Safety require the stadium to be cleared of people within 2 minutes in th event of an emergency - what a joke that is - but so is wasting time on here discussing what the owners might or might not do in goodness knows how many years ahead when-if we ever reach the PL.

 

Your thread is far more relevant.

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Wasn't there chat about him saying to Markus he wouldn't settle for mid-table mediocrity; he was a winner and wouldn't be happy until Saints were winning trophies etc. I know this is a long way off (maybe even a pipe dream of sorts!) but it would mean that the family and he could be here for a long while yet. Also correlates with the investment in the training ground/academy and the "Barcelona" vision. The 5-year plan was an initial plan, mark my words.. ;)

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He's also said Southampton are an investment and he doesn't expect to make any money on it until we're in the prem. This suggests as per the OP that the plan is to sell as at a profit in the premier league.

 

You don't necessarily sell an investment just because you can make a profit. It depends what your investment strategy is. Arguably the return on the circa £15m investment could be enormous if the club is properly run in the Premier League. Of course they could get an offer which allows them to re-invest the proceeds for a greater return elsewhere. That's business.

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You don't necessarily sell an investment just because you can make a profit. It depends what your investment strategy is. Arguably the return on the circa £15m investment could be enormous if the club is properly run in the Premier League. Of course they could get an offer which allows them to re-invest the proceeds for a greater return elsewhere. That's business.

 

And just how many clubs in the prem are actually making any sort of positive return. Even the more fiscally prudent clubs are deep in the cacky financially. Clubs are speculative investments end of.

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And just how many clubs in the prem are actually making any sort of positive return. Even the more fiscally prudent clubs are deep in the cacky financially. Clubs are speculative investments end of.

 

Yeah I agree but my point is we'll only be worth selling for potentially 10's of millions when we're established and more of a brand & that means competing towards the top of the PL.

 

We will be sold at some point, it's inevitable and if we are doing well in the prem the Liebherrs will make good money but IMO NC will be here for much longer cos let's face it it'll probably be him that orchestrates the sale.

 

And that's not to mention he seems to do things differently to 95% of English football clubs and has got pretty much most things right so far. Let's just enjoy this amazing turn around.

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Looking at it from a different angle everyone connected to buying the club have & will continue to make vast sums of money, they're smart enough to know you don't make lots of money from football compared to their usual line of business. Maybe, just maybe they wanted to build a club from the ground up and see it succeed, no ulterior motives.

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Looking at it from a different angle everyone connected to buying the club have & will continue to make vast sums of money, they're smart enough to know you don't make lots of money from football compared to their usual line of business. Maybe, just maybe they wanted to build a club from the ground up and see it succeed, no ulterior motives.

 

Good point well made.

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Seem to remember him saying he's in it for the long term and he fully intends Southampton to be competing at the top. I know as a club we've had a lot of sh!te thrown our way but some on here are far too paranoid.

 

Agreed. Worry about if and when it happens, let's all enjoy the ride we are currently having. I'm sure if that time came that they would ensure we were sold to good owners. There is far too much paranoia on this site and there have been no indications that the plan will not be followed through.

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If I remember correctly in an early interview NC stated that the ultimate vision was to see Saints in the Champions League. That suggests a somewhat longer term commitment.

 

You do remember correctly but if you dare to dream about those kind of heights you'll probably be shot down in afraid. Never felt so good about being a saint, really look forward to every match, expect to win, have a good confident squad who expect to win with an intelligent manager who knows what he's doing. Can't ask for much more really.

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NC is a Banker.

 

Ain't as if there is too much happening in that industry at the moment, couple of hundred thousand of them out of work world wide at the moment.

 

He sure as sh1t ain't gonna be thinking of going back to his old career at this point in time, Swiss banks ain't flavour of the month and as for EuroZone & Banks...

 

Nopre, he'll have hunkered down and if he keeps things heading the way they are then the Liebherrs money right now is as safe as anything else in the world - for example they could always invest safely in, in, um, er, well in nope, can't think of anything safer right now

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You do remember correctly but if you dare to dream about those kind of heights you'll probably be shot down in afraid. Never felt so good about being a saint, really look forward to every match, expect to win, have a good confident squad who expect to win with an intelligent manager who knows what he's doing. Can't ask for much more really.

 

Looking back at Markus and his attitude to Saints, I believe he was in it for the long haul. Everything being done to the infrastructure of the club looks more like a 10 year plan rather than a 5 year skip to the Premier. The steps Markus took prior to his death to safeguard the future of the cub and his dream are still going forward, something he must have communicated to the rest of his family. Where we are very lucky is the glue that holds all this together (Cortese), has committed to us to what looks like the long term as well. Obviously fearful of not fully understanding the family's long term plans, has considered the possibility of alternative investors. Cortese I feel is the key to this, as long as he remains the dream lives on. As with anything like this, we can only enjoy it in the moment and can do nothing about the what ifs, except to worry. What I would say to those who are not totally enamoured with Cortese, what do you think the family would do if he walked away? Virtually all clubs have good times they don't want to end, but inevitably that does end at some juncture.

 

What I will never hold to is the great investment opportunity of Saints as a club. Even with the bonus of the Oxo fee, Liebherr will be looking at something like £20M+ costs, when you factor in what he has done in the past with capital. Then to make any profit or break even, you have to find some idiot prepared to buy the club. I guarantee you will get plenty of tyre kickers, but the likes of Liebherr? We have all seen the type of money required to get in players for a half chance at the Premier, along with wages and long term contracts. Lets say you get to the Premier the season after next, it would not surprise me if your actual investment is now up to £30M+, with something like another £30M+ required just to stay there. Start talking about Champions league and you only have to look back at Liverpool and Spurs outlay to just have a sniff. It just does not add up for a club like Saints and you just have to look at Wigan with Dave Whelan giving up on being able to financially support them after all he has thrown at the club.

 

Cortese is well aware of all of this and the route we are now travelling is based upon the Academy and developing our own players to elevate us to a far higher position than our financial clout ever can. This is a very long term strategy especially when you see that amount of time it takes for a lot of youth players to fully develop, whilst being able to hang onto them. Some players like Oxo we won't be able to hang onto, others like Lalanna we will. The Oxo money will be ploughed back into the structure but the overall effect is to slow things down, not forgetting the Matt Mills who take a long time to mature into the positions.

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The way this club is run could be the way of the future. If the politicians and UEFA get their own way clubs will need to be run on an even keel with a strong academy being the only way to bring through talent that can make a difference to the performance of the club. A club owning its stadium with strong local support and a fully integrated Academy setup is going to be in a very strong position when the financial meltdown hits. Which could be soon if a big club gets in trouble this season - there is no way that politcians in the current climate will let a sports team get away with not paying their taxes under the football creditors rule.

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Looking back at Markus and his attitude to Saints, I believe he was in it for the long haul. Everything being done to the infrastructure of the club looks more like a 10 year plan rather than a 5 year skip to the Premier. The steps Markus took prior to his death to safeguard the future of the cub and his dream are still going forward, something he must have communicated to the rest of his family. Where we are very lucky is the glue that holds all this together (Cortese), has committed to us to what looks like the long term as well. Obviously fearful of not fully understanding the family's long term plans, has considered the possibility of alternative investors. Cortese I feel is the key to this, as long as he remains the dream lives on. As with anything like this, we can only enjoy it in the moment and can do nothing about the what ifs, except to worry. What I would say to those who are not totally enamoured with Cortese, what do you think the family would do if he walked away? Virtually all clubs have good times they don't want to end, but inevitably that does end at some juncture.

 

What I will never hold to is the great investment opportunity of Saints as a club. Even with the bonus of the Oxo fee, Liebherr will be looking at something like £20M+ costs, when you factor in what he has done in the past with capital. Then to make any profit or break even, you have to find some idiot prepared to buy the club. I guarantee you will get plenty of tyre kickers, but the likes of Liebherr? We have all seen the type of money required to get in players for a half chance at the Premier, along with wages and long term contracts. Lets say you get to the Premier the season after next, it would not surprise me if your actual investment is now up to £30M+, with something like another £30M+ required just to stay there. Start talking about Champions league and you only have to look back at Liverpool and Spurs outlay to just have a sniff. It just does not add up for a club like Saints and you just have to look at Wigan with Dave Whelan giving up on being able to financially support them after all he has thrown at the club.

 

Cortese is well aware of all of this and the route we are now travelling is based upon the Academy and developing our own players to elevate us to a far higher position than our financial clout ever can. This is a very long term strategy especially when you see that amount of time it takes for a lot of youth players to fully develop, whilst being able to hang onto them. Some players like Oxo we won't be able to hang onto, others like Lalanna we will. The Oxo money will be ploughed back into the structure but the overall effect is to slow things down, not forgetting the Matt Mills who take a long time to mature into the positions.

 

We don't really know why Cortese introduced Markus to the club. Was it because he saw an investment opportunity (long term) or because he saw that Markus had a lot of time and money on his hands, and thought it would give him something to build - a legacy if you will.

 

I like Cortese - despite not agreeing with everything he does. But if he is is a half decent banker, he won't be thinking only about selling the club to an individual necessarily, he could be thinking about an IPO or sale to a hedge fund, or to a another wealthy investor/group (along the Arab Citeh lines).

 

I hope that NC and the Liebherrs are in this the same way the Russian is in it at Chelsea. Time will tell.

 

(Oh and I'm not paranoid and I am enjoying every moment of our current climb - but it's in the nature of mankind to wonder what his future holds...)

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If he decides to exit whilst we are a solvent, well run club, playing in the Premier League then I really cannot see why anybody would have any gripes whatsoever. Look where we were when he walked in the door!

 

If he left tomorrow you'd have to say thanks and good luck. He won't - but you get my point?

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If he decides to exit whilst we are a solvent, well run club, playing in the Premier League then I really cannot see why anybody would have any gripes whatsoever. Look where we were when he walked in the door!

 

If he left tomorrow you'd have to say thanks and good luck. He won't - but you get my point?

 

if you are talking about NC, then he can quit, but he can't decide to sell anything, or did he inherit the club?

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Ok, let's not get ahead of ourselves here, but have you given any thought to what the strategy for NC and co is when we reach the hallowed land of the Premiership??

 

If you were an investment banker what would you do??

 

The obvious answer is sell your investment for at least double your initial capital expenditure - what's a well-run, solvent Premiership club with potential valued at these days - £100m?

 

Not something we should be losing sleep over but I do wonder...

I am struggling to find a point to this post.

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if you are talking about NC, then he can quit, but he can't decide to sell anything, or did he inherit the club?

 

Appreciate that he owns nothing - however it would appear that has the owners full trust in running this particular part of their business. As such I think that he make all of the major decissions about the running of the club - I doubt that they have any operational input, apart from budgetary.

 

Therefore - upto now - given where we were and where we now are - I believe he has little to reproach himself for.

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Appreciate that he owns nothing - however it would appear that has the owners full trust in running this particular part of their business. As such I think that he make all of the major decissions about the running of the club - I doubt that they have any operational input, apart from budgetary.

 

Therefore - upto now - given where we were and where we now are - I believe he has little to reproach himself for.

 

Does it appear that way?

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I'm not so sure that the ruthless banker will be that ready to move on when he delivers the next promotion.

He was quite emotional when we went up in May, this project is the last link to his old mate, I don't think he will let it go easily nor lightly - however much profit there is to bank.

 

And we know what he's like in the transfer market, he'll be a nightmare handling any sale, he'll want to know exactly what you have planned and is likely to chase away a few billionaires just because he doesn't like the look of them.

 

So I suspect Nicola is in it for the long haul, even if that means finding alternative funding at some point should the family stance alter.

He's not perfect but he is absolutely loyal to the Markus dream - that's the club run as a proper business, winning games, playing football the right way.

 

I look around the leagues and personally feel we are currently in good hands from the boardroom to the dressing room, and you don't get to say that very often, so enjoy!

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