| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore 17:26 - Oct 30 with 10099 views | thomasJack |
GARRY Monk reckons Swansea City must look to outside investors if they are to continue to thrive at the top end of the Premier League.
It emerged today that US billionaire John Moores is one of the American businessman who is in talks with Swansea over the possibility of putting money into the club.
Moores' friend, Charles Nowell, has also been named as a potential investor as Swansea seek extra cash to help them compete at the top level.
Swansea's board of directors have so far refused to comment on the names, although they have admitted they are on the lookout for new sources of revenue as they bid to increase their financial muscle.
Chairman Huw Jenkins had originally claimed Swansea were only looking at sponsorhsip and commercial deals, but it is now clear they could be prepared to sell some shares in the club.
And Monk admits Swansea do need extra money if they are to keep pace with the top-flight's heavyweight clubs.
"I just think it's important that we look to push forward as a club," said the Swansea manager.
"One way of doing that is attracting investment and we need to be proactive.
"You need investment to make that step to being an established top-ten club.
"The big clubs will keep getting money in, and it's important for a club like ourselves to make sure we get enough money in to stay on their heels."
Swansea fans have taken pride in the fact that their club has been run primarily by local people since Tony Petty was ousted in 2002.
There are bound to be concerns over what direction Swansea may go in should their ownership change in any way, but Monk has faith in Jenkins and Co.
"For the last 10 or 12 years, the chairman and the board have always made decisions in the best interests of the club," he added.
"I am sure they will keep doing the same. It's not about someone coming in to take over the running of the club, so we just have to trust Huw and the board to make the right decisions.
"They have been very shrewd over the years and that will not change."
Read more: http://www.southwales-eveningpost.co.uk/Garry-Monk-welcomes-prospect-outside-inv
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:13 - Oct 30 with 1687 views | Uxbridge |
Of course he knows, and I agree. To be honest I've been very heartened by the general views on here. Wouldnt happen at most other clubs. | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:13 - Oct 30 with 1687 views | DDCH |
I would assume that is the case, but if they (the directors) are claiming this is a fund raise for the club, then surely the money should go straight into the players/stadium bin | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:15 - Oct 30 with 1672 views | Uxbridge |
If it's a straight share sale, then the money goes to the shareholders alone. If it's a share issue, then it's equity for the club. | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:18 - Oct 30 with 1662 views | monmouth |
And a diluted trust....and a foot in the door. If that reason were kosher, I'd rather see a higher gearing for the period needed, and preferably from a reputable lender than a 'business' shark. | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:18 - Oct 30 with 1662 views | Joe_bradshaw |
If it's a share issue I assume that the trust will be offered 21%?
That being the case, can the trust afford it or will the trust's shareholding be diluted? | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:21 - Oct 30 with 1649 views | DDCH |
A share issue sounds sensible but would dilute the trusts holding. With the banked money from the dividend I doubt there would be enough to keep levels the same
(No evidence or fact here all just thoughts) | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:24 - Oct 30 with 1629 views | Uxbridge |
Any share issue has to go to the existing shareholders pro rata. I don't think a new share issue given the current shareholders is likely though. [Post edited 30 Oct 2014 20:26]
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:32 - Oct 30 with 1581 views | Davillin |
Sorry. Money from sales of shares owned by a shareholder go 100% to that shareholder, and zero to the club. That's just the law.
Shares sold by the club, from authorized but not yet issued shares, go to the club. That's just the law, too. And dilute [or weaken the value of] the shares of the other shareholders. TJTLT. | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:35 - Oct 30 with 1564 views | PapaLazarou |
The funny/sad thing being it's not at all unlikely that Monk himself would find himself one of the first ones out the door under new "investment". | | | |
| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:39 - Oct 30 with 1547 views | londonlisa2001 |
Unless pre emption rights are waived of course which could be done with 75 of the shareholding.
The problem with all of this is we (or non Trust board we) don't know what 'extra' rights the Trust has over those arising under company law by virtue of the shareholders' agreement.
If none then we can argue all we like - the Trust can't do anything apart from refuse to sell its own shares (which could then be diluted anyway).
This was always the scenario which wouldn't work for the Trust - not being able to afford to hold its position in the event of great success and greedy shareholders. | | | |
| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:47 - Oct 30 with 1531 views | Uxbridge |
Reason I said unlikely is that some of the less affluent wouldn't vote for it. Given the divis the Trust is probably not the weakest. And that's as you say before we get into SA discussions. That's why I don't think its a likely scenario, for now at least. | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 20:57 - Oct 30 with 1508 views | londonlisa2001 |
Given that even the most wealthy looks like a pauper in such company I imagine none of them would vote for it!! It was an example of a more general point. | | | |
| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 21:02 - Oct 30 with 1490 views | AngelRangelQS |
What is the worst case scenario for the trust in all this? Presuming they decide they don't want to sell? | | | |
| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 21:19 - Oct 30 with 1446 views | Uxbridge |
I agree with the general point. Key that the Trust is protected. | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 21:42 - Oct 30 with 1394 views | max936 |
Says it all that for me, we're doing fine as we are, last thing we need is anyone coming in to sell the family jewels to feather is own nest, thanks but no thanks. Jog On.  | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 07:40 - Nov 1 with 1236 views | MoscowJack |
Let's look at this point-by-point:
1. SCFC are not selling anything - the individual shareholders are. Any money raised or paid goes directly to the individuals and will make them about £1m per 1% they own and sell.
2. We know little about the intentions of the potential new owners - they could just sit and wait for the new TV deal and sell their % on to anyone at any given time. We would have zero ability to stop them from selling to ANYONE. That "anyone" could be Vincent Tan, for all we know, and we would end up playing in red.
It's also quite feasible that they would look to cut costs, run an even tighter ship (to increase profitability), increase ticket prices and then wait for the new TV deal to kick in and vaste increase our valuation....then sell.
They won't care on jot - all they want is the best possible return on their money. They have zero ties to SCFC and only care about this being a money-spinning investment.
All you have to do is look at the club that they left and see what state that's in now. They bought it for about $80m and sold it for $800m without a thought for what will happen to it afterwards.
3. Huw Jenkins, Martin Morgan, Rob Davies and Leigh Dineen are locals. John van Zweden is close to being a local really too. I hope that they would ensure that the Trust are protected if there HAS to be a sale. The best protection they can give is (a) to ensure that the Trust has 25% (b) that there are clauses written into the agreement to protect the Trust from having their shares diluted and (c) selling to the right buyers, not the wrong ones.
3. Huw Cooze, Phil Sumbler and the rest of the Trust's Board Members are the "good guys" in my eyes as they don't look at this deal with pound signs influencing their position. They know that failing to protect the Trust NOW will leave us exposed and really in a bad position. The Trust was formed for this very reason so I hope the Trust fight tooth and nail to ensure that the Trust's protection is the No.1 priority. That's their responsibility and ours is to back them 100% if that cannot be guaranteed.
In my person opinion, unless both guarantees are not met, the Trust should DEFINITELY not back any potential deal, regardless of who the owner is. I don't care if it's Tony Petty or Father Christmas, nobody should be allowed to sell up unless the Trust are 100% protected in all ways.
4. My person view on Garry Monk's comments were similar to others above. We don't need him getting involved in the politics - he needs to concentrate on what's done on the pitch. His comments yesterday sounded like a political party announcement and it was obvious that he was told to say exactly what he did. I support Garry 100% and have really wanted him to succeed from the day he was suggested as Manager of SCFC, but he shouldn't be getting too involved in the politics. A quick "if it means more money to strengthen the team, then I'm happy" type quote would have been fine, but not all the "you can Trust our Board" crap.
Most of the SCFC Board are 100% passionate Swans fans and they really have done a wonderful job of looking after our club over the past 12 years. Jack To A King might have glamourised the positions of some, but I'm still grateful to them all.
All that the ending of this chapter needs now is a happy ending whereby they end up rich, we get good/honest new owners and the Trust is 100% protected. That's how it should be. That's how it NEEDS to be. | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 08:01 - Nov 1 with 1218 views | cl81227 |
Trouble is boys as I see it we are currently at the crossroads. My understanding now is that the wage bill for the whole club and support staff is pretty much all our TV revenue money. Given that we can generate very little income from other sources we are stuck in a rut. Despite what people say the stadium development will not happen whilst we do not own the stadium, and that is a real issue. I have noticed on my recent visits to Fairwood that the new extension to the main block has not moved on since the summer, probably reflecting the fact that we have run out of money. I would imagine the first thing the new owners would do is buy the stadium off the council. The board in its current format cannot take the swans any further. [Post edited 1 Nov 2014 8:04]
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 08:11 - Nov 1 with 1205 views | MoscowJack |
That is probably very true. Maybe we do need external investment in order to finish Fairwood, expand the stadium whilst still investing enough in the first team but that investment doesn't have to come at the cost of the Trust being in a vitally strong position.
There's NOTHING stopping the Board from giving the Trust enough shares to reach the magic 25% mark and giving the Trust all the protection it needs.
Also, why do these owners (with not such a perfect history) have to be the right ones? I'm not saying these guys are the devils, but do we have to sell NOW and why to these people? | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 08:48 - Nov 1 with 1182 views | monmouth |
Our wage bill is 60m per annum?? | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 08:57 - Nov 1 with 1179 views | cl81227 |
Not saying that we have to sell to these people, but given that the board are all fans at heart, then the fact that they have been courting discussions for probably longer than we probably know, then if eventually they make the decision that these are suitable people to allow in, then I for one will back their judgement, as I fully believe they have the clubs interests at heart, but I come back to my original comments, we are the only team in the prem that does not own its own ground, the money we generate from match days under the current scheme is peanuts, we need the stadium expansion to push on. The board will not invest whilst they do not own. The goal has to be increasing our fan base so that we regularly play in front of 27-30k week in week out. Just remember when the board and the trust came in it was to rescue us from Petty and to try and sustain lower league football ie league 1 and 2, they never envisaged that we would be in the prem, and that is the real issue now, with sky revenues being consumed on staff wages, they cannot move us on, if the majority are happy enough to maintain the status quo then great, if we want to grow and be the dominant club in Wales for decades to come then we have to do something now. If it was such a lucrative gig why would you want to sell out ? | | | |
| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 09:16 - Nov 1 with 1168 views | MoscowJack |
I'm sure that they have the best intentions, but nearly every single one of us would have their head turned if they were offered £5m-£10m in cash!
If someone told you that you would never be able to go to see the Swans again, ever, for £5m, would you agree? It's a hypothetical question, of course, but it is relative to the situation that some shareholders are in.
If Leigh Dineen, Huw Jenkins, Rob Davies and John Van Zweden all get offered those sums, I don't begrudge them the chance to take the money. I know that I would.
What NEEDS to be ensured, though, is that the Trust can never be weakened by any potential new owners. If that means that they all give a small percentage each or one gives up 4%, then that's what should happen. If not, then no sale should be allowed by the Trust Board and we should fight it with everything we collectively have. | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 09:38 - Nov 1 with 1149 views | max936 |
The commercial side of the Club should be doing better, the EPL is huge around the World and growing, plenty of opportunities to expand that side of the Club, just needs someone who's got the imagination and dynamism to exploit it, it'll cost in salary, but the rewards are huge. | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 09:44 - Nov 1 with 1142 views | perchrockjack |
Indeed .
If we haven't the wit to extend the ground then commercial improvement is crucial.
Its a big old world out there and I pray those who run out club are looking at matters outside the Swansea goldfish bowl.
We have so much potential its ridiculous, frankly one of the few points of interests at all in Swansea. It is the Only thing that puts us on the world map.
It must a dream job | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 09:49 - Nov 1 with 1136 views | Shaky |
So unless the Trust is given 4% of the club for free, you want a no holds barred fist fight over the potential investment proposal, of which you have no details whatsoever?
Hokaaaaaay! | |
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| Garry Monk welcomes prospect of outside investment at Swansea City as John Moore on 09:56 - Nov 1 with 1127 views | longlostjack |
If the investor is looking to buy shares of the club and his intentions are honorouble what better way to prove that than transferring 4% of the shares to the Trust? | |
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