QUOTE (Jack Sparrow @ Aug 20 2014, 11:17 PM)
Silvio can't spend. Milan doesn't belong to Silvio. Through a complicated arrangement, Silvio's income NOT EQUAL to Milan's income. Milan is it's own company.
You don't seem to believe that all the big spenders were in a far better position with regards to FFP even before we got there. All of them.
As for the other argument. One one side fans scream that 12 million for Matri was the most idiotic thing ever. Yet if we try and negotiate and arm twist to cut down the deals for two overpriced players, we're stingy. It's like they can't win.
No way in f@ck Cerci is worth 18 million. 15 million at best and no more. Same with Dzemaili. If he were that f@ckin good, he wouldn't need to be leaving Napoli to come to us.
So unless any of us screaming for paying those prices are willing to put up the extra millions that would be wasted in case these players flop, I don't see the point.
I'll hold my peace till then.
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R7,
If you read this thread, from a corporate point of view, is it possible at this point in time for Milan to 're-capitalize' itself from scratch?? To have a better fund to spend from? I mean without selling shares and all. Just re-capitalize itself?
How is Roma and Pallotta working out their finances? Roma was neck deep in debt. As bad as Inter. The banks were going to shut them down? How did he pay off the debts and then proceed to do further cash injections without it being seen as a debt?
On Milan:Why re-capitalize? Borrowing is cheap, noting ECB discount rate is close to zero. Hence the Equity/debt mix should be at an optimal level. Fininvest continues to inject funds into equity to shore up losses on each calendar year, the same to safeguard Equity. Fininvest’s strategy is looking to sell the club whole or at the very least sell approx. 30% to finance the purchase of a new plot of land and construction of a stadium. Monetizing on a new stadium is what will get the wheel moving at Milan.
On Roma:With Roma, you have to go back in time, circa 2008. At the time, the owner was Italpetroli (a fuel storage company), which had accumulated over 400M in debt. With the financial crisis, the banks were squeezed and the Sensi family (owners of Italpetroli) felt the pinch as they had mortgaged shares of Italpetroli against the facilities availed by Unicredit.
Sensi and Unicredit agreed to restructure, with a debt to equity swap (where the bank became owner to 49% of Italpetroli, which in turn owns 67% of AS Roma). At that point, Unicredit had full control of Roma (while Sensi, the president of the club had no say in the club matters – a transitional president if you will). Further, Unicredit hired a third party consultant to bring in a potential investor.
Enter the American consortium led by Pallotta in 2010 [James Pallotta (25%), Michael Ruane (25%), Richard D'Amore (25%) and a family fund (22.5%)]. They offered a little over EUR100M (club was valued at approx. EUR250M). Unicredit and Sensi wanted a higher valuation, but considering the scarce availability and interest from investors to invest in Serie A clubs; Unicredit agreed (despite Sensi’s reluctance) the transaction was done.
AS Roma is a new company today, and as of 11 Aug 2014 are wholly owned by the consortium of investors (not Pallotta alone). As a new company, AS Roma can raise debt with relative ease considering it no longer is under the indebted Italpetroli. Moreover, the consortium had participated in a capital increase in the new company the same not only to fund for a stadium but to safe guard equity as well (as equity had turned negative since 2008).