Been a reader of this forum for a while. Prompted to post by some of the crazy talk on here trying to blame ACL. I grew up watching football on the terraces, but (for my sins) now work for a hedge fund.
Recall: SISU is a distressed debt hedge fund.
Hedge funds are run by elite financiers whose only goal is to make as much money as possible for their investors, and by proxy, for themselves. This is capitalism at the sharp end.
Distressed debt funds buy up companies that are having problems as cheaply as possible, then attempt to re-organise the operations and debts to maximise their profit. This is sometimes by managing the company to be more effective, equally often it is by a process of creative (but legal) accounting and clever use of bankruptcy law.
For a beginners guide watch "Pretty Woman".
In my opinion, SISU have no intrinsic interest in making the football club successful, or making the fans happy. It is just one more trade for their books. The decisions being made by SISU are being made in an executive office in Mayfair. The people making them are paid millions a year, live in London, and I suspect have no empathy with the average football fan. They do not stand on the terraces. They do not buy the shirt. They do not sing along. And I doubt they really understand what the club means to the community. Even if they are nice people, and do care, I suggest it will have zero impact on their decisions on what to do next.
It is hard to know exactly what SISUs plan is to generate a return, but given football clubs at this level are generally net-zero (or loss-making) on cash-flow you have to assume it is a play for assets. For what it's worth, I think the plan has always been to pick up a stake in the stadium at a knock down price. Now that looks unlikely, SISU are running plan B. The structure of the companies, the decisions around negotiation, the choices on administration are all part of a strategy to maximise returns.
ACL, the council, the Inland Revenue, etc. have been dragged into a situation not of their making. Have they done the best thing? Hard to say. They are dealing with a sophisticated, rich, and motivated adversary - negotiating with such people is not the councils specialty.
Anyone who thinks that SISU is not the cause of the clubs current situation is in fantasy land. Do not get lost in the complexity of the companies and the bankruptcy law and the press releases. SISU are in the driving seat.
The best that can happen now is that SISU decide that running this trade is not worth the cost any more. At that point they will sell off the club to the next owner and the rebuilding can start.
The best the fans can do is protest like hell about SISUs ownership. Hedge funds do not want to be in the spotlight. In the meantime all the fans should get behind the manager and players in the hope that when the next owner comes in, there might just be something left to build on.
Recall: SISU is a distressed debt hedge fund.
Hedge funds are run by elite financiers whose only goal is to make as much money as possible for their investors, and by proxy, for themselves. This is capitalism at the sharp end.
Distressed debt funds buy up companies that are having problems as cheaply as possible, then attempt to re-organise the operations and debts to maximise their profit. This is sometimes by managing the company to be more effective, equally often it is by a process of creative (but legal) accounting and clever use of bankruptcy law.
For a beginners guide watch "Pretty Woman".
In my opinion, SISU have no intrinsic interest in making the football club successful, or making the fans happy. It is just one more trade for their books. The decisions being made by SISU are being made in an executive office in Mayfair. The people making them are paid millions a year, live in London, and I suspect have no empathy with the average football fan. They do not stand on the terraces. They do not buy the shirt. They do not sing along. And I doubt they really understand what the club means to the community. Even if they are nice people, and do care, I suggest it will have zero impact on their decisions on what to do next.
It is hard to know exactly what SISUs plan is to generate a return, but given football clubs at this level are generally net-zero (or loss-making) on cash-flow you have to assume it is a play for assets. For what it's worth, I think the plan has always been to pick up a stake in the stadium at a knock down price. Now that looks unlikely, SISU are running plan B. The structure of the companies, the decisions around negotiation, the choices on administration are all part of a strategy to maximise returns.
ACL, the council, the Inland Revenue, etc. have been dragged into a situation not of their making. Have they done the best thing? Hard to say. They are dealing with a sophisticated, rich, and motivated adversary - negotiating with such people is not the councils specialty.
Anyone who thinks that SISU is not the cause of the clubs current situation is in fantasy land. Do not get lost in the complexity of the companies and the bankruptcy law and the press releases. SISU are in the driving seat.
The best that can happen now is that SISU decide that running this trade is not worth the cost any more. At that point they will sell off the club to the next owner and the rebuilding can start.
The best the fans can do is protest like hell about SISUs ownership. Hedge funds do not want to be in the spotlight. In the meantime all the fans should get behind the manager and players in the hope that when the next owner comes in, there might just be something left to build on.
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