What are the positives and negatives to floating on the stock exchange?

[Red Jersey]

Several teams do it, and more don't. would this be good for LFC? I am not too familiar with it.

[Xabi D]

The priority with a plc is towards your shareholders rather then your fans.

[BROCK]

Can be subject to a hostile takeover, like united.

[StevieH]

A stock market flotation enables you to sell shares on one of the stock markets and thus raise funds. It can result in a business gaining a higher public profile and can also raise its status with customers and suppliers.

[SpeedyG]

The priority with a plc is towards your shareholders rather then your fans.

 

The shareholders own the company. They, will more than likely put, economic considerations ahead of football considerations.

[King Emlyn]

Dunno, would it get rid of G+H ? if so it gets my vote.

[ratcatcher]

The shareholders own the company. They, will more than likely put, economic considerations ahead of football considerations.

 

Has it stopped filth winning any titles or CL's though? Last time I looked it hadn't.

 

Point is, moores could have got some serious cash into the club but refused to look at options or put aside his personal feelings. Now, we are paying the price for that.

[SpeedyG]

Has it stopped filth winning any titles or CL's though? Last time I looked it hadn't.

 

Point is, moores could have got some serious cash into the club but refused to look at options or put aside his personal feelings. Now, we are paying the price for that.

 

They aren't on the stock exchange anymore. They've won because their debt is about 10 times what ours is. They need to refinance in a couple of years time (they haven't even been able to make interest payments), so let's touch base then to see who has the sustainable business model. :whistle:

[rebel23]

They aren't on the stock exchange anymore. They've won because their debt is about 10 times what ours is. They need to refinance in a couple of years time (they haven't even been able to make interest payments), so let's touch base then to see who has the sustainable business model. :whistle:

 

their debt is twice ours, we're scheduled to have a higher debt than them in time

[SpeedyG]

their debt is twice ours, we're scheduled to have a higher debt than them in time

 

Got a link because I don't believe that given a) they consistently made a loss b) all of the debt for the purchase is on the club and b) they are not even making interest payments.

 

BTW I did make up the 10x, but I believe that is closer than 2x.

[isr]

The shareholders own the company. They, will more than likely put, economic considerations ahead of football considerations.

 

<smartass>

Shareholders always own the company, whether or not it is publically listed on the stock exchange.

</smartass>

 

Essentially, there's a tradeoff between going public, and staying private.

 

Pro's:

- easier access to capital

- greater, and more frequent, public accountability. For some businesses, being held to this standard can be a benefit.

 

Cons:

- greater, and more frequent public accountability. For some businesses, this leads to too much short term thinking, and a prediliction for choosing short-term profits over potentially larger long-term gains.

 

For football clubs, I really don't think its a good idea.

[SpeedyG]

<smartass>

Shareholders always own the company, whether or not it is publically listed on the stock exchange.

</smartass>

 

Essentially, there's a tradeoff between going public, and staying private.

 

Pro's:

- easier access to capital

- greater, and more frequent, public accountability. For some businesses, being held to this standard can be a benefit.

 

Cons:

- greater, and more frequent public accountability. For some businesses, this leads to too much short term thinking, and a prediliction for choosing short-term profits over potentially larger long-term gains.

 

For football clubs, I really don't think its a good idea.

 

Not smart arse at all, you are dead right. It really comes down to the type of shareholders you attract as a private vs. public limited company. Once you have pension companies et al investing you become purely an economic entity.

[ratcatcher]

They aren't on the stock exchange anymore. They've won because their debt is about 10 times what ours is. They need to refinance in a couple of years time (they haven't even been able to make interest payments), so let's touch base then to see who has the sustainable business model. :whistle:

 

Correct they arent a quoted club anymore but they had more dominance over the english game when they were! To say they have won because their debt is larger than ours is simplistic. They've had huge stadium re building and yes, spent considerable sums on some players.

 

And, their debt is greater now than it was when they were listed (which is what I assume you're point is?) which is down to the decision of the glazers to burden the club with debt.

 

So, you cant argue a PLC would result in greater debt and be a bad thing if the private LC actually piled them with massive debt.

[SpeedyG]

Correct they arent a quoted club anymore but they had more dominance over the english game when they were! To say they have won because their debt is larger than ours is simplistic. They've had huge stadium re building and yes, spent considerable sums on some players.

 

And, their debt is greater now than it was when they were listed (which is what I assume you're point is?) which is down to the decision of the glazers to burden the club with debt.

 

So, you cant argue a PLC would result in greater debt and be a bad thing if the private LC actually piled them with massive debt.

 

I didn't mean to imply we would have more debt, only that we would more than likely become an economic entity vs. a football club with super-close links to the community. Hard-core capitalism and altruism generally don't mix well.

[aws]

If you float you're likely to end up owned by investors who know fuck all abut football and are only in it for the cash.

 

Oh...

[lawrie]

If you float you're likely to end up owned by investors who know fuck all abut football and are only in it for the cash.

 

Oh...

 

precisely :(

[Guest TK-421]

I had to do an essay on this once. I think the answer was it depends; sometimes it's good, sometimes bad.

[aws]

I had to do an essay on this once. I think the answer was it depends; sometimes it's good, sometimes bad.

 

flotation: first half good, second half not so good.

[Guest TK-421]

flotation: first half good, second half not so good.

 

That would get you at least a pass and maybe some rep.