Friday, 27th May already seems like a lifetime ago – the breaking NCFC news, which actually said not very much at all, aside from the fact that seven American citizens were guests in the directors’ box at Carrow Road at the previous weekend’s game against Spurs.
The intervening period has, understandably, been littered with numerous articles, podcasts and vlogs, all speculating as to what’s been going on, if anything, or, hopefully, about to happen, at Norwich City.
Among some of the first questions being asked: is it a takeover, or just an investment to acquire existing shares? Again no one still knows. Or, perhaps more importantly, those who do know anything about the actual position are saying absolutely nothing.
Trying to second guess any corporate takeover (or major investment opportunity) is fraught with difficulty and always takes time. So maybe, just maybe, in this instance, silence is golden.
And here’s why…
The one thing we do know is that Delia and Michael have, over the years, received numerous, usually under the radar, approaches from various parties, all asking about a possible investment in the Club. Their last major discussion on the subject, back in 2020 on the Club’s All in Yellow podcast, made their position clear, namely that they’d experienced their fair share of timewaster and tyre-kickers (my analogy, not theirs) to the point where they were no longer interested in meeting any other parties.
At that point, the canary fan base probably let out a collective groan.
What did change, however, around the same time, was the Club’s method for dealing with any such future enquires.
The first obstacle to be crossed, as part of the revised due diligence process, was Anthony Richens, the club’s newly appointed Finance Director and, more recently, a member of the club’s expanded executive team.
Going forwards, in order to at least have a chance of starting a proper conversation with those who matter – the majority shareholders – any potential investor had at least had to be armed with some form of financial plan. One that would include both sufficient financial detail and was robust enough to survive proper financial scrutiny, intended to remove any potential timewasters from the room quickly.
Given that the Spurs match day photos of the directors’ box showed Mark Attanasio sitting alongside Anthony Richens, I think it’s more than reasonable for fans to assume that that particular box had already been well and truly ticked some time previously. Why would someone bring such a large party across the pond, if not?
However, quite how it plays out from here is less clear, but you have to assume that Mark’s team have, at the very least, come up with a proposal (or maybe several options) as to how their involvement would play out going forwards.
And, whatever’s been put on the table so far, it’s probably safe to assume, at the very least, has been more than sufficient to at least pique the interest of the of those who matter – Delia and Michael.
This would be the point where the serious due diligence really starts. And, where there’s due diligence, there’s also bound to be a lawyer. First up, in the form of an NDA (non-disclosure agreement), which is a legally binding agreement that establishes a confidential relationship between the parties – hence the no comments from either the Club or the other side of the pond, to date.
Parties to an NDA acknowledge that any subsequent disclosure of confidential information remains exactly that – confidential. And, the signing of an NDA is usually deemed another box ticked in the process.
A signed NDA also usually signals the commencement of stage three: access to a data room. This typically contains a variety of privileged information such as precise details of existing players’ contractual obligations, details of future transfer monies both to be paid to and received from other clubs in relation to player transfers, together with access to the current financial management accounts and up-to-date projected cash flow statements.
Having access to this privileged information gives the prospective purchaser (or investor) the ability to more accurately assess both the club’s current assets (its players) and the associated liabilities.
It will also enable them to build their own data model, which is essential to satisfy themselves on the likely levels of risk and reward. To verify and proceed with, or amend, any proposed deal so far put on the table.
All this usually leads to stage four: either the confirmation of the final bid, or, heaven forbid, withdrawal from the bid process altogether. At least the latter hasn’t happened so far, which tends to offer a degree of comfort that things are, at least, serious.
This, in turn, would lead to stage five – passing the English Football League’s, often much maligned, Owners and Directors Test. Given the limited background checks Google reveals so far, that doesn’t seem to offer any significant hurdles to be crossed, as and when required.
Of course, there may be other stages to be satisfied, other negotiations to be completed, And, quite where any of these fits in on the timeline of a party of seven Americans visiting Carrow Road to watch a (terrible) game of football, is anyone’s guess.
However, you’d like to assume that several boxes on the process have already been well and truly already ticked, even if there’s still some way to go.
Did anyone mention that there’s also a transfer window opening shortly?
OTBC
Hi Gary
I knew the principles [just about] but not the detail so thanks for the education!
As you say, putting a timeline on something like this from the outside is impossible.
Many thanks Gary for clearly explaining the situation.
Let’s hope all goes well to the benefit of the club as new investment is badly needed if we are to survive in the higher leagues.
thanks, for the explaining the process. we all wait
Thanks for the business explanation Gary.
I’m sure these people are good people who have an understanding of owning a sporting entity. However the important phrase you use is “Risk and Reward.” They will wish the club to pass a test of what they can get out of the club in the future. Either during their ownership/investment or at some projected point of sale, which will certainly not be decade’s in the future. The club might receive some sort of one off boost to the transfer budget but it is not likely that the club will be run on any different business basis than it is now. That is, it will have to pay for itself out of it’s actual income. Nothing will dramatically change. The whole Delia out brigade might at that point come to realise that it is not who owns our club that prevent us being European regulars but simply the natural size of our club that has actually mostly punched above its weight during her Decade’s of support and ownership. No I have never met the lady but it annoys me that a lot of the Delia out brigade don’t even buy a programme over and above their investment of a ticket. Yes, they no doubt love the club like we all do but ownership entails a lot more than that. These potential investors may well simply be the next phase of ownership of our club which will continue to be run on sound financial principles. In other words the best we can possibly hope for is more Delia but with a different face and accent.
Hi Steven, whatever their intentions, at the moment we can only speculate, they will always be mindful of their potential exit routes. Hopefully, especially given their involvement at Milwaukee Brewers, they will view this as a long term play.
If we get as far as stage 5, you can bet that the authorities will find some reason to decide that they’re unsuitable – after all, they’re not Russian oligarchs, or a Middle East nation who suppress human rights, so how can they be fit to run a football club?
Given their existing involvement at Milwaukee, I’d be surprised!
Gary, I was being somewhat ironic (but still slightly concerned)!!
All successful business require an element of risk. Avoid risk and stagnate. That doesn‘t mean taking wild optimistic gambles but careful speculation, well managed, should lead to accumulation and reaching targeted goals. Reaching the Prem so many times should have provided enough information and experience for our OAP owners to put more of a financial effort into staying there, the rewards are enormous and attracting the necessary investment was vital. Didn‘t happen and we‘re back to square one, gotta hopefully change, but I‘m not too sure it will.
Hi Gary
Walsall has been taken over by Trevila Sports Investment that was announced yesterday with a 51% controlling sell.
Over the next 4 years they have announced the previous majority share holder will stay on the board as an advisor and will sell his share to the Group.
They have said money will be available to boost their transfer funds and to purchase the Stadium and training ground back into the clubs hands.
They also said that while negotiations were going on they applied to the FA to have the owners test completed prior to completion of the deal.
I would surely hope that forward thinking is in place with a similar stance with the cities possible investors.
SW said that in 2/3 weeks there could be some good news so have these talks been going on and are near completion only time will tell and speculation is the killer for all supporters
Having the “Fit and Proper Persons” test before announcing the deal seems like a very good idea.
I see Walsall issued 5,885 new shares, at just over £50 each, raising £300,000. Not sure how large their shareholding is, but if that gets you 51%, I’d be surprised!
As reported yesterday
WALSALL have announced that an American investment group have purchased a majority stake in the club.
Club chairman Leigh Pomlett, who has owned 76 per cent of shares since 2019, transferred 51 per cent over to Trivela Group LLC following a year-long period of discussions.
“No I have never met the lady but it annoys me that a lot of the Delia out brigade don’t even buy a programme over and above their investment of a ticket. ”
I find it disgusting that the Conservatives, the haves, put the emphasis on the have-nots to give more and more to support Conservative interests. Conservatives always pillage those with less for their hard-earned cash when times are hard, it is always the working class who sacrifice, instead of the Conservatives sacrificing themselves.
Sorry, did I say Conservatives. I meant the owners.
……..who are definitely not Conservatives by the way,
Liberal when it comes to other’s money, conservative when it’s their own.
You can’t beat the (bizarrely supported) irony of the requirement that any new investor is only fit if they invest in the club.
If they want a 18% holding in the club, it begs the following question.
If you would only have a 18% minority holding, would you then pump millions into that investment.? No I would not, unless there is an agreement to completely buy the whole club at a later date!
At least we know that our owners would never follow the disastrous route taken by Burnley, that’s something to be grateful for.
I would be very wary. Who in their right mind is going to invest $billions in a yoyo club to try and turn it into a Premier League cash cow? What is the risk/reward calculation on that?
No, this more likely to be taking over some ,minority shareholding(s) possibly with a view to making an offer at a later date for the majority shareholding i.e. Delia and Michaels’ shares. From what I read these Americans are ‘only’ multi millionaires, not billionaires, who have scratched around owning a mediocre baseball club that’s never won anything except odd occasional progression to the playoffs only then to lose. Granted the structure of American baseball leagues is different from our English professional football but the big thing that gets attention is all the money in ‘soccer’. That’s what attracts these predators, but they are out for number one and will small town money make much of a difference to NCFC? We already have that on board. Maybe Delia and Michael fancy retiring though?