Re: La Liga
High tension as second phase of Valencia’s sale is overdue
A sale of a football club is never a matter that will settle without noise, and even though it might same as things have calmed down in Valencia, it is only so because the battles are fought silently and away from the open plains. The question is whether it will remain so or if it will yet again blossom up to be a very public war. Let us have a look at the pending issues and what is moving.
The timeline
After the original timeline, the evaluation committee should already have provided a list where they identify the preferred offer or offers to the Fundación for a vote. Obviously, this has not happened and it was expected that Fundación yesterday would have emitted a press statement explaining the delay and what would be the new timeline. The principal reason for the postponement is cited to be the sheer volume of pages in the offers – some up to 800 pages, but also the fact that some of them need especially thorough verification when it comes to the financials. It is assumed that this applies at least for the Russian offer as well as the one from Mario Alvarado. The extra time will also allow the evaluation committee to meet the representatives for each offer in person.
The new timeline has of course already been leaked to the press and says that a final list will be provided by the 3rd of May, followed by a decision on May 17th. With that one has also sought to avoid any interference with the upcoming matches for the team.
The evaluation
Already from the start there has been disagreement about what are the specific criteria for selecting the best offer. While PwC as the representative of Valencia CF has elaborated a list that focuses on the sportive project, what happens to the clubs assets, what happens to Fundación and the cantera etc. KPMG as Bankia’s representative has focused on the financial points. While both overlap and has been taken into consideration for the official list, some disagreement remain and there is still worries that the two consultancies could present two separate and different rankings of bidders.
Also, one should not forget that both consultancies are financially rewarded in case they have brought to the table what turns out to be the winner. Yesterday, the evaluation committee and the consultancies spent 6 hours in a meeting in an effort to iron out the remaining disagreements and avoid further revelations to the press. After the evaluation by the committee, this will be presented to a group consisting of Amadeo Salvo, Aurelio Martinez (president of Fundación), Juan Carlos Moragues (representing Generalitat Valenciana) and a representative from Bankia. This is where the final list to be submitted for the vote in the Fundación will be created.
The vote
So with the evaluation criteria uncertain it is of course also uncertain on which basis the different “patronos” of Fundación will vote. A winner needs a majority vote by two thirds (14 in favor) to be chosen. The main discussion on the topic of the vote is whether it should be a secret voting, or one by manner of raising hands. Amadeo Salvo is the main advocate of the latter to ensure that no-one is coerced into voting differently by, let’s say Bankia or Generalitat Valenciana. This would be an open and transparent vote, which in principle is good, but that would also open up for the voters to be reprimanded by the the fans or any interested parties of a different opinion. Herein lies the seed of a social war unlike anything seen so far.
The majority of the Fundación therefore seem to want the secret vote to protect themselves and in fact the club from the potential consequences of an open vote. The obvious drawback is of course that voters can receive pressure from the same interested parties up front and change their vote accordingly. Former Valencia player and director Fernando Giner , now representing the player’s union in the Fundación and thus with voting rights, yesterday defended the secret vote in order to give him and others the opportunity to freely vote without risking reprimands from anyone. He also stated “of course the members of the Fundación will vote for what is best for Valencia”.
The General Assembly
There is also fierce discussion about how the shareholders will be involved in the process. Again Salvo is the one of a different opinion than the others, wanting to present several offers to the assembly to hear their opinion. On the positive side that gives a whole different sense of participation in the process and lives up to his standards of openness and transparency. On the negative side it opens up for pressure from the general public based on the information available to them. It also opens up for some to try to sway opinions.
Judging from the last few general assemblies I have been so lucky as to attend, I highly doubt many of those who are likely to take the word has a lot of good insight to offer. It has often been plagued by disrespectful behavior, populist statements and mere ramblings of a few dry old men. Personally I would not trust many of them to even give advice on the color of my shoes. I respect and would defend the thought of involving the assembly, but in practice it would be a disaster.
The other side defends what is fact agreed as the process. This involves the celebration of and presentation to the General assembly of the winning bid.
The offers
For those who have been following this process through our articles one has seen that who is seen as the favorite offer(s) have changed time and time again. This is where one should not forget the media’s role has become not only to inform, but also to sway. Different outlets have different allegiances. Even different journalists have different allegiances, and they are better or less connected. When we now read about favorites, we should keep that in mind.
On one side we have the Bankia-enabled bid from Cerberus, by many regarded as the favorite for that very reason. The American investment fund has one of the better financial offers and is one from which very little information has leaked. On the other side they are an investment fund and further known as a “vulture fund” buying up indebted assets, trimming them and selling them off for a profit. In this lies Aurelio Martinez’ issue with both Cerberus and GemNY. Early in his presidential office he declared against these types of funds and was very clear he did not want this for Valencia. Also, according to some outlets, this opinion is shared by the majority of the Fundación voters. With strong support from Bankia and months working on the project though Cerberus are a force to be reckoned with. Keep in mind, they were invited to bid for Valencia by Bankia already last year.
The other big favorite at the moment is Wanda and Wang Jianlin. The sheer fact that he is among the richest men in the world with a proven interest in football is enough for many. Add to that the suspected and likely support of Amadeo Salvo, then many fans are convinced. The bid’s main strength though, is in the exploitation of the club’s assets, among other positives he is planning to finish Nou Mestalla in the shortest time of all. The bid’s weakness is in the sportive project which is leaving a lot to be desired.
Peter Lim is mentioned as the outsider with the opposite of the Wanda offer. Very strong sportively, no doubt fruits of his several meetings with Salvo during the last year, it is though weaker on the plans for the club’s assets. The fact that the Singaporean has been linked with three other clubs during the last few weeks does not help his case.
What now?
The new timeline is expected to be communicated today, if at all. As mentioned the evaluation committee will now meet representatives for at least some of the offers to get a better picture of those they regard the favorites. After that it is time to present a ranking list. It is still under debate how many will be taken to Fundación – one, two or three offers. So according to the timeline we should have about a month of suspense left. Don’t be fooled though, the world is still not quite as it is made out to be. There are still surprises to come, both silent and very loud battles to be fought.
High tension as second phase of Valencia’s sale is overdue
A sale of a football club is never a matter that will settle without noise, and even though it might same as things have calmed down in Valencia, it is only so because the battles are fought silently and away from the open plains. The question is whether it will remain so or if it will yet again blossom up to be a very public war. Let us have a look at the pending issues and what is moving.
The timeline
After the original timeline, the evaluation committee should already have provided a list where they identify the preferred offer or offers to the Fundación for a vote. Obviously, this has not happened and it was expected that Fundación yesterday would have emitted a press statement explaining the delay and what would be the new timeline. The principal reason for the postponement is cited to be the sheer volume of pages in the offers – some up to 800 pages, but also the fact that some of them need especially thorough verification when it comes to the financials. It is assumed that this applies at least for the Russian offer as well as the one from Mario Alvarado. The extra time will also allow the evaluation committee to meet the representatives for each offer in person.
The new timeline has of course already been leaked to the press and says that a final list will be provided by the 3rd of May, followed by a decision on May 17th. With that one has also sought to avoid any interference with the upcoming matches for the team.
The evaluation
Already from the start there has been disagreement about what are the specific criteria for selecting the best offer. While PwC as the representative of Valencia CF has elaborated a list that focuses on the sportive project, what happens to the clubs assets, what happens to Fundación and the cantera etc. KPMG as Bankia’s representative has focused on the financial points. While both overlap and has been taken into consideration for the official list, some disagreement remain and there is still worries that the two consultancies could present two separate and different rankings of bidders.
Also, one should not forget that both consultancies are financially rewarded in case they have brought to the table what turns out to be the winner. Yesterday, the evaluation committee and the consultancies spent 6 hours in a meeting in an effort to iron out the remaining disagreements and avoid further revelations to the press. After the evaluation by the committee, this will be presented to a group consisting of Amadeo Salvo, Aurelio Martinez (president of Fundación), Juan Carlos Moragues (representing Generalitat Valenciana) and a representative from Bankia. This is where the final list to be submitted for the vote in the Fundación will be created.
The vote
So with the evaluation criteria uncertain it is of course also uncertain on which basis the different “patronos” of Fundación will vote. A winner needs a majority vote by two thirds (14 in favor) to be chosen. The main discussion on the topic of the vote is whether it should be a secret voting, or one by manner of raising hands. Amadeo Salvo is the main advocate of the latter to ensure that no-one is coerced into voting differently by, let’s say Bankia or Generalitat Valenciana. This would be an open and transparent vote, which in principle is good, but that would also open up for the voters to be reprimanded by the the fans or any interested parties of a different opinion. Herein lies the seed of a social war unlike anything seen so far.
The majority of the Fundación therefore seem to want the secret vote to protect themselves and in fact the club from the potential consequences of an open vote. The obvious drawback is of course that voters can receive pressure from the same interested parties up front and change their vote accordingly. Former Valencia player and director Fernando Giner , now representing the player’s union in the Fundación and thus with voting rights, yesterday defended the secret vote in order to give him and others the opportunity to freely vote without risking reprimands from anyone. He also stated “of course the members of the Fundación will vote for what is best for Valencia”.
The General Assembly
There is also fierce discussion about how the shareholders will be involved in the process. Again Salvo is the one of a different opinion than the others, wanting to present several offers to the assembly to hear their opinion. On the positive side that gives a whole different sense of participation in the process and lives up to his standards of openness and transparency. On the negative side it opens up for pressure from the general public based on the information available to them. It also opens up for some to try to sway opinions.
Judging from the last few general assemblies I have been so lucky as to attend, I highly doubt many of those who are likely to take the word has a lot of good insight to offer. It has often been plagued by disrespectful behavior, populist statements and mere ramblings of a few dry old men. Personally I would not trust many of them to even give advice on the color of my shoes. I respect and would defend the thought of involving the assembly, but in practice it would be a disaster.
The other side defends what is fact agreed as the process. This involves the celebration of and presentation to the General assembly of the winning bid.
The offers
For those who have been following this process through our articles one has seen that who is seen as the favorite offer(s) have changed time and time again. This is where one should not forget the media’s role has become not only to inform, but also to sway. Different outlets have different allegiances. Even different journalists have different allegiances, and they are better or less connected. When we now read about favorites, we should keep that in mind.
On one side we have the Bankia-enabled bid from Cerberus, by many regarded as the favorite for that very reason. The American investment fund has one of the better financial offers and is one from which very little information has leaked. On the other side they are an investment fund and further known as a “vulture fund” buying up indebted assets, trimming them and selling them off for a profit. In this lies Aurelio Martinez’ issue with both Cerberus and GemNY. Early in his presidential office he declared against these types of funds and was very clear he did not want this for Valencia. Also, according to some outlets, this opinion is shared by the majority of the Fundación voters. With strong support from Bankia and months working on the project though Cerberus are a force to be reckoned with. Keep in mind, they were invited to bid for Valencia by Bankia already last year.
The other big favorite at the moment is Wanda and Wang Jianlin. The sheer fact that he is among the richest men in the world with a proven interest in football is enough for many. Add to that the suspected and likely support of Amadeo Salvo, then many fans are convinced. The bid’s main strength though, is in the exploitation of the club’s assets, among other positives he is planning to finish Nou Mestalla in the shortest time of all. The bid’s weakness is in the sportive project which is leaving a lot to be desired.
Peter Lim is mentioned as the outsider with the opposite of the Wanda offer. Very strong sportively, no doubt fruits of his several meetings with Salvo during the last year, it is though weaker on the plans for the club’s assets. The fact that the Singaporean has been linked with three other clubs during the last few weeks does not help his case.
What now?
The new timeline is expected to be communicated today, if at all. As mentioned the evaluation committee will now meet representatives for at least some of the offers to get a better picture of those they regard the favorites. After that it is time to present a ranking list. It is still under debate how many will be taken to Fundación – one, two or three offers. So according to the timeline we should have about a month of suspense left. Don’t be fooled though, the world is still not quite as it is made out to be. There are still surprises to come, both silent and very loud battles to be fought.
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