I read Ray Trew's Twitter exchange the other day, and was very concerned to hear that a hedge fund is in to buy us. This worries me. He's the definition of a hedge fund from Investopedia:

Hedge funds are alternative investments using pooled funds that may use a number of different strategies in order to earn active return, or alpha, for their investors. Hedge funds may be aggressively managed or make use of derivatives and leverage in both domestic and international markets with the goal of generating high returns

This begs the question: what does a hedge fund want with NCFC? In what way is our club a worthwhile investment? Sure, the club could be run at a profit (while the team withers on the vine) but only a very modest one. It would take many years to recoup the money needed to buy the club, and if the team struggles, crowds will dwindle too. The alternative is that they want to pump loads of money in in order to get us to the land of TV revenue, but with two promotions needed and a very limited number of promotion spots available, it's a highly risky investment. It just doesn't make sense for me.

We do have one case study for a hedge fund in football - SISU, the owners of Coventry City, who have cut costs from day one. However, they seemed to be most interested in the ground, which was owned by ACL, a trust made up of a charity and the city council. The whole dispute around the Ricoh Arena and the disgraceful move to Northampton (complete with fantastical plans to build a new stadium) looked to me like an attempt to bankrupt ACL and take ownership of the Arena for a knockdown price. A strategy that backfired when ACL sold the stadium to Wasps.

Do they even exist? What happened to the Americans that had agreed a deal? Vanished from the face of the Earth I imagine, along with the Danish.

 

I read Ray Trew's Twitter exchange the other day, and was very concerned to hear that a hedge fund is in to buy us. This worries me. He's the definition of a hedge fund from Investopedia:

Hedge funds are alternative investments using pooled funds that may use a number of different strategies in order to earn active return, or alpha, for their investors. Hedge funds may be aggressively managed or make use of derivatives and leverage in both domestic and international markets with the goal of generating high returns

This begs the question: what does a hedge fund want with NCFC? In what way is our club a worthwhile investment? Sure, the club could be run at a profit (while the team withers on the vine) but only a very modest one. It would take many years to recoup the money needed to buy the club, and if the team struggles, crowds will dwindle too. The alternative is that they want to pump loads of money in in order to get us to the land of TV revenue, but with two promotions needed and a very limited number of promotion spots available, it's a highly risky investment. It just doesn't make sense for me.

We do have one case study for a hedge fund in football - SISU, the owners of Coventry City, who have cut costs from day one. However, they seemed to be most interested in the ground, which was owned by ACL, a trust made up of a charity and the city council. The whole dispute around the Ricoh Arena and the disgraceful move to Northampton (complete with fantastical plans to build a new stadium) looked to me like an attempt to bankrupt ACL and take ownership of the Arena for a knockdown price. A strategy that backfired when ACL sold the stadium to Wasps.

But left Cov City with only a short term tenure at the hands of a rapacious club from another sport. The FA should forbid hedge funds from any ownership in football.

Yep @ivansneck. But there's no money to be made in ML, so what are they up to? I'd rather accept a bid from Kim Jong-un than any hedge fund!

@DangerousSausage A possible reason for a Hedge Fund being involved, the owners of that fund have a sizeable tax bill to pay and by buying Notts, they can offset the continuing losses ( maybe?) against the ultimate tax due, and have a little fun at running a football club at the same time. What would worry me would be the owners "detachment" from being a born and bred Notts supporter. 

It's just a fancy word really, if the hedge fund is in fact preparing to make an offer or for one to be accepted. It sounds like it will involve people using their own resources to invest in the club, in the sole hope that they eventually turn a profit - which is very unlikely unless we get to the Championship. I'm not really sure about it myself, I think some of the fans concerns may become true from it. Who will this hedge fund consist of? See the more questions thrown towards the takeover - the more I just want to wait for it to happen.

Colin Slater doesn't believe any news will happen this week.

I have to say, I have my doubts about the takeover happening any time soon.

31 minutes ago, notts-joe said:

It sounds like it will involve people using their own resources to invest in the club, in the sole hope that they eventually turn a profit - which is very unlikely unless we get to the Championship.

In that case they're either very rich - in which case, why channel it through a hedge fund? - or very stupid. I suppose all we can do is wait and see.

i dont understand why someone would want to purchase a club under the hedge fund.

i am not even sure why ray would consider it a serious offer, unless they offered a good sum for the club but would they put in a considerable amount to move the club forward? it seems all risky to me. its also confusing why all of a sudden the americans are not in the running.

A hedge fund???

It sounds like desperation if you ask me. Not keen on this at all but you have to see how things go.

31 minutes ago, notts-joe said: It sounds like it will involve people using their own resources to invest in the club, in the sole hope that they eventually turn a profit - which is very unlikely unless we get to the Championship.

In that case they're either very rich - in which case, why channel it through a hedge fund? - or very stupid. I suppose all we can do is wait and see.

Or both?

I don't like the sound of a hedge fund, why are both being so mysterious, we have no clue who wants to buy the club or their intentions but any form of group of investors can't be good, if they were any good they would be able to purchase the club as individuals rather than as a consortium/hedge fund, most clubs are owned by a single family or individual which shows it works, the drama at Coventry is the only time a hedge fund has been in charge of an English club and there's a reason for that

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why would a hedge fund even want to own NCFC at this moment in time?

It just doesn't seem logical 

9 hours ago, Super_Danny_Allsopp said:

Do they even exist? What happened to the Americans that had agreed a deal? Vanished from the face of the Earth I imagine, along with the Danish.

Will Ray remain but lurk in the background?

There's talk of demands made to keep hold of certain operations. Such as the MLSB its difficult to know what to believe. I do not see it happening this week or the next.

Let's be blunt , we know nothing , this is due to the classless way any info is getting out , I mean come on , social media , let's have some official statements , with all the nuts and bolts of how it would work and who is involved, social media like PoN is great for us to chat and banter on but for info to come out about this , no sorry that's poor 

don't know how true this is but a bloke who sits behind me when he was walking in the kop stated he saw about 7-8 buisness men all in suits etc going into the pavis.

Not sure who they were or nowt he just saw them so that to me is a sign hopefully something is happening or has happened plus the tax bill has apparently been paid that was rumoured to be part of the deal the buyer an trew agreed.

Also not been funny but Colin slater does get 90% of info wrong or isn't in the kno as much as he thinks he is personally on Ray's Twitter he never once stated Americans.

Im not a fan of Ray's but to come on Twitter and publicly state the buyers who they are etc would be stupid and publicly humiliated if it's not true.

I reckon a deal maybe closing he doesn't have to personally tell Colin skater every step but again il wait and see