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Pair of foreign investors in £30m race to buy Wanderers!

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BoltonTillIDie

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Nat Lofthouse
Nat Lofthouse
TWO foreign investors have been pitched against each other in a race to buy Bolton Wanderers Football Club for £30million.

Owner Ken Anderson claims he has received two serious offers, one from a US consortium and another from an Asian businessman based in the Middle East, who have now both provided proof of funds.

Both have pledged “substantial” cash backing for the club in the future and Anderson hopes competition could prove beneficial.

“Both have got all the figures, and they both have the money – that’s the main thing. And as of last night, it’s first past the post,” he told The Bolton News.

“To put them into context, we have had a lot of inquiries but over the course of our time here we’ve probably had 10 serious offers, and five who have proved they have the funds.

“I have always said that if someone comes along with the funds to take the club forward, I would have no problem. And we are talking here about people with substantial funding.

“Unfortunately I have not got that kind of money but using Derby County as an example, their owner has put in something approaching £200m, Brighton was £160m when they got promotion, and that’s the kind of backing we’re talking here.

“What happens now is down to them. They may choose not to come back at all. But when you only have one offer you are forced to go at their pace, with two you can have more control.”

Anderson has confirmed a figure of £30m has been put on the table for his shares in parent company Burnden Leisure.

“That was the figure offered to me,” he said. “And whether you are selling a car, a house, whatever, it’s worth what people are prepared to pay.”

Anderson recently claimed in an interview with BBC Radio Manchester that Wanderers “probably in the best financial position of any club in the Championship.”

His comments seemed incongruous with recent stories revealing winding-up petitions and the threat of administration from former creditor, BluMarble, which was solved only last month. Yet Anderson maintains money now owed by the club is more manageable than it had previous been.

“A lot of people have asked for the information and they are quite shocked when they realise what the real debt actually is,” he said.

“The £5m which replaced BluMarble is the bit I’d term real debt. Other loans against the hotel, or Brett Warburton’s loan against land are on assets.

“The hotel makes profit. It is a good investment when you look at the yield, and that’s down to the work put in there by staff, bringing in business like the International Football Programme, which has been incredible.

“We have made a small profit in this year’s accounts, people can now see this is a good club. And furthermore they can see going forward it can be better.”

Wanderers have recently taken over the cleaning contract for the stadium and hotel, and have hinted at bringing catering in-house after the contract with Heathcote & Co expires in January, which Anderson claims could make a saving of between £500,000 and £1m a year.

Anderson has also confirmed details of his recent business with late owner Eddie Davies.

The Isle of Man millionaire provided a bridging loan of £5m to Anderson, which was then in turn loaned on to Wanderers and secured against club assets.

Anderson insists he will not be making additional money from the deal.

“The loan from Ed to me, then to the club has been passed on at exactly the same rate, terms and interest,” he said. “I will not be making money.”

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BoltonTillIDie

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Nat Lofthouse
Nat Lofthouse
The sooner we get some investment the better. Let's hope one of them actually goes ahead with the purchase.

wanderlust

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Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:Looking back at Anderson's PR on Monday, I'm just wondering if he knew what was around the corner and is ready to implement his exit strategy?

If you analyse Anderson's message management above ("I saved the club and to criticise me is the same as criticising Parky") it is unusually defensive for the normally ebullient Anderson. 

Having made him and his son personally richer, pawned the last of the club's assets that were still in place two years ago and minimised his personal exposure at every turn, maybe it's getting to exit time? 
...and here we go right on cue!

Everything will depend on Anderson's valuation of his shares. He says he wants to get a payout of £30 million, so I'm wondering what the potential investors are thinking i.e. how much less than that will Anderson accept to go? 
He hasn't even put £10 million into the pot in fact the only investment he's put into BWFC is the £5 million he borrowed from ED as far as I can tell so it's a difficult one to swallow for investors. I've heard that Anderson's personal demands were what put off the US billionaire last month so it's going to be interesting.
I guess it will come down to what extent Anderson will hold out for personal gain over the club's well-being.

rammywhite

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Frank Worthington
Frank Worthington
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:Looking back at Anderson's PR on Monday, I'm just wondering if he knew what was around the corner and is ready to implement his exit strategy?

If you analyse Anderson's message management above ("I saved the club and to criticise me is the same as criticising Parky") it is unusually defensive for the normally ebullient Anderson. 

Having made him and his son personally richer, pawned the last of the club's assets that were still in place two years ago and minimised his personal exposure at every turn, maybe it's getting to exit time? 
...and here we go right on cue!

Everything will depend on Anderson's valuation of his shares. He says he wants to get a payout of £30 million, so I'm wondering what the potential investors are thinking i.e. how much less than that will Anderson accept to go? 
He hasn't even put £10 million into the pot in fact the only investment he's put into BWFC is the £5 million he borrowed from ED as far as I can tell so it's a difficult one to swallow for investors. I've heard that Anderson's personal demands were what put off the US billionaire last month so it's going to be interesting.
I guess it will come down to what extent Anderson will hold out for personal gain over the club's well-being.

Lusty- why is this a difficult one to swallow for investors? If that's his valuation, presumably backed by some detailed financial analysis, then that's what he sees as the value. Its up to potential investors to do their due diligence ,presumably based on a free cash flow basis . We're never going to see how any of the figures have been arrived at. I suspect that the other equity shareholders ( like the Warburtons) will have an interest in this as they will not want to remain as minority shareholders and also the trustees and executors of EDs estate have a vested interest in the valuation of the club's assets.
How anyone values Burnden Leisure at £30million is beyond me. As a going concern it's fairly worthless as the only real asset is the land that the stadium and car park are built on. I suspect that a sticking point in the negotiations is whether the buyer will accept any outstanding loans as part of the valuation.
We risk becoming a rich mans  toy here, a trophy club. But if it does bring in substantial investment then I can swallow my local pride and  live with that

wessy

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Andy Walker
Andy Walker
Lets see how it develops KA was always a stepping stone so at some point he needs to sell, lets hope it's someone with a real plan to improve the club, lots of horror stories in terms of takeovers so the coin is in the air so to speak.

wanderlust

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Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:Lusty- why is this a difficult one to swallow for investors? If that's his valuation, presumably backed by some detailed financial analysis, then that's what he sees as the value. Its up to potential investors to do their due diligence ,presumably based on a free cash flow basis . We're never going to see how any of the figures have been arrived at. I suspect that the other equity shareholders ( like the Warburtons) will have an interest in this as they will not want to remain as minority shareholders and also the trustees and executors of EDs estate have a vested interest in the valuation of the club's assets.
My thinking is that the club's assets are hocked as collateral against loans including Warburtons et al so the value of Burnden Leisure is somewhere around zero. 
The minority shareholders have been systematically marginalised and therefore pretty much have to do what they're told. If they don't want to remain as minority shareholders they'll have to invest more.
The shares that Anderson bought from Deano to give him control were bought with what? And for how much? 
Put all this together and Anderson's valuation has to be predominantly based on "potential" and "goodwill" - both of which emanate from the club's location and long history rather than Anderson. Any "detailed financial analysis " would relate to forecasting rather than Balance Sheet IMO and we both know how airy-fairy that can be.

Ergo investors must know that Anderson is out to make a killing and that may stick in the craw a bit. We'll see how it pans out.

rammywhite

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Frank Worthington
Frank Worthington
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:Lusty- why is this a difficult one to swallow for investors? If that's his valuation, presumably backed by some detailed financial analysis, then that's what he sees as the value. Its up to potential investors to do their due diligence ,presumably based on a free cash flow basis . We're never going to see how any of the figures have been arrived at. I suspect that the other equity shareholders ( like the Warburtons) will have an interest in this as they will not want to remain as minority shareholders and also the trustees and executors of EDs estate have a vested interest in the valuation of the club's assets.
My thinking is that the club's assets are hocked as collateral against loans including Warburtons et al so the value of Burnden Leisure is somewhere around zero. 
The minority shareholders have been systematically marginalised and therefore pretty much have to do what they're told. If they don't want to remain as minority shareholders they'll have to invest more.
The shares that Anderson bought from Deano to give him control were bought with what? And for how much? 
Put all this together and Anderson's valuation has to be predominantly based on "potential" and "goodwill" - both of which emanate from the club's location and long history rather than Anderson. Any "detailed financial analysis " would relate to forecasting rather than Balance Sheet IMO and we both know how airy-fairy that can be.

Ergo investors must know that Anderson is out to make a killing and that may stick in the craw a bit. We'll see how it pans out.

There's legal protection for the minority shareholders so they can only be  shafted  so far. Company law states that where a majority shareholder holds more than 90% of the voting equity then they can go to Court to  enfoece a buy out  of the rump, if the rump decide not to sell. That's what happened to my 400 shares in Burnden Leisure some time ago. I've still got the share certificate framed and still get a copy of the Accounts each year. That ploy is only used if the rump are a serious and costly nuisance ,which I can't see happening in this case.
I think you're right that there are both first and second charges on all the assets ( both fixed and floating) and so in the event of a wind up there would be nothing left for the equity shareholders- thus making KA's equity virtually worthless. So if the valuation is based on the future potential then any investor needs counselling, needs  a serious talking to about what he's buying here.
The tax losses are substantial and that's an attraction in any M&A activity, friendly or hostile, and that may be partially the asset that any investor is after- that plays a major part in current low level M&A activity in the UK.

I hope it happens and there may be a short term bounce, but the amount of money needed to really bed down ongoing success now is vast and so the future is still a bit bleak.
Anybody who pays £30 mill for a trophy club like ours with a long and proud history but with an uncertain future is either deluded or a real business angel.
I know which one I think he or she is.
Think of the Venkys at Ewood- that was a story I'd rather not see repeated with us

MartinBWFC

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Frank Worthington
Frank Worthington
[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]
[size=1]More
[/size]
Alan Nixon Retweeted James H
American people have gone away. Attempt at an auction. 30m???

You have to seriously ask the question, does Anderson live in the real world?

terenceanne

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El Hadji Diouf
El Hadji Diouf
My view has always been that if we get Saudi Billionaires or whatever I want people who 30 million is simple pocket change. Not a blip in their bank account. They will remove our debts with a stroke of a pen and we will become a nice hobby for them to take us back up to the Prem. Probably a dream but it can be done.
Fingers crossed.

rammywhite

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Frank Worthington
Frank Worthington
[You must be registered and logged in to see this link.] wrote:My view has always been that if we get Saudi Billionaires or whatever I want people who 30 million is simple pocket change. Not a blip in their bank account. They will remove our debts with a stroke of a pen and we will become a nice hobby for them to take us back up to the Prem. Probably a dream but it can be done.
Fingers crossed.

 I want an Aston Martin, a house on Lake Garda, to bonk Kate Humble and to support a team that wins every game.
I have as much chance of that lot than any Saudi billionaires buying BWFC

Cajunboy

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Andy Walker
Andy Walker
Kate Humble?

Weird.

karlypants

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Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:Kate Humble?

Weird.

I bet she’s right kinky in bed!

Cajunboy

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Andy Walker
Andy Walker
Probably keeps her dirty Wellys on.

rammywhite

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Frank Worthington
Frank Worthington
[You must be registered and logged in to see this link.] wrote:Kate Humble?

Weird.

Have you seen those wrinkles she's developing round her eyes?
Its making me horny just thinking about them!!

karlypants

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Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:Kate Humble?

Weird.

Have you seen those wrinkles she's developing round her eyes?
Its making me horny just thinking about them!!

Laughing

rammywhite

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Frank Worthington
Frank Worthington
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:Kate Humble?

Weird.

I bet she’s right kinky in bed!

Steady there KP! You're making my heart race faster!

Natasha Whittam

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Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:Have you seen those wrinkles she's developing round her eyes?
Its making me horny just thinking about them!!

This is the most disturbing post I've ever read on here. And I've read all Bonce's posts.

BoltonTillIDie

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Nat Lofthouse
Nat Lofthouse
I haven't a clue who you're talking about!

BoltonTillIDie

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Nat Lofthouse
Nat Lofthouse
:hijack:

Anyway, hope there's a swift takeover soon!

luckyPeterpiper

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Frank Worthington
Frank Worthington
To get back to the original point of this thread I'd like to say that if this is true then it's obviously very good news. As to Ken's valuation of 30 million for his shares why not? That's pretty close to peanuts for a Championship club, especially one with a stadium and facilities like ours.

I've always maintained that if Ken makes a profit from BWFC then good for him, it means someone with money who's actually seen the books believes the club's worth taking on. Whether we like it or not a football club is a business and exists to make a profit for its owners or shareholders. Personally I think if there are two seriously interested people who haven't blanched at Ken's number and have proved they have the money to pay it then he should get as much as he can for himself.

Frankly in his shoes I'd be delighted to get out of here given the amount of abuse he's taken from the uninformed, chattering peanut gallery's such as the ST and Iles.

And lusty, just so you know I do NOT count you as in that particular class. While I disagree with many of your comments re: Ken I have and still do share some of your concerns. For instance I hope this is real and not just 'smoke and mirrors' but until we know more FACTS about the bidders and what they plan to do I'm going to withhold judgement rather than race out onto the streets to celebrate.

wanderlust

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Nat Lofthouse
Nat Lofthouse
The attempt to play off two potential investors against each other was misguided at best. 
As Rammy says...
I think you're right that there are both first and second charges on all the assets ( both fixed and floating) and so in the event of a wind up there would be nothing left for the equity shareholders- thus making KA's equity virtually worthless. So if the valuation is based on the future potential then any investor needs counselling, needs  a serious talking to about what he's buying here.
..and the US billionaire allegedly baulked at the idea of funding Anderson's retirement a month ago, although I was hoping he had returned to the table as he has a strong track record in supporting and developing sports teams. Presumably Anderson was made a fair and reasonable offer but tried to up the ante.
Which leaves us with the Middle Eastern investors who may be daft enough to give Anderson what he wants, but with far more chance of them doing a Venky's on us if they do end up as owners.
However even worse than that is what is likely to happen if no investors are found. Club running out of assets, Anderson running out of stuff to hock and the business trading at a loss can only point to one outcome.
If Anderson genuinely cares for BWFC he should be begging to accept a reasonable offer that will allow him to walk away with what he put in instead of gambling with the club's future.

Cajunboy

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Andy Walker
Andy Walker
[You must be registered and logged in to see this link.] wrote::hijack:

Anyway, hope there's a swift takeover soon!
Don't be silly.

wanderlust

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Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote::hijack:

Anyway, hope there's a swift takeover soon!
Don't be silly.
...but the thread title says it's "a race"?

Unfortunately it looks increasingly like a one horse race with the favourite having retired.

luckyPeterpiper

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Frank Worthington
Frank Worthington
[You must be registered and logged in to see this link.] wrote:The attempt to play off two potential investors against each other was misguided at best. 
As Rammy says...
I think you're right that there are both first and second charges on all the assets ( both fixed and floating) and so in the event of a wind up there would be nothing left for the equity shareholders- thus making KA's equity virtually worthless. So if the valuation is based on the future potential then any investor needs counselling, needs  a serious talking to about what he's buying here.
..and the US billionaire allegedly baulked at the idea of funding Anderson's retirement a month ago, although I was hoping he had returned to the table as he has a strong track record in supporting and developing sports teams. Presumably Anderson was made a fair and reasonable offer but tried to up the ante.
Which leaves us with the Middle Eastern investors who may be daft enough to give Anderson what he wants, but with far more chance of them doing a Venky's on us if they do end up as owners.
However even worse than that is what is likely to happen if no investors are found. Club running out of assets, Anderson running out of stuff to hock and the business trading at a loss can only point to one outcome.
If Anderson genuinely cares for BWFC he should be begging to accept a reasonable offer that will allow him to walk away with what he put in instead of gambling with the club's future.
What a load of codswallop lusty. A businessman's first and frankly ONLY priority is to make a profit. This 'if he loves the club he should settle for just getting his money back' is total garbage. Why should he do that? People invest in a business to make a return not to 'wipe their face' and frankly the days of 'hobby' chairmen are long since gone and they're not coming back.

In short I won't begrudge Ken one iota if he makes a huge profit from this. All that means is someone who's got the money has seen the books and decided Ken's done a good enough job of stabilising the club to make a profit for themselves. We're NOT Man Utd or City, there's no special prestige or status attached to owning us as there would be a 'big' club so the only people who are going to put money in will do so on the basis they'll come out ahead. That's the way business works and to imagine there's some special reason why football is different in the 21st century is frankly stupid.

Nigelbwfc


David Lee
David Lee
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:Looking back at Anderson's PR on Monday, I'm just wondering if he knew what was around the corner and is ready to implement his exit strategy?

If you analyse Anderson's message management above ("I saved the club and to criticise me is the same as criticising Parky") it is unusually defensive for the normally ebullient Anderson. 

Having made him and his son personally richer, pawned the last of the club's assets that were still in place two years ago and minimised his personal exposure at every turn, maybe it's getting to exit time? 
...and here we go right on cue!

Everything will depend on Anderson's valuation of his shares. He says he wants to get a payout of £30 million, so I'm wondering what the potential investors are thinking i.e. how much less than that will Anderson accept to go? 
He hasn't even put £10 million into the pot in fact the only investment he's put into BWFC is the £5 million he borrowed from ED as far as I can tell so it's a difficult one to swallow for investors. I've heard that Anderson's personal demands were what put off the US billionaire last month so it's going to be interesting.
I guess it will come down to what extent Anderson will hold out for personal gain over the club's well-being.
"You've heard", who from? Name names. Thought so, it's just your speculation. I've heard from Ken that that the majority of so called "investors" haven't got two 10 pences to rub together. 

Andersons terms are £30 million and the chief exec role. The chief exec role is the sticking point as it was under the late Phil Gartside.

Nigelbwfc


David Lee
David Lee
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:My view has always been that if we get Saudi Billionaires or whatever I want people who 30 million is simple pocket change. Not a blip in their bank account. They will remove our debts with a stroke of a pen and we will become a nice hobby for them to take us back up to the Prem. Probably a dream but it can be done.
Fingers crossed.

 I want an Aston Martin, a house on Lake Garda, to bonk Kate Humble and to support a team that wins every game.
I have as much chance of that lot than any Saudi billionaires buying BWFC
And no successful business man would "remove the debt" at a stroke. Otherwise you'd be constantly badgered to sell the company.

However, your scepticism goes too far. Believe!

Nigelbwfc


David Lee
David Lee
[You must be registered and logged in to see this link.] wrote:The attempt to play off two potential investors against each other was misguided at best. 
As Rammy says...
I think you're right that there are both first and second charges on all the assets ( both fixed and floating) and so in the event of a wind up there would be nothing left for the equity shareholders- thus making KA's equity virtually worthless. So if the valuation is based on the future potential then any investor needs counselling, needs  a serious talking to about what he's buying here.
..and the US billionaire allegedly baulked at the idea of funding Anderson's retirement a month ago, although I was hoping he had returned to the table as he has a strong track record in supporting and developing sports teams. Presumably Anderson was made a fair and reasonable offer but tried to up the ante.
Which leaves us with the Middle Eastern investors who may be daft enough to give Anderson what he wants, but with far more chance of them doing a Venky's on us if they do end up as owners.
However even worse than that is what is likely to happen if no investors are found. Club running out of assets, Anderson running out of stuff to hock and the business trading at a loss can only point to one outcome.
If Anderson genuinely cares for BWFC he should be begging to accept a reasonable offer that will allow him to walk away with what he put in instead of gambling with the club's future.
Depends on which US business man your talking about. If Anderson is correct then your US business man may have walked but anianot has come in. Or perhaps your US businessnan hadn't walked but had to go away and prove he had the funding, which actually takes along time to do. 

Unless your sat on the board, I'll take speculation on here and on Bolton news site with a pinch of salt.

This is neither good or bad news, it's just news. New investors have to be approved by the football league and while that is going on another winding up order from the tax man will go in, while the club changes hands as owner and potential owner argue over who pays the tax bill.

wanderlust

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Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:Looking back at Anderson's PR on Monday, I'm just wondering if he knew what was around the corner and is ready to implement his exit strategy?

If you analyse Anderson's message management above ("I saved the club and to criticise me is the same as criticising Parky") it is unusually defensive for the normally ebullient Anderson. 

Having made him and his son personally richer, pawned the last of the club's assets that were still in place two years ago and minimised his personal exposure at every turn, maybe it's getting to exit time? 
...and here we go right on cue!

Everything will depend on Anderson's valuation of his shares. He says he wants to get a payout of £30 million, so I'm wondering what the potential investors are thinking i.e. how much less than that will Anderson accept to go? 
He hasn't even put £10 million into the pot in fact the only investment he's put into BWFC is the £5 million he borrowed from ED as far as I can tell so it's a difficult one to swallow for investors. I've heard that Anderson's personal demands were what put off the US billionaire last month so it's going to be interesting.
I guess it will come down to what extent Anderson will hold out for personal gain over the club's well-being.
"You've heard", who from? Name names. Thought so, it's just your speculation. I've heard from Ken that that the majority of so called "investors" haven't got two 10 pences to rub together. 

Andersons terms are £30 million and the chief exec role. The chief exec role is the sticking point as it was under the late Phil Gartside.
Rubbish. Anderson has clearly stated that both parties have the money and the due diligence has been done. And the £30 million is buy Anderson's shares and therefore own the club and be in a position to appoint anyone they choose as CE - which is an employed role.
I do care about Anderson making a personal profit out of the deal as he has systematically bankrupted the club by turning all the remaining assets into collateral for loans to prop up his tenure so that Burden Leisure is now worth f*** all and any money he gets will have been taken away from BWFC. That £30 million could be better employed paying off the loans so that BWFC gets back ownership of our own assets that he has hocked.
I gave my word not to reveal the name of the American and will not do so until the issue has been fully resolved but rest assured I know who it is and contrary to LPP's sweeping generalisation that all businessmen are just in it for profit, this particular person is a sports fan, successful club owner and businessman and a philanthropist to boot.
If Nixon's assertion that he has walked turns out to be true, our only remaining potential investor is an unknown quantity and that is worrying whether they decide to pay off Anderson or not.

Natasha Whittam

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Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:I gave my word not to reveal the name of the American and will not do so until the issue has been fully resolved

So you'll tell us who it is once it's been revealed?

Will you also be telling us next Saturday's Lotto numbers on Sunday?

MartinBWFC

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Frank Worthington
Frank Worthington
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:I gave my word not to reveal the name of the American and will not do so until the issue has been fully resolved

So you'll tell us who it is once it's been revealed?

Will you also be telling us next Saturday's Lotto numbers on Sunday?

Some fucking armchair this blokes got.

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