Galway utd on verge of Saudi Arabian takeover

Pauliedragon

That's a headline I never expected to read. How does this make sense.
https://www.rte.ie/sport/soccer/2018/0608/969099-exclusive-galway-united-on-verge-of-saudi-takeover/

Harry Palmr

"I suppose they'll build a Mosque on the pitch"

"Does this mean the side will lose every game during Ramadan?"

"Does this mean Galway Utd is now a terror cell rather than just a terrible sell?"

Seriously though, it's intriguing how the money is finding it's way into the League of Ireland

applehunter

As a Cork City shareholder I'd be interested to know what price the shares are being sold at?

CSF

Are the Galway trust owners set to make a pile of money out of this or how will that work?

Panthro

Not one to start idle gossip but Neymar and Messi were seen walking the Prom earlier.

TFBubendorfer

That's the most bizarre thing regarding Galway Utd ever since they had Nick Leeson running the club ...

Mr Velo

There's a bit of truth to it.

upandcumming

Mr Velo wrote: »

http://i64.tinypic.com/2rxe04g.jpg

There's a bit of truth to it.

"100% Our Club"
:pac:

gimli2112

about time someone put an end to Real Madrid's champions league run

BOHtox

Mr Velo wrote: »

There's a bit of truth to it.

Has an offer been received?

Mr Velo

BOHtox wrote: »

Mr Velo wrote: »

There's a bit of truth to it.

Has an offer been received?

It would appear so.

artanevilla

Ireland is also a tax haven.

eagle eye

artanevilla wrote: »

Ireland is also a tax haven.

Yeah, for everybody except the Irish.

fergiesfolly

No issues with it as long as they stick to the clubs values.....and wins CL.
Allahu Akbar... Gaillimh Abu.

Francie Barrett

sugarman wrote: »

It was only a matter of time before this type of thing happened here, first with Dundalks US investors and now Galways alleged Saudis.

For relatively little money invested they can have a team competing in the CL or EL regularly, Dundalk raked in near €6m when they made the group stages of the EL. A profit of over €3m for them that year.

If a club was to make the CL group stages alone, they'd get over €15m just for qualifying with additional add-ons of €3m per win or €1m per draw.

Small teams like BATE in Belarus who qualify regularly for both competitions generate massive amounts of money in both competition money and selling on players ..and most of their players to begin with are either free agents attracted to the club playing European football but also bigger clubs are sending their young players there on loan to develop and play in Europe also.

Done properly in Ireland, they could make a killing.

This is a very good point.

If someone was to buy an English team, to break into the top 4, I would say any potential investor would need to lay down half a billion at minimum (the amount required to buy a club, then spend £300-£400M on players).

The only fly in the ointment in all this is surely Financial Fair Play would stop such a move in Ireland?

the untitled user

artanevilla wrote: »

Ireland is also a tax haven.

Not really. The large European economies offer so many kick backs and grants that their effective tax rate is lower than Ireland (France was only 9% a few years back under Sarkozy, the UK has its self declared R&D tax rebate which means many companies pay less than 5% corporate tax). It's as much that Ireland is a convenient scapegoat for the big economies to point the finger at when the anti-neoliberal brigade gain traction.

What we had was the non-dom tax exemption for corporations, which has been closed now to new companies and would never have applied in this case anyway given the revenues earned by Galway would be earned in Ireland (and so can't be avoided using fake intellectual property charges to a non-dom entity).

So, I'd be surprised if tax avoidance had anything to do with it. What confuses me though is why would any party be interested in an entity that has virtually no assets? There must be more to it than just the football side of things, there would have been safer options than Galway United I'd have thought in the Premier Division.

Richard Hillman

That's a good point about FFP. When it was being introduced the biggest argument against it was that it would maintain the status quo. That we would never see teams like Chelsea, PSG and Man City join the ranks of the elite in Europe. Football would be pretty boring without them.

This here now prevents a small club getting needed investment that has the ability to put Irish football on the map.

TFBubendorfer

Richard Hillman wrote: »

That's a good point about FFP. When it was being introduced the biggest argument against it was that it would maintain the status quo. That we would never see teams like Chelsea, PSG and Man City join the ranks of the elite in Europe. Football would be pretty boring without them.

This here now prevents a small club getting needed investment that has the ability to put Irish football on the map.

FFP was specifically invented by the big clubs to shut the door on everyone else and then they pretended it was there for the good of football.

However, clever enough accountants are clearly able to find ways around it.

Having said that, I can't imagine copying Dundalk is of any interest to the Saudis. A profit of €3 million in your best year might sound great to the likes of you and me but for anyone in oil that's the equivalent of spare change behind the sofa cushions.

osarusan

TFBubendorfer wrote: »

Having said that, I can't imagine copying Dundalk is of any interest to the Saudis. A profit of €3 million in your best year might sound great to the likes of you and me but for anyone in oil that's the equivalent of spare change behind the sofa cushions.

Yes but think of the international prestige involved with owning a club in the LOI.

marklazarcovic

Makes no sense from a locality pic,no airport (open) awful traffic

eagle eye

It wouldn't be hard or expensive to build a new stadium.
That's of course if you were to sell the current grounds

fergiesfolly

marklazarcovic wrote: »

Makes no sense from a locality pic,no airport (open) awful traffic

Maybe there was a miscommunication.
Maybe they're buying Galway.

Mars Bar

eagle eye wrote: »

It wouldn't be hard or expensive to build a new stadium.
That's of course if you were to sell the current grounds

They can't though can they? I thought the Galway FA owned EDP and Galway United are just renting it.

Mr Velo

Mars Bar wrote: »

They can't though can they? I thought the Galway FA owned EDP and Galway United are just renting it.

Yup, Galway United don't own EDP.

Zebra3

Francie Barrett wrote: »

This is a very good point.

If someone was to buy an English team, to break into the top 4, I would say any potential investor would need to lay down half a billion at minimum (the amount required to buy a club, then spend £300-£400M on players).

The only fly in the ointment in all this is surely Financial Fair Play would stop such a move in Ireland?

I think FFP only kicks in at a figure of €3-5M.

So a LoI club could be still be very heavily subsidised compared to its’ rivals and still not break any rules.

Galway FA defo own Terryland. If it’s a serious investment, maybe a new ground that could host EL group stages built with Connaught Rugby sharing would be the way to go. The rugby crowd play in a greyhound stadium which is a long way from the quality of facilities of the other three provincial sides?

the untitled user

marklazarcovic wrote: »

Makes no sense from a locality pic,no airport (open) awful traffic

Huh? Isn't Galway Airport open for private traffic again? And even then, for commercial traffic it's a actually about as quick to Shannon from the east side of the city (where Galway United are) than from the centre of Dublin to Dublin airport.

Crossing the bridge is where traffic really breaks down in Galway though, as East Galway commuter traffic merges with those crossing the city to go to work in the industrial estates. But then the bypass plans have been finalized and submitted for planning permission I thought...

Anyway, the bit about them buying the city itself though may not be too far from the truth, Sunday Business Post reported they were interested in at least two other investments. It has me worried.

Wombatman

Report on Al Jazeera today....

dfx-

They'll still lose to Rovers:)

bobo the clown

FFP excludes investment in stadia, training facilities etc and Youth. So if they were all upgraded/introduced/built that would be a serious start.

TheCitizen

fergiesfolly wrote: »

Maybe there was a miscommunication.
Maybe they're buying Galway.

:pac: Maybe one of them was given the Galway version of Monopoly for Christmas when they were a kid

fergiesfolly

TheCitizen wrote: »

:pac: Maybe one of them was given the Galway version of Monopoly for Christmas when they were a kid

Maybe.
We'll find out soon enough.
The Water Company is right beside Eamonn Deacy Park.

billymitchell

Zebra3 wrote: »

I think FFP only kicks in at a figure of €3-5M.

So a LoI club could be still be very heavily subsidised compared to its’ rivals and still not break any rules.

Galway FA defo own Terryland. If it’s a serious investment, maybe a new ground that could host EL group stages built with Connaught Rugby sharing would be the way to go. The rugby crowd play in a greyhound stadium which is a long way from the quality of facilities of the other three provincial sides?

From the Fifa Fair Play site

3) Are clubs no longer allowed to have losses?

To be exact, clubs can spend up to €5million more than they earn per assessment period (three years). However it can exceed this level to a certain limit, if it is entirely covered by a direct contribution/payment from the club owner(s) or a related party. This prevents the build-up of unsustainable debt.

The limits are:
• €45m for assessment periods 2013/14 and 2014/15
• €30m for assessment periods 2015/16, 2016/17 and 2017/18

In order to promote investment in stadiums, training facilities, youth development and women’s football (from 2015), all such costs are excluded from the break-even calculation.

So they can €5m can be invested over three years (excluding stadiims and training facilities)without any issues, or up to €30m once the owners can foot it. I've no idea of the current state of Galway United finances, but seeing their last published figures, that amount of money would massively change their fortunes.

chopperbyrne

If these Saudis properly invest in Galway, and no other clubs get similar levels of investment, the LOI could end up like the SPL with one club dominating.

Doesn't even need huge amounts, just the knowledge for top players that they can get multi-year, secure, good contracts, will see them flock to Galway.

Mars Bar

fergiesfolly wrote: »

Maybe.
We'll find out soon enough.
The Water Company is right beside Eamonn Deacy Park.

Interested who you mention the water works?

Ferris_Bueller

It will be very interesting to see what happens with Galway now, the area has produced some good footballers over the last few years and has a sizeable catchment area with around 250,000 in Co. Galway, already have a decent ground and presumably a link with NUI Galway, it definitely has potential to be a success but I can't see the Saudis making much money on it hence the doubt from a lot of people.. If the investment is immediate would Galway be expected to be promoted this season?

evil_seed

A partnership with NUI has potential. Just look at NUI Maynooth and the success they've had recently.

osarusan

Ferris_Bueller wrote: »

. If the investment is immediate would Galway be expected to be promoted this season?

Very difficult to achieve that through direct promotion at least.

12 points off the top with only 30 points left to play for. 5 teams above them too. Playoff positions more achievable obviously, as even 2nd placed Drogheda are only 5 away. Then a playoff, most likely against Limerick unless Bray turn things round.

They'd need to do some good recruiting in the upcoming transfer window.

ratracer

Ferris_Bueller wrote: »

It will be very interesting to see what happens with Galway now, the area has produced some good footballers over the last few years and has a sizeable catchment area with around 250,000 in Co. Galway, already have a decent ground and presumably a link with NUI Galway, it definitely has potential to be a success but I can't see the Saudis making much money on it hence the doubt from a lot of people.. If the investment is immediate would Galway be expected to be promoted this season?

Galway United FC have relatively little. They don’t own any infrastructure. The Galway FA own EDP and lease it to Galway United. They don’t have any dedicated training facility and have a pretty tenuous relationship (at best) with the major club sides in the city. The emergence of the National underage leagues hasn’t gone down well with these clubs who see GUFC as poaching their players.
I would hope this investment can put GUFC on a sound footing, the supporters Co-Op who have kept the club running through a very difficult period deserve that, hopefully there will be a positive future for the club.

pjohnson

chopperbyrne wrote: »

If these Saudis properly invest in Galway, and no other clubs get similar levels of investment, the LOI could end up like the SPL with one club dominating.

Doesn't even need huge amounts, just the knowledge for top players that they can get multi-year, secure, good contracts, will see them flock to Galway.

Yeah for a pretty modest spend they could get rewards of European Football pretty fast.