New Zealand 2 will deal a massive blow to NZ rugby

[Te Kaha]

Why would they lose their investment

you just told me above they know all about growing the game

listen I’ll give you a tip since you don’t understand, private equity is a terrible way to try and grow a sport

but as a league fan I’m overjoyed Union did this and you can see already it’s impact

I was right you don't understand basic economics.

The Six Nations, like NZR set up a new company. This company controls the revenue that comes from the product, i.e TV rights, sponsorship, ticket sales. That company is then part sold to Private equity and the stake holders of that company take out "dividend" from that sale.
This company is a limited liability company, meaning that only the company is responsible for its debts.
Should this company go bust and the assets are liquidated, the assets being only the intangible tv rights sponsorship contracts and the like, then the shares become worthless. The PE company loses their investment and the countries get to set up a new company to start again at no real loss.

Of course the PE company wants to maximise the return on that investment so they help grow the game.

Like I said, its basic economics, even you should be able to understand that.

 

[Gobsmacked]

I was right you don't understand basic economics.

The Six Nations, like NZR set up a new company. This company controls the revenue that comes from the product, i.e TV rights, sponsorship, ticket sales. That company is then part sold to Private equity and the stake holders of that company take out "dividend" from that sale.
This company is a limited liability company, meaning that only the company is responsible for its debts.
Should this company go bust and the assets are liquidated, the assets being only the intangible tv rights sponsorship contracts and the like, then the shares become worthless. The PE company loses their investment and the countries get to set up a new company to start again at no real loss.

Of course the PE company wants to maximise the return on that investment so they help grow the game.

Like I said, its basic economics, even you should be able to understand that.

No mate. A company's debts can be recovered through stakeholders and owners in the event of bankruptcy.

You're actually trying to brush off bankruptcy now

 

[Te Kaha]

No mate. A company's debts can be recovered through stakeholders and owners in the event of bankruptcy.

You're actually trying to brush off bankruptcy now

Another one who doesn't understand company structures.

Under NZ, UK, European, US and probably Australian company law limited liability company's limited extends only to its shareholders assets in the company. Creditors can try and sue directors for damages, but that is only if they show negligence and wont extend to entities.

 

[Te Kaha]

Another one who doesn't understand company structures.

Under NZ, UK, European, US and probably Australian company law limited liability company's limited extends only to its shareholders assets in the company. Creditors can try and sue directors for damages, but that is only if they show negligence and wont extend to entities.

And as I suspected, even under Australian law

• Limited liability - The company is its own legal entity, so the liability of members or owners is limited. Generally, members will not be personally liable for the debts of the company in their capacity as a member. However, members and directors may still be liable for a company’s debts in certain circumstances, such as when they have provided personal guarantees to borrow money.

Starting a small business company | ASIC

asic.gov.au

Want to try again?

 

[Gobsmacked]

And as I suspected, even under Australian law

• Limited liability - The company is its own legal entity, so the liability of members or owners is limited. Generally, members will not be personally liable for the debts of the company in their capacity as a member. However, members and directors may still be liable for a company’s debts in certain circumstances, such as when they have provided personal guarantees to borrow money.

Starting a small business company | ASIC

asic.gov.au

Want to try again?

Dance monkey dance

 

[Te Kaha]

Dance monkey dance

You're actually proven wrong and the best you can come up with is to parrot what I have already posted?? wow.

 

[Wb1234]

No mate. A company's debts can be recovered through stakeholders and owners in the event of bankruptcy.

You're actually trying to brush off bankruptcy now

It’s pretty funny some weirdo from New Zealand which is almost a third world country trying to lecture people about economics

I understand perfectly things like leveraged buyouts and private equity

hedge funds are only interested in making profits

I think he’s trying to say if the English club game failed totally it doesn’t matter because they can still play internationals

it’s just a weird argument

i think he will just say anything for the sake of an argument

look at the glazers at man utd and how hated they are by fans. They are bleeding the club dry in dividends and interest payments

as will private equity esp after the English club took owners largely took the money themselves to repay loans rather than invest in new grounds or the business

 

[Gobsmacked]

You're actually proven wrong and the best you can come up with is to parrot what I have already posted?? wow.

 

[Te Kaha]

It’s pretty funny some weirdo from New Zealand which is almost a third world country trying to lecture people about economics

I understand perfectly things like leveraged buyouts and private equity

hedge funds are only interested in making profits

I think he’s trying to say if the English club game failed totally it doesn’t matter because they can still play internationals

it’s just a weird argument

i think he will just say anything for the sake of an argument

look at the glazers at man utd and how hated they are by fans. They are bleeding the club dry in dividends and interest payments

as will private equity esp after the English club took owners largely took the money themselves to repay loans rather than invest in new grounds or the business

You really don't understand "private equity" if you are talking about "leveraged buyouts".

The only thing you got right in that entire post is "hedge funds are only interested in making profits" which is why they will help their investment partners increase revenue, to increase growth, and this increase profits.

 

[Te Kaha]

And now posting a self portrait... It's so easily to know when someone's entire argument falls apart, they post like that.

 

[MugaB]

F m d you guys are boring... where the expansion talk... fkn none


Unwatching this BS

 

[Wb1234]

You really don't understand "private equity" if you are talking about "leveraged buyouts".

The only thing you got right in that entire post is "hedge funds are only interested in making profits" which is why they will help their investment partners increase revenue, to increase growth, and this increase profits.

And when their partners take the money out as a repayment of past loans there is no extra profit

so their cut comes out of existing revenue and hence diluted revenues in the game

anyrhing else you need help with ? Lol

 

[Pippen94]

A second NRL team will see the demise of the all blacks despite warriors existing & struggling for 30 years. In turn all blacks folding will destroy all of international rugby including the six nations which boasts average crowds of 64k with no all blacks. UK rugby league which exists now only in pockets of northern england & a few towns in southern France & with barely a TV deal, will scoop up all the displaced rugby union fans, not soccer with its endless resources & exposure.

This thread is all timer

 

[Te Kaha]

And when their partners take the money out as a repayment of past loans there is no extra profit

so their cut comes out of existing revenue and hence diluted revenues in the game

anyrhing else you need help with ? Lol

Except that isn't true. Nothing has been "taken out". The money used was from the purchase of shares in the newly formed company. Added to that you're assuming that they still can't increase revenue.

 

[Pippen94]

F m d you guys are boring... where the expansion talk... fkn none


Unwatching this BS

Joined an NRL forum to discuss private equity

 

[Wb1234]

Except that isn't true. Nothing has been "taken out". The money used was from the purchase of shares in the newly formed company. Added to that you're assuming that they still can't increase revenue.

Each club could’ve used that money to buy a ground or build a hotel or invest in property

it wasn’t invested in anything

it was mostly used to cover player wages and taken back to owners for loan repayments

that’s why the clubs are struggling financially now

 

[MugaB]

Joined an NRL forum to discuss private equity

Stop posting bro... i unwatched this crap, then still getting your awesome posts notifications, dont make me un follow you bra

 

[Gobsmacked]

And now posting a self portrait... It's so easily to know when someone's entire argument falls apart, they post like

You just walk into every time
Like playing chess with a 2 year old

Now you're trying to dig yourself out

 

[Wb1234]

You just walk into every time
Like playing chess with a 2 year old

Now you're trying to dig yourself out

More like checkers. Chess would be too complicated for him

 

[Gobsmacked]

Each club could’ve used that money to buy a ground or build a hotel or invest in property

it wasn’t invested in anything

it was mostly used to cover player wages and taken back to owners for loan repayments

that’s why the clubs are struggling financially now

The funny part is that the thread started out with him just trying to ignore the problems with Super Rugby and now we're talking bankruptcy in England...
Running around trying to plug holes in the ship
We haven't got around to the legal action happening in France yet..