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Potential sale, again


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#1
McSoccer

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That thing where RB had no plans to market the team, but count on the rise in popularity of MLS/NYCFC to do the advertising for them.

 

Imagine if they actually, really tried... 

Bingo.  It's why I don't think RB has any interest in selling soon (unless they want $$$ for Liepzig signings).  They angered a large portion of their fan base, went a cheap route to building to a team, etc. and what do they get as the result?  Double the tv ratings.  Their investment grows because MLS grows, regardless (or some may say, in spite of) what they do.



#2
NittanyMetros

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Bingo.  It's why I don't think RB has any interest in selling soon (unless they want $$$ for Liepzig signings).  They angered a large portion of their fan base, went a cheap route to building to a team, etc. and what do they get as the result?  Double the tv ratings.  Their investment grows because MLS grows, regardless (or some may say, in spite of) what they do.

One caveat to this...it's why they don't have interest in selling the club at the rate people are willing to pay right now.  The figure they're looking for has remained pretty consistent for the past few months, the bid hasn't been there for the number they were looking for.  This applies to everyone who's been looking into this team dating back to the offseason.  

 

If the bid is there, they're out and it's not even a difficult decision for them.   For many, it makes more sense to build from the ground up (Man City) instead of buy this team, since the costs I've heard are pretty comparable and you get to do it yourself.  Now, Man City looks really foolish today because they can't build the stadium, and Sela Sport are having the same exact issues.  So there are certainly advantages to already having the "bones" in place.  

 

I do wonder if the bid comes up a bit this offseason from the few players we've heard about.  I do not expect the ask to go down unless they absolutely collapse this season.  Even then, there's no way RB is taking a cent below their infrastructure investment costs to this point.  


#RedBullOut


#3
McSoccer

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One caveat to this...it's why they don't have interest in selling the club at the rate people are willing to pay right now.  The figure they're looking for has remained pretty consistent for the past few months, the bid hasn't been there for the number they were looking for.  This applies to everyone who's been looking into this team dating back to the offseason.  
 
If the bid is there, they're out and it's not even a difficult decision for them.   For many, it makes more sense to build from the ground up (Man City) instead of buy this team, since the costs I've heard are pretty comparable and you get to do it yourself.  Now, Man City looks really foolish today because they can't build the stadium, and Sela Sport are having the same exact issues.  So there are certainly advantages to already having the "bones" in place.  
 
I do wonder if the bid comes up a bit this offseason from the few players we've heard about.  I do not expect the ask to go down unless they absolutely collapse this season.  Even then, there's no way RB is taking a cent below their infrastructure investment costs to this point.  

Sure, everybody has a price. And eventually someone will be willing to pay something RB will take (and I'll be the first lineup to pre-order a Metros SC jersey). But did it look like any of the recent "potential" buyers were even close to making an offer RB would consider? At least some of the bids seemed to be lowball bids after it was reported RB wanted out of MLS.

#4
McSoccer

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I wasn't necessarily clear in my other prior post. I don't think RB has a great love of MLS or that they think it's a great investment. I just don't see anyone thinking the team's value is the same that RB does anytime soon.

The stadium is like putting in a pool at your house. It cost $$$, but the next owner doesn't always want to pay for it.

#5
jamison

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I don't know, Stadiums are kind of like gold around here. They are very, very hard to build, and take ~ 10 years to get done. RB's stadium is in a decent area that should get better as buildings get built around it, PATH improves, etc. All of the facility dynamics are on the upswing. You could even see people moving back into Harrison from deeper suburbs if the NJTransit issues get worse with the tunnels, just to use the PATH, raising property values. 

 

I think RB looks at this and says "if I can get X back, fine, I'll take it. Otherwise, I'm in on the cheap as far as operating costs go now, I've got a stadium I can use for friendlies & stuff, plus my asset is appreciating all of the time. Might as well sit it out another few years, wait until MLS caps the teams at 28 or something, and then sell to someone looking to get into the league when a $ 100m expansion fee isn't an option- thereby requiring them to pay more. 

 

I don't think RB is here long term, but I think they are here near term, next 3-5 years at least. (I'd love to be wrong on that, btw). I think they see franchise values going up, and they know that they can lose $ 10m/yr on operating costs, gain $ 15m/yr on franchise value and still have players for Leipzig (or cash) down the line. What's not to love? Negative PR doesn't ruffle their feathers. 


Please Sell My Team to Someone Who Cares. 


#6
McSoccer

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I don't know, Stadiums are kind of like gold around here. They are very, very hard to build, and take ~ 10 years to get done. 

If they were that valuable somebody would have paid RB's asking price.  The big offer floating around here after last season barely covered the stadium costs.



#7
Rybka

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The nasl and eurosnob talk about pro-rel could be scaring off potential investors. I would think that pro-rel is not in MLS's hands, but in the hands of the ussf. It is non-issue now, but in time it could be an issue.


FC Metropolis 7 Gotham City FC 0


#8
NittanyMetros

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Sure, everybody has a price. And eventually someone will be willing to pay something RB will take (and I'll be the first lineup to pre-order a Metros SC jersey). But did it look like any of the recent "potential" buyers were even close to making an offer RB would consider? At least some of the bids seemed to be lowball bids after it was reported RB wanted out of MLS.

The offers I heard ranged from poor to decent (in my opinion anyway). The difference really isnt that big. The problem is that RB has an absolute floor on the price of this team that's pretty high in its own right, and they've made it clear they won't go below it. That's why Im wondering if the bid goes up this winter. I also think investors were wary of the NYCFC effect as well this off season, part of the reason the bid never reached that floor.

I'm on record saying this past January that the deal is done before 2018. Based on what I've heard so far I'm sticking to that timeline.

#RedBullOut


#9
uptownbull

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It'll be the cosmos

#10
NittanyMetros

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It'll be the cosmos

They're a wildcard.  So far no offer.  If they're doing due diligence, they've been awfully quiet about it.


#RedBullOut


#11
JBigjake54

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The Cosmos current fan base, such as it is, has a core that wants the team in an NYC stadium.  Will any of them troop to RBA, should their owners buy RB, rename it Cosmos & dump the NASL franchise, probably sinking that league?


We are good enough to beat the best teams, and bad enough to lose to the worst teams. 


#12
123NYwins

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The Cosmos current fan base, such as it is, has a core that wants the team in an NYC stadium.  Will any of them troop to RBA, should their owners buy RB, rename it Cosmos & dump the NASL franchise, probably sinking that league?

 

Elmont or any other fantasy of present (especially present) or future is less NYC than Harrison is. But I have no idea where the mentioned scenario fits in with the Borough Boy(s) yarn.


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#13
vflkirwan

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It could indirectly be the USSF that actually forces the Cosmos hand (if they were to buy the Red Bulls)  with the D1 requirements and the aftermath of it.



#14
NittanyMetros

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It could indirectly be the USSF that actually forces the Cosmos hand (if they were to buy the Red Bulls)  with the D1 requirements and the aftermath of it.

And there's no chance NASL wins that suit.  If that happens, the Cosmos gamble fails and they have to buy their way in our buy us outright.  No other option outside of living as a second division club forever.


#RedBullOut


#15
Pebble

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The Cosmos current fan base, such as it is, has a core that wants the team in an NYC stadium.  Will any of them troop to RBA, should their owners buy RB, rename it Cosmos & dump the NASL franchise, probably sinking that league?

The fans, few are far between, that are there will just transfer over or will go to BoyCity. They may just watch on TV, but they aren't in significant numbers.

 

And there's no chance NASL wins that suit.  If that happens, the Cosmos gamble fails and they have to buy their way in our buy us outright.  No other option outside of living as a second division club forever.

I think they gambled because they didn't have the cash to buy into MLS previously (probably not now, either). They have all this money, supposedly, to build a stadium and a mall, but we all know New York doesn't care to do that. Ultimately, that's the issue. They'll need to just buy the Red Bulls out or disappear, because the league likely will. 


#RedBullOut

 

Thursday, November 27, 2008 -

After another Hatch shank over the crossbar...
"And Hatch wonders why nobody is covering him." - Tony Meola





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