Real Oviedo, In Danger of Going Under...

[markysimmo]

Massively historic club in Spain, need to pay a big bill by Nov 17th otherwise they will go under..

for 10 Euro's you can buy a share in the club, using paypal if you want, ill going to buy a couple

http://www.realoviedo.es/weboficial/index.asp?Pagina=vernoticia&IdNoticia=7956

Real Oviedo is one of the most historic Football Teams in Spain having spent 38 seasons in La Ligaand even having challenged for the Title on different occasions. Real Oviedo also qualified to play UEFA Cup on the early 90’s.



Paulo Bento, Onopko, Marius Lacatus, Peter Dubovsky, Nikola Jerkan, Dely Valdes, Robert Prosinecki, Slavisa Jokanovic or Abel Xavier are notable examples of men who have played for Real Oviedo in the last couple of decades. More recently, Real Oviedo have exported some of their finest young talents to the English Premier League. Chelsea’s Juan Mata, Arsenal’s Santi Cazorla and one of the current Top Scorers of the EPL, Swansea’s Michu (who made his first appearance for the Club in the Spanish Fourth Division at the age of 17) are all products of Oviedo’s cantera.



The club is currently going through the worst time in its 86 years of history. 2003 will remain in Real Oviedo supporters’ minds as the most critical and challenging period in living memory. A combination of bad performances on and off the pitch saw the team fall into the Spanish Fourth Division. However, tremendous effort and incredible support from the local fans prevented the club from going bust at the time. Since then Real Oviedo have consistently beaten all records in the Spanish lower divisions, with 15,000 season ticket holders sold and also able to host home games with the truly remarkable figure of 30,000 supporters



However, Real Oviedo have not left their financial troubles behind. The situation is now critical. A share issue has begun to raise funds in order to save the club. 2M Euros are required to keep Real Oviedo from entering into administration within weeks. The club and supporters are crying out for financial help and this plea is extended to anyone who would like to contribute to keep this legendary club alive. By taking part in this share issue, you would also become a Real Oviedo shareholder.





Please, see below some of the FAQs around entering the process

1) When and how can I help become a shareholder of Real Oviedo?

The window to purchase shares begins on November 3rd and closes November 17th



2) How much does each share cost and what is the minimum number of shares I can buy?

You can become a shareholder by buying one share at the price of just €10.75.



3) How can I buy Real Oviedo’s shares?

You can do a wire- transfer to a Banco Santander Bank account. Complete IBAN for international payments is :

ES 96 0049 4325 6124 1000 4177



You also can buy shares via PayPal in www.yosoyelrealoviedo.com



4) How would I get the ownership of my share?

Real Oviedo will send your shares to your front door (shares certifciate are likely to be sent out in December)



Real Oviedo cannot express enough the gratitude to everyone purchasing shares and helping to keep this historic Institution alive.









5- How long is the sale process open for?



From November 3 to November 17





6- Is there an age limit?



No, for buying purposes. The only limit is related to political rights such as attend and voting at AGM.





7- Do I have to be Spanish?



No.





8- Is there any risk? Will I be liable for any debt in the future?



No, the liability is held by the current board of directors.





9-What do I gain by being a shareholder? Will I make my money back?



Probably not. Realistically, you will gain nothing. But we believe this is bigger than that: it is the chance to help save one of Spain’s most historic clubs. The value of your shares is not likely to go up. In financial terms, it is likely to be worth nothing to you. But you will be part of the salvation and you will officially be a part-owner. Please do not spend money that you cannot afford. This is effectively a donation (you can also make a donation without buying shares if you want).



10- Can I go to the AGM?



All those with four shares or more can go to the AGM.





11- Will Oviedo become an entirely fan-owned club?



That depends on the number of shares sold and the balance of shares after the share issue. Our hopes rest largely on small shareholders and supporters.





12- What happens next?



After the share issue there will be an AGM at which, depending on the votes of the (new and old) shareholders, a new board will be elected and the club will move forward.





13-Will the current board continue after the share issue?



That will depend on the balance of shares after this share issue. Whoever holds a majority following the the share issue will be able to name a new board.





14 -What happens if we do not reach the target?



If we do not reach the 1,905,000 Euro target, the board will be obliged to call an AGM to dissolve the club





15- I want to buy a Real Oviedo shirt. How do I do that?



We hope that the on line store will be up and running around November 10

 

[Gazza Dazzla]

excellant, think I may by a couple as well, very good cause.

 

[Mumorn]

I'm in on this, thanks for the link

 

[Chase]

Cheers for the heads up marky!

 

[billyiddo]

foreign 'investors' will get free tickets apparently for any games they choose to go to in the future

 

[Steed Train]

They've consistently had high attendances yet keep going bust. Sounds like they've just been tinkling their money away

 

[Superhudd]

My question is why they cannot find someone to buy the club for 2million.

How many shares are available in comparison to the debt.

Are people in a sense just enabling the current macaron owners to stay in power, is the 2million say for 49%.

Like many of these situations, I'd prefer to know whether there are further bills to pay down the line. No point chucking money when in 6 months they need another 2million.

Again, if its just 2million why can they not just find a new owner.

 

[Superhudd]

9-What do I gain by being a shareholder? Will I make my money back?

Probably not. Realistically, you will gain nothing. But we believe this is bigger than that: it is the chance to help save one of Spain’s most historic clubs. The value of your shares is not likely to go up. In financial terms, it is likely to be worth nothing to you. But you will be part of the salvation and you will officially be a part-owner. Please do not spend money that you cannot afford. This is effectively a donation (you can also make a donation without buying shares if you want).

I get the feeling its more of a chance to keep the macaron owners in power than anything.

Sorry. Not paying a penny to prop up a brick owner, who cannot run a club within its means when it gets 30k fans each week.

If the said owner was really that passionate about the club not going into administration then he would sell for 1p and in the deal have someone pay the 2million.

But all he is doing is looking and begging people to help him look after his own investment in the club.

 

[Golfball]

Hope no one is stupid enough to do this. The owners who clearly cant run the club are trying to con people into giving them money by pretending people are part of the club, the 10 euro share is worth about 5p but obviously saying "make a donation" wouldnt really get as much.

 

[Danners9]

Hope no one is stupid enough to do this. The owners who clearly cant run the club are trying to con people into giving them money by pretending people are part of the club, the 10 euro share is worth about 5p but obviously saying "make a donation" wouldnt really get as much.

You could say the same about people who donate to charity.

Poor business model, overinflated donations, pfff.. fudging useless people should look after themselves.

This, as far as I am concerned, is a charitable donation rather than an investment opportunity.

 

[Gazza Dazzla]

You could say the same about people who donate to charity.

Poor business model, overinflated donations, pfff.. fudging useless people should look after themselves.

This, as far as I am concerned, is a charitable donation rather than an investment opportunity.[/QUOTE]

Exactly, I don't think 1 single person who was going to, or will put money to this is thinking it's a business investment, it's quite clearly a donation.

However, the comments made further up about them getting 15k-30k each game and still not being able to manage themselves is something I hadn't thought of when first reading it, I liked the romantic idea of helping to save a historical old club. It does kind of seem like a way for the current owners to remain in charge without spending anymore of their own cash. What will stop them tinkling this 2m up the wall, the business model clearly isn't right as it stands despite their competitive advantage of the fan base.

 

[elyid]

Having lived in Spain for a couple years now, a general observation is that Spanish love making a lot of money by doing very little and this kind of ethos is less frowned upon than in the UK. For example, a lot of struggling businesses are due to people just taking huge amounts out of the company for their personal use, giving large backhanders to friends/families companies etc. and this is largely considered to be normal practice.

Now I'm not saying that's def what's happened here, and it's still admirable to want to keep the club going, but as others say above it's def a donation and a chance they could get €1m in donations and still go bust.

A better idea might be to buy the shirt, they still make money and increase chance of survival but you get something in return.

 

[Jordinho]

Having lived in Spain for a couple years now, a general observation is that Spanish love making a lot of money by doing very little and this kind of ethos is less frowned upon than in the UK. For example, a lot of struggling businesses are due to people just taking huge amounts out of the company for their personal use, giving large backhanders to friends/families companies etc. and this is largely considered to be normal practice.

Now I'm not saying that's def what's happened here, and it's still admirable to want to keep the club going, but as others say above it's def a donation and a chance they could get €1m in donations and still go bust.

A better idea might be to buy the shirt, they still make money and increase chance of survival but you get something in return.

Sounds very similar to the American way. Everyone's entitled to make as much money as they can.

 

[elyid]

Sounds very similar to the American way. Everyone's entitled to make as much money as they can.

Yep, if you make money in an unethical way then you are just considered 'clever'.

As a good example I live close to a well known Golf course that was supposed to host the Andalucia Masters this year, but it was cancelled citing budget problems. Now I've heard from multiple people 'ITK' that the guy who allocates the central sports event budget in the area could easily have had it go-ahead but his kick-back to make sure funds reached that event wasn't high enough to do so. Apparently he was tinkled off that the hotels / golf club / sponsors etc. all make a fortune, while he allows to all happen but makes relatively little. So he cancelled it at short notice to make sure his bribe next year is high enough.

Everyones seems to know this happens but just accepts it as part of business and normal.

Anyway, I don't want to take the thread off topic, but thought this is an insight into how things can sometimes work here.

 

[jts1882]

World's richest man saves Spanish soccer club
updated 7:08 PM EST, Sat November 17, 2012




(CNN) -- Real Madrid and Barcelona both comfortably won on Saturday, but for once Spain's two most dominant football clubs were overshadowed by a third-tier team which has been saved from extinction after receiving a huge injection of cash from the world's richest man, Carlos Slim.

Just over a decade ago Real Oviedo played in La Liga alongside Real and Barca, but mismanagement from the club's directors took the Asturian team to the brink of bankruptcy in recent years.

Needing to raise €1.9 million ($2.4 million) by November 17 or go bust, Oviedo's current board announced a share issue earlier this month to attract investment.

Remarkably the scheme took off as fans from all over the world bought the €11 ($13) shares after Oviedo's precarious position was highlighted on the social media website Twitter thanks to the efforts of Spanish football expert and long-time Oviedo supporter Sid Lowe.

Over the past two weeks those fans have bought more than $1.9 million in new shares in the club, and Slim was so impressed -- he described the gesture as "extraordinary" -- that the Mexican tycoon has now pumped in a further $2.5 million to become Oviedo's majority shareholder.

"This challenge and ambition is strictly a sports investment and one that looks to benefit the club and its fans,'' said an Oviedo statement regarding Slim's intervention.

"(The investment) will try to support Oviedo's players so they can reach their goals and the club can reach the division that corresponds to its history and values.''

In September Slim bought 30% stakes in two Mexican football teams, Pachuca and Leon, and he plans to use Oviedo "to create synergies and exchanges between Spanish, Mexican and Latin American football.''

According to Forbes magazine, Slim is the world's richest person with a net worth of $69 billion, having made his fortune in the telecommunications industry.

His widespread interests include providing financial backing for Mexican Formula One driver Sergio Perez.

"Naturally, I have reservations, doubts & concerns," tweeted Lowe on Saturday. "But with c. €2m of shares bought by 13,000+ ppl round world & Slim buying €2m Oviedo safe."

"€1.93m raised by small shareholders alone," added Lowe. "They're the real heroes."

Its an odd position for the fans. They responded to rescue the club and became owners. Then a rich guy comes along and buys more shares to become majority shareholder. Their club is now more secure, but they have lost control.

 

[7percent]

Does this mean that Carlos Slim could bankroll the club and make it the next Emirates Marketing Project, Chel$ki or PSG?

I guess that Real Oviedo would have a massive fan base as well now, I hadn't heard about them until last week but now I'm a 'part owner'. If everyone who bought a share is now a 'fan' then it might make an investment pay off.