Buyer’s remorse

In business they call it ‘deal fever’.

When someone wants something so badly that they pay over the odds for it and then later regret it.

Not long after the deal has been closed the successful purchaser experiences what is called ‘buyer’s remorse’.

The tussle between Boston Scientific and Johnson & Johnson to acquire the company Guidant is probably one of the best examples of this.

As soon as I typed in ‘buyer’s remorse’ into google this is one of the examples that came up on the first page.

In the end the loser, Johnson & Johnson, were very happy that they lost and Boston Scientific were cursing their victory.

I was reminded by my Square Mile chap that in any deal it is the guy that doesn’t care that usually wins.

This made no sense to me, so he took me through it.

“It is the guy who is willing to kill this that will win.”

For him that means Ashley.

However, he said that the danger for Big Mike would be for him to react hastily because of the public embarrassment of being outmanoeuvred.

So if Big Mike takes this personal then he could foul up.

He should remember it is just business.

It is no secret that Mike Ashley regrets buying Newcastle United.

This is not conjecture he has stated this.

He has what he wants from Sevco (the retails and advertising deals) and he certainly doesn’t want to lose them.

The smart move would be to do a deal with King and his furry friends.

The fans now have someone in their fighting their corner so they have some hope.

I understand that one the Three Bears has made it known to the Easdale brothers that they are not in the long term plans in the Blue Room.

What is now beyond doubt that the original Dave King plan to crash RIFC and pick up the main assets in a liquidation sale is now off the table.

He has instead, though a family trust, bought shares in a company/club that last spring he was telling people to not purchase season tickets from.

The use of the trust might just be a tactic to avoid Concert Party regulations.

Now if Ashley wants to fight this then he needs time and there are several delaying tactics available to him.

He currently has the Chairman and the Chief Executive so he’s in a powerful position in the boardroom.

Moreover, he has more in the Sports Direct petty cash than the entire net worth of Mr King and his furry friends combined.

What is at stake for Ashley is not his piddling interest in Sevco, but in his next big deal elsewhere.

Big Mike could suffer reputational damage over this RIFC/TRFC business if he is seen to have been bested by Mr King and the Three Bears

If that happens then Ashley’s ‘brand’ as a tough negotiator will be seriously damaged.

The deal that suits Big Mike is that he gets someone else to run the football club and he can keep his mitts on the profitable revenue streams.

Remember my Square Mile chum, it is the guy in the deal who doesn’t care if the entire things collapses who has the advantage over the guy who emotionally cares AND is in a hurry.

One thing that anyone wishing to save ‘Rangers’ does not have is time.

Charlie and the boys utilised the ticking clock in the summer of 2012 when he knew that he had the SFA over a barrel.

If Ashley doesn’t take this personally then he will know that what Mr King and his furry friends have just made a distressed purchase.

In a business sense King and the Bears are emotionally involved.

It is very doubtful if they will never get their money back let alone a return on their investment.

King and the Bears must now gain full control of the board room and they need 50% + 1 for that at an EGM.

Ashley would give them control if they let him have HIS Onerous Contracts.

The emotional ones would he hailed as saviours and once more brogues would step into the Blue Room.

Buying into RIFC was clearly not in Dave King’s original plan.

So why the change of direction?

A perfectly believable scenario is that the South African based criminal and his business associates in Scotland were told by people in authority that a third Rangers was a non-starter.

Mr Doncaster’s nonsensical assertion about the same club was also a clear message that going again after liquidation down Ibrox way was just wasn’t feasible.

Then Mr King had no choice but to buy into the company that he was trying to starve of funds earlier in 2014 with the season ticket strike.

It is worth reiterating Mike Ashley does not want to run a football club in Glasgow, but he does want to continue to make profits from the newest one.

A sensible deal is that Mike keeps the merchandising an adverting deals-or even improved ones- and the emotional chaps get to ‘save’ the football club.

Big Mike, once a top class squash player, is a highly competitive guy and money is a just a way of him keeping score on how victorious he has been.

He would be happy to see Mr King and the Three Bears owning the ‘club’ if he kept his contracts.

They would then own a crumbling stadium, a white elephant of a training ground and a threadbare squad.

Mr Ashley would control two of the main revenues streams (retail and advertising) and the new owners of Sevco would also have to keep Charles of Normandy and his offshore buddies in the style to which they have become accustomed.

Of course The People would soon be demanding that a front loaded war chest be hauled up the Marble Staircase.

It would be at that point that they would, perhaps, experience Bear’s remorse.


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