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29 Apr 2002, 12:50 (Ref:273249) | #1 | ||
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Floatation could benefit F1 teams...
I read recently that FIAT are considering floating Ferrari on the stock market, in order to raise cash to allegedly reduce debt in the FIAT empire.
I work as a share trader on the LSE, it struck me that several F1 teams could benefit from a floating. Several football team's have floated on the LSE with mixed result's. Only Manchester United is considered to be a strong share, because of it's world wide brand and merchandising operation. The other club's have not done that well on the market as generally football clubs are heavily unprofitable, carrying the burden of escalating players wages. EJ has already sold a stake in Jordan to an investment bank, so it's not a big step to a floatation. IMO float's would work well for the following. Offer's would be heavily oversubscribed as plenty of race fans' would love to 'own' a piece of an F1 team. This would ensure a successful float. The team owner's would receive a substantial windfall and enough cash to re-invest Would secure some team's future in the face of dwindling sponsorship. Enable teams to raise fund's without selling to just one partner, which effectively put's their future into a stronger situation as opposed to one pair of hands. Team's have a strong asset base and their F1 entry which would re-assure investors. Team's have a brand in a global business - attractive to investors. Just my opinion! |
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29 Apr 2002, 13:02 (Ref:273266) | #2 | ||
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Join Date: Mar 2002
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flotation might seem attractive to the smaller poorer teams trying to raise revenue, but i dont see how it would benefit a larger team, whos revenue is already at a satisfactory rate.
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