IEC Changes | Page 3 | Vital Football

IEC Changes

Certainly an interesting development - would be fascinating to know whether this had been planned from the outset, or whether this is a reactionary move. Could be due to HK civil unrest, discontent from company shareholders and ‘the board’ or just a means of removing the club’s losses from IEC’s record as others have mentioned.

I think we should all be willing to give them the benefit of the doubt though, to be honest. It’s easy to forget that, despite the current negativity around the place, they did fund us pretty well in the summer window, and credit to them - we spent a lot more than most of us would have expected with no major sales.

They also seemed to be very shrewd and proper in their research and preparation prior to the takeover from their various statements, and one would imagine that this is something that had been planned from before the takeover even happened. Maybe it was simply easier to purchase the club as a holding company at the time, but the plan was always to offload us into the hands of Dr. Stanley and his mystery associates eventually.

In all likelihood, nothing much will change, but fingers crossed it A) allows Stanley to invest more of his own money into the club, and B) means he can sell off the remaining 49% stake to his (hopefully) very wealthy mates!

We’ll have to wait and see - doesn’t strike me as a bad thing though. It would be nice to hear from Dr. Stanley at some point about his plan and vision for the future (long shot, I know!) The only IEC rep. we ever heard from was Melvin Yan Min Zhang, who I’m fairly sure resigned from IEC soon after so it’d be good to receive an update of some kind from our Hong Kong overlords...
 
I personally think Norman is quite right to be sceptical.
Someone quoted the positives .... I cannot see into the future, but here are some of the potential negatives.
When the name Cayman Islands appeared in the text it screamed tax avoidance ... for that is why the Islands are a very popular tax haven or should I say 'International finance centre'.
Does anyone trust the EFL to have the brains to keep an eye on these dealings ?
Bolton anyone ?
Welcome to the world of murky finances with little oversight.

A bit old now and could do with updating, but this document is worth a read.
https://www.taxjustice.net/wp-content/uploads/2018/10/Final-Offshore-Game-Report.pdf

For those who wear their political beliefs on their sleeve and detest companies who don't 'pay their taxes' .... is your club going to be one of those companies and do you even care (because it is football) ?

IEC shares might get a short term boost because they will be able to boast a sale and the share price will no doubt increase. Losing a possible 750 grand a month on a club sitting near the bottom of the Championship , a large summer outlay on player transfers and dwindling attendances do nothing for the balance sheet.
 
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I still struggle to understand why they bought Wigan Athletic. We all love our club but we have to concede there were better options when it came to investing in an EFL team.We struggled to fill the DW when we were in the Premier League club and since the 2013 relegation gates have plummeted. I may be way out with this and no doubt will be put straight by someone.

I don't disagree with you, from one point of view you're absolutely right, but there are two sides to every coin...

Where else would you get a debt free football club only one tier down from the Premier League, who owns their own stadium, for £30 million?

We're as close to a 'blank canvas' as you'd find in English football. They needed to invest. They still need to invest. But at least they're doing so from a starting point of zero debt. That means that if they manage to get us back to the Premier League, they're going to be minted.

The Chinese are globally renowned for their love of gambling (Dr. Choi is a pro poker player as well!), and investing in a club that's only one promotion from the Premier League sounds like the kind of gamble that would appeal, especially when the club they bought wasn't saddled with existing debt.

I understand what you're saying, but to an investor who likes to gamble, I can also see the attraction of our club versus most of the others in this division.
 
From day one I've always felt that IEC buying us was odd due to the finances we saw from them - it didn't seem to make sense. I always felt like there was something else going on with it and maybe this what we are seeing now is part of that. Just a theory.
 
From day one I've always felt that IEC buying us was odd due to the finances we saw from them - it didn't seem to make sense. I always felt like there was something else going on with it and maybe this what we are seeing now is part of that. Just a theory.

Have you a theory ? They cant have bought to asset strip as they will be in the negative from what they paid for the club and what they have invested since.

It just look like a basic re structuring, putting the club as a seperate business so not not be a liability on the main business.

Allow for other investors to buy into the club, without having to buy into the main business, meaning the investment goes directly into latics.

It appears to be both a sensible thing to do and a positive thing for latics.
 
Mr Choi needs to get his income stream up. He may have to seriously look at other income streams like regular big events in the summer months (weekly if needs be). It will bugger up the pitch but if it is a big earner for us we may have to just sick it and see.
 
Have you a theory ? They cant have bought to asset strip as they will be in the negative from what they paid for the club and what they have invested since.

It just look like a basic re structuring, putting the club as a seperate business so not not be a liability on the main business.

Allow for other investors to buy into the club, without having to buy into the main business, meaning the investment goes directly into latics.

It appears to be both a sensible thing to do and a positive thing for latics.

Without being any type of expert on these things i look at IEC and think they are in no position to buy an English football club financially or strategically - it makes zero sense. So i wonder if Dr Stanley who owns IEC has used his company IEC to buy us rather than buy us directly himself for some type of tax or legal purpose. I also wonder if the KB88 shirt sponsor is involved in the ownership in some way; I am sure i read somewhere that foreign betting companies find it very hard buy football clubs due to various conflict of interest / corruption issues - so if they were involved in ownership it may not be directly for those reasons. The reason i wonder that is when you look at it KB88, it doesn't have any UK website and as a Championship club our presence in Hong Kong, China, etc is going to be minimal - so why would a company like theirs sign a 3 year contract with us to effectively advertise to no one? So that makes me think if they are sponsoring us they must have longer term aspirations to break into the UK market and the original story of K8 buying us for that reason was right - but the details slightly off and it was KB88 due to translation issues / confusion. That's my theory. It might also be why the take over took so long as they did come accross issues trying to buy us and had to do a work around and somehow IEC have become involved in that. I may be way off but i'm thinking something along those lines.

I dont think we are being bought to asset strip - as if we were i dont think they'd have invested so much. I think they genuinely look at the Championship and see the fees Prem clubs pay for their players and think there is potentially a viable business model if they get it right - easier said than done though and i think they will probably realise that as the years go on.
 
I think things might become more transparent when the other 49 % of shares are purchased
Then we might see who is behind the actual takeover along with dr stanley might be a certain individual or individuals just hope these buyers are wealthy
And are very keen on the project and not in it for the short term
Time will tell
 
Have you a theory ? They cant have bought to asset strip as they will be in the negative from what they paid for the club and what they have invested since.

It just look like a basic re structuring, putting the club as a seperate business so not not be a liability on the main business.

Allow for other investors to buy into the club, without having to buy into the main business, meaning the investment goes directly into latics.

It appears to be both a sensible thing to do and a positive thing for latics.
According to last set of IEC accounts
"Since the acquisition date, Wigan has contributed revenue of HK$80,936,000 and a profit after tax of HK$2,994,000 to the Group
So where is the liability?
 
I think things might become more transparent when the other 49 % of shares are purchased
Then we might see who is behind the actual takeover along with dr stanley might be a certain individual or individuals just hope these buyers are wealthy
And are very keen on the project and not in it for the short term
Time will tell

New Partnership just announced today:

Not too sure if
pies'r'us or Crusty has been brokering the deal:

https://wiganathletic.com/news/2019...Geq67YbEO1o3DSpIGGm70VEMo_dI5_A-iHbO67GTpMw9Y
 
I think things might become more transparent when the other 49 % of shares are purchased
Then we might see who is behind the actual takeover along with dr stanley might be a certain individual or individuals just hope these buyers are wealthy
And are very keen on the project and not in it for the short term
Time will tell
Agree totally bickymon, when it's revealed who is taking the remaining 49% we should get the direction we are going in! Personally couldn't see him transferring ownership if there wasn't money coming in from this new source! Intriguing possibilities!