Bloomberg John Madejski Article

[southbank1871]

http://www.bloomberg.com/apps/news?pid=20601102&sid=az.fqiPoRxfQ&refer=uk

Reading's Madejski Seeks Asian Buyer as Club Joins Soccer Elite

Aug. 17 (Bloomberg) -- John Madejski, who bankrolled Reading's rise to English soccer's Premiership, said the arrival of South Korean player Seol Ki Hyeon may help him to entice an Asian to buy the club.

Reading last season won the second-tier Championship with a record 106 points to reach the top division for the first time in its 135-year history. Madejski, who last month spent more than 1 million pounds ($1.9 million) acquiring Seol from Wolves, said he may use his business links in Asia to find a buyer.

``I wouldn't be at all surprised if the next owner of Reading comes from the Far East,'' the 65-year-old Madejski said in an interview. ``I've got a number of irons in the fire.'' Seol's signing ``could help interest people in southeast Asia.''

Premiership teams attracted overseas buyers in the past three years, with Russians purchasing Chelsea and Portsmouth, and Malcolm Glazer buying Manchester United for 750 million pounds. The board of Aston Villa this week recommended a 62.6 million-pound offer from another U.S. billionaire, Randolph D. Lerner.

Madejski said he wants to sell Reading, which begins its Premiership campaign on Aug. 19, because of the spiraling cost of keeping a team in the world's richest league. Players' pay has increased fourfold to 20 million pounds since the club secured promotion in May, he said, swallowing up increased revenue from broadcasters this season.

Naive

Premiership clubs made an average 23 million pounds from television in 2004-05, compared with about 1 million pounds for Championship teams, accountant Deloitte & Touche LLP said.

``I naively thought that with all the money from broadcasters I would be able to make ends meet,'' said Madejski, whose club has debt of about 10 million pounds, according to media reports. ``It didn't take long for me to appreciate that the cost of things goes up so much. It's a voracious business and it's too expensive for me.''

The fee for Seol, a midfielder who played for South Korea at the past two World Cups, may reach a club-record 1.5 million pounds depending on appearances. Madejski, who owns magazines in Malaysia and has lived in the region, said he hoped the signing would boost Reading's profile in Asia, where the Premiership is the most-watched soccer league.

Asian Market

Top European clubs such as Real Madrid and Manchester United, the world's biggest teams by revenue, routinely tour Asia to widen their appeal and build sales of club merchandise.

Asians have stalked top English clubs before. In June 2004, 10 Thai businessmen including Paiboon Damrongchaitham, chairman of GMM Grammy Pcl, the country's biggest recording company, took over their government's plan to spend 4.3 billion baht ($115 million) on 30 percent of Liverpool, the five-time European champion. Liverpool rejected the bid.

While he'd prefer to remain at Reading for one Premiership season, that would depend on negotiations with potential buyers, Madejski said. Fans would prefer him to stay.

``We'd rather have a stable business than chase the dream and get into real financial trouble,'' Reading Supporters' Club spokesman Jon Keen said in an interview. ``The smart money says it's going to be a Korean buyer.''

Born in Staffordshire, northwest England, Madejski built a fortune estimated by the Sunday Times at 325 million pounds from publishing, hotels and property, and in 1998 made 174 million pounds from the sale of Hurst Publishing.

New Stadium

He became Reading chairman in 1990 and helped finance the 50 million-pound Madejski stadium, which includes a hotel, conference center and indoor training facility. He was named a freeman of Reading borough following the club's promotion in May.

John Howarth, a local government legislator, said the Premiership's global popularity means Madejski is seeking a buyer when the club's value is at a record.

``Only John can be the judge of what is the right time for him to exit and nobody on the council can blame him for moving on,'' the councilor said in an interview.

Reading missed out on promotion to the top division 11 years ago when it lost a playoff to Bolton 4-3 after leading 2-0 and missing a penalty kick.

Last season the club lost its opening game 2-1 to Plymouth before embarking on a league-record 33-game unbeaten run to seal promotion in March, more than a month before the end of the season. The team faces Middlesbrough in its Premiership opener.

``It's like you're going on a first date with a girlfriend who is way out of your league,'' Keen said. ``It could be a disaster but we're confident until we've got reason not to be.''

[Reading Abbey]

Multi millionaire Asian owner? Yes pleeeaaassseee!

Just someone that wanted to throw some money at the squad would be great at this level.

We can't fault the mad man for what's he's done and how he's done it, but we need strong investment and the future could be very exciting under a new and very wealthy owner.

[Dirk Gently]

Or it could be very shakey and short-term.

What if a new investor spends massively, gets lot of pplayers on expensive long-term contracts amd then loses interest and walks away?

Or what if he is the next Glazer? Someone who buys in just in order to make money - the only place that money can come from is from the fans. Still want it?

Better the devil we know .....

[RIP ELM Park]

Or it could be very shakey and short-term.

What if a new investor spends massively, gets lot of pplayers on expensive long-term contracts amd then loses interest and walks away?

Or what if he is the next Glazer? Someone who buys in just in order to make money - the only place that money can come from is from the fans. Still want it?

Better the devil we know .....

I would think Madejski would try to do his best to secure the long term future of the club and take that into consideration when looking at future investors, he has built a legacy here and I'm sure he wouldn't want to see his hard work undone.

[Dirk Gently]

Or it could be very shakey and short-term.

What if a new investor spends massively, gets lot of pplayers on expensive long-term contracts amd then loses interest and walks away?

Or what if he is the next Glazer? Someone who buys in just in order to make money - the only place that money can come from is from the fans. Still want it?

Better the devil we know .....

I would think Madejski would try to do his best to secure the long term future of the club and take that into consideration when looking at future investors, he has built a legacy here and I'm sure he wouldn't want to see his hard work undone.

True, but you have to ask yourself what guarantees he could get, and also why would someone from the far east want to invest here?

What's in it for them if it's not to make money? On this subject, there was a nice article in the Torygraph yesterday about foreign investors in Prem teams : http://www.telegraph.co.uk/sport/main.jhtml?xml=/sport/2006/08/16/sfnpre16.xml

[Dai Brainbocs]

About 10 years ago a big South Korean firm built two huge electronics plants near where my Mum lives in South Wales. She wound up with a number of South Korean neighbours, the firm could do no wrong in the eyes of local councillors, businesses put up signs in Korean etc etc.

One plant was finished but never opened, within a couple of years the other was mothballed, Koreans moved out, local people who had been employed by them (nowhere near the number spun in advance) lost their jobs, etc etc.

[Gordons Cumming]

Any investor who comes in will not have Reading FC as their first concern.

Money making will be the major incentive.

JM's tenure is coming to an end. We must trust him to make the right decision on who succeeds him.

He will.

[Reading Abbey]

Better the devil we know .....

The devil we know, wants out.

[martin fife]

How can anyone expect a foreign, maybe Korean buyer to have any feeling for the club beyond that of a investor? Here we are, two days before the start of the Club's biggest adventure, wondering if ownership will change, if a rich Korean will buy the club because we have just signed a fellow countryman? I will be sorry to see the Club change hands, but let's face facts, any new owner is going to run it as a business, not a labour of love. Surely, anyone coming in will only be interested in a Premiership club? not a relagation candidate, so until Christmas time no one can say where we'll be. Let's just enjoy Saturday August 19th 2006 and what follows. URZ!

[Gordons Cumming]

We are just having a little objective discussion, martin

Don't fret.

[Dirk Gently]

I'd say few things are more important to discuss than the ay our club id financed and who owns it.

Sadly, nothing in the Premier League is more important than money.

[martin fife]

Yeah, Quite right, but would you buy a football club just because it signed someone from your country?

[WestCoast Life]

``It's like you're going on a first date with a girlfriend who is way out of your league,''

sums up exactly how I feel !

[wehateoxford]

if you look at the way things are going in the prem now, it seems you need the big bucks to compete. i'd be more cautious about someone who invests on loans rather than there own money. For example im cautious about the glaziers and what they're doing at united.

on the other hand, someone like abramovich or mandaric (is that his name) wouldnt bother me so much. its true to say these people are investors, but i dont necessarily think they invest for profit. Some millionaires buy football clubs as a tribute to themselves, and i wouldnt mind somoene covering themselves in glory VIA reading FC

[shadesrwrf]

"I wouldn't be at all surprised if the next owner of Reading comes from the Far East,'' the 65-year-old Madejski said in an interview

Yes, an interview several weeks ago. Another example of lazy journalism. There's nothing new about this article.

We all know JM's looking for new backers for the club. But as has also been said before, I'm confident he won't just sell out to the first person who waves a bit of cash under his nose. I would also have thought he'd be unlikely to walk away from the club completely.

[Dirk Gently]

"I wouldn't be at all surprised if the next owner of Reading comes from the Far East,'' the 65-year-old Madejski said in an interview

Yes, an interview several weeks ago. Another example of lazy journalism. There's nothing new about this article.

We all know JM's looking for new backers for the club. But as has also been said before, I'm confident he won't just sell out to the first person who waves a bit of cash under his nose. I would also have thought he'd be unlikely to walk away from the club completely.

Wrong - this guy from Bloomberg met JM on Tuesday morning at the MadStad.

[shadesrwrf]

"I wouldn't be at all surprised if the next owner of Reading comes from the Far East,'' the 65-year-old Madejski said in an interview

Yes, an interview several weeks ago. Another example of lazy journalism. There's nothing new about this article.

We all know JM's looking for new backers for the club. But as has also been said before, I'm confident he won't just sell out to the first person who waves a bit of cash under his nose. I would also have thought he'd be unlikely to walk away from the club completely.

Wrong - this guy from Bloomberg met JM on Tuesday morning at the MadStad.

Fair enough. But it doesn't read like it. My understanding of good journalism is it adds something to what's already known. I'm not sure what's new about this.

[Dirk Gently]

It's new to its target audience, which is mainly US based and interested in finances.

[Dave the rave]

Just goes to show the gap between the haves and the have nots.

We go up and contract clauses and the like raise the wage bill to the extent where the promotion money barely covers it for a season. You've then got the TV money which will again barely, if at all, cover the subsequent season(s).
So next to no money for new signings to reach anywhere near the levels acheived by cash rich clubs like Chelsea etc and no way that this will change for us or similar clubs in the future whilst the stranglehold remains.

If JM is unwilling to squander any more of his cash in the fear that he may be financing an unachievable ambition then a new owner(s) is what has to happen. Unless we're content with being what we have become. A decent Champion ship team that has some flirtatious moments in the big time.

[Gordons Cumming]

. A decent Championship team that has some flirtatious moments in the big time.

Bit like WBA then?