Matchroom Sport in Talks to Sell Minority Stake Worth $215M

Fatboy said:
In my limited experience with having a big biz, mine was worth roughly $100M 20 years ago. So kinda small by comparison. I owned 50% to be clear.

We looked at different ideas/divisions on a loosely structured time line. We’d allocate X amount of $ and put the idea/division in motion and then mostly let it do it’s thing for a period of time.

After a period of time, we’d look at the numbers and see what results we had. If they were bad we’d usually let it go another cycle and then if still bad-either restructure or eliminate.

What it looks like to me is MR has the “pool division” up and going. They have empowered and hired all new staff. They need a couple cycles of numbers to look at them will make a decision.

Could go good or bad. But until they have numbers it will roll on for the time being.

That’s the normal course of biz. Some are more structured and formal than others. I can’t speak to MR’s structure. But it’s very unlikely that if the pool division is making $ it will get cut. If it’s a big loser-rip pool.

Time will tell,

If it holds up, for the love of God and my blood pressure I hope they correct the 5 ball.

Best
Fatboy

PS: all jokes aside I hope for the very best for MR & pool.
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FatBoy Cookie Dough!
 
Selling a 25% stake for a hefty profit is a good business move imo. MR still is the controlling shareholder and the investor is along for the ride. or until they increase their stake, which can always happen, particularly with a family run business that has been passed down a generation. By the third generation (Barry Hearn's grand kids) they may not own MR anymore. I doubt that Emily has any stake in anything. She is just an employee. I forsee either no change in MR's plan for pool or an increase in their involvement, depending on how they are doing with it. Others on here got that part right. If it's profitable you continue. If it's not you either pull up or pull back. I would suggest MR is making a commitment to pool for a period of time (maybe 3-5 years) to see what develops. Pool could see a real boom with increasingly larger purses (500K or more) or it could see the opposite, no more MR pool. It all depends on what size audience they can develop.
 
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