Thursday, June 26, 2014

Update on the sale

I saw that someone posted a comment requesting further detail on the sale process of Valencia CF, so here it is.

Well, there has been many obstacles to the sale recently. Almost to the point where Lim's advisers were trying to talk him out of it! Peter Lim has been surprised at the unwelcoming attitude he received. You'd expect that when someone wants to invest so much into the club including over 300 million euros (Lim's net worth is about 1.8 million euros) just to settle debts and build a new stadium, he'd be welcomed with open arms but that hasn't been the case.

Here are the four major issues with the sale that Lim had:

1. This one I mentioned in the last update about the post. There was a clause in the contract stating that should Lim abandon the club within 5 years, he would have to pay a 330 million euro penalty. This outraged Lim who made an angry phone call to Salvo to have it immediately removed; and it was removed as requested. So this one is solved.

2. The other case was another clause stating that should Lim violate any of the Valencia Foundation's 20 points in the contract, he would be fined 200 million euros.

3. The Spanish media is apparently publishing various articles discrediting Peter Lim and basically telling people that this whole thing is a scam and not to trust him. A few articles is not that big a deal but there is so many that Lim is getting pissed off.

4. The last one was a legal issue. Newcoval, a business that Valencia CF struck a deal with during the time of Manuel Llorente, are claiming about 90 million euros in a supposed breach of intellectual property. This business apparently created a plan for Valencia CF to reduce their debts in half through selling the sporting facility and the Mestalla. Lim fears that should he take over the club he will spend time in courts battles and be riddled with legal problems and fines. Therefore, he become really discouraged. Salvo, Bankia (who was also part of the deal), and even former President Llorente all discredited the claims by Newcoval. Valencia CF seem to have a pretty strong case against Newcoval's claims with a clause in the contract stating that payment is due only if the work is actually carried out, and it obviously wasn't. The club also insist that should there by any payment due (even if the claims by Newcoval were true), they would only be entitled to 900,000 euros, no where near the ridiculous claim of 90 million euros. Valencia CF have also reportedly threatened to sue Newcoval.

You can see why Lim would be upset. For Points 1, 2 and 3, it shows extreme distrust on the part of the club and the city for someone who being very generous and eager to work with the club. And for Point 4, well no one wants to be spending time in court.

Salvo personally traveled to Singapore to convince Lim that the clauses will be removed, that Newcoval's claims are rubbish, and that he is indeed very welcome by everyone at the club mostly the fans. As proof Lim was shown the new trending topic on Twitter #LimTeQuermos among many other in which fans have decided to show appreciation and gratitude for the soon-to-be owner and hopefully salvage the operation. This seems to have worked as Lim has supposedly told Salvo that he will go through with the sale if these four issues are addressed with guarantees from the club and Bankia. So the sale seems to have been rescued by sleepless hardworking Salvo and the loving fans of Valencia CF. The contract should be finalized in the next 24-48 hours and it will hopefully be signed this Sunday or Monday.

I hope that's enough information. That's about all I could get from all the reliable translated Spanish sources. Any other requests for articles, please let us know below. Also, please share your thoughts on this whole predicament and any other problems about this sales process. Amunt!