Was relagation 'the hedge'? (1 Viewer)

Mary_Mungo_Midge

Well-Known Member
I must admit I don't normally favour conspiracy theories, and only have a passing knowledge of how hedge funds work; but the devil in me can't help but put this one out there.

The nature of hedge fund investments is to have an alternative outcome, or Plan B for any given investment. So hypothetically, if you invest one pound in a company being successful, you also bet one pound on them being unsuccessful, or their competitor being successful, so either way the fund partially wins. Losses are mitigated by the second investment - that being the hedge. Provided more than 50% of the intvestment decisions are correct, and the hedge works, then in theory that being how wealth is generated.

So, where's the 'hedge' in SISU's CCFC gamble? A a business, they're not accustomed to flights of fantasy. So there must be a hedge. A safety net. A fall back to mitigate losses, surely?

Well, from an investment decision, that side is easy. They saw a team on its knees and thought they could turn it around after getting it for peanuts, and bullying people into handing over shares for a pittance. The investment.

But it didn't work.

So, was relegation 'the hedge'? By failing on the footballing side so dramatically and therefore being relegated, they've got all parties to the table to discuss Arena ownership. Surely it's wouldn't have happened without relegation and the spectre of the club being wound up, post-relegation and the financial woes associated there with.

From the word go, was the plan to either succeed, or fail miserably? The investment and the hedge?
 

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Mary_Mungo_Midge

Well-Known Member
Spelling mistakes acknowledged - especially in the title!! Porky fingers, touch screens and multi-tasking being a terrible combination...
 

wingy

Well-Known Member
Theres a reasonable probability that this outcome was considered at the start of this season MMM,started to wonder back in September if this outcome was what they were looking for.:thinking about:
 

Mary_Mungo_Midge

Well-Known Member
There's a train of thought wingy, of there's any merit in my crazed assertion, that they thought about it much, much sooner than that. The relationship between migration and the acquiring of sufficiently skilled players, and training/fitness staff has been out of kilter for a business - and therefore team - looking to survive for a good 18 months or so. Perhaps even longer
 

Paxman II

Well-Known Member
Love the theory and is a source of probability mmm but personally i don't think that would have been their 'hedge'. Only fools would work that way......oh wait a minute;)
 

wingy

Well-Known Member
There's a train of thought wingy, of there's any merit in my crazed assertion, that they thought about it much, much sooner than that. The relationship between migration and the acquiring of sufficiently skilled players, and training/fitness staff has been out of kilter for a business - and therefore team - looking to survive for a good 18 months or so. Perhaps even longer
You could well be correct in that assertionMMM,but being blind fans of football and our team its hard to imagine such a cunning coniving plan ,i guess the signal was at the point of Rasons and Hoffmans resignations,if this theory holds water.
 

Mary_Mungo_Midge

Well-Known Member
Whether 'the hedge' was agreed at the start of not, and with or without Ranson's knowledge is a point for discussion. Just think on, bar that first season and the Dann and Fox investments, etc.

Have they ever invested enough, in first team squad and supporting infrastructure to make us competitive? No.

Are they interested in tying up money in Championship mid-table mediocrity? No.

Which leaves starving the club into relegation and getting the Arena. Any more of less plausible than anything above?
 

Mary_Mungo_Midge

Well-Known Member
Love the theory and is a source of probability mmm but personally i don't think that would have been their 'hedge'. Only fools would work that way......oh wait a minute;)

Devil makes work for idle hands and all Paxman. Still, the football, rugby and then Olympics will start soon and I'll be distracted again!
 

Sky Blue Kid

Well-Known Member
I must admit I don't normally favour conspiracy theories, and only have a passing knowledge of how hedge funds work; but the devil in me can't help but put this one out there.

The nature of hedge fund investments is to have an alternative outcome, or Plan B for any given investment. So hypothetically, if you invest one pound in a company being successful, you also bet one pound on them being unsuccessful, or their competitor being successful, so either way the fund partially wins. Losses are mitigated by the second investment - that being the hedge. Provided more than 50% of the intvestment decisions are correct, and the hedge works, then in theory that being how wealth is generated.

So, where's the 'hedge' in SISU's CCFC gamble? A a business, they're not accustomed to flights of fantasy. So there must be a hedge. A safety net. A fall back to mitigate losses, surely?

Well, from an investment decision, that side is easy. They saw a team on its knees and thought they could turn it around after getting it for peanuts, and bullying people into handing over shares for a pittance. The investment.

But it didn't work.

So, was relegation 'the hedge'? By failing on the footballing side so dramatically and therefore being relegated, they've got all parties to the table to discuss Arena ownership. Surely it's wouldn't have happened without relegation and the spectre of the club being wound up, post-relegation and the financial woes associated there with.

From the word go, was the plan to either succeed, or fail miserably? The investment and the hedge?


The sheer nature of Hedge funds, has always sent shivers down my spine. I'm in agreeance with "Wingy" that relegation could have been on their minds from the beginning of the season.
 

Grendel

Well-Known Member
And I agree with lord summerisle that this plan started at the top. It looks like they are planning the same again.
 

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