Why our owners can't invest
#11
(06-25-2019, 09:05 PM)Remi_Moses Wrote:
(06-25-2019, 08:25 PM)Kit Kat Chunky Wrote: Money does come out of China to invest, but there are different drivers for them. The curtailment of the cash for passports scheme has impacted their desire to invest in the UK.

Lai has also said the club must be self financing. He never promised to spunk a load of cash on us.
Correct on all accounts KKC 
Finance wise Lai doesn't want to invest further it's that simple!

Many misconceptions are on this forum with talk of money cannot come out of China is a fantasy.
FACT - Chinese outbound investment has historically fallen into three groups...Encouraged, Restricted and Prohibited. Outward cashflow to sports clubs went from 'Encouraged' to 'Restricted' last year to regulate large outflows. If the outflow is below a certain limit (dont recall the exact figure, but it's in the hundreds of millions) the transaction has to be recorded prior at a local level for approval, anything above has to be ratified and approved centrally by the Chinese government. N.B. (Hundreds of millions)
It may take a couple of months due to the red tape now in place, but it is completely legal to move funds out of China to facilitate ongoing servicing of initial investment.
Remember, investment is not Prohibited just restricted subject to approval. 

Remi - I'm not sure you've had many dealings with oppressive regimes to say the words "Restricted subject to approval" so lightly.

To gain approval, means having the sticky fingers of numerous layers of government in your business and owing equally numerous amounts of favours afterwards. It is not a matter of filling a few forms in and clicking "submit".

But yes, as KKC said, he never made any promises of cash investment and had we carried on in the PL, he wouldn't really have had to. Unfortunately, there doesn't seem to have been much planning for a relegation scenario.
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Messages In This Thread
Why our owners can't invest - by fuzzbox - 06-25-2019, 04:06 PM
RE: Why our owners can't invest - by Remi_Moses - 06-25-2019, 05:46 PM
RE: Why our owners can't invest - by Duffers - 06-25-2019, 07:02 PM
RE: Why our owners can't invest - by Squid - 06-25-2019, 05:48 PM
RE: Why our owners can't invest - by SausEggBaton - 06-25-2019, 06:47 PM
RE: Why our owners can't invest - by Tom Joad - 06-25-2019, 07:31 PM
RE: Why our owners can't invest - by baggiebloke - 06-25-2019, 07:59 PM
RE: Why our owners can't invest - by baggiebloke - 06-25-2019, 07:09 PM
RE: Why our owners can't invest - by Remi_Moses - 06-25-2019, 09:05 PM
RE: Why our owners can't invest - by Pragmatist - 06-26-2019, 06:09 AM
RE: Why our owners can't invest - by Squid - 06-25-2019, 11:11 PM

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