Top of the Great Era

Chapter 1655 Financial Fair Play
To say that the complexity of this matter mainly lies in the printing of "instructions".There is a quarterly revision, and each country has a different language version.At the same time, different operators also have different versions.

In total, there may be 100 editions per printing.After the printing is completed, these different versions of "instructions" must be distributed to different operators in different countries.

This is a very large offline work.

Neither Ziweixing nor Asda has such strength.

In particular, I want to sign exclusive agreements with major companies before operators and other Internet companies react.

If you want to keep it secret, you must be fast!
Multiple teams are required to be dispatched at the same time, and each team is responsible for handling one operator. In the European and American markets, it is basically enough to handle 7-8 operators.The rest of the small come and go, you can do it or not.

But how to do it?

Putting it on ordinary people, it is basically useless.

But it's okay to not use it every week!
He has already created a very complete commercial map of "Ziwei Galaxy". The distribution of "instructions" is actually distribution, which is equivalent to the global distribution of a mini version of Hollywood movies.

Ziweixing and Asda can't do this well, but Ziweixing Global can!
Hollywood movies can be distributed to every corner of the world, and there is no difficulty in distributing the "manual" of a mobile app.Moreover, the former NBC Universal Group had a publishing business.It's just that NBC Universal was split later, and the publishing business was included in NBC. Universal Pictures did not leave any assets in the publishing industry.

There are no assets, but the relationship is still there.

Universal Distribution Company is very familiar with the whole set of operation mode.

Get it!

Zhou Buqi thinks this matter is very important and must be done.As long as it is completed, Ziweixing will be equivalent to having a monopoly-like entry-level product promotion channel for smartphones in the next 3-5 years!
Then, Boss Zhou began to arrange for Lu Qi, Zhou Shaoning, Ann Sarnoff, Joshua Carey, Paul Kona and others to meet in London.

The tripartite cooperation between Ziwei Star International, Ziwei Star Global and Asda made this happen!
It is expected to be 4 days later, see you next Monday in London.

Tang Binchen won't be able to leave these days.

Like an assistant, I followed Boss Zhou and met many people.

First, I met with a merger and acquisition team of Goldman Sachs, plotting the matter of EMI Records.

Zhou Buqi is planning to acquire EMI through debt acquisition, copying the successful acquisition of MGM at the beginning, and it is best to complete the transaction this year.

The process is complex.

Very deceitful.

The acquisition of debt is mainly to acquire the huge debt of EMI, and then convert the debt into equity...Ziweixing Universal can control 100% of EMI.

The previous shareholder, British Private Equity Terra Firma Capital, will be forcibly kicked out. They will not agree and will definitely resist.

This most complicated financial operation is the easiest for Goldman Sachs and Citigroup to play.

In the previous life, Sony Records and Universal Music joined forces with Citigroup to drive away Taifeng Capital in the form of debt-to-equity swap, and successfully won EMI Records.

The reason why Terra Firma Capital ended in embarrassment was because of the leveraged buyout of EMI, which borrowed a huge dollar debt from Citigroup.Terra Firma Capital is a private equity firm in the UK, with assets in pounds sterling.At that time, 1 pound was almost exchangeable for 2 dollars, but now 1 pound can only be exchanged for 1.3 dollars... The economic situation is bad, and the pound has depreciated sharply in the exchange rate market, making Terra Firma Capital unable to repay EMI's dollar debt interest. Debt-to-equity swap agreement It will take effect.

Zhou Buqi had already set his sights on EMI, so he didn't bother with Universal and Sony.These two companies are monopoly-level music giants, and neither company can monopolize EMI Records, otherwise the market share will be too high, a monopoly will be formed, and the regulatory review will not pass.

So Citi cooperated with Sony Records and Universal Music to carve up EMI Records. It was really a long tug-of-war. The whole process was very complicated, and it took more than a year to complete the reorganization.

Just various intermediary expenses, such as consulting fees, public relations fees, lawyer fees, accounting fees, transportation expenses, travel expenses, etc., 3000 million US dollars cannot stop it.

If there is a choice, Citigroup is of course the best to cooperate with Ziwei Star Global!
For cash transactions, EMI does not need to be split, there is no monopoly review, and there is support from EMI's management.Simply and neatly, the case might be settled in three months.

Zhou Buqi first met the Goldman Sachs team and hired them as consultants.The advice given by Goldman Sachs is not to be afraid of spending money, take the lead, and invite the three major investment banks of Morgan Stanley, Morgan Stanley, and Merrill Lynch.

The purpose of inviting these three major investment banks to enter the market is not to borrow the teams of these three companies. Goldman Sachs is very confident in this, and they are fully capable of handling this case alone.

The reason for doing this is to block the opponent's retreat and to spend money to buy peace.

There are only a few top investment banks in the world.

Once the debt-to-equity swap agreement is officially launched, it will be war.

On the creditor side, there are five major investment banks in the world: Goldman Sachs, Citigroup, Morgan Stanley, JPMorgan, and Merrill Lynch; what about Terra Firma Capital, the equity side?The most powerful investment banks are all on the side of competitors, so they can only hire some second-tier investment banks.

It can easily form a one-sided situation.

Ziweixing Global spent an extra 1500 million US dollars to hire Morgan Stanley and Merrill Lynch as consultants. It is fake to be consultants. It is true to buy them and not let them go to Terra Firma Capital to fight against themselves.

This strategy is very good and has been approved by Citigroup.

Then, start to act!
Ziweixing Global, together with the five major investment banks Citigroup, Goldman Sachs, Morgan Stanley, JPMorgan, and Merrill Lynch, launched a compulsory acquisition of EMI's debt-to-equity swap.

The consulting fees of these five investment banks alone reached 3500 million US dollars.

This is financial crushing.

In the capitalist society, whoever has money is the uncle.

Now that Terra Firma Capital can't even pay back the interest, where can we go to pay a high price for a barrister and a big investment bank?Basically, they can only watch helplessly as the capital predators take away their assets.

Tang Binchen was really terrified when he followed Boss Zhou, and felt the brutality of the capital market to drive wolf and tiger.At the same time, I also saw the non-stop footsteps of the big boss.

After meeting with people from several major investment banks at the golf course in the suburbs, Zhou Buqi drove to Manchester United Commercial in the city center, on the 22nd floor of an office building.

As soon as the elevator opened, all kinds of Manchester United elements came into view. Gilbert Lawrence, Joseph Delap, Chen Wenhao, Lang Weiyi and others were already waiting.

As soon as we met, Lawrence, the president of Manchester United Business, was very happy, "Zhou, I have some good news for you! The latest news!"

"Oh? What is it?"

"Your decisions are all right! Your keen strategic vision stunned the veterans inside Manchester United, and everyone is convinced!"

Zhou Buqi was a little amused, "What the hell is it?"

Lawrence said with a smile: "The new bill introduced by UEFA, the Financial Fair Play Act! This is to limit excessive investment by investors, as well as unequal business operation capabilities and huge expenditures in the competitive field."

Manchester United's commercial headquarters are in London, avoiding Manchester and avoiding the hostility of those football people in the sports department.Although Boss Zhou has severely taught him a lesson, how many people would agree with him from the bottom of his heart?
It's different now, UEFA is going to issue policies, and there must be financial fairness.

In other words, a club's investment in the sports field cannot be endless, and it must be linked to the club's revenue capability.The more income, the more money you can invest in the competitive field, such as transfer fees, agent commissions, player salaries, and so on.

If the income is insufficient, the competitive field will have to drastically reduce expenses, which will lead to a decline in the strength of the team and affect the competitive performance.

This is to ensure the justice of the club's revenue generation from the legal level of football.

Of course, this is just the "law" in football.

Super rich local tyrants like Paris and Manchester City, even if they violate football laws, can spend money to find the most powerful team of lawyers, go to higher-level institutions to appeal to higher-level institutions, and use real laws to "protect" their own rights and interests.

So much so that the FPP Financial Fair Play Act became a joke, and even Platini, the promoter of this bill, stepped down and went to jail.

The introduction of capital from the Middle East is the general trend of European economies, and a mere Platini cannot stop it.For example, when investigating Paris, a former head of state led a team with strong political overtones, and then inexplicably announced that everything in Paris was normal, that everything was in compliance with laws and regulations, and that no punishment could be imposed!
But even so, the FPP Financial Fair Play Act did not hide its flaws and really saved European football.

Zhou Buqi said: "There should be such a bill. European football is simply ridiculous. Such a good sports resource has such a poor business operation. If it doesn't make money, what does the team live on? It depends on fan donations and government subsidies. ? Bullshit."

Lawrence, as a businessman, of course supports this bill, and said with a smile: "Yes, it should have been like this a long time ago. Only 53 of the top leagues of UEFA's 8 member countries can really achieve profitability, and most of them The club relies on the investment of the owner of the club to survive, once the owner of the funder leaves, it is doomed to go bankrupt."

Zhou Buqi nodded, "With the introduction of the new law, European football can really be boldly developed commercially. The arrogance of football professionals should also be put aside."

Lawrence agreed: "Yes, in the past season, European football lost 17 billion euros. If there is no change, the ecology of European football will collapse."

"Correct."

Zhou Buqi let out a sigh of relief.

Now it's all right, Ziweixing Digital Media's business can develop more smoothly.He, an outsider, led Manchester United to change his operating strategy, and he can also get a fair evaluation.

In fact, this is also the case. After the introduction of the Financial Fair Play Act, the effect was immediate, and the losses of European football were reduced by 6 million euros in the following year.By 2016, the loss was only 3 million euros.By 2017, European football had turned a profit, the first time in history that it was profitable, with a total profit of 6 million euros!
The reason for this situation is not because the teams have cut expenses, but because of commercial promotion.Business operations improve, and teams and leagues get money.

However, there are only so many players, and the plate is so big.

According to the principles of economics, if the volume remains unchanged but there are more currencies, inflation will naturally appear.The wages of players are getting higher and higher, and the transfer market is even more exaggerated. The transfer fee of any child who has not played well can exceed 1 million euros, and a new bubble problem has emerged.

For Zhou Buqi, the richer European football is, the better. Ziweixing Digital Media is the "intermediary" leading the commercial development of European football. Of course, the bigger the football bubble, the more the intermediary earns.

The FFP Financial Fair Play Act is good for Ziweixing Digital Media!

(End of this chapter)