Tech billionaire Mike Cannon-Brookes buys stake in South Sydney Rabbitohs

[Shoe1]

Perhaps they have sold off three 75% interests? That math probably adds up to a Bunnies supporter

True.

That's why this is intriguing - who sold their share to him?

If 100% of the club is notionally worth $20M, you can't simply pay $2M to the club and miraculously own 10%. The 10% had to come from one of the current owners and be transferred to cannon-sooks. Otherwise he is just donating money.

 

[40 years an eagle]

True.

That's why this is intriguing - who sold their share to him?

If 100% of the club is notionally worth $20M, you can't simply pay $2M to the club and miraculously own 10%. The 10% had to come from one of the current owners and be transferred to cannon-sooks. Otherwise he is just donating money.

New guy puts cash into the club and gets 1/3 of both Rusty and Packers shares in return, making 3 equal shareholders instead of 2. So he effectively buys 1/3 of the 75% share of the club.

 

[Shoe1]

Nobody's share needs to be sold...new guy puts cash into the club and gets 1/3 of both Rusty and Packers shares in return, making 3 equal shareholders instead of 2.

You just described 1/3 of rusty's and packer's shares in the club being exchanged for money. aka sold.

 

[40 years an eagle]

You just described 1/3 of rusty's and packer's shares in the club being exchanged for money. aka sold.

I actually rephrased it in edit while you were replying buddy.

 

[40 years an eagle]

You just described 1/3 of rusty's and packer's shares in the club being exchanged for money. aka sold.

If what I posted actually is what happened, both Rusty and Packer are each effectively donating 1/3 of their share back to the club and then they are selling that share to the new guy. Tax deduction for Rusty and Packer.

 

[Loobs]

True.

That's why this is intriguing - who sold their share to him?

If 100% of the club is notionally worth $20M, you can't simply pay $2M to the club and miraculously own 10%. The 10% had to come from one of the current owners and be transferred to cannon-sooks. Otherwise he is just donating money.

You put 2M into a club worth 20M and it's now worth 22M and your 2 gets you ~9%. People can keep tipping in cash it just dilutes the ownership.

 

[Shoe1]

I guess it depends on how value is defined. If my house is worth 3 mill, and I get 5 people to give me a million each for a 20% share of it ... they will have Buckley’s selling it for 5.

 

[Loobs]

I guess it depends on how value is defined. If my house is worth 3 mill, and I get 5 people to give me a million each for a 20% share of it ... they will have Buckley’s selling it for 5.

Is it in Sydney? Give it a week