2 major shareholders sell GBP stock because they see no return on investment

[Outwest Exp 355]

GBP will be fine. Oscar has connections with the Spanish TV Networks and Canelo win or lose is a flagship star. Canelo also doesn't speak english so business wise him moving away from GBP is a bad move that his people(who've done an amazing job so far) I doubt will make. If anything Oscar cutting back on costs is a good thing.

Haymon is the one in trouble. He has an entire stable of fighters with no network to put them on. I don't think NBC is going to pay Haymon dollars to have Danny Garcia fight some random liquor store clerk with the power of a feather duster on primetime network television. I also don't think him fighting on a channel that all of 34 people have will be good for Danny's career.

Canelo is a big star but for how long? His fights haven't been all that entertaining. And what's going to happen once he gets a couple of losses? His numbers are already dropping.

[BostonGuy]

Let's all pool our money together and buy into it. Imagine NSB had a stake in GBP. You guys can all paypal the $$$ to me and I'll buy the shares

[The Big Dunn]

I saw tis story. It's not surprising and it shouldn't be to anyone here on NSB. Shaffer was a banker with a proven track record, these companies invested in GBP because he was there. ODH has no track record in business and has a serious addiction problem he is working on. Why would any major investment company want to stay in business with him? Has ODH shown he can run this business?

[radioraheem]

Yes this is the part of the article that caught my eye. I didn't read it as meaning they didn't turn a profit but instead the profits were never distributed to shareholders the way they were supposed to have been. Possibly eluding to wrongdoing (embezzlemetnt, fraud or something like that) by those in charge I.E. Schaefer and Haymon.


"According to a source with knowledge of the deal, AEG and Brener initiated the sale because they had seen no return on their investment as Golden Boy has never made a distribution to its shareholders. AEG, for example, invested millions beginning in 2008 and had little to show for the investment."

You missed this part though...

AEG's involvement in Golden Boy was largely due to the close relationship between Beckerman, a boxing fan, and former Golden Boy chief executive Richard Schaefer, who resigned on June 2 after a falling out with De La Hoya.

No return of investment could be true, or it could be bogus. Profits also not being shared properly could be bogus too. Many shareholders of public traded companies sell shares all the time when there is a major shift in management, like a key personnel leaving. It's just a bad sign that the company could be heading for a downfall.

But the key thing is that Schaefer had a CLOSE relationship with the investor at hand.

[radioraheem]

I saw tis story. It's not surprising and it shouldn't be to anyone here on NSB. Shaffer was a banker with a proven track record, these companies invested in GBP because he was there. ODH has no track record in business and has a serious addiction problem he is working on. Why would any major investment company want to stay in business with him? Has ODH shown he can run this business?

Another thing people are neglecting is that Golden Boy has a court date later this year over Canelo Alvarez. If they lose the lawsuit, and they most likely will, Golden Boy is on the hook for MILLIONS. Meaning, the investors would also be on the hook for that money. So it's a strong possibility that's another reason they sold their shares back to Oscar.

[The Big Dunn]

Another thing people are neglecting is that Golden Boy has a court date later this year over Canelo Alvarez. If they lose the lawsuit, and they most likely will, Golden Boy is on the hook for MILLIONS. Meaning, the investors would also be on the hook for that money. So it's a strong possibility that's another reason they sold their shares back to Oscar.

GBP is likely going to end up a subsidiary of TR or a partner of Roc Nation. When other key members of senior management/leadership left I think that became a real problem. ODH is a good figurehead (when he doesn't have a nose full of blow and a mouth full of jizz) but not a real manager.

The bottom line is the investors didn't invest in ODH or his brand, they invested in SChaffer. Which suggests that when he comes back with Floyd and Haymon, he will be able to get the necessary resources to make the company a major player.

[DoktorSleepless]

Yes this is the part of the article that caught my eye. I didn't read it as meaning they didn't turn a profit but instead the profits were never distributed to shareholders the way they were supposed to have been. Possibly eluding to wrongdoing (embezzlemetnt, fraud or something like that) by those in charge I.E. Schaefer and Haymon.


"According to a source with knowledge of the deal, AEG and Brener initiated the sale because they had seen no return on their investment as Golden Boy has never made a distribution to its shareholders. AEG, for example, invested millions beginning in 2008 and had little to show for the investment."

Companies like Amazon don't pay divides to shareholders and it is said that they don't make a profit because of they reinvest everything back into their company. So not paying dividend doesn't necessary reflect the health of a company.

But what exactly does Goldenboy have to show for it? A bunch of fighters with no contracts?

[Pony Boy]

"We have enjoyed a long and mutually beneficial partnership with Golden Boy Promotions." This means they both made money over the years. Maybe not as much as the initially thought but made money. Doesn't say the last money.

So now Oscar owns 87% of GBP and after his case against Schaefer ends he will get 50 million or close to that amount. What's the problem? If he chooses to sell Stock there are others out there willing to buy.

[Hougigo]

Let's all pool our money together and buy into it. Imagine NSB had a stake in GBP. You guys can all paypal the $$$ to me and I'll buy the shares

Sorry, I only paypal Nigerian princes

[Fetta]

I saw tis story. It's not surprising and it shouldn't be to anyone here on NSB. Shaffer was a banker with a proven track record, these companies invested in GBP because he was there. ODH has no track record in business and has a serious addiction problem he is working on. Why would any major investment company want to stay in business with him? Has ODH shown he can run this business?

^^^^^This.

So many blaming Richard but like it or not he was the brains behind GBP.

Still hoping Oscar can pull out of this on top and prove he isnt just the face of the company but can actually run it too.