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Reply to "BRYC Girls TD Larry Best leaving for Washington Spirit"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous] That would not be a merger, that would be a purchase. So you are saying that Spirit would buy FCV?[/quote] Different poster, but a merger is, by definition, a purchase. In a merger (regardless of whether one is talking about non-profits or for-profits), one entity merges with, and into, another entity. Only one entity survives the merger. Of course, this is just the legal consequence of a merger between two entities. From a business perspective, the outside world (e.g., customers) may have no idea which entity merged into the other (as a legal matter), as one can set up the operations of the combined businesses to appear as if there are still two different entities. For example, when Apple acquired Beats by merger in 2014, Apple "shut down" Beats Music and launched "Apple Music," but Apple continued to use the Beats brand on certain headphones (and other products) and the Apple brand on other headphones, earbuds, etc. I have no idea whether Spirit and FCV are merging their two business entities, but if they did, it would certainly be an acquisition by Spirit of FCV given the size of the respective businesses. With that said, it is entirely possible that Spirit may continue to use the FCV "brand" in its youth operations. [/quote] That is exactly the point. The value in FCV is the brand of FCV. Purchasing that brand and having it go away serves little to no purpose. The FCV coaches and players are not the property of FCV so there is no value there either because there is no certainty of retaining the players. FCV does not own fields so there is no property value or equity. If Spirit could not retain the coaches or the players then what would be the point of the expense of purchasing a club. There are no assets beyond a trademark and legacy. [/quote] First of all, the players are not owned by FCV and not for sale. Secondly, some of the staff are already partially paid for via direct contract, per the news releases. Spirit does not need the FCV “brand” to succeed; their secondary business is just as strong as FCV’s primary business. Gosh, people here were complaining about Spirit’s rosters being too big this fall. People are still thinking from a Soccer first/win/loss perspective, not a business perspective. Let’s say the business value of FCV is $1 million (doubtful) and the Spirit purchases it. The main staff comes over (some are there already on the pro side), but the branding remains the pro club name, not the youth club name. Is that really going to prevent the most loyal FCV parents from coming over? Of course not! That’s a silly notion. [/quote]
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