Why external investment is a positive move for Swansea City

Every Swansea City fan has their opinions when it comes to foreign investors' interest in the club - "Yes it's a brilliant opportunity" or "No, not now, not ever". We're lucky to have Forza Swansea's ALEC JOHNSON - a man always in the know - here to explain why accepting the investors is actually a great move for the Swans.

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By Alec Johnson

Most debates surrounding Swansea City right now all hover around the subject of international investors - do we stick or twist?

I'm definitely in the twist camp. Let me sell you the benefits of not just accepting the opportunity, but also embracing it as an exciting development.

Firstly, this cannot be compared to Cardiff or Birmingham takeovers, where complete control is handed over to a foreign loony and the board had no choice but to save their club.

Also, comparisons have been made to previous American ownership in the shape of Liverpool and Man United where the club has been used to saddle the debt of purchase within the football club. This practise is illegal in mainland Europe, so by nature this attracts foreign investors to our shores. This is because leveraged debt is legal in the UK and, despite decades of profit at these clubs, they carry the debt of their owner's loans.

Our position is entirely different, and while we don’t require external investment to survive we certainly need it to grow.

Big decisions for Huw.

There are also many benefits to a wide group of shareholders with minority interest in any business, particularly when the investors span different backgrounds and geography.

Tapping into the new circles of corporate America or China elevates us to a new league and securing our financial future in the process. Also, we are not talking about bankers or miners here - the Americans can teach us a thing or two about sports marketing and monetising the asset of sport in the business community. Having run big American sports club for long periods, there is an established depth of sponsorship history that can be exploited together with the brand building exercises for deeper fan bases.

The best and most difficult thing in any company structure is to achieve external investment without relinquishing control. Selling a successful business isn’t as difficult as you would think. The board are not going to do that at Swansea City. There is almost an infinite number of private equity groups and family estates that would buy a growing and successful company. The number of groups interested in large investment without control is tiny by proportion. If our board have unlocked that door then they’ve found a golden key for our club.

The challenge will be to value the business.

Typically a multiple of the recent trading year's profit is considered, with ten being the typical multiple to determine value. Given the published profits are around £15m per season, the club is worth approximately £150m. However a premium is placed on the growth potential and balance sheet.

I would argue that Swansea has enough bling and potential to attract a multiple exceeding ten but most investors want control to pay more. They won’t get control at Swansea. What they have is a route into the glamorous showcase of the Premier League.

This is what Usmanov has at Arsenal - trophy ownership and an investment in a club that he can attach himself to. Other investors merely want a return in dividends or future share sale. I suspect this would be the motivation of any minority investor in Swansea and that’s fine by me.

On an emotional level, the chips are high for our club. Four years of Premier League, profit, stability and debt free. This results in an all-time high for their relatively modest investment of £50k each to save our beloved club just over a decade ago. Who can begrudge them of a pay day that can help secure their personal future?

Yes they have a duty to the fans and have a social responsibility that they take very seriously. Diluting their personal shareholding is totally acceptable. They will not leave us exposed in any way - while money changes things, it won’t change their love for the club.

Meanwhile the tension between investment into the squad and the stadium is a healthy one. Both need constant investment and history suggests a budget of around £15m per season into the playing staff. This is the approximate budget required for the club to accommodate the next batch of fans waiting to join the Premier League bandwagon through expansion.

Are they glory hunters? Quite possibly. But Swansea need to invest in a whole generation of future fans, converted to the club for life, like ourselves. It’s an investment into the next few decades. The seats will sell out given the relatively modest addition to the capacity. The best players also want to play in the best stadiums. Our Liberty needs that third tier.

So fast forward nine months - the cranes are up, finishing off our shiny new East Stand but the squad hasn’t changed. Cue the calls for player investment, but the £15m has gone into the stadium. A few injuries and we slide down the table. Monk is under pressure and the board start taking a few bullets.

This scenario scares me a lot more than having some American billionaire investing into our club, making us stronger in every way. Every way besides the romantic notion of complete fan ownership, which is pretty much where we are today.

It’s served us very well for the past decade but we’re in a different universe now. Stick or twist?

Visitors to Swansea are welcomed by the message ‘Ambition is critical’ and we need to remind ourselves of this message.

This is a time for us all to let the head rule the heart!

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Christmas is coming - now is the time to buy your copy of Swansea City's Greatest Games - out now worldwide on Amazon, or in Waterstones, WHSmiths, Tesco and other good bookshops.

True Grit: The Alan Tate story

I was originally going to write a poem or something to express my admiration for one of my favourite Swansea City players, but I decided that poetry was not the right way to go about it...

However, I do feel it's time to write a little something on one man who truly embodies the spirit of Swansea City - Alan Tate.

We all dream...

That's right, it's sometimes easy to forget about Tate. And although we no longer see him on the field, on the bench or in the media, he is still a Swansea City player, on paper and in heart, as he has been for the past 12 years.

We can also forgive some of the newer Swans fans for not really knowing much about him as it's been some time since he last took to the pitch wearing the white shirt of Swansea City.

Born in County Durham in 1982, Tate joined Manchester United as a youngster, eventually finding himself on loan with Brian Flynn's struggling Swansea City in 2002. He played his part in the football league survival match against Hull City in May 2003 before rejoining the Swans permanently in February 2004 (after another successful loan spell in between).

A gritty, tough and versatile defender, Tate became a true fan favourite during his time with Swansea. From 2004 he was a staple of the first team, playing in his fair share of important games such as the Football League Trophy Final match against Carlisle in 2006. At the end of the game both him and Lee Trundle cemented their place in Swansea City folklore with the now iconic 'F**k off Cardiff' flag incident.

Forever loved in Swansea, forever hated in Cardiff

Tate also captained the team at times as the Swans made their way from League Two to the Championship and, even though he began featuring less and less under Brendan Rodgers, he was called into action for two of the Swans' most important ever games during the Championship play-off matches 2011 - solid against both Nottingham Forest in the semi and Reading in the glamorous Wembley final.

But his time in the Premier League never really came. Of course he played a handful of matches under Rodgers and was even given a brief cameo against his former side at Old Trafford in May 2012, but he was one player who - for all his grit, determination and club pride - could not make the step up.

After falling out with Michael Laudrup, Tate has since played out on loan at Leeds United, Yeovil Town, Aberdeen and Crewe Alexandra. But he remains a Swansea City player, for now at least.

So where does his future lie?

While it's a sad statement to make, it's safe to say that his playing days with Swansea are pretty much over. However, with his old mate Garry Monk currently steering the ship, Tate may find his way back to prominence with a coaching role. And I'm sure that would be a decision that 99% of Swans fans would be happy to back.

In 2013 the club planned a testimonial match against Manchester United to celebrate Tate's decade of hard work, but unfortunately this failed to materialise due to conflicting Premier League fixtures. The testimonial match is currently postponed, with no new date as yet.

Whatever happens, Tate deserves a testimonial, whether it's this year (his actual 10 year anniversary of joining Swansea permanently) or next. He definitely deserves it.

Once a Jack, always a Jack.

Battle of the centre-backs: Amat vs Fernandez

When it come to Swansea City defenders, Ashley Williams will always be the first name on the team sheet. But who should be lining up next to him in the centre? Forza Swansea's JUSTIN AGTAV shares his opinions on whether it should be Jordi Amat or Federico Fernandez.

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By Justin Agtav

When Federico Fernandez first joined Swansea City back in August I actually didn't expect him to get a starting place immediately thanks to Jordi Amat, who had been outstanding for the Swans in the opening few matches.

However now, after his recent injury, it appears that Amat will have a big fight ahead of him to win his place back in the starting line-up.

Should it be Amat...?

After Chico Flores - someone who often went walkabout and picked up cards consistently - blocked Amat from breaking into the starting eleven last year, he will probably have to go through something similar this year.

And that’s a shame because, although many people - myself included - wanted Swansea to sign a new centre-back, Amat did nothing in the first few games to warrant losing his starting spot. And even though Fernandez hasn’t cost Swansea any games, he has made his share of mistakes. For Argentina at the World Cup he was considered one of their weaker defenders, and that led to him losing his place in their starting eleven.

...or Fernandez?

But I’m not saying Fernandez was a bad signing - far from it. I’m just saying that Amat on his form before the injury merits a starting spot.

And the stats show it as well, as Swansea have only conceded 2 goals in the 3 ½ games this season that Amat was on the pitch, while they have conceded 8 in 5 ½ games while Fernandez was on the field.

Fernandez is an excellent signing to have, but based on recent form, Amat should be starting until he no longer merits it.

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Thanks to Justin for his opinions on Swansea's centre-back dilemma. You can follow him on Twitter and follow Forza Swansea for updates.

Here's what you may have missed on Forza Swansea last month!

With my recent book launch and everything surrounding that, the content output on ForzaSwansea over the past month or so has been a little patchy.

Therefore you may have missed some of the brilliant posts by the bloggers, on topics such as Angel Rangel, Lukasz Fabianski and an array of former players.

Alec Johnson's very popular post, 'BEWARE: Leave the Swans at your peril!', was a look at some of Swansea City's former players and where they are now after leaving the club for the allure of more money (the answer is almost always 'on the bench'!)

You may also want to check out Matthew Jacob's article called 'Rangel's last ride?'. In the article, Matt looks at Angel Rangel's role with the Swans and who can fill in for him if he's not up to the task any more.

And finally, back at the start of September, we had a short post from our newest blogger, Justin Agtav, who asked the question: 'Lukasz Fabianski - Has Swansea's gamble paid off?' (Of course, we all now know it certainly has!)

We'll be back very soon for more, stay tuned!

Swansea City's Greatest Games - Launch photos

Friday night saw the successful launch of my first book, Swansea City's Greatest Games, in Waterstones Swansea.

(Picture: South Wales Evening Post)

After some brilliant anecdotes and a wonderful introduction from Swansea legend Kevin Johns, I took to the stage to read the book's first chapter before talking about the writing process. I then signed copies, before heading off for a lovely pint of beer.

Here are a few photos from the event, taken by various people to hopefully give you a taste of what it was like.

You can buy your copy from Amazon (or the Kindle version for half-price) or Waterstones (in store and online). If you are currently reading it, please let me know how you are enjoying it. Cheers!

The legendary Kev Johns introducing me (Picture: Becci Thomas)

Me giving my speech (and not messing up too much...) (Picture: South Wales Evening Post)

  The crowd gather for the signing (Picture: Becci Thomas)

Another of the crowd as my hand began cramping up... (Picture: Becci Thomas)

It seems I wanted something over there... (Picture: Becci Thomas)

(Picture: Becci Thomas)

Swansea City vs Newcastle United: A Brief Preview

With the weekend approaching, Forza Swansea's newest blogger JUSTIN AGTAV shares some team news and thoughts ahead of Swansea City's Premier League clash against second-from-bottom Newcastle United.

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By Justin Agtav

After three games without a win, Swansea City will be looking to return to their successful formula this weekend as they take on a struggling Newcastle side at the Liberty Stadium.

Immediately looking at the opposition and we can see that the Magpies have been pretty dire, with owner Mike Ashley reportedly saying before Newcastle’s 1-0 loss against Stoke City that Alan Pardew had one game to save his job.

While that may not have been the case, the side has picked up only three points so far this season and haven’t won a game yet. The pressure will be on for Pardew when they face one of the better teams in the Premier League this weekend, and a loss to Swansea could see him sacked.

The fans want him out! (Picture: SackPardew.com)

Meanwhile the Swans - who are comfortably sitting in 5th place with three wins under their belt - are pretty strong at the moment and don't have that many injury concerns to deal with.

Jordi Amat and Leon Britton are both still sidelined, but it's no longer a certainty that either would be automatic starters anyway. The one area of concern is who will fill in at right back. Angel Rangel is suspended due to the red card he picked up against Sunderland, while his replacement Dwight Tiendalli is fighting to be fit. This means Jazz Richards could well start.

For Newcastle Siem de Jong, 18-year-old Rolando Aarons and Davide Santon are all injured. Aarons started this season impressively, while de Jong - who was supposed to be a superstar for Newcastle - is sidelined for several weeks. Pardew hasn’t received much luck this season on or off the field, and likely won’t receive any favours when they visit Swansea.

The Swans, playing at home, won’t be forced into having to soak up the pressure like they did in their last two games. This may allow them to concentrate on the attack. Wilfried Bony should start ahead of Gomis, who I think has been disappointing so far this season, while Jonjo Shelvey will be boosted by having received an England call up.

Jazz Richards starting at right back may be a slight concern, but I don’t think he will be tested too much as Swansea should be on the front foot for most of this match. Hopefully Gylfi Sigurdsson can return to his start of season form, and Dyer and Routledge can be spurred on by the fact that they unjustly missed a call up to the England squad and continue in their excellent form.

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Thanks to Justin for his preview. Meanwhile, my official prediction is... 1-1. Not sure why, but that's it. Otherwise Swansea will hammer them! Anyway remember to follow Forza Swansea on Twitter for updates.

It's almost here... Swansea City's Greatest Games!

Hello there. Hope you're enjoying this fine Sunday.

Right, that's the pleasantries out of the way, let's move onto the main event!

As you may now know, Swansea City's Greatest Games will be available to purchase from this Wednesday (October 1st). The book is a 208-page thriller, charting 50 of the Swans' finest ever matches from their 102 year history.

The book is available to pre-order on Amazon and Waterstones and will be in shops next week. Thanks to the beauty of the internet the book is also available in countries across the world, so all you American, Italian, Spanish and Australian readers should be able to get your copies without having to fly to Swansea...

Meanwhile there will be a book launch this Friday, October 3rd at Swansea Waterstones. If you want to meet me, I want to meet you! Books will be available to purchase and you will get the price of your ticket back as a discount on the book.

More details about the launch can be found here, but there are limited tickets at £3 each, available from Waterstones.

For more details, please get in touch with Waterstones on 01792 463567 or give me a shout via the contact form.

I'd also love any feedback on the book, so feel free to get in touch after you've read it. Cheers!