The young people of this country are the ones that will save this country. Once we return to the values of meritocracy in public service, such talent will not go to waste.
The Ruto government is just too much. These guys wake up every single day just to conjure up more ways to cause pain to Kenyans. I know we are expected to keep government in check as opposition but it’s literally impossible to keep up with the breadth and depth of the capacity for evil these guys have. It doesn’t have to be like this bwana. When we tell you just kicking Ruto out solves 80% of our problems you best believe! Just like he did with Haiti and now Ebola, for the right amount, this one can sell us to the devil himself!
Dear @ebehdad
RE: The Conflict of Perverse Incentives
I want to be fair to you. You had less than a month to structure a complex billion pound transaction, so some mistakes were always going to happen. But the mistake I’m describing isn’t an execution error. It’s a conceptual flaw baked into the deal from day one, and it has permanently poisoned your strategic position.
You built a structure with three stakeholder groups, and you only have a fiduciary duty to one of them. That was always going to end badly. Let me explain why.
A man came to you and said he had £300m and wanted to buy a business for £4.2bn. Two of his mates would chip in £300m each. You lent him the rest. To their credit, they’ve been matching cash calls ever since. But here is what you actually agreed to: you needed Boehly’s money, which meant Boehly got something in return. What he got was influence over the sporting operation. And the first thing he did with it was sack Thomas Tuchel so he could have his dressing room access.
That decision, made to protect your financial relationship with a co-investor who couldn’t actually afford the asset, is what set everything else in motion.
Roman left you a blueprint. He won trophies, built a global brand, and maintained a fair value that always exceeded his cost basis. Central to that was Cobham. Fans across England sing “he’s one of our own” for a reason. That bond between a club and its homegrown players is not sentiment. It is enterprise value. You dismantled it. You sold the graduates and killed the pipeline, not because it made sporting sense, but because your financial model required short term asset monetisation over long term brand construction.
You have now spent more on transfers than any ownership group in the history of football. Chelsea are currently 9th. Below Brentford. Below Brighton. That is the sporting output of your model, and those fans who sang “he’s one of our own” have noticed.
Here is where your conceptual flaw becomes permanent. Boehly has £100m of interest accrued and payable to Ares. You have at least £600m sitting in the Cayman Islands, accruing and payable to COP III. Across the group the interest bill is approaching £400m this year. That means you have no choice but to run this club for one purpose: to make debt service payments. Managing a football club to pay interest has never worked in the history of this game unless you’re Manchester United. Your problem is that you don’t have their revenues. So you are flipping players to fund cash flow.
There will be no properly experienced signings. No manager with real authority. No trophies. You’re caught in a sell-to-buy death spiral and fans have worked out exactly what is happening.
If you’ve made it this far in my letter, this is the part I’d encourage you to sit up and focus on. You need the fans more than they need you. Every day more of them are learning what this structure actually means for the club they love, and they are making a rational decision: do not buy the brand of an owner who is just here to pay interest.
Your perverse incentive is to balance the books, manage the asset, and extract the best possible valuation before the debt matures. Their perverse incentive is to make sure you never get there, because the only exit that actually serves their interests is Ares foreclosing and forcing a sale to someone who can run this club properly.
Think about what that means. The fans who generate the revenue you need to service your debt are now rationally incentivised to undermine that revenue.
You created a structure where your key stakeholder group is rooting for your creditor to take the club from you. That is not a communication problem or a PR problem. It is a structural conflict with no resolution inside your current ownership model.
I’m not sure what the long term prognosis is for a business in that position. But I think you already know.
Yours truly,
bf
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When will Africans finally outgrow this embarrassing and childish tourist syndrome?
An African flies to a European country, sees a shiny building or a fancy train, whips out their phone, and immediately runs to social media to cry, "When will our country have this?!"
SPOILER ALERT : those train rides are not free.
They are directly subsidized by the missing wealth and uncollected taxes of the developing world.
Truth is that, while the rest of Europe was tripping over themselves to aggressively extract African resources by sending gunboats, missionaries, and colonial administrators to do their dirty work, Luxembourg was playing 3D chess.
They did not need to get their hands bloody or dirty. Instead, they quietly positioned themselves as the ultimate offshore tollbooth for the wealth being plundered from the Global South.
Here is how their white-collar criminal network operates: A massive multinational conglomerate digs up copper in Zambia, pumps crude in Nigeria, or mines cobalt in the DRC Congo.
By any standard of fairness, the immense wealth generated from those resources should be taxed locally to build the exact same roads, schools, and train networks we keep drooling over.
But the global financial system is rigged. Instead of paying their fair share, that corporation sets up a shell company and often literally just a dusty P.O. Box in Luxembourg.
And then through the dark arts of corporate accounting known as "profit shifting" and "transfer pricing," the company manipulates its books. The African subsidiary, the one doing the actual extraction, magically records zero profit.
Meanwhile, the Luxembourg P.O. Box records billions. Africa gets the environmental degradation, the exploited labor, and a depleted national treasury. Luxembourg gets the capital.
Now, Luxembourg taxes these phantom P.O. boxes just enough to make it look legitimate, pulling in about 5% of their GDP. But that’s just the cover charge. When you factor in the massive ecosystem built to service this racket,the armies of corporate lawyers, wealth managers, auditors, and bankers designing these tax-dodging schemes, it accounts for a staggering 30% of Luxembourg’s entire GDP.
Put the math together, and you realize that nearly 40% of their national wealth is a monument to laundered money.
It is the most flawlessly executed heist in modern history. They managed to siphon the wealth of a continent without firing a single bullet or toppling a single regime.
The state of the economy determines how people relate. When there is poverty/unemployment, people tend to turn on each other. Until we recognize our issues with one another go beyond personal flaws, we will never fully internalize the impact the political class has on our lives.
We must all be gravely concerned about this Tuju situation. You may say it’s a private matter but what you need to understand is that it’s a continuation of the “mambo ni matatu” way of solving private commercial disputes. See it in the context of Rai, and the deported Chinese businessmen over a 30B shilling tender. We have a rogue regime that deploys dark arts to force outcomes in commercial disputes. No investor would put their money into such a country. It’s why the private sector is fleeing Kenya, it’s why our young people have no jobs. It’s why we keep insisting on the values of our constitution. It’s why we sing Rule of Law. It’s not about shiny things people. The state, whose job it is to protect citizens must now produce Tuju!
#RutoMustGo
Prey animals have remarkablly short memories,this is how nature ensured that they dnt suffer from PTSD and anxiety disorders from being chased by preditors and watching their friends get torn apart. I fear kenyans have become prey animals. why just last week Nairobi residents were drowning but walking around Nairobi today it's business as usual,no call for action nothing .
@alexmwanzo@KeNHAKenya We have engineers running @KeNHAKenya whose only solution to road accidents on our highways is the erection of bumps. We no longer have 'highways' in this country as they're plagued by bumps after every 2kms