Football Dynasty-Chapter 108: Building a Serious Modern Conglomerate

Before heading to America, Richard naturally had to give clear directives to the key people handling Maddox Capital.

As the Chairman and leading figure, leaving without proper instructions could lead to misalignment or delays in execution—something he could not afford at this stage of Maddox Capital’s expansion.

Fay, Stuart, and Alan Mulally, who was currently serving as the CEO of Rover Group, were naturally summoned by Richard. He also brought along his brother Harry.

"Alan, Fay, Stuart, I’m sorry for summoning you without any prior notice," Richard said as he shook their hands.

After the introductions, they all settled into the plush leather sofa in Richard’s office, facing each other.

Richard turned his attention to his brother.

"Alright, I want to introduce you to my brother, Harry. Harry, this is Alan, the CEO of Rover Group. And this is Fay—you probably already know him. And this is Stuart, the Managing Director who’s been working closely with Fay."

Harry gave a polite nod, shaking hands with each of them. His posture was slightly nervous, but he maintained composure as he faced the experienced professionals around the table.

Once the pleasantries were over, Richard gave them a surprise: "he would be taking over as the future CEO of our entertainment company."

A few glances were exchanged, and Fay gave Richard a questioning look. "Entertainment?"

"Yes, entertainment—talent agencies, actors, actresses, singers, athletes or whatever. Not football, though. Harry will be managing all of that. And I hope he can learn from you all—how to manage and run a company."

He paused for a moment before turning to Mullaly. "Alan, you’re the most experienced at managing a company. I’d like you to mentor my brother."

Alan thought for a moment before responding. "Naturally, but I can’t leave the factory just yet. There’s still a lot to handle there. I’ll help where I can, but I need to balance things for now."

Richard nodded in understanding. "That’s fine too. Fay and Stuart are still here, so Harry will only reach out to you when he needs to."

After addressing Harry’s matter, Richard then manually listed the meeting agenda.

"Stuart, you’re in charge of the hotels. How are we progressing with both properties?" Richard asked, his tone focused.

"St. Pancras Renaissance Hotel is currently about 50% through its renovation," Stuart replied. "We expect it to be operational by the end of next year. As for the Britannia Inter-Continental London, here’s the situation..."

Initially, Richard had planned to tear down the Inter-Continental London and build a new hotel from scratch. However, Stuart adamantly rejected this idea, offering a hundred reasons why it would be better to renovate the existing structure and add new buildings next to it, rather than starting from square one.

"Alright, we’ll go with your plan," Richard said, after some consideration.

With so many compelling reasons—99% of which would have resulted in a loss if he’d pursued the original plan—he reluctantly agreed. He then turned toward Fay. "How are the finances looking? How much do we have left?"

"With the initial £50 million you injected, we currently have about £16 million remaining. Our main expenses now are maintaining the Rover Group, taxes on both hotels, and the two plots of land in Islington and Mayfair," Fay explained.

"Fair enough," Richard nodded, absorbing the information. He then turned to Alan Mullaly, ready to discuss the next priority.

"We’re ready to launch the Rover 100 and Rover 100 Cabriolet at the Paris Motor Show early next year. I’ve already coordinated with Mr. Kawashima to oversee the final phases of design. We’re also ensuring all departments are on track. The production timeline and projections are fully prepared, with any potential delays or issues being identified and handled well before the show."

"Good," Richard replied, his gaze sharp and decisive. "Let’s make sure we’re all aligned on this. Next, tell me about what you mentioned regarding Honda. I need the details."

Alan nodded. "There have been some subtle signs—nothing definitive yet, but a lot of behind-the-scenes activity. Honda’s been scaling back on their investments in the UK and seems to be re-evaluating their position in Europe overall. We need to be prepared in case they decide to divest from Rover Group. There’s been a lot of restructuring internally recently."

"What do you mean by ’restructuring internally’?"

"Internal management changes," Mulally explained. "A few key executives have left, and there’s been a noticeable reduction in their direct involvement. Several key members from Honda, including engineers who had been working at Rover, have pulled back and returned to Japan. More importantly, there’s been growing speculation in Japan that Honda might be preparing to divest from their automotive interests in Europe entirely."

"So, Honda might sell their shares?"

Mulally nodded. "Except we can reverse the situation as soon as possible. The highest bidder will likely win. We need to stay ahead of this. If the situation escalates, we should start looking into how we can take full control of Rover if it comes to that." freewёbn૦νeɭ.com

A brief silence fell over the room as the weight of the situation settled in. Richard’s mind raced as he absorbed the information. After a moment, he asked, "So our best scenario is to buy their shares?"

"The best scenario is that we don’t allow any foreign company to interfere with Rover Group’s management," Mulally replied.

"Understood," Richard said, his tone resolute. "I’ll think of a solution. Now, I’m trusting both of you to keep things running smoothly while I’m away." He then turned to Fay and Stuart. "The renovations at St. Pancras and Britannia must stay on schedule. No compromises. On top of that, I want progress reports weekly. If any major issues arise, fax me directly. I don’t care if it’s the middle of the night."

Everyone nodded as they took notes.

"So...!" Richard clapped his hands to get the attention of the people in front of him.

"The current Maddox Capital holds several investments currently—Rover Group is currently our most valuable asset, followed by our real estate portfolio, and then our shares in WWF. To be honest, initially, my focus was solely on Maddox Capital."

He shook his head slightly. "I didn’t plan to acquire Rover Group at first — and then there’s Manchester City, which is still under me. But now, the plans have changed. With Harry stepping in, I want him to learn first before he’s ready to run the company."

Everyone nodded in agreement. It was clear that Richard had begun shifting his focus to the investment company, after dedicating so much of his time to Manchester City until now.

Mulally paused for a moment, then offered a suggestion. "Actually, if you’re planning to establish multiple companies, rather than creating them one by one, it might be simpler to set up a parent company that oversees all the subsidiaries, much like how Boeing operates."

"Please, Alan, do explain. You’re the expert."

"It’s actually quite straightforward," Mulally continued. "You just create a parent company and then establish separate entities under that parent company. This way, you can create a recognizable brand across industries. It also makes it easier to allocate and raise funds for each subsidiary’s operations and expansion. More importantly..." Mulally paused and whispered, "It’s an ideal scenario to avoid tax and management complications."

"Ah, is that so?" Richard nodded as he mulled it over.

It means creating a company that holds controlling shares in its subsidiaries but doesn’t operate them directly. Thankfully, their bureaucracy is still not too complicated.

"Fine then. Let’s restructure our management informally for now. When I return from America, we’ll make it official. The parent company name will be Maddox Group. Fay, can you help register it?"

"Got it."

"Thank you," Richard appreciated it and continued, "Under Maddox Group, Maddox Capital will be directly under me, since the company only needs to make investments and doesn’t require too many employees in the first place."

What Richard had in mind for Maddox Capital from the beginning still hadn’t changed.

Since its inception, in the long run, market has continued to grow. Of course, there have been many crises along the way: the Great Depression, two world wars, various terrorist attacks, financial meltdowns, and more.

Each time, there were dire predictions of financial collapse and the end of the market economy. However, while the clock can be turned back temporarily, no one can stop its ticking. Crises were overcome, and finance and industry continued to evolve—learning from their failures.

’Let’s make Maddox Capital the holding company and acquire stakes in other companies.’

That was the philosophy behind Maddox Capital.

Since the advent of modern finance, countless investors have competed in the market—some becoming legendary.

When considering the most iconic investor to date, Warren Buffett undoubtedly comes to mind. The legendary investor was renowned for his investment acumen from a young age, running his own investment company in his 30s.

One key move in his career was the acquisition of a struggling textile company, Berkshire Hathaway. At the time, textiles were a declining industry, and Berkshire Hathaway wasn’t generating much profit.

Using Berkshire Hathaway’s funds, he acquired National Indemnity, an insurance company, and turned it into a subsidiary. Since insurance companies regularly receive premium payments, they maintain significant cash reserves.

Buffett then used those reserves to acquire stakes in companies with strong intrinsic value. This method might raise eyebrows under today’s stricter financial regulations, but back then, oversight was much looser.

Had things gone wrong, Buffett might have been remembered as a colossal fraudster who gambled away people’s insurance premiums. But instead, he became a resounding success. His annual return rate hovered around 20%.

At first glance, that may not sound extraordinary—but consistently earning 20% returns over 50 years is nearly unmatched. The power of compounding meant that every 3 to 4 years, assets effectively doubled. Over time, the accumulated return reached around 2,000%.

The once-failing textile company, Berkshire Hathaway, became a powerhouse holding company with stakes in many iconic brands. It now ranks 5th in global market capitalization. Excluding tech giants like Apple and Google, it became the most valuable non-tech company.

In addition, he has an edge — he has a glimpse of what’s ahead. His vision for Maddox Capital is only to acquire significant shares in major public companies, generating profits from dividends and equity Investments.

He alone, with his mind as his greatest asset, was enough to lead the charge. Of course, he would need a team to handle the execution, monitor and manage. Whether it’s a holding company, hedge fund, or private equity fund, under the CEO, there exists the best team.

"So Maddox Capital will be at the forefront," Richard declared. "It will be the first to identify and invest in growing companies. If there’s an opportunity, acquire more than half and turn them into subsidiaries." Richard paused for a moment before continuing, "After that, Maddox Auto, Maddox Property, and Maddox Entertainment."

Seeing everyone absorbing his words, Richard was satisfied. "One more thing," he said, pausing for effect. "Each of our subsidiaries will operate independently. I will give you all the freedom to manage them as you see fit. The headquarters will not interfere too much with day to day operations."

"Alan, I know Rover Group is already consuming much of your time, so from now on, Maddox Auto will be overseen by Fay." He paused again, letting the words sink in. "Stuart, you will take on the role of CEO at Maddox Property. Starting now, I’m giving you both the freedom to manage your companies as you see fit."

"Harry, I hope your first task as the future person who will run the company is to seek out any entertainment companies or agencies that are already in financial distress or on the verge of bankruptcy. We will invest in them."

Harry nodded, admiring his younger brother more than ever. This was actually the first time he had seen Richard speak so seriously.

But Fay frowned slightly. "Richard, what about Manchester City? Are you really planning to keep it under your personal name? The taxes will be enormous. Right now—"

"I know," Richard said, cutting him off with a wry smile. He took a deep breath and added, "For now, Manchester City will remain under my name."

’Because this is the only way I can inject funds into it through a loan scheme—some sacrifice is necessary,’ he thought.

"Eventually, Manchester City will be transferred under Maddox Capital," he continued. "My role there isn’t too demanding anyway, so I believe I can handle it for the time being."