Losing Money to Be a Tycoon

November 1st, Tuesday…

Zhang Yuan did not supervise the training of the players of the DGE Club today. Instead, he was busy doing things that Boss Pei tasked him to do.

The legal department was taking the time to draft out the contract, to be signed with the clubs.

There would be no retreat for either party once the contract was signed.

Tengda must give these clubs the prices they asked for; otherwise, it would be a breach of contract. Other clubs must also sell the GOG division; otherwise, it would similarly be a breach of contract.

Of course, it did not mean that they could never go back, but they would have to pay liquidated damages if they were to breach.

The liquidated damages were thirty percent of the club's intended price, which was a figure acceptable to both parties.

For example, if the intended price of a club was 10 million, then the penalty would be 3 million.

If Tengda were to breach the contract, it would pay the club 3 million; if the club defaulted and did not want to sell, it would pay Tengda 3 million.

It was just that something interesting was about to happen as the contracts were about to be signed.

Two clubs changed their minds and did not want to sign like the H4 club!

Obviously, the managers of the two clubs went back, spoke with their bosses, and felt that they didn't really want to sell the GOG division. However, the signing of the contract meant that there would be no turning back. Either selling the GOG division or pay the breach—both were painful to them.

They, therefore, secretly called Zhang Yuan and told him that they did not intend to sell anymore and fully accepted the GPL regulations.

Some clubs also came to listen to Zhang Yuan in private, wanting to know what Boss Pei's true thoughts were.

Was he really ready to give all the clubs a lot of money, or was he just bluffing and scaring the clubs into retreat?

Zhang Yuan was very tight-lipped about it.

Of course, he couldn't even if he wanted to… because he didn't know what Boss Pei was thinking!

Boss Pei's schemes were too deep.

If even Zhang Yuan himself was very confused, how could others hear accurate news from him?

Of course, some clubs—such as Manager Li's SUG Club—still decided to sign this contract.

Zhang Yuan took a look. In the end, six clubs decided to sell, including the SUG club and the EK club. These were old acquaintances.

The EK club won the runner-up previously but still wanted to sign this contract, which was unexpected to Zhang Yuan.

However, thinking from another perspective, it was precisely because the EK club took the runner-up that they were selling for the highest price at 13.5 million yuan.

A single GOG division sold at such a high price in the current domestic esports circle that was not yet mature… was very eye-catching.

The ideas of these clubs were actually very realistic: regardless of whether there was a third-party bidding or not, the price of the GOG division was already very high so they wouldn't be making a loss even if they were to sell them.

What was the big deal? They could always re-organize a new GOG division and get back into the GPL after the sale.

Wouldn't it be beautiful to make millions if they just flipped their hands?

Take the SUG Club as an example. It sold players from its own GOG division and transferred the rented training base and the GPL quota given by Tengda for free. It did not sell the SUG Club's name.

If it was the other clubs buying the GOG division of SUG, it must be a new club with SUG's original team.

SUG could always find some internet-addicted teenagers again and come back. The results would definitely plummet in the short term, but there was still a year before the World Invitational next year so there was no need to worry.

Most of these clubs even felt that Tengda would not follow through.

If no one bought it, then Tengda would only have two options: either to buy it all by themselves or to obediently pay a 30% penalty.

These clubs felt that the latter was very likely. After all, the magnitude of loss from liquidated damages was smaller.

They felt that Boss Pei might be 'bluffing' when he came out with this contract, and if they bought such 'bluffing', he would definitely make a fortune and win a big one.

Therefore, in their view, the risk was not big. However, the benefits were great, and it was worth a try.

Zhang Yuan sighed slightly. Experience told him that Boss Pei's plan was definitely not as simple as these clubs thought.

These clubs, who have been cooperating with Boss Pei before, have experienced the treatment of allies so they subconsciously underestimated the cunning of Boss Pei.

Dare to stand on the opposite side of Boss Pei now? Then, they would have to experience the treatment of the enemy.

Such a Boss Pei was not a friendly image of a 'win-win-win situation'.

Of course, Zhang Yuan knew that it was useless if he said it himself. These clubs would not listen.

Humans always felt that it's not over 'til it's over.

Zhang Yuan then quickly sorted out the information of these clubs' GOG divisions, including player information, player value, previous World Invitational results, base address, etc.—plus the club's expected quotation—and made a detailed table.

Boss Pei said that this news should only be spread within a small area.

How to define this 'small area' was a more troublesome question.

Zhang Yuan felt that it shouldn't be considered as a wide range as long as they did not deliberately buy hot searches and make the heat spread all over the internet, letting everyone know that GOG players from these clubs were on sale, right?

Since that was the case…

Then, send a notice to the various departments within the group company and tell everyone that there was no need to deliberately hype it up, so that companies closely related to Tengda would definitely get the news.

This should meet the 'small area' mentioned by Boss Pei, right?

…

Afternoon, Fu Hui Investments…

Li Shi and a group of investors each had a form in their hands, on which stated detailed information and quotations of each esports club to be transferred.

Li Shi was definitely the first to obtain such information.

Li Shi put the form on the table and said, "I sent someone to inquire about the situation. At present, this information is only circulated within Tengda and has not attracted much attention on the Internet.

"It was probably a deliberate intention by Boss Pei."

The other investors looked at each other with a puzzled look on their faces.

"Boss Li, is this unreasonable?"

"It states that there is bidding. In that case, the wider the news, the better; and the more people participating in the bidding, the better.

"For the clubs, they could transfer at high prices; for Boss Pei, it can also bring heat and attention.

"The interests of both parties in this matter should be the same?

"Why would Boss Pei just spread it in the small circle of Tengda Group?"

Li Shi chuckled: "Isn't this in line with Boss Pei's usual style? Only those who follow him the closest would be able to benefit. This is obviously a screening. All the people who follow him closely are screened out so that everyone can get the news in advance and can prepare to bid early!

"I think it's impossible to hide this. Even if Boss Pei doesn't publicize it, these clubs will definitely make noise to sell at high prices.

"However, Boss Pei's behavior is equivalent to giving us an information gap and a time gap, so that we can have more time to raise funds and prepare early. Won't we be able to pick the best club?"

The investors only understood after listening to Boss Li's analysis.

So that was why!

Knowing this information in advance might not allow them to spend less, but they could at least pick a satisfactory club in advance!

The quotations were not too different across the six clubs. For example, the EK Club wanted 13.5 million, and the SUG Club wanted 12 million. The former was the runner-up, and the latter was in the top four. It seemed like the former was more cost-effective.

Moreover, the bidding would not increase dollar by dollar. A transaction of tens of millions of dollars would start from at least one million yuan.

In other words, if Boss Li and others saw the EK club first, they could spend 13.5 million to buy it. The latecomer who wanted it would bid at 14.5 million. Compared with SUG of 12 million, it seemed very uneconomical.

This was equivalent to giving Boss Li and others a chance to strike first.

It was Boss Pei's consistent style of giving a benefit to those who followed him closely, but it did not make this bid unfair.

However, someone soon raised new questions.

"Wait a minute, Boss Li. This time, Boss Pei is going to sell the esports club!

"I heard that the domestic esports clubs are purely money-burning, and they can't make any money at all. What if you spend 10 million to buy a club without making money?

"Moreover, Boss Li, what if someone's bid increased it to 20 million or even higher? Then, we wouldn't be able to afford it.

"Yes, there is too much uncertainty."

The investors fell into a dilemma again.

If it was other projects, they would all believe in Boss Pei's commercial talents.

However, this time it was an esports club—which was notorious for not being profitable, and it was sold by other clubs.

If it could really make money and was really worth so much money, why were the other clubs transferring it?

There were many suspicious points!

Li Shi coughed slightly, "Have you found that your views are contradictory?

"While worrying about buying something that would make a loss, you also worry about others raising the price.

"If someone raises the price to 20 million, it means it is worth 20 million!

"As for the esports clubs not making money, indeed. Previously, only some esports clubs could make money.

"However, after Tengda enters the stadium, all these are likely to change. The GOG Global Invitational is so successful, and Boss Pei has more plans in the future. Boss Pei himself even runs the DGE Club…

"In the long run, this is a promising emerging industry, and Boss Pei himself has entered the market so firmly. Do you still need to worry about whether it will make a profit or not?"

Investors nodded.

Made sense!

Boss Li was the one able to understand things perfectly!

Li Shi saw that everyone had unified their opinions and suggested: "I think, based on our current funds, we can consider dividing it into two batches and buy two clubs.

"Let's pick the two that are more satisfying. Whether someone will raise the price or how much will be raised is beyond our control for the rest.

"Quietly wait for Boss Pei to make his move!"