Rubio should pay to realise a dream


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This past week, the Spanish newspaper Marca reported that Ricky Rubio, the boy wonder of Spanish basketball, had his rights transferred to Regal FC Barcelona though doubts remain if it is a done deal. Earlier this summer, Rubio was selected by the Minnesota Timberwolves with the fifth pick overall in the NBA draft. The Timberwolves want to sign Rubio but are prevented from doing much by an arcane NBA rule prohibiting their clubs from paying more than US$500,000 (Dh1.8m) in a player transfer.

This laughable transfer allowance, combined with the weak US dollar, makes it difficult for NBA clubs to negotiate player transfers with European clubs. As a result, the players themselves have to pay if they want to transfer to the NBA. Since the age of 14, Rubio has starred for DKV Joventut Badalona. Joventut want to sell off Rubio, whose contract allegedly stipulates a ?5.75m (Dh30.1m) buyout. As of Wednesday, FC Barcelona have offered a reported ?3.7m for him.

On the face of it, Barcelona's offer is not bad. In fact, it would be a record transfer fee for a European basketball team. But there is always a wrinkle. Badalona is a suburb of Barcelona and there is an obvious cross-town rivalry. Joventut are loathe to face Rubio six times a year in Spanish league play. There is already talk in Spain that Joventut fans will quit backing their club out of disgust should Joventut accept Barcelona's offer.

Across the Atlantic Ocean, Minnesota are going to be a brutal team for the next two or three years, so Rubio will have plenty of opportunities to play and gain NBA experience. I have good information that the people in charge at Joventut want nothing more than to see Rubio in a Timberwolves uniform. More than anything, the Badalona club need money. They are in serious financial trouble and are in arrears with the Spanish tax authority.

I am told that the boy wonder wants to leave Spain. Rubio has repeatedly said that his dream is to play in the NBA. He should pay a buyout and get on with it. If indeed Joventut loathe the prospect of dealing with Barcelona, Rubio should match the buyout Barcelona are offering. Presumably Joventut would rather take the ?3.7m from Rubio (including Minnesota's league-mandated $500,000) than endure the humiliation of dealing with Barca.

While the sum is not small, the boy is still going to earn a hefty salary. As fifth pick, he will earn $2.72m his first year and $2.92m in his second. Those figures are a bit inaccurate, as rookies can and do receive 20 per cent more than the pre-determined rookie salaries in the NBA's collective bargaining agreement. And the Spaniard would have to really stink for the Timberwolves to not extend the team option, a third-year rookie salary of $3.13m.

All up, Rubio could make $10.5m over the next three NBA seasons. Subtracting the buyout capital, he would still make about $5.25m over three years. Furthermore, if he lives up to the hype, his endorsement contracts would go through the roof. I hear that Nike are paying him about $200,000 over the next three years. Surely Nike would rip up their existing contract and give Rubio something much more lucrative and long-term.

In this scenario, everyone wins. Joventut get paid. Minnesota gets their guy. Rubio goes to the NBA and the league's fans rejoice. If you are left thinking that Rubio loses, just remember that he and his parents accepted Joventut's original albeit ludicrous terms some years back. @Email:gdole@thenational.ae

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The specs: 2018 BMW X2 and X3

Price, as tested: Dh255,150 (X2); Dh383,250 (X3)

Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)

Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)

Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)

Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)

Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)

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A new relationship with the old country

Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates

The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:

ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.

ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.

ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.

ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.

IN WITNESS WHEREOF the undersigned have signed this Treaty.

DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.

Signed

Geoffrey Arthur  Sheikh Zayed

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SPECS
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Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

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BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
MATCH INFO

Juventus 1 (Dybala 45')

Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')

Red card: Rodrigo Bentancur (Juventus)

Wonka
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