More or less than £1? (obviously you would be taking on debt (how much?) and the business is running at a loss (again how much p.a)). Finally, how much do you think the toxic twins are looking for?
I'm no accountant and I am sure there is a lot more to it than this but I would say the value is assets minus liabilities. Main assets being the Valley, the training ground and the playing staff. The main liabilities being the debts that we owe to shareholders, directors, the bank etc.
What exactly is The Valley worth ? As a football stadium I guess it's worth quite a lot but take away the stadium and I suspect the plot it sits on is worth a lot less.
Agree with eug72. Would anyone here want to buy a business that loses 6M a year, and thus become liable for the debt? Whoever buys us won't be paying much in my opinión.
I'm no accountant and I am sure there is a lot more to it than this but I would say the value is assets minus liabilities. Main assets being the Valley, the training ground and the playing staff. The main liabilities being the debts that we owe to shareholders, directors, the bank etc.
I am an accountant ;-) and the value of any business is based much more upon its future cash flows and profitability than its current assets and liabilities. So, in short, we're screwed!
The only value in the club is the option on Premiership football - without this, the club (given it is losing £7-8m pa on a 'standstill' basis) is as worthless as it was three years ago when sold for a pound.
Given we are one of only 24 clubs who can take one of the three available spots in the 2014/15 Premiership, then this option must have some value but I strongly suspect it is not worth as much as TJ/MS think it is (especially as they presumably want a buyer to repay all of the debts they [or their contacts] are owed too). Herein lies the reason why we haven't yet found a buyer I suspect.
Moreover given I would argue that our prospect of being relegated under the current ownership is greater than the prospect of being promoted, then one must acknowledge that in League One the value of this option essentially becomes zero again under any reasonable timeframe. This additional uncertainty should also rightly be a consideration for any potential buyer.
It is possible that they can find a buyer who has non-financial motives for owning the club (the same good fortune that befell Chelsea, Man City etc.), but in that scenario especially their greed might get the better of them.
The only value in the club is the option on Premiership football - without this, the club (given it is losing £7-8m pa on a 'standstill' basis) is as worthless as it was three years ago when sold for a pound.
Given we are one of only 24 clubs who can take one of the three available spots in the 2014/15 Premiership, then this option must have some value but I strongly suspect it is not worth as much as TJ/MS think it is (especially as they presumably want a buyer to repay all of the debts they [or their contacts] are owed too). Herein lies the reason why we haven't yet found a buyer I suspect.
Moreover given I would argue that our prospect of being relegated under the current ownership is greater than the prospect of being promoted, then one must acknowledge that in League One the value of this option essentially becomes zero again under any reasonable timeframe. This additional uncertainty should also rightly be a consideration for any potential buyer.
It is possible that they can find a buyer who has non-financial motives for owning the club (the same good fortune that befell Chelsea, Man City etc.), but in that scenario especially their greed might get the better of them.
This summary makes perfect sense to me. On your last point - doesn't FFP severely reduce the prospect of finding a buyer who wants to invest as a means of fuelling his own ego?
Not necessarily because larger losses can still be financed by injecting additional equity. However generally I agree it does present a limitation to ambitious potential owners who might well conclude that spending more to acquire say Fulham, is a more attractive proposition (given the greater certainty of revenues etc.) than spending less to acquire say Charlton.
Sorry I should have made it clearer that even owners willing to inject equity to finance losses are subject to the total loss limits under FFP. However it does provide additional flexibility compared to owners only willing to finance via debt.
Sorry I should have made it clearer that even owners willing to inject equity to finance losses are subject to the total loss limits under FFP. However it does provide additional flexibility compared to owners only willing to finance via debt.
Understood - I think! Can you flesh this out a bit more for those of us with a shaky grasp of finance?
Given we are one of only 24 clubs who can take one of the three available spots in the 2014/15 Premiership, then this option must have some value but I strongly suspect it is not worth as much as TJ/MS think it is (especially as they presumably want a buyer to repay all of the debts they [or their contacts] are owed too). Herein lies the reason why we haven't yet found a buyer I suspect.
In reality I see it as being less than that - it's likely that at least one or more likely two of the promotion places will go to clubs bolstered by parachute payments and there'll be five/six clubs in the Championship next season with prem parachute money to play around with. That means we will be one of 18/19 teams competing for that last place who will have significantly less money.
Given we are one of only 24 clubs who can take one of the three available spots in the 2014/15 Premiership, then this option must have some value but I strongly suspect it is not worth as much as TJ/MS think it is (especially as they presumably want a buyer to repay all of the debts they [or their contacts] are owed too). Herein lies the reason why we haven't yet found a buyer I suspect.
In reality I see it as being less than that - it's likely that at least one or more likely two of the promotion places will go to clubs bolstered by parachute payments and there'll be five/six clubs in the Championship next season with prem parachute money to play around with. That means we will be one of 18/19 teams competing for that last place who will have significantly less money.
Maybe but that isn't how it transpired last season - indeed the three relegated clubs all struggled (Blackburn, Wolves, Bolton), whilst none of the top six were recently relegated from the Premiership (Cardiff, Hull, Watford, Palace, Leicester, Brighton).
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Less than yesterday but more than tomorrow........
; )
Given we are one of only 24 clubs who can take one of the three available spots in the 2014/15 Premiership, then this option must have some value but I strongly suspect it is not worth as much as TJ/MS think it is (especially as they presumably want a buyer to repay all of the debts they [or their contacts] are owed too). Herein lies the reason why we haven't yet found a buyer I suspect.
Moreover given I would argue that our prospect of being relegated under the current ownership is greater than the prospect of being promoted, then one must acknowledge that in League One the value of this option essentially becomes zero again under any reasonable timeframe. This additional uncertainty should also rightly be a consideration for any potential buyer.
It is possible that they can find a buyer who has non-financial motives for owning the club (the same good fortune that befell Chelsea, Man City etc.), but in that scenario especially their greed might get the better of them.
http://www.financialfairplay.co.uk/financial-fair-play-explained.php
In reality I see it as being less than that - it's likely that at least one or more likely two of the promotion places will go to clubs bolstered by parachute payments and there'll be five/six clubs in the Championship next season with prem parachute money to play around with. That means we will be one of 18/19 teams competing for that last place who will have significantly less money.