How Much Do You Think It Would Cost To Buy The Club?

If Gino put in 10.5 million to buy us and take on the debt at the start, and we have 100 mil debt at the moment, I can’t see someone paying much to Gino in excess of the debt to take over, also complicated because I believe some of the debt is owed to the Pozzos at 6% interest pa! Also depends what the assets ie players and ground are worth! I think and I’m not an expert that the very maximum goodwill would be around 30 million, therefore
Assets minus debt plus 30 million!

 

Spot on.

 

That report is garbage. To suggest the value has dropped by only 20% from being an established prem club to being a champ side when the revenues go down to about a 10th of what they were.

 

[QUOTE="Burnsy, post: 2965811, member: 4686"There’s a lot of assumptions spoken as fact in this. Maybe they didn’t sell because they enjoyed running the club and didn’t want to stop?

If we go up, it’s not at all guaranteed we would come straight back down. Just like it’s not guaranteed we won’t ever be established again in the PL. Perhaps it’s your reasoned opinion but it’s verging on hyperbole too. No ...[/QUOTE]
I’m sure if they knew what would happen, they would have sold .
And don’t doubt me. I’m always right, hence the name.

 

Yes and if someone is prepared to pay £10bn then we are worth £10bn etc etc

 

Use discounted cash flow /ebit on future x years, add or minus Net Working Capital, cash free debt free. Boom, you have yourself a club.

The burnley deal is like manu and the glaziers. Refinance the whole deal, and get the club for free. Great if they stay in the premier league and cashflow doesnt drop..but risky if relegation occurs

 

Of course for a traditional business but 1/ the future profit and CF are completely unpredictable and 2/ there is an artificial mark up for football clubs not supported by normal business valuations. Rich egos like to own footy clubs.

 

I agree with the general point you are making about not paying much to take over the club but would highlight that the audited accounts ;

1/ Do not show Gino put in £10.5m to buy the club and take on the debt-in fact the loans in place under Bas to Lord Ashcroft remained in place until after our promotion to PL-if the earlier post on what he paid is correct he only paid £0.5m for the club.

2/ Show that by the end of our first season in PL they had put in £15m by way of loan alongside £21m from XXiii Capital-that money was then used to repay the Ashcroft loan and help with player purchases/ground upgrade.

3/ During season 2 in PL Gino increased the loan from XXiii Capital and reduced his loan to £4.4m.

4/ The only loan the Pozzos had as at the last audited accounts (2019) is that £4.4m at 2.5% interest-contrast that with the XXiii Capital loan which had grown to £80m at 5.35% interest. That lender has no connection to the club.

Who knows what the debt is now as even after the 2020 accounts are published say by end of March they will be nine months out of date-we can guess about the value of the assets now given player sales.

 

I will offer a good quality pie and a portion of chips.

I'll also throw in a couple of packs of pork scratchings if the Harry the Hornet outfit is included.

 

Yeah my bad, just seen Southampton are up for sale for £200m - and they have an 86m loan at 9% interesting still outstanding as well, no chance we go for what I quoted.

 

Thank you for your well considered reply, as with lots of things rich people or perceived rich people don’t get rich by using their own money!

 

All rationale business rules go out of the window when looking at football clubs. No-one should look at us as a acquisition to make money from. We even managed to lose money in the prem ! I'm sure the Pozzos just bought us as a cheap shop window to the UK market for some of their "spare" players. Is that still valuable to them, probably, I guess ? However if a multi-billionaire wants the prestige of owning a footy club near London....that could, subject to EFL rules, be bankrolled back into the prem .....and then bankrolled to stay there...who knows ?? It's a pretty limited marketplace for that type of purchase....