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Blue5, on 19 December 2018 - 12:00 PM, said:
I wonder what your Uncle Terry makes of David, Ashley and the mess at Chesterfield?
He's probably too busy enjoying retired life to care....
Potential Takeover?
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Blue5 
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Posted 19 December 2018 - 12:51 PM
JonB, on 19 December 2018 - 12:29 PM, said:
He's probably too busy enjoying retired life to care....
It would be nice to hear his thoughts now he's not constrained by his employers!
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isleaiw1
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Posted 19 December 2018 - 12:57 PM
JonB, on 19 December 2018 - 11:45 AM, said:
Is there any theory behind it or is it just the seller plucking a figure out based on how much they want to get out of it based on debt and what else they can get out of the deal? I suspect the majority of it tends to be how much debt the seller has tied up and what they are willing to take.
For example when the new owners bought Sunderland recently they paid Ellis Short £40m. Short had much more than that in the club in reality but he wrote a load of debt off i think and then took the £40m as a payment for the amount of deby left he wanted to get back. That in theory left the new owners with a club that was debt free. In the case of Dundee maybe the deal has restructured any debt differently or there wasnt much. In reality any clubs other than big premiership clubs i suspect are just based around the debt. The bloke who owns Liverpool is selling but in no rush and i think i saw he wanted around £1 billion for Liverpool i suspect because they are an attractive proposition to buy with their fan base, history and success on the field.
The issue we have in terms of what DA is valuing CFC at is that he has a lot of money tied up in the club that is the debt to him and the valuation is all based around how much he wants to get back. Suspect that figure will vary depending on time and how desperate he is to get out plus what deal he can negotiate. Didnt he take less up front when selling up at Hillsborough but had a clause that got him a payment of a decent amount should Wednesday make the premiership.
For example when the new owners bought Sunderland recently they paid Ellis Short £40m. Short had much more than that in the club in reality but he wrote a load of debt off i think and then took the £40m as a payment for the amount of deby left he wanted to get back. That in theory left the new owners with a club that was debt free. In the case of Dundee maybe the deal has restructured any debt differently or there wasnt much. In reality any clubs other than big premiership clubs i suspect are just based around the debt. The bloke who owns Liverpool is selling but in no rush and i think i saw he wanted around £1 billion for Liverpool i suspect because they are an attractive proposition to buy with their fan base, history and success on the field.
The issue we have in terms of what DA is valuing CFC at is that he has a lot of money tied up in the club that is the debt to him and the valuation is all based around how much he wants to get back. Suspect that figure will vary depending on time and how desperate he is to get out plus what deal he can negotiate. Didnt he take less up front when selling up at Hillsborough but had a clause that got him a payment of a decent amount should Wednesday make the premiership.
Price is based on a few things - a multiple of earnings (profits) that is normal for that type of business, the value of the net assets in the business, or some value to the future stream of profits, discounted to todays money and allowing for fact you want a positive return over what you pay, if you want to get something that may have lots of interest / not much profit now but prospects...
Under any of those measures, and assuming the covenant around the use of the land the football ground is on to be strong, DA is whistling in the wind with any of the trumped up numbers he comes up with...
Stay Home. Stay Safe.
