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Topic: Them there t'other clubs (Read 538259 times) previous topic - next topic
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Re: Them there t'other clubs

Reply #8730
John Percy reporting that d*rby have been charged by the League for recording excessive losses.
They don't think it be like it is, but it do



Re: Them there t'other clubs

Reply #8733
This has made my day.

 

Re: Them there t'other clubs

Reply #8734
Great news to warm a bleak January night. f*ck the rams. Dare we dream of relegation?

Re: Them there t'other clubs

Reply #8735
Great news to warm a bleak January night. f*ck the rams. Dare we dream of relegation?

Seems pretty unlikely, but who knows what effect it could have on some of their players.

Re: Them there t'other clubs

Reply #8736
Hopefully they won't drown their sorrows on a club night out.

Re: Them there t'other clubs

Reply #8737

If they do, just make sure you are not on the road.



Chicago: Policing behaviour. 
If running is bad for your knees try hanging out with Russ and Tricky for a night.

Re: Them there t'other clubs

Reply #8738
Reported that Leeds have made an offer for Jarrod Bowen.

Re: Them there t'other clubs

Reply #8739
Seems football stadium value increases are rampant.
Reading sold for £27m, Villa £56m, Wednesday £60m and the Sheepdip £80m (despite a book value of £40m which looked optimistic as it is pretty similar to Reading and I would have though Berkshire is more expensive than d*rby)
EM should buy the City ground for £100m ...... we could then maybe afford a striker.

Seems to be a reasonable chance that Wednesday and Direby face a points penalty.

Re: Them there t'other clubs

Reply #8740
I don't think the book value is relevant. To my knowledge (it's been a while, and was never really my area) companies don't revalue things like that upwards in their accounts. So the value recorded is an accounting thing, not an actual thing.

Further, comparisons to other clubs does rather depend on what has been 'sold' and, mainly, the economic benefit therefrom. Are they sales of freeholds or leaseholds, are there restrictions on land use, are the sales of the stadium building only, or sales including surrounding land which generates, or could generate, income.

The d*rby number sounds way off. The stadium itself is a depreciating asset with a financially unstable anchor tenant. I can't imagine non-football revenue is anywhere close to supporting an 80m valuation. Dunno what any land under/around it is worth for development purposes - but I don't think retail land on the edge of d*rby is a great investment right now and it doesn't look like much of a residential opportunity either.

What I don't know is how much of the land they own. Perhaps when they built the ground they had the foresight to buy up chunks of the land around the stadium so that the club is landlord to others on the park. That sort of thing would be public information, though, so we'd probably have heard about it.

The question is - would a third party pay what Morris paid? A third party buying that stadium wants to know how much profit (mainly in the form of cashflow) they will make from it, compared to doing something else. Interest rates are low, so money is cheap.. which makes assets that generate cash more valuable. Say you want a 5% return on your 80m.. you'll need the investment to pay 4m a year. You can risk weight that for the fact that the tenant might go bust, but if you own the land then you also take into account the residual opportunity of a sale or redevelopment if that happens.
this is an excellent rectangle

Re: Them there t'other clubs

Reply #8741
One would assume that the stadium itself presents as a negative value, given it's only of use to a relatively large professional football club and there ain't many of them in the market for a 30,000 seater stadium on an industrial estate in d*rby.
They don't think it be like it is, but it do

Re: Them there t'other clubs

Reply #8742
One would assume that the stadium itself presents as a negative value, given it's only of use to a relatively large professional football club and there ain't many of them in the market for a 30,000 seater stadium on an industrial estate in d*rby.

Not really, no.

It's true that it is only of use to one tenant. But that tenant exists and wants to use it (needs to, even). So the owner can assume a solid revenue stream from it.
this is an excellent rectangle

Re: Them there t'other clubs

Reply #8743
Not really, no.

It's true that it is only of use to one tenant. But that tenant exists and wants to use it (needs to, even). So the owner can assume a solid revenue stream from it.

OK, but let's say that Mel Morris decides he hates d*rby and wants to sell me the stadium. I have to value it based upon what I think I can realise in rent over the next 25 years, and if I don't control the club then I have to base my valuation on them being a League 2 club with 8-10K coming through the turnstiles because there's a not inconsiderable chance that any club outside the biggest 5 or 6 could rapidly become that. Just ask the guys who bought the Ricoh.
They don't think it be like it is, but it do

Re: Them there t'other clubs

Reply #8744
OK, but let's say that Mel Morris decides he hates d*rby and wants to sell me the stadium. I have to value it based upon what I think I can realise in rent over the next 25 years, and if I don't control the club then I have to base my valuation on them being a League 2 club with 8-10K coming through the turnstiles because there's a not inconsiderable chance that any club outside the biggest 5 or 6 could rapidly become that. Just ask the guys who bought the Ricoh.

Yes, you would look at it differently - and the rules say he has to value it the way you would. Or, y'know, an impartial you with 80m to invest.

But say you want 4m a year rent for 20 years, and d*rby agree to pay that. The club will sign an agreement to that effect, so you've got an enforceable undertaking and you value things based on that, weighted for the risk that they'll fail to honor it and the implications of that. You might be able to insure the risk.

Morris can't value on a best case scenario assuming that the club is totally good for everything because he's personally going to make sure of it. But you can't value it on your measure either unless that's a likely outcome of the deal that's been done because it doesn't provide the stadium owner with any comfort over his income from the asset... or you can, but you'll be outbid.
this is an excellent rectangle