If Kenwright lowered the asking price...

[Dell Boy]

You talk like you read the text but didn't understand the words.

Ha Ha folk have said much worse to me down the years.

In valuing a business you have to take the here and now. All the problems with the stadium are reflected in its current performance in terms of loan and matchday income. A new stadium would change all that (but comes at a cost).

To a new owner valuing a business that - quoting your figures - pays £2m interest on £3m working capital - that's brilliant news! A new owner would have better credit terms so would make an instant profit. Capitalise that £1m or so and you're well in the money.

 

[Joey66]

Its like someone putting their house up for sale market value say 175k and asking 400k for it the for sale board would take root with no viewers to buy it - thats the situation BK has put the club in as I feel he does not want to let go!

 

[Foot Long Hot Dog]

We borrow £13m from them to operate through lean periods. If we want to self fund without borrowing that shortfall will need to be made up.

No we don't.

We have an annual loan that's replaced every year, the cost of funding it is circa £1M per annum.

If you wanted to remove this borrowing, then you could clear it in one hit, in year 1 of the new TV cash deal & still show a profit - but you'd only clear it once...........

 

[davek]

One way and one way only to get Everton sold: the team have a nightmare for a long spell and languish in the bottom half of the table; it becomes obvious to everyone things need a shake up; people (the vast majority of people) will get behind organisations wanting this carpet bagger Kenwright and his friends out of the club.

Until then there'll always be enough who just find pride in winning sweet f.a. and being patted on the head as *best of the rest* and the con man will get away with it.

The question in the OP was wrong concentrating on 'how much money', it's 'how long bottom half of the table' before being chased out with pitchforks, that's the real question.

 

[Foot Long Hot Dog]

I don?t think the value of the business is anywhere near £80M given that all you?re effectively buying is a tired, ageing brand and the right to incur future losses, but that?s a story for another day. Remember that, based on the above, the shareholders need a valuation of £55M to sell the club for £1.

The business has more than £80M worth of intangible assets i.e. players. To say it's value is £25M plus the debt is a nonsense imo.

 

[Dell Boy]

The business has more than £80M worth of intangible assets i.e. players. To say it's value is £25M plus the debt is a nonsense imo.

Strictly speaking the players are not part of any valuation. They are the tools of the trade in valuation lingo. HOWEVER having those saleable assets of between £100m and £150m on the books is very good insurance if things start to go wrong.

The valuation is a multiple of earnings, brand value, future enterprise value and PR/ego

 

[thebluefox]

One way and one way only to get Everton sold: the team have a nightmare for a long spell and languish in the bottom half of the table; it becomes obvious to everyone things need a shake up; people (the vast majority of people) will get behind organisations wanting this carpet bagger Kenwright and his friends out of the club.

Until then there'll always be enough who just find pride in winning sweet f.a. and being patted on the head as *best of the rest* and the con man will get away with it.

The question in the OP was wrong concentrating on 'how much money', it's 'how long bottom half of the table' before being chased out with pitchforks, that's the real question.

the only way

 

[Foot Long Hot Dog]

Strictly speaking the players are not part of any valuation. They are the tools of the trade in valuation lingo. HOWEVER having those saleable assets of between £100m and £150m on the books is very good insurance if things start to go wrong.

The valuation is a multiple of earnings, brand value, future enterprise value and PR/ego

I know they're not, but firstly, since when does a basket case of a football club conform to normal business valuation calculations? & secondly, if you owned it, would you allow it to be sold for £25M net of debt when you knew fine well there was £125M+ of intangible assets sat grossly undervalued on the balance sheet?

I'm all for change, but we need to be realistic here.

 

[nainotreve]

?tuo lliB decrof ti fi ,noitageler htiw yppah eb enoyna dluoW

 

[Dell Boy]

I know they're not, but firstly, since when does a basket case of a football club conform to normal business valuation calculations? & secondly, if you owned it, would you allow it to be sold for £25M net of debt when you knew fine well there was £125M+ of intangible assets sat grossly undervalued on the balance sheet?

I'm all for change, but we need to be realistic here.

Agreed. I'm simply trying to apply some business logic to the thing.

 

[Dell Boy]

Until then there'll always be enough who just find pride in winning sweet f.a. and being patted on the head as *best of the rest* and the con man will get away with it.

See why do that? Why lump 90%+ of your fellow Evertonians with that insult?

I don't see any pride in winning the 7th place trophy each year. My dad doesn't and loads of my mates don't. I can't speak for the rest but maybe, just maybe, they like me want to see clear evidence of any wrongdoing before castigating Kenwright as the latter day lucifer. Equally some will appreciate just what an uphill struggle we face at the moment - in competition with the likes of Chelsea and Man City.

 

[AlexEFC92]

Isn't the ****e in £90 million debt? Anfield only has 5,000 more seats than Goodison. I'm not sure if we would rfill a 50-60,000 Stadium.

I do agree that sinking low might actually do us long term favours and hence making Bill lower the asking price.

 

[Allezfan]

It is absolutely hearsay! Oxford English definition: "Information received from other people that cannot be adequately substantiated". All you have is a broker and an unamed 'source'. No official confirmation but more importantly no detail of any of the terms and conditions. It is hearsay.

The source wasn't unnamed, it was keith harris.

 

[Dell Boy]

The source wasn't unnamed, it was keith harris.

The Keith Harris comment was a throwaway as part of a rambling interview. Yes it was sourced but it wasn't officially sanctioned nor did it come with any detail.

 

[steken1]

No we don't.

We have an annual loan that's replaced every year, the cost of funding it is circa £1M per annum.

If you wanted to remove this borrowing, then you could clear it in one hit, in year 1 of the new TV cash deal & still show a profit - but you'd only clear it once...........

Exactly. That's what I was trying to say. Either way we won't see a 20m profit based on the TV money in the next year.