I don't think the valuation of £56.7 million is based on how much it would cost to build a football stadium of that size, you'd have no chance of building a Villa Park for that. It's based on how much the land would fetch if sold to developers.This may be wrong, someone who understands these things will be able to advise.
Quote from: cdbullyweefan on July 02, 2019, 11:54:58 PMI don't think the valuation of £56.7 million is based on how much it would cost to build a football stadium of that size, you'd have no chance of building a Villa Park for that. It's based on how much the land would fetch if sold to developers.This may be wrong, someone who understands these things will be able to advise. Yes, fair value is what somebody would pay in an arm's length transaction. Some idiot Brizzle fan on Twitter has been trying to tell me it's the same as valuing a house. It isn't.
Not sure if he posts on here but one of the Yorkshire Villa lot did a good thread on this on Twatter yesterday. In summary it’s bullshit by the Times and any view the EPL want to take on it can’t be until they review next seasons books and even then as Risso says it’s as simple as proving your fair value process.
My understanding of accounts is basic so bear with me.This is the sale of a fixed asset and I assume had a value on the balance sheet.Therefore a sale is essentially a conversion of equity into cash. The profit element for the purposes of FFP would only come in on the amount raised above book value. So my questions are :-How much profit was actually made?Is this more to do with cashflow/summer transfers (and if so the FFP rumblings shouldn't matter)?