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Author Topic: Financial fair play  (Read 219662 times)

Offline cdbearsfan

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Re: Financial fair play
« Reply #1080 on: July 02, 2019, 11:54:58 PM »
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.

Offline Damo70

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Re: Financial fair play
« Reply #1081 on: July 03, 2019, 12:05:04 AM »
No disrespect to anyone on H&V but if I need any advice on anything relating to Villa and FFP I go onto the Small Heath Alliance website. I think they can even tell you exactly how much we spent on paper clips and envelopes in the last financial year.

Offline Lastfootstamper

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Re: Financial fair play
« Reply #1082 on: July 03, 2019, 12:10:05 AM »
My house has a footprint of ≈330 ft², no parking, shared access across the garden, and it's not even in Brum. It's apparently worth £170k. That valuation seems reasonable.

Offline Risso

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Re: Financial fair play
« Reply #1083 on: July 03, 2019, 12:10:18 AM »
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.

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.

Offline Damo70

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Re: Financial fair play
« Reply #1084 on: July 03, 2019, 10:05:27 AM »
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.

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.


It probably is if you have a house and garden the size of Villa Park and the car parks around it plus any other land we own. ;)

Offline AsTallAsLions

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Re: Financial fair play
« Reply #1085 on: July 03, 2019, 04:29:30 PM »
What a nothing story yesterday being circulated by some reputable news sources (and some not so reputable). The likes of the Times should really know better. There is more chance of us winning the Premier League than being punished for fairly valuing our biggest asset and selling it to a pair of businessmen. We're talking about a league that sold TV rights for 4 BILLION pounds and has no problem with Leicester City valuing Harry frigging Maguire higher than £70m - far in excessive of how we valued the VP land asset. The whole game is about generating silly amounts of money so it would be the height of hypocrisy for them to "investigate" Villa for generating £50 million to cover costs and quite frankly it's not worth the time it would take to do so.

Offline ktvillan

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Re: Financial fair play
« Reply #1086 on: July 04, 2019, 12:25:12 AM »
If our FFP "issues" occurred when we were in the EFL,  under EFL FFP rules, and our solution was accepted by the EFL,   I don't see how the PL has any jurisdiction to pick us up on anything.  It smacks of bullshit to me.

Offline AV82EC

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Re: Financial fair play
« Reply #1087 on: July 04, 2019, 08:27:08 AM »
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.

Offline Damo70

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Re: Financial fair play
« Reply #1088 on: July 04, 2019, 09:22:33 AM »
I am pretty sure that with the business and sporting knowledge and experience of our owners, the Premier League money and the expertise of Christian Purslow despite some people seeming to have it in for us we will be fine when it comes to FFP. Which will be a huge disappointment to those trying to stir things up.

Offline paul_e

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Re: Financial fair play
« Reply #1089 on: July 04, 2019, 10:59:30 AM »
I think this whole story comes down to a misunderstanding. I seem to remember Leicester and/or Bournemouth and/or QPR all going through a situation where they failed FFP in the championship but weren't punished because there was no collaboration between the 2 leagues and after the last of them there was an agreement reached. I suspect that, as part of that agreement, bothe the EFL and EPL agreed to do independent checks on promoted and relegated teams and this is just a case of them completing that process, nothing will come of it but it makes for good headlines for one of the newspapers to post nonsense about us.

Offline Risso

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Re: Financial fair play
« Reply #1090 on: July 04, 2019, 11:32:32 AM »
Last time we were in the Premier League, the stadium and land were valued at over £80m, so we've clearly not pushed things to the absolute limits in terms of current valuation.

Offline Matt Collins

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Re: Financial fair play
« Reply #1091 on: July 05, 2019, 06:38:36 AM »
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.

Agree

I think "the Yorkshire villa lot" is one guy by the way

He's excellent on ffp. His analysis over the last year has been spot on. He predicted this sort of deal as the only way we could comply

Offline oldhill_avfc

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Re: Financial fair play
« Reply #1092 on: July 05, 2019, 08:22:48 AM »
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)?

Offline Dave P

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Re: Financial fair play
« Reply #1093 on: July 05, 2019, 12:35:53 PM »
Do I understand the Premier League looking into this?  Yes.

Do I anticipate a problem?  No.

Offline ChicagoLion

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Re: Financial fair play
« Reply #1094 on: July 05, 2019, 12:41:36 PM »
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)?
See Risso post above, the purchase price over and above the book value will be treated as profit.
The most important part will Be FFP  compliance but as this is real money it will be used to fund cash flow.

 


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