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Author Topic: NSWE Investment  (Read 149036 times)

Offline ChicagoLion

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Re: NSWE Investment
« Reply #1605 on: February 13, 2020, 07:23:51 AM »
Instead of guess the crowd - we ought to run a competition for guess the amount that we have lost in the last season - my guess is £60 million

Just out of interest if these 2 guys decided to sell the club - then the amount that they have invested and brought the club for - would this be what they reckon that the club is worth? - if it was then there are not many people who could afford to buy the club?
Something is worth what someone is prepared to pay for it, that never changes.
Lerner bought and  Invested lots more than he sold it for.
Normal commercial valuation formula goes out the window when buying/ selling  a football club.
Businesses are usually sold for a multiple of profitability EBITDA, sometimes Revenue and sometimes Gross Profit. Not football clubs though.

Offline Border villan

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Re: NSWE Investment
« Reply #1606 on: February 13, 2020, 02:07:32 PM »
We all know that the value of AVFC is beyond the dreams of avarice.

Offline pauliewalnuts

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Re: NSWE Investment
« Reply #1607 on: February 13, 2020, 03:22:00 PM »
Another £17m into the club via a share issue.

https://beta.companieshouse.gov.uk/company/03375789/filing-history



Being a bit dim with regards such thing, my question is why?

The club loses money so the cash has got to come from somewhere.
They could loan it but this shows commitment.

A loan would carry interest which I'm guessing would count against us for FFP.

Unless it was an interest free one, of course, which i think is the way Lerner did it.

Online The Edge

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Re: NSWE Investment
« Reply #1608 on: February 13, 2020, 03:53:42 PM »
This whole ffp still confuses me. Chelsea apparently spending 37 million on a player. Man City reportedly about to spend big to catch up with Liverpool. Ffp appears to allow this when the money still comes from the Russian and the Arabs respectively. How come?

Online Lastfootstamper

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Re: NSWE Investment
« Reply #1609 on: February 13, 2020, 04:11:42 PM »
What FFP? It comes in to play with UEFA if you qualify, but otherwise there's little. Short Term Cost Control has been binned, there's this from the folks at fourfourtwo, but if anyone can find anything else, I'd like to hear.

Offline TheMalandro

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Re: NSWE Investment
« Reply #1610 on: February 13, 2020, 05:03:04 PM »
When you look at the situation we were in after the Fulham game at Wembley.
We are very, very lucky.

How many people wouldíve taken the club on? Itís a bloody miracle.

Online Ad@m

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Re: NSWE Investment
« Reply #1611 on: February 13, 2020, 05:48:23 PM »
Another £17m into the club via a share issue.

https://beta.companieshouse.gov.uk/company/03375789/filing-history



Being a bit dim with regards such thing, my question is why?

The club loses money so the cash has got to come from somewhere.
They could loan it but this shows commitment.

A loan would carry interest which I'm guessing would count against us for FFP.

Unless it was an interest free one, of course, which i think is the way Lerner did it.

That wouldn't work either as related party transactions have to be at arms length for FFP purposes.  It's why our stadium sale to the owners is being investigated.

Offline Demitri_C

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Re: NSWE Investment
« Reply #1612 on: February 13, 2020, 10:18:38 PM »
Simon Jordanís the other day explained ffp on Ts and he was specifically talking about us. HE said the 150m we spent isnít breaking financial fair play as he said something about the value of the players Andy the length of contract.

Iíll see if I can dig it up it was really interesting.

Offline OzVilla

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Re: NSWE Investment
« Reply #1613 on: February 14, 2020, 01:23:20 AM »
He must be referring to 'amortisation' where the cost of the transfer fee is spread across the length of the players contract for FFP purposes,

For example a 20 million fee on a 4 year contract is basically 5 million for that year against FFP recurring. I think......

Offline ChicagoLion

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Re: NSWE Investment
« Reply #1614 on: February 14, 2020, 06:13:42 AM »
He must be referring to 'amortisation' where the cost of the transfer fee is spread across the length of the players contract for FFP purposes,

For example a 20 million fee on a 4 year contract is basically 5 million for that year against FFP recurring. I think......
Yep

Offline OCD

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Re: NSWE Investment
« Reply #1615 on: February 14, 2020, 11:52:33 AM »
He must be referring to 'amortisation' where the cost of the transfer fee is spread across the length of the players contract for FFP purposes,

For example a 20 million fee on a 4 year contract is basically 5 million for that year against FFP recurring. I think......

That makes sense and often transfer fees are spread over multiple years too.

Offline ChicagoLion

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Re: NSWE Investment
« Reply #1616 on: February 14, 2020, 12:37:58 PM »
He must be referring to 'amortisation' where the cost of the transfer fee is spread across the length of the players contract for FFP purposes,

For example a 20 million fee on a 4 year contract is basically 5 million for that year against FFP recurring. I think......

That makes sense and often transfer fees are spread over multiple years too.
errr I think thatís what he said.

Offline eamonn

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Re: NSWE Investment
« Reply #1617 on: February 14, 2020, 01:57:15 PM »
Well he could have been comparing cash to accounting.

Offline ChicagoLion

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  • Location: Chicago
Re: NSWE Investment
« Reply #1618 on: February 14, 2020, 03:48:21 PM »
Well he could have been comparing cash to accounting.
He used the word amortization, thatís accounting, he just repeated the post above. Never mind.

Offline Brassneck

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Re: NSWE Investment
« Reply #1619 on: February 15, 2020, 08:17:31 AM »
It's the wages that are the problem.  Or at least they were whilst we were in the Championship.

Our current FFP problem appears to revolve around the ground sale.  If my understanding is correct, the PL haven't passed off approval of this transaction.  The EFL have questioned the valuation that both Derby & Sheff Wed put on their grounds when they were sold and in Wednesday's case, they have been charged with misleading the EFL with the valuation.  If it were to do the same with us and place a lower value on the ground, we would almost certainly fall foul of FFP for the 3 year period that we were in the Championship.

 


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