The true cost of buying NUFC?

[Stu]

when you have sentence using the following:

 

"its clear", "if", "at a guess"

 

then it's likely you're treading on uncertain ground.

 

pure speculation, Pilko's not far off.

 

Of course it's fukin speculation, 90% of this board is speculation.

 

If you have concrete information, please don't leave us in suspense.

 

Steer clear of statements like 'sound financial footing' cause that will just remind peeps what a gimp you are. 

 

For someone who loves to act the big "I am" on this board and put across this idea that he has a good understanding about everything, I'm literally incredulous at your continued naivety about this topic, but hey, I'm a gimp.

[Stu]

I suspect the "true" cost of buying NUFC is best  measured in far more than just financial terms.

 

Are the fans a cost or a benefit?

 

[/can of worms]

[madras]

a lot depends on what happens to "the loan". is it written off or to be paid back and if so in what way, what intrest etc.

 

 

anything more than the window price of 100mill and carrying the overdraft is a bit steep imo.

[ChezGiven]

I reckon the new owners need to take on the stadium debt and the overdraft, anything else that Ashley paid off and used funds from SJP Holdings to cover, under the umbrella term of 'financial prudence' via his shit PR, should be written off.

 

A large part of the debt he inherited was for the stadium, what was the figure in the press around 2007/8? I never remember it being more than £40m? Then after Ashley bought us, lots of other debt materialised and the figures in the press had it at the current £110m figure. There were 'hidden' debts.

 

The stadium debt should arguably be taken on by the new owners since they will benefit from the initial investment-risk taken by Shepherd in terms of the loan against ticket sales. This was also backed by Ashley and its an integral part of the club. It guaranteed the (potential) long-term return of high ticket sales. The new owners should take it on imo.

 

How was the debt made up beyond the stadium and the overdraft on the current account when he took over? Where else were these debts when Ashley put them all into SJ Holdings? These hidden debts couldnt have been that big (hidden debt of 50m? to who?) in which case they were not to powerful creditors and these could have been negotiated with, or deals delayed. His decision to pay off debt rather than e.g hold the level of debt has fucked up. When that decision bites you on the arse, when the alternative would have been a stronger squad (and possibly still in the prem) then you have to admit that it was you that destroyed that value. I'm sure the potential buyers of the club are looking at the debt structure in much the same way, thinking which have been prudently handled. You can not relegate an established premiership club and come out even.

 

The new owners would therefore be looking to pay 80m for the club and taking on the stadium debt, possibly the overdraft (but which one?).

 

 

[Rob W]

I'd suspect that hidden debts might well have involved Mr Shepherd and friends

 

There were odd things like the Club renting Shepherd Offshore warehouses IIRC - and who DID pay for aal them business jets?

 

I'd guess £ 75mm cash up front and maybe another £ 30mm if we get back up in 24 months..................

[Parky]

I reckon the new owners need to take on the stadium debt and the overdraft, anything else that Ashley paid off and used funds from SJP Holdings to cover, under the umbrella term of 'financial prudence' via his shit PR, should be written off.

 

A large part of the debt he inherited was for the stadium, what was the figure in the press around 2007/8? I never remember it being more than £40m? Then after Ashley bought us, lots of other debt materialised and the figures in the press had it at the current £110m figure. There were 'hidden' debts.

 

The stadium debt should arguably be taken on by the new owners since they will benefit from the initial investment-risk taken by Shepherd in terms of the loan against ticket sales. This was also backed by Ashley and its an integral part of the club. It guaranteed the (potential) long-term return of high ticket sales. The new owners should take it on imo.

 

How was the debt made up beyond the stadium and the overdraft on the current account when he took over? Where else were these debts when Ashley put them all into SJ Holdings? These hidden debts couldnt have been that big (hidden debt of 50m? to who?) in which case they were not to powerful creditors and these could have been negotiated with, or deals delayed. His decision to pay off debt rather than e.g hold the level of debt has fucked up. When that decision bites you on the arse, when the alternative would have been a stronger squad (and possibly still in the prem) then you have to admit that it was you that destroyed that value. I'm sure the potential buyers of the club are looking at the debt structure in much the same way, thinking which have been prudently handled. You can not relegate an established premiership club and come out even.

 

The new owners would therefore be looking to pay 80m for the club and taking on the stadium debt, possibly the overdraft (but which one?).

 

 

 

The only conclusion I come back to is that the 'hidden debt' was monies owed on old transfers that were probably timetabled over a period of 3 years. This is quite normal and MA wouldn't have seen any of this as he didn't look at the books. We are beginning to see what a jungle all these weird payments to players are with regard to bonuses, loyalty, yearly increases and of course the settling of initial fees and agent commissions.