The Chairman looks at his calculator….
The Chairman looks at his calculator….
Hummmm, we have this huge debt…. What am I going to do.
I know, I will sell the withheld share allocation of 15000 shares.
What is our debt? £90M…. okay so that’s £90000000.00/15.000 = £6000 a share.
Okay Rick, lets do it.
What nobody wants to give us that much money for a partial control? I guess I understand that, but the club needs £90M.
The going rate for a share is only £3000… that’s only £45,000,000. That’s just not going to help!
How do I force the value of those shares to £6000.
Okay, I have to sell my 17,000 at £6000, essentially selling the Club to somebody for £102M because they would have a 51% holding. That values the club at about £200M (£290M if the 15000 shares are also sold. But then you have to subtract the £90M debt, so we are back at a valuation of £200M…) sounds about right to me.
That still doesn’t guarantee that the new buyer will cover the debts, even if he/she has the money.
If I force the new buyer to but out the new shares as well (the 15,000), if nobody else wants them, then the club will be £90M better off and out of debt. And valued at £200M
Okay, lets find a buyer.
Some time later!
What, People think I am being a greedy bugger for demanding £6000 and for not selling at £3000 or £4000…. They just don’t understand….. I cant sell the club knowing that the debt will still be there and the new owners could simply defer player costs and/or increase ticket prices to pay off the debt and get the club on the cheap. If they bay at £4000 the club will only raise £4000 x 15,000 = £60M, not covering all the debt.
I wish I could just come out and say this!
Hummmm, we have this huge debt…. What am I going to do.
I know, I will sell the withheld share allocation of 15000 shares.
What is our debt? £90M…. okay so that’s £90000000.00/15.000 = £6000 a share.
Okay Rick, lets do it.
What nobody wants to give us that much money for a partial control? I guess I understand that, but the club needs £90M.
The going rate for a share is only £3000… that’s only £45,000,000. That’s just not going to help!
How do I force the value of those shares to £6000.
Okay, I have to sell my 17,000 at £6000, essentially selling the Club to somebody for £102M because they would have a 51% holding. That values the club at about £200M (£290M if the 15000 shares are also sold. But then you have to subtract the £90M debt, so we are back at a valuation of £200M…) sounds about right to me.
That still doesn’t guarantee that the new buyer will cover the debts, even if he/she has the money.
If I force the new buyer to but out the new shares as well (the 15,000), if nobody else wants them, then the club will be £90M better off and out of debt. And valued at £200M
Okay, lets find a buyer.
Some time later!
What, People think I am being a greedy bugger for demanding £6000 and for not selling at £3000 or £4000…. They just don’t understand….. I cant sell the club knowing that the debt will still be there and the new owners could simply defer player costs and/or increase ticket prices to pay off the debt and get the club on the cheap. If they bay at £4000 the club will only raise £4000 x 15,000 = £60M, not covering all the debt.
I wish I could just come out and say this!