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Thanks Bob.
I don't understand people like Biggish Dave, why would he tell people he is an accountant, then tell people he's happy not to look at the books even though he could understand them???
I would have stuck my nose in them as soon as they were made available (in fact I did) simply because I am interested on a number of levels (fan of the club and professional interest) and also I enjoy a good puzzle - and frankly I can't work out why FV have bought us?
There most be some plan but I certainly can't work out what it is?
It seems Bob, and please correct me if I am wrong, that FV actually paid something like £29.5m for everything.
The hotel seems to have been bought for £7.5m, in which case the stadium and everything else cost £22m.
The figure banded about in the press of £17.5m for the sale was misleading, in that that sum was the remainder of the sale price once Administration costs of running the club (and their fees(?)) were removed.
In fact you could look at it in reverse, in that in order to buy everything they had to settle the secured creditors (100p in the £), unsecured creditors (30p in the £) and then the full Administration costs and fees.
It seems to me that if the assets in 2017 stood at £37m and FV purchased them for £29.5m a couple of years later, then it looks somewhat reasonable that they have in fact paid a fair price for them.
However I know start to become confused again!
If the asset amounted to £37m and only £17.5m had secured creditors, then why wasn't Ken Anderson's secured creditor status of £5m not paid out due to insufficient funds?
To answer my own question I assume that was because FV paid a fair price for the assets of £29.5m and once the Administration costs were settled first and secured creditors in priority order next, then there was simply nothing left to pay KA with.
In fact I guess that's not quite the case in that there was the £3.5m paid that would settle the unsecured creditors - but that would have triggered another points penalty (20 I think?) and that would have been a deal breaker for FV presumably?
Anyway we are where we are.
It's beginning to look to me that the £29.5m paid (if that what the agreed sale price is) isn't as bad as I first thought in that FV have purchased something like £30m of fixed assets for their money.
Obviously they need to pay for them as it seems all the assets are probably fully leveraged now but in theory (I know theory and practice can be two completely different things!) they can sell the assets and get their £29.5m purchase price paid back.
I know there's more to it all than that but I guess Sharon has bought a £30m 'house' (if you think about it that way) and can always resell it (hopefully for £30m or more!) in the future.
Of course the running costs will be on top of the purchase price (and she/FV has to settle with the creditors when the time comes) but as you have said from the beginning she as acquired a great deal of assets with a rather minimal outlay - so far!
I still can see the master plan but at least I feel I have a bit better understanding of how much was paid to the Administrators and for what.
I'm interested to see what your solution to the £8m purchase of intellectual property is though!
Thanks again.
I don't understand people like Biggish Dave, why would he tell people he is an accountant, then tell people he's happy not to look at the books even though he could understand them???
I would have stuck my nose in them as soon as they were made available (in fact I did) simply because I am interested on a number of levels (fan of the club and professional interest) and also I enjoy a good puzzle - and frankly I can't work out why FV have bought us?
There most be some plan but I certainly can't work out what it is?
It seems Bob, and please correct me if I am wrong, that FV actually paid something like £29.5m for everything.
The hotel seems to have been bought for £7.5m, in which case the stadium and everything else cost £22m.
The figure banded about in the press of £17.5m for the sale was misleading, in that that sum was the remainder of the sale price once Administration costs of running the club (and their fees(?)) were removed.
In fact you could look at it in reverse, in that in order to buy everything they had to settle the secured creditors (100p in the £), unsecured creditors (30p in the £) and then the full Administration costs and fees.
It seems to me that if the assets in 2017 stood at £37m and FV purchased them for £29.5m a couple of years later, then it looks somewhat reasonable that they have in fact paid a fair price for them.
However I know start to become confused again!
If the asset amounted to £37m and only £17.5m had secured creditors, then why wasn't Ken Anderson's secured creditor status of £5m not paid out due to insufficient funds?
To answer my own question I assume that was because FV paid a fair price for the assets of £29.5m and once the Administration costs were settled first and secured creditors in priority order next, then there was simply nothing left to pay KA with.
In fact I guess that's not quite the case in that there was the £3.5m paid that would settle the unsecured creditors - but that would have triggered another points penalty (20 I think?) and that would have been a deal breaker for FV presumably?
Anyway we are where we are.
It's beginning to look to me that the £29.5m paid (if that what the agreed sale price is) isn't as bad as I first thought in that FV have purchased something like £30m of fixed assets for their money.
Obviously they need to pay for them as it seems all the assets are probably fully leveraged now but in theory (I know theory and practice can be two completely different things!) they can sell the assets and get their £29.5m purchase price paid back.
I know there's more to it all than that but I guess Sharon has bought a £30m 'house' (if you think about it that way) and can always resell it (hopefully for £30m or more!) in the future.
Of course the running costs will be on top of the purchase price (and she/FV has to settle with the creditors when the time comes) but as you have said from the beginning she as acquired a great deal of assets with a rather minimal outlay - so far!
I still can see the master plan but at least I feel I have a bit better understanding of how much was paid to the Administrators and for what.
I'm interested to see what your solution to the £8m purchase of intellectual property is though!
Thanks again.
