Value of Rovers

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yankfan
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Value of Rovers

Post by yankfan » Tue May 09, 2017 8:21 pm

So Venkys paid 23 million pounds for Rovers in 2010, to purchase at that time a mid table premier league team. We know they are not intending to sell, but if they were, what would your guess a fair purchase price would be? 100 million pounds in debt, playing in the 3rd league with a large portion of the supports holding pitch forks and touches. The average league one club probably is worth 30 million pounds....but with our debt, I'd have to say it should only take 20 million pounds? What do you guys think?

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Ethiaa
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Re: Value of Rovers

Post by Ethiaa » Wed May 10, 2017 7:52 am

The average football team loses money. The average football team is really worth nothing.

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mrblackbat
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Re: Value of Rovers

Post by mrblackbat » Wed May 10, 2017 7:52 am

The debt is owed to Venky's. Nobody is going to buy the club and retain 100 million debt to them.

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theadore
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Re: Value of Rovers

Post by theadore » Wed May 10, 2017 8:31 am

Plenty of clubs with more debt have been bought... Plus there is the administration "pennies on the dollar" option.

But yes... The debt is the effective purchase price and so the cost is now 100 million plus a nominal fee.

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Re: Value of Rovers

Post by Ethiaa » Wed May 10, 2017 10:01 am

Clubs in debt tend to be sold for a nominal fee though. £1

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mrblackbat
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Re: Value of Rovers

Post by mrblackbat » Wed May 10, 2017 1:10 pm

theadore wrote:
Wed May 10, 2017 8:31 am
Plenty of clubs with more debt have been bought... Plus there is the administration "pennies on the dollar" option.

But yes... The debt is the effective purchase price and so the cost is now 100 million plus a nominal fee.
Think you misunderstood the point I was making.

Anyone buying the club will not retain the £100 million debt to Venky's on any purchase; they would either a) insist it was written off or b) pay it off as part of the purchase or c) a mixture of the two.

So if anything, it will likely take more to purchase Rovers than any other League 1 team.

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mrblackbat
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Re: Value of Rovers

Post by mrblackbat » Wed May 10, 2017 1:12 pm

Ethiaa wrote:
Wed May 10, 2017 10:01 am
Clubs in debt tend to be sold for a nominal fee though. £1
Depends who the debt is owed to. When Venkys bought us, we were in debt; Venkys cleared that debt as part of the purchase and still paid £23 million for the club. If the debt was entirely to third parties, then yes, it's unlikely a genuine fee would be asked for, but given the debt is for the large part owed to Venkys themselves, then nobody in their right mind is going to buy it whilst that debt remains, and Venkys are unlikely to write everything off completely.

Mind you, nobody in their right mind would buy Blackburn Rovers. Or pretty much any football club.

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Re: Value of Rovers

Post by Ethiaa » Wed May 10, 2017 3:08 pm

Hard to say - at what point does eliminating future losses justify a substantial write off? Of course that "debt" is effectively written off already. They aren't likely to be thinking they could ever recoup it.

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Re: Value of Rovers

Post by mrblackbat » Wed May 10, 2017 3:31 pm

Ethiaa wrote:
Wed May 10, 2017 3:08 pm
Hard to say - at what point does eliminating future losses justify a substantial write off? Of course that "debt" is effectively written off already. They aren't likely to be thinking they could ever recoup it.
I bet they sure as hell do when it comes to the negotiating table if selling!

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Re: Value of Rovers

Post by WacoRover » Wed May 10, 2017 3:32 pm

mrblackbat wrote:
Wed May 10, 2017 1:12 pm
Ethiaa wrote:
Wed May 10, 2017 10:01 am
Clubs in debt tend to be sold for a nominal fee though. £1
Mind you, nobody in their right mind would buy Blackburn Rovers. Or pretty much any football club.
I would agree with this; & certainly due to FFP rules. Who would want to buy a club that the owner could be a billionaire, yet he can't buy any decent players?

On-field liquidation continues, with the Wolves (literally) snapping at the door for Steele. Graham & Bennett also sought after.

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Re: Value of Rovers

Post by WacoRover » Wed May 10, 2017 3:35 pm

Ethiaa wrote:
Wed May 10, 2017 3:08 pm
Hard to say - at what point does eliminating future losses justify a substantial write off? Of course that "debt" is effectively written off already. They aren't likely to be thinking they could ever recoup it.
Hmmm... when the owners sold off Gestede, Rhodes, Cairney, Marshall, Duffy, et al. (Amounting to nearly £29 mil), that money obviously didn't go back into players, so it either went towards operating expenses, or to partially recoup some of the loss/debt.

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Re: Value of Rovers

Post by Rover the Top » Wed May 10, 2017 5:42 pm

WacoRover wrote:
Wed May 10, 2017 3:35 pm
Ethiaa wrote:
Wed May 10, 2017 3:08 pm
Hard to say - at what point does eliminating future losses justify a substantial write off? Of course that "debt" is effectively written off already. They aren't likely to be thinking they could ever recoup it.
Hmmm... when the owners sold off Gestede, Rhodes, Cairney, Marshall, Duffy, et al. (Amounting to nearly £29 mil), that money obviously didn't go back into players, so it either went towards operating expenses, or to partially recoup some of the loss/debt.
I'm not sure what point you're trying to make? The club has made losses AFTER those transfers have been taken into account. The last financial year, they just about prevented the need to increase the debt further. You can't double count the revenue and use it again.

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Re: Value of Rovers

Post by WacoRover » Wed May 10, 2017 7:00 pm

Not really trying to make a "point", as much as for clarity- Thats why I interjected the "hmmm"; obviously, the losses were calculated after the club received those transfer fees.

Thanks.

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Re: Value of Rovers

Post by yankfan » Wed May 10, 2017 7:25 pm

WacoRover wrote:
Wed May 10, 2017 7:00 pm
Not really trying to make a "point", as much as for clarity- Thats why I interjected the "hmmm"; obviously, the losses were calculated after the club received those transfer fees.

Thanks.
It gives you an idea of how bad the finances are if the sale of that lot still increase out debt....its not like we have those assets to sell for future debts...

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Re: Value of Rovers

Post by Thorisgodpoo » Wed May 10, 2017 8:12 pm

It will be interesting what the taxes look like for the fiscal year. June 2016 was reported to having only £1.5m in the financial year compared to £17.3m in 2015.

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