peasepud 59 Posted June 4, 2009 Share Posted June 4, 2009 IF Ashley is selling up and writing off the debt as he reckons then are we as a club gaining anything by purchasing Season Tickets before hes gone? The way Im seeing it, any sales will just go towards dropping that debt down and therefore reducing Ashleys losses, I cant imagine its going to go into the clubs coffers ready for transfer time. Or am I seeing that wrongly? would it have to go towards the Barclays stuff first? Link to comment Share on other sites More sharing options...
Matt 0 Posted June 4, 2009 Share Posted June 4, 2009 In terms of valuing the business, the cash (asset) and future liability (unearned revenue) should net off. Whatever the proceeds are used for, it's either going to increase an asset (buying a player) or reducing a liability (paying down debt) so it won't affect what Ashley loses on the sale. What would affect the sale price from the buyer's perspective is the state of the playing squad, so I would be surprised if we simply ran down the squad and kicked the season off with a yes-man installed as manager. It would destroy any remaining value in the club. Link to comment Share on other sites More sharing options...
peasepud 59 Posted June 4, 2009 Author Share Posted June 4, 2009 In terms of valuing the business, the cash (asset) and future liability (unearned revenue) should net off. Whatever the proceeds are used for, it's either going to increase an asset (buying a player) or reducing a liability (paying down debt) so it won't affect what Ashley loses on the sale. What would affect the sale price from the buyer's perspective is the state of the playing squad, so I would be surprised if we simply ran down the squad and kicked the season off with a yes-man installed as manager. It would destroy any remaining value in the club. If I was Ashley though then I would be moving everything made by the club into paying against the 100million owed to SJ Holdings. So for instance, if we shifted £10m worth of STs then he may just have to write off £90million instead of £100 million. If thats the case then holding off buying STs could work two fold, a) it would ensure the new owners got any proceeds and b ) it could force ashleys hand even more and make him reduce the price further. admittedly though it could also mean he clicks the administration button Link to comment Share on other sites More sharing options...
ewerk 31587 Posted June 4, 2009 Share Posted June 4, 2009 IIRC, the loan from Barclays was to fund our working capital (money needed for short-term use). Unless the season ticket money has been ear-marked for another use then I'd say that it should be used to reduce the money owing to Barclays. Link to comment Share on other sites More sharing options...
Matt 0 Posted June 4, 2009 Share Posted June 4, 2009 IIRC, the loan from Barclays was to fund our working capital (money needed for short-term use). Unless the season ticket money has been ear-marked for another use then I'd say that it should be used to reduce the money owing to Barclays. Yep, Barclays will expect every penny back before Ashley gets anything. If he siphoned off the cash, then the value he could expect for the club would fall by at least that amount. I'm starting to wonder if bidders are looking at the longer game and will wait for administration and buy us straight away- of course that results in the coming season being a complete and utter write off. Provided the bidders move in before the administrators get their feet under the desk it would mean no players would be sold and Ashley would be looking very sick at what he gets back on his investment. Link to comment Share on other sites More sharing options...
Norbert Colon 0 Posted June 4, 2009 Share Posted June 4, 2009 IIRC, the loan from Barclays was to fund our working capital (money needed for short-term use). Unless the season ticket money has been ear-marked for another use then I'd say that it should be used to reduce the money owing to Barclays. Yep, Barclays will expect every penny back before Ashley gets anything. If he siphoned off the cash, then the value he could expect for the club would fall by at least that amount. I'm starting to wonder if bidders are looking at the longer game and will wait for administration and buy us straight away- of course that results in the coming season being a complete and utter write off. Provided the bidders move in before the administrators get their feet under the desk it would mean no players would be sold and Ashley would be looking very sick at what he gets back on his investment. There would be a feeling of karma to that scenario - but i don't want it to get that far Link to comment Share on other sites More sharing options...
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