Todays Meeting

Log in to stop seeing adverts
This page may contain links to companies such as eBay and Amazon. As an affiliate of these sites I may earn commission if you click the link and make a purchase

Status
Not open for further replies.
Jeff said:
But if you spend the money you then have an additional asset that contributes to the value of the company.
Click to expand...

That is what i posted earlier, the only way it will increase the value if it was used to purchase an asset. Although the value is written down over time and its unlikely the asset is worth what is paid for it.

AFAIK The players are not down on the balance sheet as assets.

I have just spent 2.5k on a phone system, the value of the asset isn't anywhere near that figure.
 
Last edited:
Jeff said:
But if you spend the money you then have an additional asset that contributes to the value of the company.
Click to expand...

Only if it is spent wisely surely?

For example we could go out and buy Junior Lewis for £5m.

Does that make Junior Lewis an asset to the company to the value of £5m?
 
drew said:
That is what i posted earlier, the only way it will increase the value if it was used to purchase an asset. Although the value is written down over time and its unlikely the asset is worth what is paid for it.

AFAIK The players are not down on the balance sheet as assets.

I have just spent 2.5k on a phone system, the value of the asset isn't anywhere near that figure.
Click to expand...

Players that we have paid a fee for are on the balance sheet as intangible assets, the transfer fee being written off over the length of the contract.
 
drew said:
That is what i posted earlier, the only way it will increase the value if it was used to purchase an asset.
Click to expand...

No. If the £1.6 million invested in the club had been used to pay debts it would increase the value of the club, it it was still sitting in the club's bank account it would increase the value of the club. The only way it wouldn't increase the value of the club is if you waste it - but that's the same wherever the money comes from.
 
The Voice From Above said:
Only if it is spent wisely surely?
Click to expand...

Obviously, but that's irrelevant in the context of this particular discussion.
The reason this subject came up was because of the £1.6 million in new shares issued since the club came out of administration, and questioning whether that money increased the value of the club.

When the £1.6 million first went into the club's bank account it obviously
increased the value of the club by £1.6 million.

The value of the club may have increased or decreased since then, but that's not necessarily related to the new investment. Any spending can reduce the value of the club if it's done badly, or increase the value of the club if it's done well.
 
Melton Fox said:
Also the less the shareholders take, the greater the remainder, the greater the investment into the club
Click to expand...

Not necessarily. He could award himself a pat on the back & leave it in the bank.

If I went to get a new car, having decided what I want and what my budget is - say £10k and I haggle the salesman down to £9.5, I might say wow, now I can add go faster stripes, furry dice, etc etc...... Or I might say great, now I can go and buy that new washing machine we fancied.

He will have a business plan. It will assume certain levels of outlay consistent with the objectives. If he can get the initial outlay down, would he recast the whole business plan just to spend it? If so it might imply the initial plan was not very robust.

Not that I am saying this is the case - I have no more idea than anyone elsewhat he has planned, but I am certain of one thing - he is a shrewd businessman who isn't going into this to chuck money round just because its in his wallet.
 
I see your point, although my basis was that the shareholders want back what they have put in. The shares that they have bought are not necessarily worth what they have paid for them.
 
OldGit said:
Not necessarily. He could award himself a pat on the back & leave it in the bank.

If I went to get a new car, having decided what I want and what my budget is - say £10k and I haggle the salesman down to £9.5, I might say wow, now I can add go faster stripes, furry dice, etc etc...... Or I might say great, now I can go and buy that new washing machine we fancied.

He will have a business plan. It will assume certain levels of outlay consistent with the objectives. If he can get the initial outlay down, would he recast the whole business plan just to spend it? If so it might imply the initial plan was not very robust.

Not that I am saying this is the case - I have no more idea than anyone elsewhat he has planned, but I am certain of one thing - he is a shrewd businessman who isn't going into this to chuck money round just because its in his wallet.
Click to expand...
If you wanted to sell that car for a profit in the short term, you would be grateful of the original discount, but you'd also buy all the relevant add ons at the best possible price, get the top mechanics to fit the "add ons" as quickly and as smoothly as possible ready for a quick and profitable sale.

I don't think you would buy the car, leave it in the garage and buy the washing machine with the money you save, I believe you'd just go out and buy the washing machine and forget about the car
 
drew said:
I see your point, although my basis was that the shareholders want back what they have put in. The shares that they have bought are not necessarily worth what they have paid for them.
Click to expand...

On paper, per the latest accounts, they are worth more than they paid for them. However, you are quite correct - they are worth what somebody is prepared to pay for them.
 
Leicester City can confirm that discussions are ongoing with Mr Milan Mandaric in relation to the offer he has made for the football club.

As the board has previously stated, any decision regarding the football club must be reached in a measured and considered manner.

Integral to the decision-making process is that the short, medium and long term best interests of the football club are safeguarded at all times.

Mr Mandaric's bid is one of a number of options which the club is currently considering.

The board appreciates supporters' desire for detailed information but the content of all discussions must remain confidential at this time.
Click to expand...

There we go again, best interests of the club. Also the content of discussions are confidential. Perhaps FT didn't get that memo.:icon_lol:
 
drew said:
I see your point, although my basis was that the shareholders want back what they have put in. The shares that they have bought are not necessarily worth what they have paid for them.
Click to expand...

True, but neither should we be surprised that they who carried the risk want to negotiate the best deal possible.
 
Macky said:
There seems to me to be a lot of people who are really over simplifying the situation. Why should the shareholders just roll over at this early stage and accept the first offer put on the table and if they don't they are some how looking out for their own interests & don't really have the best interests of LCFC at heart??
That to me is a pile of bollix. As has already been said, there wouldn't be a club to follow if the current shareholders hadn't invested a few years ago when we almost went to the wall and I doubt that all of the shareholders are as well off as somebody like Lineker to just write the investment. If you had remortgaged your family home to buy shares to save the club would you just go with the first offer that was thrown down?? I know for a fact that I wouldn't & I'm not ashamed to say it.
Click to expand...


well said macky :icon_wink
 
I think it was misguided to mortgage your house to buy shares in a football club, maybe thats just me.
 
Status
Not open for further replies.
Log in to stop seeing adverts

P Pld Pts
1Liverpool2150
2Arsenal2244
3Nottm F2244
4Chelsea2240
5Manchester C  2238
6Newcastle2238
7Bournemouth2237
8Aston Villa2236
9Brighton2234
10Fulham2233
11Brentford2228
12Palace2227
13Manchester U2226
14West Ham2226
15Tottenham 2224
16Everton2120
17Wolves2216
18Ipswich2216
19Leicester2214
20Southampton226

Latest posts

Back
Top