Todays Meeting

[drew]

But if you spend the money you then have an additional asset that contributes to the value of the company.

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.

 

[Real Sharapova]

Also the less the shareholders take, the greater the remainder, the greater the investment into the club

.....and greater the amount Mandy takes out of the club.

 

[The Voice From Above]

But if you spend the money you then have an additional asset that contributes to the value of the company.

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?

 

[Real Sharapova]

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.

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.

 

[Jeff]

That is what i posted earlier, the only way it will increase the value if it was used to purchase an asset.

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.

 

[Jeff]

Only if it is spent wisely surely?

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.

 

[OldGit]

Also the less the shareholders take, the greater the remainder, the greater the investment into the club

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.

 

[drew]

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.

 

[Jeff]

The shares that they have bought are not necessarily worth what they have paid for them.

No, they're only worth what someone will pay for them. But that doesn't mean they should accept the first offer they get.

 

[Melton Fox]

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.

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

 

[Real Sharapova]

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.

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.

 

[drew]

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.

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:

 

[Melton Fox]

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:

:icon_lol:

 

[OldGit]

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.

True, but neither should we be surprised that they who carried the risk want to negotiate the best deal possible.

 

[Yorkshire Vixen]

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.

well said macky :icon_wink

 

[drew]

I think it was misguided to mortgage your house to buy shares in a football club, maybe thats just me.

 

[Real Sharapova]

well said macky :icon_wink

Ditto.

 

[Leigh]

Anyone see this article in the Merc? http://www.thebluearmy.co.uk/detail...004231&parentkey=1D29|0|2185366269754|p|536|0 Has this quote from whoever wrote it

I know of two major shareholders who are not going to exercise their right to any money and will leave it in the club.

 

[The Voice From Above]

Anyone see this article in the Merc? http://www.thebluearmy.co.uk/detail...004231&parentkey=1D29|0|2185366269754|p|536|0 Has this quote from whoever wrote it

The article is directed at the FT imo.

 

[Melton Fox]

The article is directed at the FT imo.

That's what I thougt, it also apears to be written by a fan of the club who sees it all going down the pan