What Would They Be Buying?

[Melton Fox]

Following on from a recent telephone conversation with a fellow TB'er, I wonder if anybody alse can answer this question:

If Leicester City were to receive a purchase offer for the club, what exactly would the buyer be getting for their money, and what figure do you think that would be?

 

[drew]

£1.00 for every share issued i would imagine. The buying price when we came out of administration. If we knew how many shareholders and how many shares they owned you could work it out.

 

[Melton Fox]

£1.00 for every share issued i would imagine. The buying price when we came out of administration. If we knew how many shareholders and how many shares they owned you could work it out.

But what would they physically own?

 

[newtonfox]

But what would they physically own?

they would only own LCFC and not the ground as we still own for the ground you would need around 20-25 mill on top to own it all IMO

 

[Melton Fox]

So they would be buying a brand?

 

[newtonfox]

So they would be buying a brand?

and company yes

 

[Melton Fox]

and company yes

But as it stands we don't own anything, we are nigh on worthless. Apart from a few football kits, footballs, drinks bottles, lawnmowers and stock for the club shop we have FA

 

[newtonfox]

But as it stands we don't own anything, we are nigh on worthless. Apart from a few football kits, footballs, drinks bottles, lawnmowers and stock for the club shop we have FA

thats about it
thats why if MM did buy us it wouldnt cost as much as if he went and bought wolves so he could turn him investment around in a very shot time and make us a club again

 

[harry]

they would only own LCFC and not the ground as we still own for the ground you would need around 20-25 mill on top to own it all IMO

Not quite sure about that. If I remember rightlywe purchased the land from Power Gen and spnet alot of money getting it cleaned to council standards. Teachers lent us the money to build the stadium. We owe about £16m and rising since we only pay interersest.

 

[OldGit]

The stadium itself has very little intrinsic value, apart from its land value - unlike say a house , office block, factory etc - as it has very limited use other than football. What the club does have by way of an asset is the exclusive right to use it through whatever arrangement exists with the Teachers fund. That includes the exhibition facilities and other potential non football uses of the site (like the Sunday markets)

Other assets include the players' registrations and the club's league membership (not in itself saleable, but without it the rest is worth nothing).

You need to look at the balance sheet to see exactly what assets exist and what value is assigned to them.

 

[Durham Fox]

They would also own the squad Melton, so add 50p on to your valuation :icon_lol:

 

[Babylon]

The lcfc name and it's brand.
A championship level club and all it's players.
The training ground (worth a good wedge).
A % of the stadium that has already been paid off.

 

[Brauny Blue]

The lcfc name and it's brand.
A championship level club and all it's players.
The training ground (worth a good wedge).
A % of the stadium that has already been paid off.

And they'll throw in Bernie as well:icon_bigg

 

[Yorkshire Vixen]

And they'll throw in Bernie as well:icon_bigg

in the canal...

 

[Ox Fox]

If he floats he's a witch

 

[Melton Fox]

Would they own the players?, are they just employees?, if your company is bought out are you classed as assets or employees.

I would suggest that our players are more of a liability than an assett

 

[Tamworth Fox]

Would they own the players?, are they just employees?, if your company is bought out are you classed as assets or employees.

I would suggest that our players are more of a liability than an assett

Players are under contract and we can value them at what ever price we want to therefore they are an asset to the company but i would make an exception and agree with you some of our players are a liability.

 

[bocadillo]

£1.00 for every share issued i would imagine. The buying price when we came out of administration. If we knew how many shareholders and how many shares they owned you could work it out.

That woud be to presume that the club is still worth what was paid to bring it out of administration - and I am sure that it isn't I would be surprised if the people who invested then think that they will get more than a small percentage of their money back.

 

[Jeff]

That woud be to presume that the club is still worth what was paid to bring it out of administration - and I am sure that it isn't I would be surprised if the people who invested then think that they will get more than a small percentage of their money back.

The club cost the current shareholders £5 million, more shares have been issued since then, so it's probably more like £6 million that was paid for the club.

I'd be very surprised if it's worth less than that now.

At the time of administration we had a lot of debts which have been reduced significantly since then.
I think our players are worth more than they were at the time of administration. Although our players were better then, the better players were on big contracts and as we'd found out the previous summer, no one wanted to buy them, so they were more of a financial liability than an asset.

But although you can place a value on a club by looking at assets like players, property, potential etc, minus debts, in reality that doesn't necessarily mean that's how much someone could buy it for, like in all business sales it's down to what the current owners will accewpt, and what a potential new owner is prepared to pay.

 

[bocadillo]

The club cost the current shareholders £5 million, more shares have been issued since then, so it's probably more like £6 million that was paid for the club.

I'd be very surprised if it's worth less than that now.

At the time of administration we had a lot of debts which have been reduced significantly since then.
I think our players are worth more than they were at the time of administration. Although our players were better then, the better players were on big contracts and as we'd found out the previous summer, no one wanted to buy them, so they were more of a financial liability than an asset.

But although you can place a value on a club by looking at assets like players, property, potential etc, minus debts, in reality that doesn't necessarily mean that's how much someone could buy it for, like in all business sales it's down to what the current owners will accewpt, and what a potential new owner is prepared to pay.

... and I am sure that it will be a lott less than was paid. That was my point - not that we'll ever find out the true figures if the club ever was to be sold.