777 Partners - New Poll Added 18/10/23

[CrimsonToffee]

The price of the club is £60m rising to £130m but I think Moshiri has c£500m in loans on the club.

I also had this thought based on some of the stuff that's come out. Basically, maybe £500m of the club's overall debt is owed on paper to Moshiri from capital injections he's made in the past (or the like)? The stuff about the "£60m rising to £130m" would just be for his shares directly, but any new owner would also be eventually paying him back the other £500m as part of paying off the overall debt, meaning they would be giving him in the end something in the ballpark of £550m - £600m.

In other words, might it just be a bit of confusing semantics based on reports simply being worded differently from different news outlets?

 

[pfim]

Ok, we have 550m EXTERNAL debt and 450m in shareholder loans.

But yes, its not debt in the true sense of the word.

So you take the 550 price, subtract 225 for RM, 25 for Metro, 140 for MSP and you’re getting closer to your high end of 130

 

[Rita_Poon]

Leveraged buyout but with other terms used to soften the reality?

 

[Goat]

So you take the 550 price, subtract 225 for RM, 25 for Metro, 140 for MSP and you’re getting closer to your high end of 130

Or, you take the 550 price, add 225 for RM, 25 for Metro and 140 MSP and you're getting utterly robbed.

 

[pfim]

Or, you take the 550 price, add 225 for RM, 25 for Metro and 140 MSP and you're getting utterly robbed.

You don’t quote values of equity. You value assets and subtract debt to get equity.

 

[Swartzy]

Or, you take the 550 price, add 225 for RM, 25 for Metro and 140 MSP and you're getting utterly robbed.

R&M can do one.. But who the hell is Metro

 

[Goat]

You don’t quote values of equity. You value assets and subtract debt to get equity.

Im not sure what equity has to do with anything mate.

 

[Goat]

R&M can do one.. But who the hell is Metro

Metro Bank.

We have a 25million pound overdraft with them.

 

[Swartzy]

Metro Bank.

We have a 25million pound overdraft with them.

It's just Never ending

 

[pfim]

Im not sure what equity has to do with anything mate.

You last post inferred Moshiri is getting 550 for his shares and debt (his equity). No one quotes the value of equity in a news story, certainly not in a private sale.

 

[Goat]

You last post inferred Moshiri is getting 550 for his shares and debt (his equity). No one quotes the value of equity in a news story, certainly not in a private sale.

So you think Moshiri is walking away with 130m?

 

[Goat]

But anyway, it seems very unlikely these people will be able to gather the funds needed to finalise this deal.

So I guess its back to the drawing board.

Lets just hope its not out of the chip fan into the fire.

What the future holds, nobody can say at this point, lets just hope there arent nuclear options being discussed at the highest level.

 

[EuroTexan]

So you think Moshiri is walking away with 130m?

I think it wishful thinking that his shareholder loans are not repayable just because they don't have a specific pay back date. My assumption would be that there's a clause in there like the MSP and R&M loans that they're repayable if/when the club changes ownership. Only the documentation for the loans would have that detail though, and thats not something we're going to be able to answer one way or another until the ownership actually changes hands.

Moshiri is an awful business man, but I really doubt he (and/or Usmanov) would be that clueless to invest 500m into an failing business without giving himself a method to extract it at a later date. And even if they were, they'd have legal teams advising them against this. I'd also think there's a reason why he's persisting with giving 777 every chance to get the deal across the line, when its dragged on this long, and its because they're offering a deal way better than anybody else, even if he has to wait until he receives it all.

 

[AndyC]

So much in there, but £60 million rising to £130 million to purchase the Club, I mean I must have missed this pricing structure but that seems ridiculously low?!

It's not a good read but as Esk is quoted on multiple occasions, i guess we can see the influence on the editorial, however, the April payment does us, as it is. It looks that simple for me.

Am I missing something here?

The price of £60m potentially rising to £130m is due to the associated debts and that 777/a new buyer will have to inherit.
A different party might tell Moshiri to whistle for his money due to the current debt and operating costs.

In a word, no, you’re not missing anything

 

[Moderatelywarmwater]

It’s not so long ago that people were saying that there was no issue at all and that Moshiri was an accountant and couldn’t possibly screw up our finances.
Happier times.