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Latest Takeover Rumour. The Moores / Noell one

Are you For or Against the idea of the possible Moores / Noell takeover ?


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the club is undervalued if its available for £200mil. Not only in terms of players/assets but revenues.

Totally disagree. The club is not worth £200 million precisely because of the lack of investment over the years. The amount of Capex required to make good what has been neglected for years pushes the price of the equity down.

The purported value of the squad also needs to heavily discounted as in all other football club acquisitions. No-one pays market value for squads in football club acquisitions because they're market value is so questionable and potentially short lived, You also have to look at contract lengths and the two factors combined create a heavy discount on "market value". Re other assets we have none, so they have zero value in an acquisition.
 
My somewhat realistic dream right now would be takeover to be sorted by middle of January, new owners to bring in 1-2 signings, Martinez is sacked come may for a poor 11th place finish, Flores is signed up and given funds to bring Igahlo with him in the summer to partner Rom who signs a new £140k a week contract.
 
True about the player valuations. Theres supposedly a "formula" i read somewhere absolutely ages ago which showed how they were calculated in the event of a sale.

Although surely lets say certain players were sold off the value of the club should be higher than the amount generated in player sales...

E.g £200mil today then after a takeover:
Lukaku and Stones off for say £120mil wouldnt decrease the value to £80mil...

Totally disagree. The club is not worth £200 million precisely because of the lack of investment over the years. The amount of Capex required to make good what has been neglected for years pushes the price of the equity down.

The purported value of the squad also needs to heavily discounted as in all other football club acquisitions. No-one pays market value for squads in football club acquisitions because they're market value is so questionable and potentially short lived, You also have to look at contract lengths and the two factors combined create a heavy discount on "market value". Re other assets we have none, so they have zero value in an acquisition.
 
True about the player valuations. Theres supposedly a "formula" i read somewhere absolutely ages ago which showed how they were calculated in the event of a sale.

Although surely lets say certain players were sold off the value of the club should be higher than the amount generated in player sales...

E.g £200mil today then after a takeover:
Lukaku and Stones off for say £120mil wouldnt decrease the value to £80mil...

No because the club would have £120 million in cash or receivables.

However you then have to replace those players with players of equal standing, so what does that achieve?
 

Well, depends on what the majority shareholders plan is...could be they just give Martinez a tiny bit of the cash...

So if they bought the club for £200mil + received £120mil in cash then logically they could still sell the club and make a substantial profit on day 1...thats what i mean by undervaluing the club...

No because the club would have £120 million in cash or receivables.

However you then have to replace those players with players of equal standing, so what does that achieve?
 
Well, depends on what the majority shareholders plan is...could be they just give Martinez a tiny bit of the cash...

So if they bought the club for £200mil + received £120mil in cash then logically they could still sell the club and make a substantial profit on day 1...thats what i mean by undervaluing the club...

On thin ice arguing this stuff with Esk mate.
 
That's incredibly naive.

If you don't replace those players you'll have a weaker team which is going to perform poorer on the pitch, leading to decreased revenue and a possibility of relegation. You'd end up with a club which might be worth what you paid for it, but could easily be worth less.

Well, depends on what the majority shareholders plan is...could be they just give Martinez a tiny bit of the cash...

So if they bought the club for £200mil + received £120mil in cash then logically they could still sell the club and make a substantial profit on day 1...thats what i mean by undervaluing the club...
 

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