The Everton Board Thread 2014/15

[The Esk]

Thats the thing though isnt it? Like the direct valuation/equity of the club as a snapshot rarely bears a resemblance to the actual "real" value of it does it?

Like, a few years ago, the share price of BA "valued" it that day at an amount less than the scrap or second value of their fleet of planes. But buying it that day would have cost a lot more than that, cos a real valuation would be able to factor in goodwill, brand, etc etc.

Or something like that.

The market believes Everton is only worth £49 million based on the current share price.....

 

[roydo]

The market believes Everton is only worth £49 million based on the current share price.....

Not publicly quoted though is it? Mega titchy turnover of shares, so largely irrelevant, unless someone wanted to buy the club.

 

[SerenityNigh]

Thats the thing though isnt it? Like the direct valuation/equity of the club as a snapshot rarely bears a resemblance to the actual "real" value of it does it?

Like, a few years ago, the share price of BA "valued" it that day at an amount less than the scrap or second value of their fleet of planes. But buying it that day would have cost a lot more than that, cos a real valuation would be able to factor in goodwill, brand, etc etc.

Or something like that.

A business should be valued at some multiple of future earnings. Art has low earnings (but high psychic value) but a large potential future windfall. A football club is somewhere between a business and a piece of art.

 

[SerenityNigh]

The market believes Everton is only worth £49 million based on the current share price.....

If I believed my business would be sold soon for £100m and I could buy shares at half that from smaller holders, I'd be on the phone with my broker.

 

[roydo]

A business should be valued at some multiple of future earnings. Art has low earnings (but high psychic value) but a large potential future windfall. A football club is somewhere between a business and a piece of art.

It is certainly difficult applying the normal business standards to a Football Club, thats for sure!

 

[Goat]

If I believed my business would be sold soon for £100m and I could buy shares at half that from smaller holders, I'd be on the phone with my broker.

Bill hoovers up any shares he can.

 

[The Esk]

Personally, I think the total equity of the club is worth no more than £100m which would provide a 7% per annum return for Bill since 1994. @Visitor22 is using the £150m valuation which is the widely accepted price the Board have been looking for.

@SerenityNigh Sorry I made an error. Bill acquired his shares in 1999 which gives him a return of over 9% assuming a valuation of £100m

 

[The Esk]

Bill hoovers up any shares he can.

Not strictly true, he's made an acquisition of a further 290 shares in the last couple of years bringing his shareholding to 9,044.

 

[roydo]

Not strictly true, he's made an acquisition of a further 290 shares in the last couple of years bringing his shareholding to 9,044.

A FTSE company probably trades that many every nano second.

 

[Goat]

Not strictly true, he's made an acquisition of a further 290 shares in the last couple of years bringing his shareholding to 9,044.

And how readily available are the shares?

I mean say I suddenly had a spare 10k, could I buy shares with ease?

 

[SerenityNigh]

There's only 3 reasons to do a debt/equity swap - (i) you believe the enlarged equity is more valuable in a debt free company than under the previous arrangements, (ii) you can use the debt write off elsewhere within your corporate structure/holding company for tax purposes or (iii) you have to write off debt due to regulatory pressure (in the case of football clubs FFP)

I assume there is some US tax benefit to foreign debt, but I don't know how that would work. If the money is sunk, at least get something (US tax write off) out of it.

 

[roydo]

And how readily available are the shares?

I mean say I suddenly had a spare 10k, could I buy shares with ease?

Doubt it. Not with ease anyrate. But with some help from a broker, there are probably a few available.

 

[SerenityNigh]

1. Tax.
2. Maximise management fees he could continue to charge.

I'm pretty sure management fees are relevant to revenue and not debt

 

[The Esk]

And how readily available are the shares?

I mean say I suddenly had a spare 10k, could I buy shares with ease?

yep, might take a few days but there are shares available

 

[SerenityNigh]

Never known a business man ever to put money into something without getting a return out. Ever.

Really? You could read 15 minutes a day and get at least one new example.

Maybe you've heard of this guy from California?

http://simson.net/ref/NeXT/aboutnext.htm

*to be fair, he did sell NeXT to Apple for a fair sum, but only after he took substantial losses for 8 years.