As has been discussed, there are a number of things to take into consideration when valuing a company ready for takeover. One of the biggest things that helps boost your share value is cash. Often in the corporate world you will see companies go on radical cost cutting drives six months before they put themselves up for takeover or prompted by a potential hostile bid. This is to increase cash in bank and boost the share value so that the outgoing execs walk with a fat cheque in their pockets. With Leeds there are a lot of negatives regarding valuation which will increase the value a new owner will have to pay but not necessarily the value of the shares. Elland Road and TA are two big issues, as I'm sure the new owner will want to buy these. If Bates does own ER and TA then he will definitely push up the prices outside of the LUFC valuation. There is also the season ticket borrowing which affects cash flow negatively. With incoming transfers stalling, it could be that Bates is trying to improve the look of cash flow by not paying out more wages. The bonus would be selling McCormack, Snods and Clayton to boost cash in bank. I am really excited, this buyout rumour is one of the best yet. It is underpinned by falling attendances, failure on the pitch and possibly Bates' ill health. Those three things combined are a potent combination. There are of course other rumours about failing businesses Bates invested in, but for me the three mentioned could well have decided how much fight Bayrs has left. His wife will probably also have her say in Bates taking it easy in their golden years. The biggest issue will be how mch Bates wants for the club. I reckon around £25m straight into his pocket will do it, and then the new owner will need to add the extra millions to clear debt and buy back facilities. Remember, Bates took £17m for Chelsea, and they owned their ground. Oh please let this takeover talk be true so that we can finally wave Bates goodbye.
I'll miss him when he finally goes If the new owners are dull, competent, never write idiosyncratic articles in the programme, are not aware you should pay prem prices for prem football, take a long term view on building up the fan base by making it attractive for youngsters to watch, invest in the team, don't cash in on our best players but keep them, at least do people ike the LUST the courtesy of speaking with them occasionally, don't set expectations they then fail to meet, are clean shaven, think "moron" is a word best not used of others, ... oh, and have huge financial resources so the club never seems to be constrained financially........ what will be the fun in posting on a forum like this? Keep Bates!
Canadian owners.....what the hell do Canadians know about 'soccer' ffs.....be careful what you wish for!
Tommy, if they know anything about running a business and not just assest stripping I am sure we will be in safer hands!
Quick point on valuation. When KB bought 50% of Leeds United for 10 million, Leeds United had circa 35 million of debt and a more favorable buy-back clause for TA. Using those skimpy details, KB would have valued teh club at approximately 60 million at that time (10m/50% + 35m +5m). I would expect that he would now value the club at more than that 7 years later. 70-90million would be a the likely range, I think. With a turnover of 33 million or so, and set, favorable ER and TA reacquisition prices, does not seem too far off.
Reading have announced that the takeover of the club by Russian tycoon Anton Zingarevich has been completed. Wonder how much he paid for 51% of Reading FC?
True, but this was BRA and BE, so the landscape has changed significantly! Oh, BRA and BE is Before Roman Abramavitch and Before Etihad.
My thoughts are what is included in the sale??? When he sold Chelsea he kept a flat that he sold back later (for a very tidy return). I do not like the way the Pavilion has been made into a separate company, I wonder if its not covered by the original ER sale & leaseback. Plus who owns "Teak Trading" the company based in the Virgin Islands that owns Elland Road...
