£25m transfer budget

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Riceascaptain
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Re: £25m transfer budget

Post by Riceascaptain » Thu Mar 14, 2019 10:37 pm

I see Gonzo's thread has made it to WHO, your famous now Gonzo...

Anyway here's WHO's take on this...

http://westhamonline.net/forum_flat.php?9215769||1||

I really hope the opening post is wrong! If not I predict riots
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Neville Bartos
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Re: £25m transfer budget

Post by Neville Bartos » Thu Mar 14, 2019 11:42 pm

Like Gonzo gives a monkeys about WHO.
He's been on the telly, I've seen him. I don't know the particulars of his BBC contract, but I'm guessing he's up there with John Humphrys.
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Whiskyman
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Re: £25m transfer budget

Post by Whiskyman » Thu Mar 14, 2019 11:55 pm

hd1 wrote:
Thu Mar 14, 2019 8:46 pm
Whiskyman wrote:
Wed Mar 13, 2019 3:53 pm
Paying off the debt will make absolutely no difference to the "attractiveness" of the club to a potential buyer. Any debt would be reflected in the price asked and would be factored into any negotiation.
Would you like to buy my car? I have a loan on it so you can have it at an adjusted price and clear the loan or you can buy one with no outstanding debt. Which would you really choose?

The reality is the club is worth more debt free and the terrible twins will want every ounce they can squeeze out of it
Not really a good comparison is it. If you owed money on your car it would still be owned by the finance company so you couldn't sell it. Nonetheless if you offered me a £25,000 car, on which you still owed £5,000, for £20k if I paid off the loan it would be exactly the same as me paying you £25k for the car in the first place. Business debt is no big deal as long as the business earns sufficient money to service it.
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hd1
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Re: £25m transfer budget

Post by hd1 » Fri Mar 15, 2019 9:17 am

You're right it isn't a good example, as you wouldn't expect to turn a profit on a car you buy.

Would you buy a business that is debt free and making a small profit, or would you buy a similar business that has debt and apparently is struggling to pay it off?

If you were selling would you prefer to be repaid your Director/Shareholder loans on the sale and get a modest amount for the club, or repay yourself prior to sale and get a decent amount for a debt free profitable club?

There are of course lots of factors, but the value of the club will be more if it is debt free and profitable.
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OZHAMMER
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Re: £25m transfer budget

Post by OZHAMMER » Fri Mar 15, 2019 11:03 am

WestHam67 - Was this the poster that used to be on HammersMad? Had a boxing kangaroo as his avatar?
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Parry Hotter
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Re: £25m transfer budget

Post by Parry Hotter » Fri Mar 15, 2019 1:56 pm

hd1 wrote:
Fri Mar 15, 2019 9:17 am
You're right it isn't a good example, as you wouldn't expect to turn a profit on a car you buy.

Would you buy a business that is debt free and making a small profit, or would you buy a similar business that has debt and apparently is struggling to pay it off?

If you were selling would you prefer to be repaid your Director/Shareholder loans on the sale and get a modest amount for the club, or repay yourself prior to sale and get a decent amount for a debt free profitable club?

There are of course lots of factors, but the value of the club will be more if it is debt free and profitable.
Dont think you get it do you. If club was sold I think whiskeys saying the value would include what the debt is so it dont make any diffrence if theres debt or not. All the figures are on the clubs website and clubs debt is about 74 million thats debt thats due after more than a year so is probably what is owed to sullivan and gold. All boring stuff to me but anyone can read it if their intrested its on
https://www.whufc.com/sites/default/fil ... esults.pdf
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hd1
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Re: £25m transfer budget

Post by hd1 » Fri Mar 15, 2019 5:32 pm

I think I do, and I know how buying a company works.

If you buy a company with debt, the price might be less because of the debt. The dwarf will want to get the highest value when he sells, and that won't be if the club still has debt.
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Parry Hotter
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Re: £25m transfer budget

Post by Parry Hotter » Fri Mar 15, 2019 7:41 pm

hd1 wrote:
Fri Mar 15, 2019 5:32 pm
I think I do, and I know how buying a company works.

If you buy a company with debt, the price might be less because of the debt. The dwarf will want to get the highest value when he sells, and that won't be if the club still has debt.
Keep it simple. Company is valued at 100 million. Take west hams case their is a debt of 75 million showing in the clubs books. So if someone buys the club they would have to agree to take on the debt or pay off the debt. So they pay 100 million minus 75 million = 25 million. Or if the debts paid off before the club can be sold for the full 100 million because there aint no debt left. sullivan and gold would end up with the same amount of money. So if dwarf sells it wont make no difference to him.
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hd1
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Re: £25m transfer budget

Post by hd1 » Sat Mar 16, 2019 4:52 pm

Your making the assumption, wrongly, that the club is worth the same irrespective of debt
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eskimo joe
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Re: £25m transfer budget

Post by eskimo joe » Sun Mar 17, 2019 8:14 am

i would say a thousand pound Rolex is worth a thousand pound regardless of if the wrist its on owes 600 pound . No ones gonna pay a thousand pound plus the 600 to own it. Pay the 1000 or pay 400 and take on the debt. Either way the original owner walks with the same . But im guessing thats too simple.
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