What is a fair price for Port Vale FC?

[fairportnick]

The question is complicated and I can't answer it and certainly not without complete information about liabilities / creditors. An administrator needs to find a buyer who will take over responsibility for paying the creditors. So lets assume Port Vale owes £4 million. Then we have the issue of what the fixed assets are worth. Under FRS 15, the business is not a going concern presently and therefore it may be that the open market value is the correct one. If not the value will be as currently valued under FRS 15 which is a mix of general assets, specialsed assets and surplus assets all valued on different bases. Then we have to look at the potential future income stream of the club and how that can be valued.

 

Of course an administrator is also hoping their is multiple interest so a competition takes place.

 

All to play for in other words.

 

The business is worth what someone is prepared to offer for it. Accounting standards are irrelevant.

[akay313]

considering the debts and giving a fighting chance of turning the club around I believe that they should accept £1 and the buyer to pay off the debts with the money instead!

[Andyregs]

no, the council have first grab on the land, admin or not, just like your home, if you go bankrupt and have a mortgage they take your house back

 

So where does this idea of agreeing so many pence per pound with the administrators come from?

[tisdeano]

So where does this idea of agreeing so many pence per pound with the administrators come from?

 

un-secured debts

[Santa]

You pay an amount to the administrator for the business which is then distributed pro-rata between the creditors. Hence x pence in the pound.

 

Council are secured creditors though so they are higher up the queue than unsecured ones.

[tisdeano]

You pay an amount to the administrator for the business which is then distributed pro-rata between the creditors. Hence x pence in the pound.

 

Council are secured creditors though so they are higher up the queue than unsecured ones.

 

And if they wanted could liquidate us and have the first claim of 1.8m on the sale of the ground.....I assume

 

This makes it different when comparing it to last time, however its also more in our favour one way as we need 75% creditor approval, the Council is easily the largest creditor

[Toby]

I'll go for the same again £1,150,000 and I clearly have no idea this time as its not even in admin (as I didn't for the HRMC sweep :rolleyes: )

 

What's your guess?

 

Ballcocks, I'm not falling for that again! :D

[Dingos2011]

if its going cheap i fancy buying in......

 

seriously the debts wud remain, but with a bit of sense can be easily restructured, and budget can be managed to ensure everything is affordable.

 

I mean without the clowns obviously making a mess of things its potentially a good business, if run properly.

 

and being Chairman / Owner / CEo has to have its perks!!!

 

Worth a punt...anyone fancy joining me in a consortium?

 

Whats the worst that could happen, everyone could end up hating me, the club be in a worser mess than when i bought it.....but id walk away with a chunk of shares and i havent had top go to my real job for a few years until i got caught out!!

 

Ill start the bidding now.................can we put ourselves on ebay?

[boomer's vet]

The business is worth what someone is prepared to offer for it. Accounting standards are irrelevant.

 

I'd listen to what Warren says if I were you, he knows what he is talking about believe me!

[fairportnick]

It looks like folk are getting confused betwen two different methods of settling this -

 

One - the company (ie the shares) could be sold to someone willing to put cash in or take on large guarantees. This is where paying a penny for it comes from. This is a no go as you take all the crap.

 

Two - the companies assets or trade are sold to another company . Depending upon the agreement or the sufficiency of the purchase price the secured loans could either move with the assets (thus lowering the price) or stay and be settled from the purchase moneys.

All rules (ie 24.9% ) would stay with the old company, as would unsecured creditors, who would only get paid if there was any surplus. All contracts would die with the old company.

[fairportnick]

I'd listen to what Warren says if I were you' date=' he knows what he is talking about believe me![/quote']

 

So do I, Charley boy.

[robf]

It looks like folk are getting confused betwen two different methods of settling this -

 

One - the company (ie the shares) could be sold to someone willing to put cash in or take on large guarantees. This is where paying a penny for it comes from. This is a no go as you take all the crap.

 

Two - the companies assets or trade are sold to another company . Depending upon the agreement or the sufficiency of the purchase price the secured loans could either move with the assets (thus lowering the price) or stay and be settled from the purchase moneys.

All rules (ie 24.9% ) would stay with the old company, as would unsecured creditors, who would only get paid if there was any surplus. All contracts would die with the old company.

 

Nick, in layman's terms does that mean that should a new company be formed the old company's rules of association would no longer apply to it?

 

I assume that would be the case but I just wanted to check.

 

Thanks for the explanation!

[fairportnick]

Nick, in layman's terms does that mean that should a new company be formed the old company's rules of association would no longer apply to it?

 

I assume that would be the case but I just wanted to check.

 

Thanks for the explanation!

 

The new company would set up its own Articles , which would have to satify Company Law and the FL.

As for valuing assets they are only ever worth what someone will pay. Someone can value a property at say £2m but if no one offers more than £1m , thats all you are ever going to get, unless you stay in limbo, incur more and more costs and hope someone will come in with something better. There has to be a cut off point , unless the asset is producing income.

[Mr Football]

I'd listen to what Warren says if I were you' date=' he knows what he is talking about believe me![/quote']

 

But not the difference between there and their... :-)

[1]

Last time it was £1.225 million.

 

I certainly doubt it will be more than £1.5 million so will go for the same again.

 

Worth the same as the best part of a decade ago. Progress on and off the pitch.