What is a fair price for Port Vale FC?

[cheeky]

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

 

Is being a beller hard wired into you Mark? Or are you a bit worried that your slanderous comments under thecharlatans user name, against Mo, may come back and bite you, now that people on here know who you are.

[boomer's vet]

It's a shame at a time like this Cheeky resorts to bickering, but it's not surprising.

 

Warren is a top public sector accountant, he understands thoroughly the extent of our plight, I merely suggested fairportnick shouldn't be so dismissive.

 

However, thanks to Nick for your breakdown of the situation.

[Animal]

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.

 

1 - This is just one of many options for the administrator

 

2 - The asset wont be valued under FRS 15...this is totally irrelevant. There are no 'rules' in determining what an potential buyer should and shouldnt pay. Its worth what its worth to that individual showing an interest.

 

Think you might be blurring the reality with irrelevant technicalities.

[fairportnick]

1 - This is just one of many options for the administrator

 

2 - The asset wont be valued under FRS 15...this is totally irrelevant. There are no 'rules' in determining what an potential buyer should and shouldnt pay. Its worth what its worth to that individual showing an interest.

 

Think you might be blurring the reality with irrelevant technicalities.

 

Isnt that what I said/

 

FRS is exactly what it stands for - a Financial Reporting Standard ie how things should disclosed in a set of accounts. It has little to do with what you sell them for in a break up situation.

[Valiant1981]

£1, with a discount of whatever the administrator manages to raise for the nil paid shares.

 

Taking on the other £3m debt to pay for the asset of the ground.

[Vale]

so rather than bickering what are your guesses as to the final selling price :rolleyes:

[Guppy 4 England]

I would guess at around 250k.

 

The new buyer will cherry pick which liabilities they are willing to take on , i.e council loan. Then transfer the ground, staff, debtors, etc. across to the new company with the 250k being divided up between the remaining creditors, bearing in mind the FL will take their share, the admin guys/financial gurus will want a cut even though they have probably already been paid and HMRC, leaving about 50k to be shared between the rest.

 

Funny thing will be lemon zests deals, i think if a new company buys out the old v2001 then they can implement their own catering facilities!! I know who i would be taking to court....

[Ian der Laan]

It's worth what it's worth and no more.

[tisdeano]

so rather than bickering what are your guesses as to the final selling price :rolleyes:

 

750,000 With a new mortgage via the new company for the council loan

[Animal]

It's worth what it's worth and no more.

 

I disagree... :D

[Santa]

If a supplier of the old company refuses to do business with the new company because they are out of pocket, would the new company be allowed to make a discretionary payment as goodwill, or does that prejudice the other creditors who only receive x pence in the pound?

[Tone]

There are two scenarios, at least. Both of the ones I have in mind end up with existing shareholders, all 950 or so of us, getting nothing and having no future part of the club.

 

1. A buyer comes in and pays each shareholder one pound. That is the way it works in such cases. The buyer then assumes the debt and acquires the assets.

 

2. Administration, with the enormous costs attached going to a third party administrator, each shareholder getting nothing. The administrator then sells the assets and pays creditors, some of whom will get nothing. Plus the club gets docked 10 points.

 

I know which I would prefer.

[fairportnick]

If a supplier of the old company refuses to do business with the new company because they are out of pocket, would the new company be allowed to make a discretionary payment as goodwill, or does that prejudice the other creditors who only receive x pence in the pound?

 

It is allowed, it would be a trading payment if it was in the interests of the new co's trade.