if there is any truth in this Mercury takeover rumour and write off of £30 million what will the position be re the training ground and houses only recently sold to various directors?
fingers crossed but the article does sound a bit contradictory in parts. If the Board do end up writing off 30m of their own money then fair play to them. I'd always hoped that RM and MS esp could sell the Club and see a profit for everything they had achieved but unfortunately bad decisions over the last two seasons seem to have put paid to that. Despite the last couple of years we should never forget what RM, MS, BW, RA etc achieved.
[cite]Posted By: LenGlover[/cite]A premature question probably BUT
if there is any truth in this Mercury takeover rumour and write off of £30 million what will the position be re the training ground and houses only recently sold to various directors?
I would imagine that they'll lease them back to the club, although I suspect the terms would be less favourable than if they were still in charge.
They can only write off £30m when the bank, auditors etc feel that it's prudent to do so. Ergo - they HAVE lost that money and they're NEVER going to get it back - so writing it off is just an accounting issue - it's not real - because whatever they get from the sale, is whatever they get from the sale.
Writing off £30m now will give them tax advantages in the short term but they may end up being hit by tax in the long term - however, as I repeat - you can only write something off when it's truly lost - and they are quite rightly, the ones that took the financial gamble, made all the decisions and lost ...
........... and some of them are bankers who put in their bonuses .... money they didnt deserve in the first place so no sympathy there.
if it is true they are losing out then one can only sympathise though for Richard Murray, perhaps Charlton's best Chairman (certainly in the early years and then the worst some would say)
Supaclive, you are talking about a technical "write off". Isn't Murray talking about the £30M that he and his fellow principle shareholders have invested which, if a deal goes through, they will not be receiving back when they sell their shares.
Assuming that the deal encompasses repayment of the convertable bonds and maybe repays the recent money put in (for the training ground etc), then the consideration paid to purchase the club and it's net assets will be circa £20M. What is left is the original purchase value of their shares which I suspect will amount to very little, hence "writing off" £30M.
If indeed this is the case and the deal does happen, then arguably those who risked most, ran the ship onto the rocks, will have to pay the price of this failure.
Murray said: “It is a huge commitment to write off the money we’ve invested. But I knew when I came into the club that I had to be willing to lose my money. Luckily I told the investors I brought into the club that they had to be prepared to do the same - and I think I’ll be proved right. But the club will carry on.”
Unluckily I didnt tell the Directors who I didnt bring to the club nor the fans with small shareholdings for whom it may be a significant loss.
[cite]Posted By: Imissthepeanutman[/cite]UnluckilyI didnt tell the Directors who I didnt bring to the club nor the fans with small shareholdings for whom it may be a significant loss.
So when exactly did you purchase your shareholding Peanutman? :-))
[cite]Posted By: Imissthepeanutman[/cite]UnluckilyI didnt tell the Directors who I didnt bring to the club nor the fans with small shareholdings for whom it may be a significant loss.
So when exactly did you purchase your shareholding Peanutman? :-))
Probably about the same time as Derek Chappell invested!! But thats irrelevant. And I thought you of all people Addickted would know that peoples financial circumstances can change dare I say for better or worse.
My point still stands in that its a rather bold sweeping statement from a person responsible for not just his own investment but that of others.
[cite]Posted By: kentred2[/cite]........... and some of them are bankers who put in their bonuses .... money they didnt deserve in the first place so no sympathy there.
[cite]Posted By: Imissthepeanutman[/cite]Murray said: “It is a huge commitment to write off the money we’ve invested. But I knew when I came into the club that I had to be willing to lose my money.LuckilyI told the investors I brought into the club that they had to be prepared to do the same - and I think I’ll be proved right. But the club will carry on.”
UnluckilyI didnt tell the Directors who I didnt bring to the club nor the fans with small shareholdings for whom it may be a significant loss.
But I don't suppose any supporters who bought shares expected, or wanted, any financial return. I certainly didn't. Fair play to RM, he's been the best chairman we've ever had. His bad decisions -- judged with the 100% accuracy of hindsight -- have been of a kind that are inherent in the uncertain business of professional sport. More like a run of bad luck or poor form really.
Comments
I'll believe it when I see it on the OS.
What the damp bloke said, I'm sooooo bored of football, I'm more concerned about the state of English cricket for the next few months
*swisdom gets some popcorn and unzips his flies in anticipation*
Ditto, without the cricket bit.
if there is any truth in this Mercury takeover rumour and write off of £30 million what will the position be re the training ground and houses only recently sold to various directors?
: - )
you old cynic you !!
However, if nothing happens by Thursday what's the betting they will refuse to discuss the 'T' word.
Writing off £30m now will give them tax advantages in the short term but they may end up being hit by tax in the long term - however, as I repeat - you can only write something off when it's truly lost - and they are quite rightly, the ones that took the financial gamble, made all the decisions and lost ...
if it is true they are losing out then one can only sympathise though for Richard Murray, perhaps Charlton's best Chairman (certainly in the early years and then the worst some would say)
Assuming that the deal encompasses repayment of the convertable bonds and maybe repays the recent money put in (for the training ground etc), then the consideration paid to purchase the club and it's net assets will be circa £20M. What is left is the original purchase value of their shares which I suspect will amount to very little, hence "writing off" £30M.
If indeed this is the case and the deal does happen, then arguably those who risked most, ran the ship onto the rocks, will have to pay the price of this failure.
Unluckily I didnt tell the Directors who I didnt bring to the club nor the fans with small shareholdings for whom it may be a significant loss.
I'm learning from the master ;0 )
Perhaps they've read your letter?
So when exactly did you purchase your shareholding Peanutman? :-))
Probably about the same time as Derek Chappell invested!! But thats irrelevant. And I thought you of all people Addickted would know that peoples financial circumstances can change dare I say for better or worse.
My point still stands in that its a rather bold sweeping statement from a person responsible for not just his own investment but that of others.
Does it shed any more light?
Go and buy one you tight wad ;-)
Can't seem to find one in the local newsagent's in Glasgow - strange that - so any update appreciated...
Hurry up Henry
:-)
But I don't suppose any supporters who bought shares expected, or wanted, any financial return. I certainly didn't. Fair play to RM, he's been the best chairman we've ever had. His bad decisions -- judged with the 100% accuracy of hindsight -- have been of a kind that are inherent in the uncertain business of professional sport. More like a run of bad luck or poor form really.
I've just gone down to my village papershop and bought the Cornish Times.
Unbelievably, there's nothing in there about any Charlton takeover.
Therefore, it can only be true when it's in the Cornish Times.
That's right, eh, Henry .... ?
;o)