Back in 2017 I pointed out that Wasps revaluation of the arena was sheer fantasy. I also predicted that Wasps would be unable to repay the bond in 2022. Those predictions were made FIVE years ago and have turned out to be 100% accurate.
I received a lot of ill-informed *feedback* which is why I haven't posted for a few years. Now I have been vindicated maybe I'll come back ... or maybe not?
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Trying to educate people about valuations is proving to be onious.
In reality there is only 1 valuation that actually matters, and that's the price a buyer is willing to pay.
Accountants very often deliberately over value business assets to balance the books in a companies accounts.
It's considered a bit naughty, but they know that unless an asset is up for sale, it's valuation is irrelevant, and as such can be "adjusted" to show profit or loss and reduce a tax liability.
Estate agents used to regularly over value a property, just to get it onto their books, and then 2 months down the line, convince the seller to drop the price to a more realistic level. But this would prevent other estate agents from securing the sale.
People suggesting that the Ricoh was sold on the cheap, fail to realise that when there's only 1 buyer in town, that buyer sets the price. The valuation becomes irrelevant.
Anyone who thinks other potential buyers were precluded or kept in the dark about the availability of the Arena are quite clearly living in a fantasy.
Everyone knew it was available, a number of potential suites looked at it, (the NEC for one) but ultimately there was only 1 party actually ready and willing to commit.
The council wanted the massive financial burden off their books, and snapped Wasps hand off.
An empty arena would of cost the coventry council tax payers hundreds of thousands of pounds a year, it was hemorrhaging money every week at a time when local funding was already stretched to breaking point and key services where being cut.
There's no doubt that the council's decision to sell to Wasps was a massive blow to CCFC, but given the behaviour of SISU, it was the only sound decision available at the time.
People are arguing if CCC could of got more money, but that is basically accepting that the decision to sell was correct, just the price being the issue.
