New Stadium financial viability. (34 Viewers)

[wingy]

The reason I reloaded this thread was It was'nt clear what or how Higgs would come out of it If SISU Cleared the YB loan @ 50% value and It comes from that Les Reid Interview
so here It Is ,Ive left a decent segment before hand as It Is relevent but the penultimate sentence Is where the Devil Is In the detail.

Property consultant CBRE – hired by Otium to seek a new stadium site and develop plans – confirmed it is also valuing the Ricoh site.
The Telegraph understands it is producing two valuations – for a “trading asset” and a “land asset”.
Council sources last year claimed the Alan Edwards Higgs Charity was provisionally prepared to sell its half-share in ACL for £4m.

Ricoh Arena It also appears CBRE - acting for ACL last year – valued the Ricoh Arena business and all its assets at between £7m and £9m.
The figure is revealed in the council’s own response to Sisu companies’ High Court application for a Judicial Review over the £14m mortgage buyout.
ACL had an outstanding loan of £15m, which Yorkshire Bank secured against all of ACL’s assets.
On December 11 last year, after months of the club withholding the majority of £100,000-a-month due rent, and other financial concerns, the Clydesdale Bank/Yorkshire Bank wrote to ACL quoting the CBRE Ricoh valuation.
It added: “...In our reasonable opinion the security that we hold is not longer sufficient to cover our exposure in respect of the facility (loan).”
Before then, there had been discussions between the council, ACL and Sisu about buying out the bank loan as part of a package that would see Sisu acquire the Higgs Charity’s 50 per cent share in ACL.
The council and club would produce their own surveyors’ valuations, and Otium directors have suggested a half-way figure could be agreed

 

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[dongonzalos]

Still no explanation of how we can actually get the money back to investors via plan 'A'


The trust have been rejected can the CET (Simon) offer to assist with arranging a forum.

Or maybe CWR (Stuart)

Or maybe simply ask the questions in our behalf?

 

[italiahorse]

The reason I reloaded this thread was It was'nt clear what or how Higgs would come out of it If SISU Cleared the YB loan @ 50% value and It comes from that Les Reid Interview
so here It Is ,Ive left a decent segment before hand as It Is relevent but the penultimate sentence Is where the Devil Is In the detail.

Property consultant CBRE – hired by Otium to seek a new stadium site and develop plans – confirmed it is also valuing the Ricoh site.
The Telegraph understands it is producing two valuations – for a “trading asset” and a “land asset”.
Council sources last year claimed the Alan Edwards Higgs Charity was provisionally prepared to sell its half-share in ACL for £4m.

Ricoh Arena It also appears CBRE - acting for ACL last year – valued the Ricoh Arena business and all its assets at between £7m and £9m.
The figure is revealed in the council’s own response to Sisu companies’ High Court application for a Judicial Review over the £14m mortgage buyout.
ACL had an outstanding loan of £15m, which Yorkshire Bank secured against all of ACL’s assets.
On December 11 last year, after months of the club withholding the majority of £100,000-a-month due rent, and other financial concerns, the Clydesdale Bank/Yorkshire Bank wrote to ACL quoting the CBRE Ricoh valuation.
It added: “...In our reasonable opinion the security that we hold is not longer sufficient to cover our exposure in respect of the facility (loan).”
Before then, there had been discussions between the council, ACL and Sisu about buying out the bank loan as part of a package that would see Sisu acquire the Higgs Charity’s 50 per cent share in ACL.
The council and club would produce their own surveyors’ valuations, and Otium directors have suggested a half-way figure could be agreed

Can't get my head round this.
Is the valuation of £7M without a football club leasing the stadium. Would it bounce back to £14M once SISU acquired ACL and then bought the club back ?

 

[letsallsingtogether]

Maybe they could borrow the money from Nuneaton Council and find a local charity to help them out.

Then after a few years when they are back on there feet they could buy back the loans?

Just thought......:thinking about:

 

[Noggin]

I've seen alot of insinuation that because the valuation of the ricoh business was between 7m and 9m that somehow the council were stupid to lend them 14m. because why would you lend 14 mill to something worth 7m.

This seems to me to be a complete misunderstanding of the facts. the valuation of 7m takes into account that ACL owed 14m to the bank. So actually the valuation without the bank loan is 21m. You take into account the assets and liabilities of a business when valuing it. Thats why you can buy a business with tens of millions of pounds in value land and property for a pound , because the liabilities lower the value.

If I sell my house I'll have 50k left after clearing the liabilities but I can still get a replacement mortgage for 100k because taking on the mortgage clears the liabilities (the current mortgage),

 

[bigfatronssba]

I've seen alot of insinuation that because the valuation of the ricoh business was between 7m and 9m that somehow the council were stupid to lend them 14m. because why would you lend 14 mill to something worth 7m.

This seems to me to be a complete misunderstanding of the facts. the valuation of 7m takes into account that ACL owed 14m to the bank. So actually the valuation without the bank loan is 21m. You take into account the assets and liabilities of a business when valuing it. Thats why you can buy a business with tens of millions of pounds in value land and property for a pound , because the liabilities lower the value.

If I sell my house I'll have 50k left after clearing the liabilities but I can still get a replacement mortgage for 100k because taking on the mortgage clears the liabilities (the current mortgage),

And if a valuation of CCFC was done on the same basis, it would be worth around -£50m.

 

[wingy]

And if a valuation of CCFC was done on the same basis, it would be worth around -£50m.

Not If you know how to do a bit of this ,who does this remind you of ,pay attention to the Hybrid bit at the end.


Distressed Asset 3

This business was a fallen angel. A Premiership pedigree and brand in a financially distressed position.

The challenge was to review and restructure the capital structure to encourage fresh investment into the business.

A first step was to create a valuation and cash flow sensitivity model for the business.

A second step required an analysis of the playing assets in respect of valuation and ‘liquidity’.

A third step required for wholesale restructuring of the business with previous vertical business streams around the first team, development squad and academy being replaced with horizontal management integration. This facilitated the creation of value with bright aspiring assets being played in the first team and creating instant value.

In respect of financing then long dated, expensive debt was replaced with short term, rolling asset backed financing. This facilitated cash flow stabilization.

A further hybrid instrument was created such that the debt element had repayment points linked to transfer window activity and equity convertibility was linked to overall asset performance.

 

[dongonzalos]

Yes I can see them returning as tenants I can't see any other option. Agree a long term rental on cracking terms turn the club into a profitable business. Sell the dream to someone recoup most of the debt.

Can they jump straight to liquidate?

I don't think they can. Someone will pick it up for a swan song

*Thread Bump*

Only time will tell

 

[dongonzalos]

What's your opinion on the final endgame here?

My take in this is;

Clearly there will never be a new ground

They may stay in Northampton for another season

Then its acquire the stadium by distress means or liquidate the lot.

I cannot ever see them returning as tenants to ACL. Can you?

..............