When you buy anything it has to have value or assetts. If administators came in that is all they look at, so what are ours, as i see it now Ryton has been mortgaged just the staff, kit, balls, what else ? So the maximum price would surely be the players value, which shrinks as they edge towards the end of their contract. So what would the collective value of our playing staff be ? Would £5/6million be about right or hopeful. So the sale price surely would reflect that.
But and i don't know that much about the big business world should a potential buyer reimburse failed investments. In other words when does and investment become a loan seems to be the best of both worlds to me.
The key fact isn't the value of the club, I'd imagine you could have it for £1 now if you wanted.
The problem is you'd be inheriting £30m of debt. Currently that debt is interest free and has no repayments as it's owed to the owners. However, if the club changes hands do you seriously expect SISU to keep those terms? Why should they?
The negotiation isn't about the value of the club, it's about the terms of repayment of those loans. SISU could very easily cripple the club if they wanted, but the club going into liquidation would do them no good. So they need to agree loan terms that give them a return on investment without crippling repayments. And that's a tough negotiation.
Hoffman's initial bid wanted to pay nothing until we got promoted, and if that didn't happen in 3 years then write off the debt. To be fair to SISU that's an awful deal and they'd have been crazy to go for it.
As I've stated before, as a pure guess, I'd imagine they want an initial amount up front then a payment plan in place over the next 5-10 years. What those amounts are is the sticking point.
Thanks for all that info lads. But as a guess how much of their so called £30million investment would be an acceptable figure to be repaid ? And while we are at it what's the significance of transferring the business to the Cayman Islands ?
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