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[Albion] How much is BHA worth to TB?



M

Milano

Well-known member
Aug 15, 2012
3,387
Sussex but not by the sea
It’s well documented that TB has loaned the club ~£400m over the years, minus the ~£30m we’ve just repaid. So an outstanding debt of around £370m.
However my question is what does Tony ‘own’ in return? I assume 100% of the club, which means stadium, training ground and other assets?
Does the £370m include whatever he paid for it back in circa 2009?
How much is the club worth if he were to market it now?
I’m trying to understand if BHA as an asset is now worth more than the outstanding debt.

Do we have any resident football finance posters…..?
 






Ⓩ-Ⓐ-Ⓜ-Ⓞ-Ⓡ-Ⓐ

Ⓩ-Ⓐ-Ⓜ-Ⓞ-Ⓡ-Ⓐ

Hove / Παρος
Apr 7, 2006
6,547
Hove / Παρος
Milano said:
It’s well documented that TB has loaned the club ~£400m over the years, minus the ~£30m we’ve just repaid. So an outstanding debt of around £370m.
However my question is what does Tony ‘own’ in return? I assume 100% of the club, which means stadium, training ground and other assets?
Does the £370m include whatever he paid for it back in circa 2009?
How much is the club worth if he were to market it now?
I’m trying to understand if BHA as an asset is now worth more than the outstanding debt.

Do we have any resident football finance posters…..?
Click to expand...

If you have to ask how much it would cost you can't afford it.
 




















M

Milano

Well-known member
Aug 15, 2012
3,387
Sussex but not by the sea
Tom Hark Preston Park said:
Fan or no fan, TB is first and foremost a very shrewd businessman. He won't be losing out on the deal
Click to expand...
Bingo.
That’s what I’m actually interested in.
Is the ~£30m to TB a loan repayment or really more of a dividend payment? If he still owns 100% of the club then it’s not a loan repayment and if the club is now worth more than he has invested then he’s now making money…..
It’s not important either way in the grand scheme of things but I’m just interested.
 




Weststander

Weststander

Well-known member
NSC Patron
Aug 25, 2011
64,246
Withdean area
The book value to TB personally is the balance of director's loan account and cost of shares held.

The market value is what someone would genuinely be willing to pay for his shares. The structure of the deal eg how is the loan paid off, is an unknown.

Then there's the intangible value of the club as publicity for TB in selling StarLizard to betting syndicates. Does the success and status of the club draw in more punters?
 


beorhthelm

beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,328
this article from a year ago gives some idea of club values maybe based on recent sales/investments, rather than calculating the asset value. Bloom would be in comfortable net profit if had to sell.
though looking at the revenue to value, its not a great place to put your money.
 


M

Mancgull

Well-known member
Nov 28, 2011
4,807
Astley, Manchester
Milano said:
Bingo.
That’s what I’m actually interested in.
Is the ~£30m to TB a loan repayment or really more of a dividend payment? If he still owns 100% of the club then it’s not a loan repayment and if the club is now worth more than he has invested then he’s now making money…..
It’s not important either way in the grand scheme of things but I’m just interested.
Click to expand...
It’s a repayment of a directors loan account I would think. So no tax on withdrawal as he’s just taking the money out of the business that he previously put in. ( accountants, correct me if I’m wrong)
 




U

um bongo molongo

Well-known member
Jul 26, 2004
2,700
Battersea
Tom Hark Preston Park said:
Fan or no fan, TB is first and foremost a very shrewd businessman. He won't be losing out on the deal
Click to expand...
I’m not sure about that. This assumes he sees it as a business deal. But successful businessmen also need something to spend their money on. Branson spends his on Caribbean islands, Bezos on rockets and it’s feasible TB chooses to spend his on the Albion as he loves it. I’m sure he’s doing it in the most sensible (and tax efficient) way, but I wouldn’t be surprised if he writes off some of the loan as an ‘investment’ at some stage.
 


nwgull

nwgull

Well-known member
Jul 25, 2003
13,828
Manchester
Mancgull said:
It’s a repayment of a directors loan account I would think. So no tax on withdrawal as he’s just taking the money out of the business that he previously put in. ( accountants, correct me if I’m wrong)
Click to expand...
Not an accountant, but this is correct. A dividend would indeed be taxable.
 


Paulie Gualtieri

Paulie Gualtieri

Bada Bing
NSC Patron
May 8, 2018
9,313


T

timbha

Well-known member
Jul 5, 2003
9,932
Sussex
Intangible assets such as brand value, goodwill and TB’s database will be valued at whatever TB wants to value them at if he was to sell.
 




Garry Nelson's Left Foot

Garry Nelson's Left Foot

Well-known member
Jul 7, 2003
13,137
tokyo
beorhthelm said:
this article from a year ago gives some idea of club values maybe based on recent sales/investments, rather than calculating the asset value. Bloom would be in comfortable net profit if had to sell.
though looking at the revenue to value, its not a great place to put your money.
Click to expand...
How much can that article be trusted? It has seven U.S clubs in the top 30 most valuable football clubs. I'll happily admit that finance/economics is not my strong point but how can U.S teams be considered that valuable? They have no fanbase or global recognition, play in a crap league and bring in less money than every team in the premier league(and inevitably every other team in the list).

How can they be valued so highly?
 


beorhthelm

beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,328
Garry Nelson's Left Foot said:
How much can that article be trusted? It has seven U.S clubs in the top 30 most valuable football clubs. I'll happily admit that finance/economics is not my strong point but how can U.S teams be considered that valuable? They have no fanbase or global recognition, play in a crap league and bring in less money than every team in the premier league(and inevitably every other team in the list).

How can they be valued so highly?
Click to expand...
probably by looking at invested amounts. if someone has paid say $100m for a 10% stake in LA Galaxy, its valued at $1bn. how investors arrive at that price, based on things you mention, is upto them.
 


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