Albion buy out

[Munkfish]

the stadium surley will be commercial property owned by a company rented to us for 100years or so? which then in turn we may make money from it ticket sales etc and do as we see fit? i may be wrong! i would imagine brighton Own the land?

But still theres noway we are worth 10million pounds!

 

[Lord Bracknell]

As I understand it (but I could be wildly wrong) ...

As things stand, the Stadium Company and the Football Club are owned by broadly the same people. The City Council have an interest in the land, which will pass - no doubt, with conditions, to the Stadium Company, who will charge the Football Club to play in the Stadium. The Stadium Company will be paying off the loans that it will take to build the place. So don't expect the Football Club's rent to be low.

There are probably options on offer for new shareholders to come in and take a stake in the Stadium Company - maybe some of the financial institutions or even the Council. I think it is unlikely that the assets of the Stadium Company will ever be permitted to be sold and there may well be a covenant with the Council that will prevent this.

The Football Club will take the income from the turnstiles, but will pay rent to the Stadium Company as well as carrying the costs of running the team.

To go back to the main question ... all of this points to the value of the Football Club not being very high.

 

[mattb]

whilst i am unsure about the valuation by mr burns (i have nothing to base it on), i totally agree with his logic.

company takeovers and acquisitions aren't valued solely on assets, the potential of the business is massively taken into account when a price is being agreed upon.

the strong potential that the club has to be pulling in 20k fans every home game will drastically increase the value of the club, of course it will

 

[Alex Alex Dawson oo! oo!]

As I understand it (but I could be wildly wrong) ...

As things stand, the Stadium Company and the Football Club are owned by broadly the same people. The City Council have an interest in the land, which will pass - no doubt, with conditions, to the Stadium Company, who will charge the Football Club to play in the Stadium. The Stadium Company will be paying off the loans that it will take to build the place. So don't expect the Football Club's rent to be low.

There are probably options on offer for new shareholders to come in and take a stake in the Stadium Company - maybe some of the financial institutions or even the Council. I think it is unlikely that the assets of the Stadium Company will ever be permitted to be sold and there may well be a covenant with the Council that will prevent this.

The Football Club will take the income from the turnstiles, but will pay rent to the Stadium Company as well as carrying the costs of running the team.

To go back to the main question ... all of this points to the value of the Football Club not being very high.

For info, the clubs shareholders are (according to the annual return submitted in Dec 2007):

H R Knight 1,602,500 23.4%
W Brown 1,100,000 16.0%
A Bloom 850,000 12.4%
Pig City Incorporated Ltd 750,000 10.9%
K Griffiths 582,000 8.5%
R Bloom 535,000 7.8%
Friday ad holdings 500,000 7.3%
D Chapman 460,750 6.7%
M Hastlow 150,000 2.2%
R Pinnock 142,000 2.1%
J Gold 100,000 1.5%
J Vickers 50,000 0.7%
J Hirschel 15,000 0.2%
E David 10,000 0.1%
P Mcdonnell 10,000 0.1%
J Town 5,000 0.1%
M Perry 130 0.0%

These may have changed slightly since but I can't be arsed to look up the details now. As mentioned at the Fans Forum, a convertible loan note facility (for up to £30M) was created in May 2008; this enables any loans to the club to be repaid as shares.

The Community Stadium plc had (in May 2008) 70002 x £1 shares owned by Brighton and Hove Albion Holdings Ltd. The shares were transfered to the holding company by H R Knight (x 50000) and D Chapman (x 20002) in December 2007.