Takeover

[Bob Fossil]

As Fulham keeps kindly pointing out, with no hint of condescension or arrogance, a lot of this is beyond plebs like me but, what I glean from his expert analysis is that, even if our new owner is the richest bloke on the planet, it is irrelevant, as FFP is going to screw us anyway and the fire sale is inevitable. We may as well, therefore, end this thread and come back in February.

What's everybody having for tea.

So if you're a financially stable club in this division is there any advantage in having a mega rich owner?  I guess they can spend in other areas like training facilities,  the ground etc

You can buy promotion at the risk of huge FFP sanctions (see FOSUN/Mendes/Wo1ve5 in 2017/18). Do often find it surprising Coates family at Sjoke haven't gone down this route last couple of years.

We spent squillions in the build up to relegation. We spent squillions to build a bland mid-table team in our first year back in the Championship. 

Basically, whilst it shouldn't be a hindrance to spend money like it's going out of fashion, in our case it's definitely no guarantee of success, and would in all probability lead us to massive points deductions and a relegation to League 1. 

Also, although they're not averse to manipulating the system to gain advantage, such as selling the ground to themselves, they're not the sort to deliberately 'break' the rules. Coates Senior always took pride in having his place on the FA, and wouldn't want Junior sullying the family reputation.

I guess this proves that having money alone is no guarantee of success, you need a good infrastructure, scouting and management, not to mention good coaching, oh, and a few good players does no harm. 
What you have though, DK, that we don't, is security. Sooner or later, you are going to hit on the right coach and you will have a solid base to really look higher.
That's what I hope we get from this takeover. A solid, secure base from which to build from.

[Kit Kat Chunky]

Jim Ratcliffe investment in Man U has been annnounced, subject to regulatory approval. We could do the same, if it suited us and the purchaser to do so.

The due diligence shouldn't take long. The accounts are produced, granted if they were still done by PwC they would have more international recognition. Legal work is fairly straightforward. Taking Christmas out of the equation, 4-6 weeks should be achievable.

[Fulham Fallout]

As Fulham keeps kindly pointing out, with no hint of condescension or arrogance, a lot of this is beyond plebs like me but, what I glean from his expert analysis is that, even if our new owner is the richest bloke on the planet, it is irrelevant, as FFP is going to screw us anyway and the fire sale is inevitable. We may as well, therefore, end this thread and come back in February.

What's everybody having for tea.

I missed this post.

I was referring to Prag's post, which was a post replying to a post from Kit Kat C.  Both of these posters have backgrounds in finance. Prag's post contained numerous financial jargon which I felt the majority of people who don't have a background in finance, would naturally struggle to understand.  My post wasn't intended to be condescending or arrogant, but a realistic assumption. The same as I wouldn't understand any professional / expert talking about their area of specialism that I was unfamiliar with (Lawyers / Doctors / Motor mechanics etc).


The new owners could after taking over the club, lend the club funds at a low (or zero interest rate) or have a rights share issue and use these funds to repay the MSD loan in order to reduce the high interest charges which will impact FFP.

The new owners could, insist the loans that were made by the club (Baldies original and Lai's subsequent ones) are re-paid as part of the deal. This again would benefit us from a FFP position.

[Bazabaggie73]

The F&P test is neither fit nor proper. Think in all the years it has existed the number of potential owners who have failed could be counted on one hand (and not a Dingle hand).

Welcome Laurence bassini knowing our luck?

[Pragmatist]

Jim Ratcliffe investment in Man U has been annnounced, subject to regulatory approval. We could do the same, if it suited us and the purchaser to do so.

The due diligence shouldn't take long. The accounts are produced, granted if they were still done by PwC they would have more international recognition. Legal work is fairly straightforward. Taking Christmas out of the equation, 4-6 weeks should be achievable.

The United situation is somewhat different as they are listed on the NYSE.  Reaching agreement with Ratcliffe would be a disclosable event under NYSE rules. 

Also, our last audited accounts produced are only up to June 2022.  The audited accounts to June 2023 won’t have been done yet, let alone for a prior from June 2023 up to the date of any agreement.

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As Fulham keeps kindly pointing out, with no hint of condescension or arrogance, a lot of this is beyond plebs like me but, what I glean from his expert analysis is that, even if our new owner is the richest bloke on the planet, it is irrelevant, as FFP is going to screw us anyway and the fire sale is inevitable. We may as well, therefore, end this thread and come back in February.

What's everybody having for tea.

I missed this post.

I was referring to Prag's post, which was a post replying to a post from Kit Kat C.  Both of these posters have backgrounds in finance. Prag's post contained numerous financial jargon which I felt the majority of people who don't have a background in finance, would naturally struggle to understand.  My post wasn't intended to be condescending or arrogant, but a realistic assumption. The same as I wouldn't understand any professional / expert talking about their area of specialism that I was unfamiliar with (Lawyers / Doctors / Motor mechanics etc).


The new owners could after taking over the club, lend the club funds at a low (or zero interest rate) or have a rights share issue and use these funds to repay the MSD loan in order to reduce the high interest charges which will impact FFP.

The new owners could, insist the loans that were made by the club (Baldies original and Lai's subsequent ones) are re-paid as part of the deal.  This again would benefit us from a FFP position.

I believe there will be a minimum interest period under the MSD loan.  It may not be possible to repay it (without penalty) until that period is up.

[Kit Kat Chunky]

Draft accounts, possibly Accountant produced will probably be in the pack, Prag. Don't forget JRP took us off AIM to reduce scrutiny. That argument goes both ways!

[Fulham Fallout]

Draft accounts, possibly Accountant produced will probably be in the pack, Prag. Don't forget JRP took us off AIM to reduce scrutiny. That argument goes both ways!

There’s more than that required KKC

From the EFL handbook…..

In any proposed change of control, the Club must submit up to date Future Financial Information including projected profit and loss accounts, cash flow data, balance sheets, and relevant explanatory notes. This will need to cover the current season (or what remains of it) and all of the following season, taking into account the consequences of the change of control of the Club's future financial position.

The independent Club Financial Reporting Unit reviews this and applies 'sensitivities' to the forecast to enable it to estimate how much may be needed should revenue uplifts or cost savings not be achieved.

In short, the purpose of this Future Financial Information is to allow the League to assess how much cash is required to run the Club.

The new owners are expected to follow the Future Financial Information for the period post-acquisition.

[Topman]

Sorry this all goes over head a bit. Is there any further developments at the moment, captain please? Anyone?

[Fulham Fallout]

Sorry this all goes over head a bit. Is there any further developments at the moment, captain please? Anyone?

It means the club needs to prepare accounts (actual date up to say 30th November) and forecasted date to 30 june 2024. The accounts are to comprise the profit & loss accounts, balance sheets and cash flow forecasts.

The club also needs to prepare forecasted accounts to 30 June 2025.  Again profit & loss account, balance sheet and cash flow forecasts 

The EFL will then review the data and look at some scenarios if for example projected revenue from player sales doesn’t happen, if we can’t loan out players, if clubs don’t take up options on players currently out on loan, etc.

[Pragmatist]

Draft accounts, possibly Accountant produced will probably be in the pack, Prag. Don't forget JRP took us off AIM to reduce scrutiny. That argument goes both ways!

Agreed but I’m sure the buyers will want those draft acccounts independently verified, if not fully audited.   Trusting Lai & Co based on unverified accounts would be a step too far I think!

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Draft accounts, possibly Accountant produced will probably be in the pack, Prag. Don't forget JRP took us off AIM to reduce scrutiny. That argument goes both ways!

Agreed but I’m sure the buyers will want those draft acccounts independently verified, if not fully audited.   Trusting Lai & Co based on unverified accounts would be a step too far I think!