Dick Knight

[cjd]

We are always going to struggle to meet valuations and I think we are going to have to live with that for the time being. Certainly as far as Whing goes, a valuation was not part of the deal as he was going to be free to join us.

We have to stick to our budget and that is fair enough. We can't afford to be reckless on the finances front, certainly if we want(ed) to attract funding and grants for the stadium.

Good morning BOF, sorry for the delay in replying (fell asleep after consuming two large bottles of Beck's in the afternoon........I,m a serious lightweight with alcohol..!).
I am not advocating "reckless" spending...aka Leeds....but a more progressive investment in the playing side.
The business of attracting funding etc in the future does worry me. My experience of banks and financial Institutions, is that they lend to businesses on the way UP, and won't touch businesses on the way down with a bargepole. If the present trend of dwindling support continues, and I was the bank manager being asked for a £25 million loan (to be repaid on the basis of attracting a MINIMUM of 12000 supporters each week) , my answer would be a resounding ....NO.
Prudence is one thing.....but waiting around for the next Bobby Zamora to turn up and save the day, is not my idea of an attractive business proposition..............IMHO.

 

[Harty]

Yes. But only when we've got a replacement lined up.

So Ed can you please clarify this for me, you are advocating a change of manager?

 

[El Presidente]

The business of attracting funding etc in the future does worry me. My experience of banks and financial Institutions, is that they lend to businesses on the way UP, and won't touch businesses on the way down with a bargepole.

I don't want to appear rude, but no bank will touch the Albion in the present financial climate. Who in their right mind would lend to a company that has not made a profit for 20 years, with no assets?

 

[Icy Gull]

I don't want to appear rude, but no bank will touch the Albion in the present financial climate. Who in their right mind would lend to a company that has not made a profit for 20 years, with no assets?

So the Albion have no bank loans at present and everything is funded from the directors' pockets??

 

[El Presidente]

So the Albion have no bank loans at present and everything is funded from the directors' pockets??

The Albion have an overdraft of £235k, about £8million of debt has come from the directors. In addition we owe the taxman over £800k and suppliers a further £800k.

 

[algie]

The Albion have an overdraft of £235k, about £8million of debt has come from the directors. In addition we owe the taxman over £800k and suppliers a further £800k.

ARE THE DIRECTORS CHARGING INTEREST?

IF NOT THEN WE ARE NOT REALLY THAT BADLY OFF IF THE DIRECTORS ARE IN NO RUSH FOR THERE DOSH

 

[Timbo]

about £8million of debt has come from the directors.

What does that mean?

 

[dougdeep]

Certain directors are putting money in on a monthly basis just to keep us afloat, it's not a bottomless pit though, we need new investors soon.

 

[algie]

Certain directors are putting money in on a monthly basis just to keep us afloat, it's not a bottomless pit though, we need new investors soon.

Why do we need investors? I thought the poker player was a mulity millionaire and Chapman is worth a millions?

 

[SULLY COULDNT SHOOT]

Don't get me wrong.

I'm not saying Wilkins isn't to blame. If he can't do the job, he should go. But I don't blame Dick Knight for appointing him in the first place. Wilkins had shown all the signs of having the potential to make it as a manager. He's now showing signs of losing the plot.

As for getting the crowds back ... we need to win a few games. And a much tougher manager might be needed to do that.

Thıs worries me. If LB is beginning to lose faith then something IS wrong. As I wasn't expecting anything better than about 15th this season I wasn't worrying but obviously I'm missing something.

 

[El Presidente]

What does that mean?

It means the directors have either given the club money directly (£563k) or indirectly through companies that they own (£7.042million).

THese figures are at 30 June 2005, I expect them to be far worse than that now

 

[Icy Gull]

It means the directors have either given the club money directly (£563k) or indirectly through companies that they own (£7.042million).

THese figures are at 30 June 2005, I expect them to be far worse than that now

Are these amounts likely to be offset against an interest in Falmer? I was under the impression that this would be a completely separate company so can that be possible? In other words are these loans because of a love of the Albion or is there an (understandable) promise of something back?

 

[Bish Bosh]

With planning permission for Falmer confirmed, the value of the club should be transformed? I'm not a financial expert so please tel me where I'm wrong if not.

QPR is likely to be bought for £22m soon. So aren't we likely to be bought out?'
Ive always thought high profile figures could be intersted , keen to be associated with the Brighton city 'brand'.

 

[dougdeep]

With planning permission for Falmer confirmed, the value of the club should be transformed? I'm not a financial expert so please tel me where I'm wrong if not.

It's not confirmed yet, and it will still take time to get money in place and to get new investment.

 

[cjd]

I don't want to appear rude, but no bank will touch the Albion in the present financial climate. Who in their right mind would lend to a company that has not made a profit for 20 years, with no assets?

Indeed, I agree totally with you. I understood that the club would be borrowing substantial funds for Falmer, and a minimum gate of 12,000 a game was required to fund that loan...?
Will a Bank, in the future, consider the Albion will have assets, which would be a Stadium, built on Council owned land...? A stadium, that if iit doesn,t attract enough supporters, will only be able to host two other events a year....?

 

[balloonboy]

These debates always amuse me.....they seem to crop up at the most ludicrous of times. Perspective is not one of those things which NSC seems to do well. However, here's an attempt:

We are a matter of a couple of weeks away from being certain that the Albion's financial future is secure. The fact that we still exist as a football club is due massively to the efforts of DK. The fact that we are in the bottom half of the third tier of English football is entirely in keeping with our current circumstances, and also pretty much a reflection of where we've always been, historically.

We are THREE games into the season. A few years ago the newspapers didn't even publish league tables until about four games had been played!

DK may have got it wrong with a few managerial appointments, but in the circumstances they were made, I think they were reasonable decisions. But let's not forget the RIGHT decisions he made:

Micky Adams
Steve Coppell
Peter Taylor
Mark McGhee (don't argue this one - he got a pretty average team promoted, then miraculously kept them up)

He also has a superb record in the transfer market, getting way above the odds for players like Virgo, Harding, Henderson, Knight, etc.

Once the appeal deadline has passed, I'm sure there'll be some changes....DK will possibly step down as chairman, and presumably relinquish some of his shareholding. Other investors will come in. The Blooms will presumably get more involved?? Perry will get on with delivering the stadium. Funds will be available for team strengthening. We will almost certainly have a new manager.

DK will have achieved the goal he set out to achieve in 1996/97. Against all the odds. And NSC can get on with the essential task of criticising the next chairman.

 

[dougdeep]

These debates always amuse me.....they seem to crop up at the most ludicrous of times. Perspective is not one of those things which NSC seems to do well. However, here's an attempt:

We are a matter of a couple of weeks away from being certain that the Albion's financial future is secure. The fact that we still exist as a football club is due massively to the efforts of DK. The fact that we are in the bottom half of the third tier of English football is entirely in keeping with our current circumstances, and also pretty much a reflection of where we've always been, historically.

We are THREE games into the season. A few years ago the newspapers didn't even publish league tables until about four games had been played!

DK may have got it wrong with a few managerial appointments, but in the circumstances they were made, I think they were reasonable decisions. But let's not forget the RIGHT decisions he made:

Micky Adams
Steve Coppell
Peter Taylor
Mark McGhee (don't argue this one - he got a pretty average team promoted, then miraculously kept them up)

He also has a superb record in the transfer market, getting way above the odds for players like Virgo, Harding, Henderson, Knight, etc.

Once the appeal deadline has passed, I'm sure there'll be some changes....DK will possibly step down as chairman, and presumably relinquish some of his shareholding. Other investors will come in. The Blooms will presumably get more involved?? Perry will get on with delivering the stadium. Funds will be available for team strengthening. We will almost certainly have a new manager.

DK will have achieved the goal he set out to achieve in 1996/97. Against all the odds. And NSC can get on with the essential task of criticising the next chairman.

Post of the week.

 

[El Presidente]

With planning permission for Falmer confirmed, the value of the club should be transformed? I'm not a financial expert so please tel me where I'm wrong if not.

QPR is likely to be bought for £22m soon. So aren't we likely to be bought out?'
Ive always thought high profile figures could be intersted , keen to be associated with the Brighton city 'brand'.

You are 100% wrong.

There is no 'value' in Falmer, for every £1 increase in the assets (i.e. the stadium), there will be an extra £1 of liability (money due to the bank).

It's a bit like buying a house. If you move from having a £100,000 house with a £90,000 mortgage, the value of your (i.e the owners) investment is therefore £10,000.
Just because you then move to a bigger, £1million house and then have to take out a £990,000 mortgage you still have the same value of investment, £10,000......as well as having to find a lot more money each month to meet the mortgage payments.

 

[dougdeep]

Some people on here seem to think that the stadium will belong to the Albion.

 

[Herr Tubthumper]

You are 100% wrong.

There is no 'value' in Falmer, for every £1 increase in the assets (i.e. the stadium), there will be an extra £1 of liability (money due to the bank).

It's a bit like buying a house. If you move from having a £100,000 house with a £90,000 mortgage, the value of your (i.e the owners) investment is therefore £10,000.
Just because you then move to a bigger, £1million house and then have to take out a £990,000 mortgage you still have the same value of investment, £10,000......as well as having to find a lot more money each month to meet the mortgage payments.

And you're not 100% right either. Potential and future revenue steams affect the value of a club...not just the bricks and mortar. The Glazers saw this in the value of Man United. Potential and future revenue streams are whatever you feel you can make them to a degree.