Blog: Knight won't make a "penny profit" from any share sale

[Mutts Nuts]

2 very separate issues


Abso-bloody-lutely, a feat for which he's a legend in my eyes, and always will be.


If he wanted to secure his grandchildren's future why invest in a perennial loss making business, with no assets.
The only place his shares are worth a pound is to idiots like us, assuming you'll be buying too.

Does the latter cloud the former, not really, not in the whole scheme of things.

When Dick put up the cash to save the club he was not expecting any return , now that the club is in good hands why should he not try to recoup some of it to leave his grand children i would, and yes i willl buy a few shares if they become available, if only to say thanks to the great man.Without him there would be be no BHA and no AMEX for Tony to finance

 

[symyjym]

I would like to think that blog has a fair bit of balance to it.

Right now I wouldn't consider myself either pro or anti either Bloom or Knight. I just think people shouldn't make rush judgement based on reading the most sensational extracts.

I think both are Albion legends. My overwhelming thought on it all is that I wish the pair got on.

I thought it was a fair summary in your blog for what it's worth.

 

[Mutts Nuts]

I find the most ironic part of the whole sorry saga, is that Dick doesn't want one man to be in sole charge. Yet that is exactly how he ran the club, despite the fact he wasn't in sole charge...This is the main part of the story where I think Dick loses his credibility and has scored a massive own goal...This being the over riding part of his argument, makes it appear as nothing more than stirring the shit from a man who wanted nothing more, than to be a dictator.

I agree with most of your posts KTR but not this one, without DK you, we would be supporting crawley fvuking town if we wanted to watch local football as the Albion would not exist, what a fvuking nightmare that would be

 

[Stat Brother]

When dick put up the cash to save the club he was not expecting any return , now that the club is in good hands why should he not try to recoup some of it to leave his grand children i would, and yes i willl buy a few shares if they become available, if only to say thanks to the great man

Because you can't add caveats after the event, just because your nose has been put out of joint, by a bigger fish in the pond.

On which note I'll be bowing out, as it's the bazillionth time this agrument has been had, and it'll not go anywhere.

 

[Brighton Breezy]

I didn't think it did, but then I formed the opinion earlier today that you were firmly on the side of DK, and that you were vehemently supporting him when others were questioning his motives, note the first few pages of the Chapman thread.

I am not saying your comments were unfair or biased, not at all. Just that they were as pro-DK as other posts were pro-DC. I didn't think there was much balance in many of the posts at the start of that thread.

It is my opinion that I will read the book, as well as the extracts, before deciding how I think DK comes across in the book and how accurate I feel some of the stories are. But I do think DK deserves nothing but respect and appreciation for the sacrifices he made during his tenure at the club, and that without him there would be no story to tell. What happened 2005 and onwards is a separate story, only possible because of the work of Knight, and the others who deserve their story to be told.

To be honest, I've never been one of the people who rush to publicly defend Knight. If anything, I've been critical if him over things like the sacking of Dean Wilkins and the way Dean Hammond appeared to have been dealt with in that his contract was allowed to run down.

 

[Stat Brother]

I agree with most of your posts KTR but not this one, without DK you, we would be supporting crawley fvuking town, what a fvuking nightmare that would be

He wouldn't be supporting.

More like kicking the chair out from under them, moaning they haven't got a Spanish manager, the centre forward either does or doesn't score goals, and players will never return from injury.

 

[Goldstone1976]

No mention of such an arrangement in the Annual Report

Loan is noted in note 16; and the coupon and conversion of the first £40m is in note 27; both in Holdings' accounts.

 

[Springal]

I lost about £500 in shares last year. I'm not going to write to that companies customers or chairman to ask for my money back

 

[kevtherev]

I agree with most of your posts KTR but not this one, without DK you, we would be supporting crawley fvuking town if we wanted to watch local football as the Albion would not exist, what a fvuking nightmare that would be

And without Tony Bloom, the Amex could still be a building site, or worse still a field and we would still be at Withdean possibly in div2 or worse, if in fact we still had a club at all....It's all swings and round about's, the point is Dick didn't do it all single handed. Although you could easily be forgiven for thinking that, after the last week. And many have put in just as much and in some cases a lot more, without seeking any sort of rebate or adulation for doing so.....Dick is a Albion legend but is coming across very bitter and self serving.

 

[Ninja Elephant]

To be honest, I've never been one of the people who rush to publicly defend Knight. If anything, I've been critical if him over things like the sacking of Dean Wilkins and the way Dean Hammond appeared to have been dealt with in that his contract was allowed to run down.

With respect, I don't stalk you on NSC. It's just that your posts in the DC thread earlier today were fresh in my mind when reading your blog, which I read frequently. I enjoy your writing style, if not always the content.

With regards to Dick Knight recouping monies invested in the club, I think he should be adequately re-imbursed, along with the other Directors and other contributors like Fatboy. But business is business.

 

[drew]

Out of interest, why did you use the phrase 'according to Paul Barber' which suggest you think someone at the club may have known about the share issue or possibly that you don't believe PB?

 

[symyjym]

And without Tony Bloom, the Amex could still be a building site, or worse still a field and we would still be at Withdean possibly in div2 or worse, if in fact we still had a club at all....It's all swings and round about's, the point is Dick didn't do it all single handed. Although you could easily be forgiven for thinking that, after the last week. And many have put in just as much and in some cases a lot more, without seeking any sort of rebate or adulation for doing so.....Dick is a Albion legend but is coming across very bitter and self serving.

No he's not it's just a bloody book, an autobiography.

As a fan I don't think there is any harm this being in the open and there aren’t any scandals or dodgy deals being exposed. The worst thing he said was about Brutus and that is no more than just a little bit funny.

 

[El Presidente]

I never know which of your posts to take seriously,but Dick saved our club in it`s hour of need when no one else was prepared to.Now that the club is in good hands under the new Chairman, why should he not try to recoup some of the money he used in the process to help provide his grandchildren a secure future.

Where should he recoup the money from? TB has put in £150 million and has not had a penny back.

 

[Creaky]

Loan is noted in note 16; and the coupon and conversion of the first £40m is in note 27; both in Holdings' accounts.

Note 27 under the sub heading 'Directors Loan Account' states:-

During 2012 the loans made by A. Bloom to both The Community Stadium Limited and The Brighton and Hove Albion Football Club Limited were consolidated in Brighton and Hove Albion Holdings Limited after agreement on which company within the group held this liability. At 30 June 2012, the amount owed to A Bloom by the company was £120,252,105 (2011 £94,444,923). The amount loaned is interest free and repayable after more than one year. Since the year end £40,000,000 has been converted into share capital.

Note 28 goes on to say

On 24 September 2012, 40,000,000 £1 ordinary shares were issued at par to A. Bloom

If they were shares issued via a CLN wouldn't the accounts show either a loss or a gain depending on the 'fair value' of the equity purchased?

 

[Creaky]

Where should he recoup the money from? TB has put in £150 million and has not had a penny back.

I take it from that TB doesn't receive any director's remuneration or pension contribution?

 

[El Presidente]

And without Tony Bloom, the Amex could still be a building site, or worse still a field and we would still be at Withdean possibly in div2 or worse, if in fact we still had a club at all....It's all swings and round about's, the point is Dick didn't do it all single handed. Although you could easily be forgiven for thinking that, after the last week. And many have put in just as much and in some cases a lot more, without seeking any sort of rebate or adulation for doing so.....Dick is a Albion legend but is coming across very bitter and self serving.

I'm with Kev, and we don't agree on many things.

Dick should always deserve our affection for taking on Archer and delivering the club from evil, but that does not mean that Tony Bloom should give him £2 million for some worthless pieces of paper.

 

[Ernest]

I'm with Kev, and we don't agree on many things.

Dick should always deserve our affection for taking on Archer and delivering the club from evil, but that does not mean that Tony Bloom should give him £2 million for some worthless pieces of paper.

Although Tight wants the fans who he deems worthy to buy the worthless pieces of paper

 

[Goldstone1976]

Note 27 under the sub heading 'Directors Loan Account' states:-

During 2012 the loans made by A. Bloom to both The Community Stadium Limited and The Brighton and Hove Albion Football Club Limited were consolidated in Brighton and Hove Albion Holdings Limited after agreement on which company within the group held this liability. At 30 June 2012, the amount owed to A Bloom by the company was £120,252,105 (2011 £94,444,923). The amount loaned is interest free and repayable after more than one year. Since the year end £40,000,000 has been converted into share capital.

Note 28 goes on to say

On 24 September 2012, 40,000,000 £1 ordinary shares were issued at par to A. Bloom

If they were shares issued via a CLN wouldn't the accounts show either a loss or a gain depending on the 'fair value' of the equity purchased?

What you've quoted from the accounts answers your question.

Note 27 says that TB converted £40m of loans into equity. Note 28 says that 40m shares were issued at £1 each. As it's a private company, fair value is set by transactions done. Thus by doing this, TB effectively set the "fair value" at £1/share, thus there is no gain/loss.

FWIW, I think there must be some "political" reason why TB was happy to accept only 40m shares for his £40m debt, since by any normal share valuation, the share price one would impute would be, imo, well under 10p a share. I can think of various reasons why TB might want to do that, but I have no desire to speculate on his motives.

However, that decision does allow DK to say, if he wants to, that since TB "paid" £1/share, that's what the shares are worth.

 

[Goldstone1976]

I take it from that TB doesn't receive any director's remuneration or pension contribution?

We don't know. Note 6 doesn't specify who the recipients of the Directors' remuneration were (as is permitted by the Companies Act).

 

[Beach Hut]

Perhaps DK is that skint now hence a 2nd rate book and begging for cash publicly.

Perhaps he should sit on a mat outside the Amex on matchdays with a paper cup.