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dick knight email



Stevegull

Stevegull

New member
Sep 9, 2005
509
Lewes
Thanks for that. Trying to work out exactly where its all got up to isn't as easy as I thought it was going to be.

Still, enjoying the book though.
 




Goldstone1976

Goldstone1976

We Got Calde in!!
Helpful Moderator
NSC Patron
Apr 30, 2013
14,124
Herts
Lincoln Imp said:
I'm out of the loop here but I believe the situation is that the club want DK to hand over lots of money to the auditors so that they can determine that the shares are worth much less than supporters have agreed to pay for them and should in fact be sold to someone else anyway. For a penny each or something. If this is correct I imagine he must be thinking about it.
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Pretty close. The clubs rules (Articles of Association - which DK helped put in place) state that all shareholders have to first offer their shares to an existing shareholder before selling them to non-shareholders (this is a very common practice in private businesses, known as a pre-emption obligation). DK did this and received an offer of 1p/share from an existing shareholder, who chose to remain unnamed. DK was unwilling to accept the offer. The club's Articles cover the eventuality where the potential seller and potential buyer cannot agree a price. The club's auditors are engaged to independently value the shares and both the buyer and the seller are bound by the price that the auditors state. The club asked DK to pay a proportion (50% from memory, but that could be wrong) of the cost of the auditors' fees for performing the valuation. As an "out" for DK (and not required by the Articles), they also gave him a few days to withdraw his request to sell his shares and no further action would happen. Given nothing has happened for quite a few weeks, I suspect (but do not know) that DK availed himself of the club's offer and withdrew his request to sell his shares.
 










Lord Bracknell

Lord Bracknell

On fire
Jul 5, 2003
39,499
104 Upper Grosvenor Street, Mayfair
Goldstone1976 said:
Pretty close. The clubs rules (Articles of Association - which DK helped put in place) state that all shareholders have to first offer their shares to an existing shareholder before selling them to non-shareholders (this is a very common practice in private businesses, known as a pre-emption obligation). DK did this and received an offer of 1p/share from an existing shareholder, who chose to remain unnamed. DK was unwilling to accept the offer. The club's Articles cover the eventuality where the potential seller and potential buyer cannot agree a price. The club's auditors are engaged to independently value the shares and both the buyer and the seller are bound by the price that the auditors state. The club asked DK to pay a proportion (50% from memory, but that could be wrong) of the cost of the auditors' fees for performing the valuation. As an "out" for DK (and not required by the Articles), they also gave him a few days to withdraw his request to sell his shares and no further action would happen. Given nothing has happened for quite a few weeks, I suspect (but do not know) that DK availed himself of the club's offer and withdrew his request to sell his shares.
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So DK is required to shell out tens of thousands of pounds as his contribution to the auditor's fees for deciding that his shares aren't worth what people have already said they would be willing to pay?

Seems a poor deal to me.
 


Goldstone1976

Goldstone1976

We Got Calde in!!
Helpful Moderator
NSC Patron
Apr 30, 2013
14,124
Herts
Lord Bracknell said:
So DK is required to shell out tens of thousands of pounds as his contribution to the auditor's fees for deciding that his shares aren't worth what people have already said they would be willing to pay?

Seems a poor deal to me.
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I'm not sure how you read any interpretation of the situation into what I said; I was careful to simply provide statements of fact (or to highlight where I was making an assumption) and not offer an opinion of any type :shrug:
 






Not Andy Naylor

Not Andy Naylor

Well-known member
Dec 12, 2007
8,995
Seven Dials
Goldstone1976 said:
I'm not sure how you read any interpretation of the situation into what I said; I was careful to simply provide statements of fact (or to highlight where I was making an assumption) and not offer an opinion of any type :shrug:
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But His Lordship is almost certainly correct ...
 




B

BrianWade4

Well-known member
Aug 17, 2010
3,152
A nice bit of South London
Goldstone1976 said:
Pretty close. The clubs rules (Articles of Association - which DK helped put in place) state that all shareholders have to first offer their shares to an existing shareholder before selling them to non-shareholders (this is a very common practice in private businesses, known as a pre-emption obligation). DK did this and received an offer of 1p/share from an existing shareholder, who chose to remain unnamed. DK was unwilling to accept the offer. The club's Articles cover the eventuality where the potential seller and potential buyer cannot agree a price. The club's auditors are engaged to independently value the shares and both the buyer and the seller are bound by the price that the auditors state. The club asked DK to pay a proportion (50% from memory, but that could be wrong) of the cost of the auditors' fees for performing the valuation. As an "out" for DK (and not required by the Articles), they also gave him a few days to withdraw his request to sell his shares and no further action would happen. Given nothing has happened for quite a few weeks, I suspect (but do not know) that DK availed himself of the club's offer and withdrew his request to sell his shares.
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This is spot on

I am on DK's mailing list as a prospective purchaser and he said the same
 






L

Lincoln Imp

Well-known member
Feb 2, 2009
5,964
Goldstone1976 said:
Pretty close. The clubs rules (Articles of Association - which DK helped put in place) state that all shareholders have to first offer their shares to an existing shareholder before selling them to non-shareholders (this is a very common practice in private businesses, known as a pre-emption obligation). DK did this and received an offer of 1p/share from an existing shareholder, who chose to remain unnamed. DK was unwilling to accept the offer. The club's Articles cover the eventuality where the potential seller and potential buyer cannot agree a price. The club's auditors are engaged to independently value the shares and both the buyer and the seller are bound by the price that the auditors state. The club asked DK to pay a proportion (50% from memory, but that could be wrong) of the cost of the auditors' fees for performing the valuation. As an "out" for DK (and not required by the Articles), they also gave him a few days to withdraw his request to sell his shares and no further action would happen. Given nothing has happened for quite a few weeks, I suspect (but do not know) that DK availed himself of the club's offer and withdrew his request to sell his shares.
Click to expand...

It may be 50 per cent, it may be less, but the relevant question is: what do the club's auditors want to charge for valuing DK's shares? It's a straightforward task so it shouldn't be much. Any guesses?
 










Goldstone1976

Goldstone1976

We Got Calde in!!
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Apr 30, 2013
14,124
Herts
Lincoln Imp said:
It may be 50 per cent, it may be less, but the relevant question is: what do the club's auditors want to charge for valuing DK's shares? It's a straightforward task so it shouldn't be much. Any guesses?
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I do have experience of valuing private companies - I've been involved in the valuation of upwards of 20 in total. The first thing to say is that the valuation of a private company is often a much more complex issue than people first think - if you want some examples of why that is so, I can provide some. It is also to some degree subjective, as indeed is the value of publicly quoted companies. I have never been involved in the valuation of a football club, which no doubt have their own idiosyncrasies and subtleties. Given all this, it would be impossible for me to give anything more than a very broad range of fees. I would hazard a guess at a range of £15-35k.
 










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