[Albion] How much is BHA worth to TB?

[Milano]

It’s well documented that TB has loaned the club ~£400m over the years, minus the ~£30m we’ve just repaid. So an outstanding debt of around £370m.
However my question is what does Tony ‘own’ in return? I assume 100% of the club, which means stadium, training ground and other assets?
Does the £370m include whatever he paid for it back in circa 2009?
How much is the club worth if he were to market it now?
I’m trying to understand if BHA as an asset is now worth more than the outstanding debt.

Do we have any resident football finance posters…..?

 

[Joey Jo Jo Jr. Shabadoo]

Do we have any resident football finance posters…..?

We have an in house DULLARD.

 

[Ⓩ-Ⓐ-Ⓜ-Ⓞ-Ⓡ-Ⓐ]

It’s well documented that TB has loaned the club ~£400m over the years, minus the ~£30m we’ve just repaid. So an outstanding debt of around £370m.
However my question is what does Tony ‘own’ in return? I assume 100% of the club, which means stadium, training ground and other assets?
Does the £370m include whatever he paid for it back in circa 2009?
How much is the club worth if he were to market it now?
I’m trying to understand if BHA as an asset is now worth more than the outstanding debt.

Do we have any resident football finance posters…..?

If you have to ask how much it would cost you can't afford it.

 

[Milano]

If you have to ask how much it would cost you can't afford it.

What a f***ing stupid reply.

 

[Tom Hark Preston Park]

Fan or no fan, TB is first and foremost a very shrewd businessman. He won't be losing out on the deal

 

[mejonaNO12 aka riskit]

I’m trying to understand if BHA as an asset is now worth more than the outstanding debt.

Balance sheet to see assets Vs liabilities?

 

[Milano]

Balance sheet to see total assets Vs total liabilities?

Thanks, is that public info?

 

[Gazwag]

Thanks, is that public info?

Find and update company information - GOV.UK

Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity

find-and-update.company-information.service.gov.uk

 

[Gazwag]

Find and update company information - GOV.UK

Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity

find-and-update.company-information.service.gov.uk

But bearing in mind the club assets do not include the stadium or training ground

 

[Ⓩ-Ⓐ-Ⓜ-Ⓞ-Ⓡ-Ⓐ]

What a f***ing stupid reply.

Blimey, your a cheerful chappy

 

[Milano]

Fan or no fan, TB is first and foremost a very shrewd businessman. He won't be losing out on the deal

Bingo.
That’s what I’m actually interested in.
Is the ~£30m to TB a loan repayment or really more of a dividend payment? If he still owns 100% of the club then it’s not a loan repayment and if the club is now worth more than he has invested then he’s now making money…..
It’s not important either way in the grand scheme of things but I’m just interested.

 

[Weststander]

The book value to TB personally is the balance of director's loan account and cost of shares held.

The market value is what someone would genuinely be willing to pay for his shares. The structure of the deal eg how is the loan paid off, is an unknown.

Then there's the intangible value of the club as publicity for TB in selling StarLizard to betting syndicates. Does the success and status of the club draw in more punters?

 

[beorhthelm]

this article from a year ago gives some idea of club values

https://www.forbes.com/lists/soccer-valuations/?sh=21ee9394198b

maybe based on recent sales/investments, rather than calculating the asset value. Bloom would be in comfortable net profit if had to sell.
though looking at the revenue to value, its not a great place to put your money.

 

[Mancgull]

Bingo.
That’s what I’m actually interested in.
Is the ~£30m to TB a loan repayment or really more of a dividend payment? If he still owns 100% of the club then it’s not a loan repayment and if the club is now worth more than he has invested then he’s now making money…..
It’s not important either way in the grand scheme of things but I’m just interested.

It’s a repayment of a directors loan account I would think. So no tax on withdrawal as he’s just taking the money out of the business that he previously put in. ( accountants, correct me if I’m wrong)

 

[um bongo molongo]

Fan or no fan, TB is first and foremost a very shrewd businessman. He won't be losing out on the deal

I’m not sure about that. This assumes he sees it as a business deal. But successful businessmen also need something to spend their money on. Branson spends his on Caribbean islands, Bezos on rockets and it’s feasible TB chooses to spend his on the Albion as he loves it. I’m sure he’s doing it in the most sensible (and tax efficient) way, but I wouldn’t be surprised if he writes off some of the loan as an ‘investment’ at some stage.

 

[nwgull]

It’s a repayment of a directors loan account I would think. So no tax on withdrawal as he’s just taking the money out of the business that he previously put in. ( accountants, correct me if I’m wrong)

Not an accountant, but this is correct. A dividend would indeed be taxable.

 

[Paulie Gualtieri]

this article from a year ago gives some idea of club values

https://www.forbes.com/lists/soccer-valuations/?sh=21ee9394198b

maybe based on recent sales/investments, rather than calculating the asset value. Bloom would be in comfortable net profit if had to sell.
though looking at the revenue to value, its not a great place to put your money.

Interesting that they value Crystal Palace more than Villa

 

[timbha]

Intangible assets such as brand value, goodwill and TB’s database will be valued at whatever TB wants to value them at if he was to sell.

 

[Garry Nelson's Left Foot]

this article from a year ago gives some idea of club values

https://www.forbes.com/lists/soccer-valuations/?sh=21ee9394198b

maybe based on recent sales/investments, rather than calculating the asset value. Bloom would be in comfortable net profit if had to sell.
though looking at the revenue to value, its not a great place to put your money.

How much can that article be trusted? It has seven U.S clubs in the top 30 most valuable football clubs. I'll happily admit that finance/economics is not my strong point but how can U.S teams be considered that valuable? They have no fanbase or global recognition, play in a crap league and bring in less money than every team in the premier league(and inevitably every other team in the list).

How can they be valued so highly?

 

[beorhthelm]

How much can that article be trusted? It has seven U.S clubs in the top 30 most valuable football clubs. I'll happily admit that finance/economics is not my strong point but how can U.S teams be considered that valuable? They have no fanbase or global recognition, play in a crap league and bring in less money than every team in the premier league(and inevitably every other team in the list).

How can they be valued so highly?

probably by looking at invested amounts. if someone has paid say $100m for a 10% stake in LA Galaxy, its valued at $1bn. how investors arrive at that price, based on things you mention, is upto them.