Tony Bloom and his investment

[BadFish]

Have we got a video!

 

[Weststander]

In cash terms, TB pumped all the money in for the stadium, academy/training complex, and to meet the club's vast annual losses year-after-year, into the group company bank accounts 100% out of personal and private funds.

The Albion group companies then wrote the cheques to construction companies, and to meet all the usual costs/liabilities - wages, suppliers, VAT, PAYE, agents, transfer fees.

TB's funding has meant there has been next to no bank borrowing.

 

[B.W.]

Surely the cheques that were paid out to build the stadium were signed by the football club, using funds that had been provided as a loan by Tony Bloom - albeit a loan that he might not expect to be repaid? Or, to answer the original question ... no, Tony Bloom didn't pay for the stadium, the Club did.

If I'm wrong, someone who has read the accounts will no doubt correct me.

Come on LB, without TB, the stadium wouldn't have been built. He put the money into the club, the club paid the bill. It's his money, and you know it.

 

[bha100]

Someone told me today he sold his share in a betting company for £300m.

I think you'll find it was a fair amount more than that.

It was far less than you think £1.2m and out of that he made little profit if any, premierbet was losing money when he sold to IGH.

Unfortunately his attempt to bring asian handicap betting to the uk was scuppered by the emergence of betfair, he had the foresight to see what was happening and the fact he got any money for the company shows what an astute business man he is, not long after that IGH went Spectacularly tits up, Good call MR B

http://premierbet.moonfruit.com/#/the-story-so-far/4526078056

 

[Brovion]

Someone told me today he sold his share in a betting company for £300m.

Blimey, I read that as 'bedwetting company'!

 

[BensGrandad]

The stadium belongs to The Community Stadium Company Limited. The Community Stadium Company Limited charges rent of £1 million a year to Brighton and Hover Albion Limited.

Both companies are 100% owned subsidiaries of Brighton and Hove Albion Limted. Tony Bloom has 96% of the share of Brighton and Hove Albion Holdings Limited, costing about £65 million, and loans of about £120 million

In cash terms, TB pumped all the money in for the stadium, academy/training complex, and to meet the club's vast annual losses year-after-year, into the group company bank accounts 100% out of personal and private funds.

The Albion group companies then wrote the cheques to construction companies, and to meet all the usual costs/liabilities - wages, suppliers, VAT, PAYE, agents, transfer fees.

TB's funding has meant there has been next to no bank borrowing.

Thank you for answering my question. It makes a huge difference to the money that we have available to buy the players that we actually need as many people are saying spend the money received for Bridcutt and Ulloa but if as I suspect this has just gone in the general finance pot it isnt available. If however TB chose he could defer or suspend some of the repayments to make the money available for transfers but if he was only guarator to the bank it is unlikeky they would do that. Hence my question.

 

[El Presidente]

Thank you for answering my question. It makes a huge difference to the money that we have available to buy the players that we actually need as many people are saying spend the money received for Bridcutt and Ulloa but if as I suspect this has just gone in the general finance pot it isnt available. If however TB chose he could defer or suspend some of the repayments to make the money available for transfers but if he was only guarator to the bank it is unlikeky they would do that. Hence my question.

There are no repayments scheduled, and the loan has gradually been converted into shares.

 

[BensGrandad]

Thank you for explaining EP. So in theory the money received for sales of players is available for total or partial reinvestment for the team or to help meet FFP.

 

[Cheshire Cat]

The stadium belongs to The Community Stadium Company Limited. The Community Stadium Company Limited charges rent of £1 million a year to Brighton and Hover Albion Limited.

Both companies are 100% owned subsidiaries of Brighton and Hove Albion Limted. Tony Bloom has 96% of the share of Brighton and Hove Albion Holdings Limited, costing about £65 million, and loans of about £120 million

But where did the Community Stadium Company get the cash to pay for the stadium? A pensions fund?
I'm not sure of the exact details (although I do know somebody who does know about similar deals at other clubs and who mentioned the Amex deal to me - not connected in any way to BHA), but I thought the cash received from naming rights, catering, possibly merchandising and maybe other sources is used by BHA to pay off the debt to the CSC. Transfer deals tend to be self financing
The financing deal is similar to one Bolton used to finance their stadium.

I don't think Bloom is rich enough to personally sustain all the costs.

 

[PILTDOWN MAN]

But where did the Community Stadium Company get the cash to pay for the stadium? A pensions fund?
I'm not sure of the exact details (although I do know somebody who does know about similar deals at other clubs and who mentioned the Amex deal to me - not connected in any way to BHA), but I thought the cash received from naming rights, catering, possibly merchandising and maybe other sources is used by BHA to pay off the debt to the CSC. Transfer deals tend to be self financing
The financing deal is similar to one Bolton used to finance their stadium.

I don't think Bloom is rich enough to personally sustain all the costs.

Wrong

The loans are personal loans directly from Bloom (his money) there are no borrowing apart from this. That is why he is slowly converting said loans into direct shares. Bloom is a very rich man and can sustain the costs. He has stated this himself.

 

[Fef]

Blimey, I read that as 'bedwetting company'!

Clearly, you are spending too much time on NSC lately!

 

[Cheshire Cat]

So "if" we have all this cash floating around, how come we can't afford to buy or attract any good players? FFP shouldn't be an issue if this is the case.

PS I still stand by my original post above.

 

[Weststander]

Wrong

The loans are personal loans directly from Bloom (his money) there are no borrowing apart from this. That is why he is slowly converting said loans into direct shares. Bloom is a very rich man and can sustain the costs. He has stated this himself.

Yep, all correct as were previous detailed answers.

All from Bloom. Nowt do with pension funds or similar.

As for Amex naming rights, those cash inflows simply go into club funds and going towards reducing the club's accounting losses.

 

[lawros left foot]

So "if" we have all this cash floating around, how come we can't afford to buy or attract any good players? FFP shouldn't be an issue if this is the case.

PS I still stand by my original post above.

Who say we can't afford these players? Maybe the recruitment department feel all the advertised players we are supposedly in for are overpriced, and to get value for money, we have to play a waiting game. The only guaranteed signing we appear to have missed is Grabbon, and I think the club were conned a bit by his agent. All the others are only rumours and conjecture by over eager fans and inept journalists