[Football] West Ham takeover

[Lenny Rider]

Apparently someone approached the Shonky Brothers with a view to buying the Hammers, but on Talk Sport White and Jordan are discussing the levels of debt at the club.

I thought they'd be relatively debt free after selling the family home and moving into the biggest Council house in London?

 

[Springal]

Still spent a fair old whack on players, wages etc though haven't they? And their situation with the stadium is not to much different to ours, no?

 

[LamieRobertson]

Still spent a fair old whack on players, wages etc though haven't they? And their situation with the stadium is not to much different to ours, no?

I maybe am being a bit thick here….but your point re stadium…explain?

 

[Springal]

I maybe am being a bit thick here….but your point re stadium…explain?

Well we're not paying Bloom back for the stadium every month / year are we ? Was to be paid by some future date or converts to shares for Bloom?

 

[LamieRobertson]

Well we're not paying Bloom back for the stadium every month / year are we ? Was to be paid by some future date or converts to shares for Bloom?

Ok..see your point ..thick it was

 

[Springal]

Ok..see your point ..thick it was

Assume I am right. Took this from some dullards analysis of the accounts

'Brighton have been dependent upon owner Tony Bloom for over a decade. He originally was providing money for signings (such as Glenn Murray from Rochdale in 2007 for £300k) behind the scenes but since becoming chairman has underwritten the cost of the stadium, training ground and operational losses to a total of £394 million.

This investment in split between interest free loans and shares, and 2018/19 was no exception as he lent the club a further £37 million to provide funds for further infrastructure and player spending.'

 

[Comrade Sam]

Another club that has a fan base that moans about nothing. Whilst no fan of their owners, they've ended up with a massive free stadium and spent shed loads on players. Look at Lingard, we'd never be able to pay his current wages. They've had a good season because they didn't have to play at home to a deafening wall of 70,000 abusive moaners. Maybe if they'd put that energy into singing or chanting they'd have had a better time at the new ground.

 

[Kaiser_Soze]

Well we're not paying Bloom back for the stadium every month / year are we ? Was to be paid by some future date or converts to shares for Bloom?

Aren't WH leasing the stadium from the GLA? If so, that's a fixed cost that can't be coverted to shares for Gold and O' Sullivan. That's different to what we're doing with TB.

 

[Springal]

Aren't WH leasing the stadium from the GLA? If so, that's a fixed cost that can't be coverted to shares for Gold and O' Sullivan. That's different to what we're doing with TB.

That wasn’t my point. It was around being debt free because of the arrangement

 

[SAC]

I know they lost a lot due to the pandemic but they also came 6th and are in the Thursday Night Euro league, both of which must bring in some dosh.

What sort of debt were they talking about? I seriously doubt it is anywhere close to £394 mentioned above.

 

[saafend_seagull]

Aren't WH leasing the stadium from the GLA? If so, that's a fixed cost that can't be coverted to shares for Gold and O' Sullivan. That's different to what we're doing with TB.

Yeh and the rent is like £3M a year only. Having been their once that was enough for me. Awful stadium for football.

They had to pay a big amount for capex on it too, all which is sunk cost.


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[Perkino]

Assume I am right. Took this from some dullards analysis of the accounts

'Brighton have been dependent upon owner Tony Bloom for over a decade. He originally was providing money for signings (such as Glenn Murray from Rochdale in 2007 for £300k) behind the scenes but since becoming chairman has underwritten the cost of the stadium, training ground and operational losses to a total of £394 million.

This investment in split between interest free loans and shares, and 2018/19 was no exception as he lent the club a further £37 million to provide funds for further infrastructure and player spending.'

None of us have any idea how much of that loan has been paid off throughout the last decade. I know we regularly maxed out our FFP allowance so we either magically spent exactly what was deemed acceptable under FFP or we made an acceptable payment each season to take us to the limit.

Our scenario is also very different to West Ham as we own the stadium just like I own my house and have a mortgage whereas the hammers rent theirs and have to get approval for any alterations

 

[Change at Barnham]

They had to pay a big amount for capex on it too, all which is sunk cost.

What does that mean in English?

 

[HantsSeagull]

I am always slightly intrigued (confused) by this 'debt' we have to Tony. I mean he is never getting it back is he? unless he sells the club and even then it would be nothing like £400m. Is it just structured this way for tax and accounting purposes?

 

[highflyer]

What does that mean in English?

Using google translate: 'they spent a sh*tload of dosh converting a very good athletics stadium into a terrible football stadium and that's money they won't see again'

 

[Superphil]

Using google translate: 'they spent a sh*tload of dosh converting a very good athletics stadium into a terrible football stadium and that's money they won't see again'

Didn't cost WHU very much at all, here is the breakdown:

"The largest chunk of funding for the transformation comes from a one-off settlement of £148.8m from the exchequer in 2010. On top of that Newham council provided £40m through a loan (in return for a 35% stake), almost £40m came from the original £9.3bn budget for the Olympics and a further £25m from the government. UK Athletics invested £1m and the London Marathon Charitable Trust provided £3.5m.

West Ham agreed to pay £15m towards the overall conversion costs, plus a basic £2.5m a year in rent. The rest of the conversion budget is funded by London Legacy Development Corporation (LLDC)."



They pay £2.5M a year rent, and if they get relegated that is halved. It's basically a free stadium, if they have got themselves into massive debt, then it isn't to do with the stadium costs.

They don't even pay fore the stewards, that is covered by the owners/council.

 

[The red pepper kid]

i dont believe we owe TB anything as a club, this is his hobby as his grandad before him, he was un/lucky to be born blue and white and is stuck with it just like the rest of us .
TB has repeatedly said the club is not allowed to be in debt or overstretched during his reign-- which i predict is until he retires and hands it down to a n other family member ?
We might never win the premier league or Europe but stability is the aim in this or any other league we exist in.
We are off loading a lot off the wage bill currently and Potter has said we are sticking with what we have in the squad so maybe another season of just scraping it and hopefully build next season .
We are a better club in terms of unity then West Ham who are burdened with expectancy

 

[Creaky]

None of us have any idea how much of that loan has been paid off throughout the last decade. I know we regularly maxed out our FFP allowance so we either magically spent exactly what was deemed acceptable under FFP or we made an acceptable payment each season to take us to the limit.

Our scenario is also very different to West Ham as we own the stadium just like I own my house and have a mortgage whereas the hammers rent theirs and have to get approval for any alterations

I thought the Amex was owned by a separate company, albeit owned by TB, and that the club pay an annual rent for its use.

 

[SAC]

i dont believe we owe TB anything as a club, this is his hobby as his grandad before him, he was un/lucky to be born blue and white and is stuck with it just like the rest of us .
TB has repeatedly said the club is not allowed to be in debt or overstretched during his reign-- which i predict is until he retires and hands it down to a n other family member ?
We might never win the premier league or Europe but stability is the aim in this or any other league we exist in.
We are off loading a lot off the wage bill currently and Potter has said we are sticking with what we have in the squad so maybe another season of just scraping it and hopefully build next season .
We are a better club in terms of unity then West Ham who are burdened with expectancy

By we, I assume you mean the club. As of January 2021, the club owed Tony Bloom £304 million. Thankfully it is interest free and at the moment he doesn't seem to need it paying back quickly.

 

[Springal]

Our scenario is also very different to West Ham as we own the stadium just like I own my house and have a mortgage whereas the hammers rent theirs and have to get approval for any alterations

But what does any of that have to do with West Ham being in debt? My point was our arrangement is very similar to theirs - in the way that the stadium is not a burden for either of our finances