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tnb 5:30 Fri Apr 17
Selling the club, post OS move

Afternoon all.

This is something that has been confusing me for a while now. It may well be that I have missed something somewhere, in which case I would be more than happy to be put on the right track.

Something which gets mentioned a lot on here over recent months (it just popped up on the Steve Mclaren thread for example) is the idea/ assumption that Gold and Sullivan have half an eye on selling up to new mega-rich owners once we are installed in Stratford with all the (hopefully) increased profile, etc, that should bring. It seems particularly relevant right now, as many people are assuming it will have a bearing on their decision about a new manager/ retaining Allardyce, and presumably also on their level of investment over the next few seasons, hence it being brought up on threads about potential candidates, the prospect of a new contract for Allardyce, and so on. Most people seem to think that the board face a straight choice between showing real ambition or trying to ensure a steady passage towards the OS and a potential sale, and , it seems to be assumed, a tidy profit.

But isn't there a clause in our deal for the OS that Gold and Sullivan have to effectively 'pay back' a large proportion of any profit from selling the club after the move? I certainly thought there was. Has this been forgotten, or as I say have I missed something whereby they managed to avoid or at least water down this condition? Because if it does exist, surely that makes this perceived mercenary motive less likely (as it would be much less profitable)?

This doesn't seem to have been widely reported, but I remember it being mentioned - I think around the time of the judicial review - and I did manage to find this article making reference to it.

http://m.bbc.co.uk/sport/olympics/20603585

According to that, the clause would seem to stand for the whole of the 99 year lease, and if the details are correct then it would appear they would have to give up 50 percent of any profit.

Now, again assuming the sums in this article are roughly correct, it would seem that the board could legitimately take around 120 million between them before it counted as profit (50m for the initial purchase price, plus 70m of absorbed debt). That's none too shoddy, clearly, but it is only getting back what they have already paid out after all. Beyond that, if it is 50% which they would have to give up, we're really not talking about massive amounts in terms of football club owners are we. Bear in mind that Man City was sold for 'only' around 200 million - so even if we were to get an offer for that amount, you're talking 80 million profit, of which Gold and Sullivan between them would only be able to keep 40 million.

Its hardly 'take the money and run' style sums, is it? Especially for all the work they will have then put in for at least 4 or 5 years, plus. Does anyone else think that we may be being a little unfair on the board, if this is true?

Nagel 11:05 Sat Apr 18
Re: Selling the club, post OS move

Seeing that the owners have been bigging up what the estimated value of the club will be post move since 2011 I would say that they're definitely looking at a buy out at some stage.

If they were talking figures on increased turnover that would be something else, but the estimated worth of the club itself that they're putting out is irrelevant except to investors.

Annony 4:08 Sat Apr 18
Re: Selling the club, post OS move

Regards the sell on caveat, this is unlikely to restrict G&S from selling some of their shares providing they retain majority control, in this case they can sell 49% to an investor with a proviso to transfer the remaining 2%+ after 10 years.

With the additional £50m revenue I can see G&S going for glory in the first seasons to get us in the Champions League increasing the clubs worth for sale. If the new Manager and the team struggles I can see them jumping ship.

Annony 3:54 Sat Apr 18
Re: Selling the club, post OS move

Gavros interesting, thanks for doing the sums!

£50m additional revenue per season will buy a team fit for Europe and fill the stadium, cheap tickets won't last long. Can see it going back to near 80k in time, and or more corporate.

AKA ERNIE 12:50 Sat Apr 18
Re: Selling the club, post OS move

Won't be any shortage of investors

Stevethehammer 12:13 Sat Apr 18
Re: Selling the club, post OS move

Surely this is a long term plan for DS and DG they will forever be in our history as the owners who took this club into the Olympic stadium and started the chain of events that (hopefully) will see us one day become champions of England and of Europe.
There no way that clubs like man city to the biggest extent and to the lesser like Hull would have been taken over by a stinking rich owner if they continued playing in outdated stadiums. Football lost the game aspect years ago and outdated rotting stadiums has that nostalgia for fans but not for owners and foreign ones at that, their not commercially viable and it's more about keeping sponsors happy etc etc.
I would be very surprised that if in five years DS and DG are still here in full ownership capacity. I can see an Arab, Russian or Chinese billionaire wanting west ham as his new plaything.

Sarah Ballpalsy 12:01 Sat Apr 18
Re: Selling the club, post OS move

I'll be gobsmacked if they ever sell.


Young Jack will be mentored to take over.

tnb 11:46 Fri Apr 17
Re: Selling the club, post OS move

Dfed22 -

I know - dont worry, it will never catch on though.

Arko 11:36 Fri Apr 17
Re: Selling the club, post OS move

I cannot for the life of me see Allardyce leading out our team into the OS for our first game.
He'll probably be managing our opposition if our first game in the OS should be against Sunderland or one of the recently promoted sides...

Johnson 11:32 Fri Apr 17
Re: Selling the club, post OS move

Let's hope the first step in that journey is getting rid of that fucking DOLLOP in charge then.

dicksie3 11:31 Fri Apr 17
Re: Selling the club, post OS move

The owners and TITS MCGEE have done their sums...

They know how much more money we should make...

Gavros and Steve P are probably not too far off though, I reckon...

This whole move should (SHOULD) transform us as a club and turn us into somewhat of a force...

Arko 11:22 Fri Apr 17
Re: Selling the club, post OS move

Wow! 50-60 million would be massive. But even at 20 million a season this could not be sniffed at.
Even in todays transfer fee inflated era 20 million gets you one or two very decent players.

I'm sure soon enough the finer financial implications will come out, but the more I think about this the more the decision to move into the OS becomes a no brainer really.

We've been at the Boleyn for more than 110 years.
Most clubs eventually build a new ground eventually or do the old,one up properly.
This was an opportunity too good to miss.

dicksie3 11:16 Fri Apr 17
Re: Selling the club, post OS move

Yeah, it's got to be around that mark, UNCLE P SON... £50m-£60m more per season...

THE DRUIDS think our £1bn-worth joint-owners are a pair of idiots who can't add-up and that we're going to bankrupt ourselves by moving to a ground that we're paying fuck-all for in conversion costs and annual-rent...

They know how much money this move should make for the club to the nearest penny... As does TITS MCGEE, of course...

Gavros 11:13 Fri Apr 17
Re: Selling the club, post OS move

I guess the annual numbers are what influences their belief that the club will be worth £400 mil versus the £100 or so they paid for it, minus the outstanding debt (now owed to them).

Steve P 11:12 Fri Apr 17
Re: Selling the club, post OS move

And who in their right mind wouldn't build around that, Arko?

Arko 11:10 Fri Apr 17
Re: Selling the club, post OS move

Dicksie, this sell on fee for profit share only applies for the first ten years (not sure if first ten years after being announced as anchor concessionaires or ten years after our first game in the OS), but if Gold&Sullivan pass the club on to their kids eventually and they decide to sell up in 11 years, the profit would be all theirs...

Side of Ham 11:10 Fri Apr 17
Re: Selling the club, post OS move

So the cheapest seats will be he ones furthest away from the pitch, noooooooooooooooooooooooooo!!!!!!

Steve P 11:08 Fri Apr 17
Re: Selling the club, post OS move

I'd guess it will be more like £50 million, extra per season which will catapult us into the very top echelon, financially.

As I've said, the other trick is to match that on the pitch.

dicksie3 11:04 Fri Apr 17
Re: Selling the club, post OS move

Gavros is probably right... £20m-a-year more sounds like the absolute bare minimum to me and seems some way short...

£60m-a-year more would certainly make a significant difference to the club...

The government know how good a deal we've got and how lucrative it should be to the club which is why they're insisting in taking a cut of any sale fee should our owners sell-up at some point in the future...

The club's valuation has already more than doubled since we were awarded anchor-tenant status at the stadium...

Johnson 11:04 Fri Apr 17
Re: Selling the club, post OS move

You can probably raise the seat revenue to be fair due to this COMPARABLE business which I think sees people paying the same or more than now.

The cheaper seats will be the ones scattered in the gods, just so they can say tickets are cheaper (in that there are cheaper options) and all the precious cunts can pretend they haven't been taken in by it all.

Steve P 11:03 Fri Apr 17
Re: Selling the club, post OS move

Anyone else increasing their capacity by 19,000 or more are also lumbered with the costs of rebuilding their stadium, something West Ham won't suffer.

Gavros 10:59 Fri Apr 17
Re: Selling the club, post OS move

Those were numbers I did a while back. In reality much fewer clubs seats so reduce that by about £15 mil.

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